States of America.Mr.Chairman, fellow governors, distinguished guests, it is my pleasure and my privilege to present the President of the United States.Thank you very much, Secretary Miller, Chairman Jamal, Mr.Delarosiere, Mr.McNamara, Governors of the Fund and the Bank, distinguished delegates and guests.It's a special pleasure for me as President of our country to welcome you again for this meeting, which is so important to the entire world.This is the 35th annual meeting of his two great institutions, and it's also a special pleasure for me to welcome the new members.Your presence here symbolizes a commitment of more than 140 countries to a dynamic system of international Economic Cooperation and to its central institutions, as you well know, the International Monetary Fund and the World Bank.Your commitment strengthens the prospects for a lasting peace, because peace cannot be assured if hundreds of millions of people are offered no hope of escape from hunger or poverty or economic instability or deprivation.The Bank and the Fund provide that hope.Both institutions are rapidly adapting to new circumstances and new changes, and also new challenges.We support this process of adapting to change.The response of a changing world can best be charted within these institutions, acting in your own fields of competence and experience.Your work should not be diverted by extraneous political disputes.And as you mold and adapt, you must be assured that your decisions will not be determined or renegotiated in some other meeting.Your record of success justifies this vote of confidence.Any political pressure or unwarranted influence from any international forum which might undermine your integrity would be neither necessary nor desirable.The Fund is the world's principal official source of balance of payments financing so far this year.Fund programs of more than 5 1/2 billion dollars have been arranged.Even more is needed, and action is underway to explain to expand these resources.The IMF is also adopting important changes in policy, making it more responsive to changing needs and the concerns of its members during the last 12 years.During the last 12 months, the World Bank Group has lent more than $12 billion to developing member countries.Nearly $4 billion of that was provided on concessional terms to the poorest nations.The Bank is mounting initiatives to enable developing countries to find and produce more energy while also carrying out other important bank functions.An enlarged World Bank program for energy exploration and development would benefit all of us.The World Bank has also launched a programme of lending and advisory services to help developing nations and to help them make the structural adjustments required by higher energy prices.It's not possible for me to discuss the role of the World Bank without paying personal and professional tribute to the leadership and the dedication of Robert McNamara.Over the last 12 years, under Bob McNamara's outstanding leadership, the Bank has become the focus of world cooperation to improve the human condition and a fine example of how such cooperation can be effective.Bob, you will leave to your successor a high standard and a firm foundation for the future based on an open heart, sensitivity about people's human needs and the sound economic judgement that has maintained the integrity of the World Bank.US support of the Fund and the Bank reflects both our fundamental humanitarian principles and also our own economic interest.Legislation enabling our participation in the IMF quota increase passed the House of Representatives last week.I'm now pressing for a passage of this legislation in the Senate, and I will sign it as soon as it reaches my desk.Moreover, I will urge the Congress of our country to give high priority to the 6th Ida Ida replenishment later this year.Next year we will submit legislation for our subscription to the general capital increase of the World Bank.Both the Fund and the World Bank Group must have all the resources they need for their crucial work.Let me also mention several other steps the United States has taken that will help to stabilize the world economy.We've adopted a strong anti inflation program, a fiscal and monetary restraint.We've begun a nationwide program to revitalize our own industrial base and to accelerate productivity worth growth.This new program will increase the portion of our own gross national product devoted to investment in new industry and in new jobs and in new production.The program will reduce inflation.It will restore innovation and vigor to our economy.And we've also put into place a comprehensive program to rebuild my country's energy base.This new program is already paying rich dividends.It's already bearing fruit.In the last three years, for instance, we've reduced oil imports by 24%.This year we are drilling more oil and gas wells than any other year in history, and this year we are producing more coal in my country than in any previous year in history.We are acting to ensure that the United States can meet much of the world's need for coal.We've started a massive investment program to increase production of synthetic fuels.We're spending $4 billion a year on energy research and development and additional billions of dollars on incentives to use energy more efficient in our homes, in our industries, our commerce and our transportation.Because of sustained oil production and because of worldwide conservation measures, the world's oil stocks are now at an all time high, and these reserves will help to offset the effect of temporary reductions in supply such as that which has been caused by the present conflict between Iran and Iraq.However, we are keenly aware that some nations are seriously threatened by even a temporary interruption in normal oil supplies.Thus, we are working with your countries in the United Nations and through other public international forum to end this conflict as quickly as possible.Our energy program is part of a far reaching effort to which we pledged ourselves at the recent Venice Economic Summit conference.Our common goal there, as expressed by the seven nations involved, is to conserve more oil and to produce the equivalent in alternative fuels of 15 to 20 million barrels of oil per day by the end of this decade.This will ease pressure on world oil markets.It will alleviate balance of payments problems and will let developing countries obtain a larger share of the world oil supply now and in the future.The common purpose of all countries in both our domestic and International Energy actions should be to strengthen the world economy and to assure fair treatment for all nations.Our common goal should be to minimize the threat of abrupt changes in the price of oil, to assure a reasonable, predictable level of supply of energy, to avoid compounding inflationary pressures that robbed us all The oil importing countries and the oil exporting countries as well can all contribute to this effort.We all have a stake in its outcome.This meeting comes at a crucial time for us all.The world has come to place enormous confidence in your judgement, in the judgement and the services of the World Bank and the International Monetary Fund.That confidence down through the years has never been misplaced, and I'm certain that it will be even more justified by your actions and your services in the future.On behalf of the United States of America, I assure you that we intend to remain active in the decisions made within these two institutions and supportive of the work which lies ahead of us all.Congratulations on what you've accomplished.My full support and best wishes now and in the future.Thank you very much.This afternoon's session will be devoted to the business of the Fund and of the World Bank and its affiliates.I have pleasure in calling first Mr.Andrush, the temporary Chairman of the Interim Committee of the Fund and Governor of Austria.Mr.Chairman, Mr.de la Rocier, Mr.McNamara, fellow Governors and distinguished delegates and guests.Since the last annual meetings of the Boards of Governors, the Interim Committee has met twice, once in Hamburg in April 1980 and again one day before yesterday here in Washington.These were the 14th and 15th meetings of the Committee respectively.Mr.Pandolfi, the Committee Chairman, was unable to attend the 15th meeting, much to the regret of all participants, as it was necessary for him to return urgently to Italy.In his absence, I had the honour of being selected to serve as the Temporary Chairman of the Committee.After the conclusion of the meeting, I took the first opportunity to convey to Mr.Pandolfi how very much the Committee had missed his participation and also to assure him that the meeting had been a fruitful one.It now gives me great pleasure, and I deem it a privilege to report to you in my capacity as the Temporary Chairman of the Interim Committee on our recent discussions at the 15th meeting.I do not need to remind Governors that our current meetings are being held against the backdrop of a very difficult World Economic outlook that, as most of us would agree, has on the whole change has on the whole changed for the worst since Belgrade last year.The serious problems of high inflation, slow growth, high unemployment and large payments imbalances among groups of countries continue to plague the world economy, though their intensity and incidents might have changed.Under these circumstances, the Committee reminded firmly convinced that the fight against inflation must not be relaxed as control of inflation and defeat of inflationary expectations are the prerequisites for achieving a better investment performance and higher economic growth.But particularly troublesome at the present juncture is the situation of the non oil developing countries.The Committee noted that the combined current account deficit of the non oil developing countries was projected for 81 at $80 billion, more than twice the 78 deficit, and expressed concern about the problems of financing this deficit, especially in the case of the low income countries.The Committee for so a great and urgent need for more official development assistance to the latter countries from the industrial and oil exporting countries.For developing countries not so heavily dependent on concessional assistance, the Committee emphasized the importance of their having adequate access to export and capital markets in the industrial countries.In this connection, it was also observed that the number of developing countries themselves could contribute to facilitating the necessary capital inflows by following policies designed to bolster confidence regarding their economic prospects.Governors would no doubt be particularly interested in the consideration given by the Committee to the evolution and adaptation of fund policies in response to the difficulties confronting us.The Committee welcomed the policy direction followed by the funds since the Hamburg meetings toward increasing energetically it's role in promoting balance of payments adjustment and financing payments deficits of members.Several salient features in this policies, some aspects of which still need to be elaborated by the Executive Board, were widely endorsed by the Committee.Namely, first, programs are being designed to stretch the necessary economic adjustment over longer periods than normal in the past.Second, the traditional emphasis on demand management in adjustment programs is being supplemented by measures to elicit appropriate supply responses.Third, member success to fund resources in relation to quotas is being substantially increased on this matter.The broad conclusion of the committee was that the provision of up to 200% of a member's quota year, which would amount to up to 600 percent of a three-year.Excluding uses under the.Compensatory and buffer stock financing facilities would be a generally reasonable guideline in the present circumstances, provided adequate adjustment policies were adopted.And finally and 4th, the present revised guidelines on conditionality are sufficiently flexible to accommodate the adaptations now necessary.It was noted with satisfaction that on the basis of this policy, the Fund has already agreed to provide large amounts of resources to several members in support of programs that envisage adjustment over longer periods than has been the normal practice hitherto.The Committee agreed that in order for the Fund to be able to meet requests for assistance under these new policy on the use of its resources, it will be necessary that the Fund supplemented resources by further borrowing.And in view of the magnitude of the expected need, the Executive Board and the Managing Director should make as soon as possible the necessary arrangements to enable the Funds to borrow from various potential sources of financing, not excluding a possible resource to the private markets, if this were indispensable.Nevertheless, it was stressed that the fund should continue to place primary reliance on subscriptions and the members quotas as a source of financing of the funds operations.In this connection, the Committee urged those members that have not yet consented to increase in their quotas provided for in the resolution of the Board of Governors on the 7th General Refuge to make every effort to do so as soon as possible.Moreover, it endorsed the intention of the Executive Board to begin preparatory work on the eighth general review of quotas, including a review of the criteria by which quotas are calculated.The Committee welcomed the agreement reached in the Executive Board on the establishment of a subsidy account designed to reduce the cost to low income member countries of the use of the funds resources under the Supplementary financing facility and the intention of the Board to complete the arrangements for putting such an account into effect.In this connection, the Committee noted the intention to use a part of the proceeds from repayments of loans by the Trust Fund to provide resources to the subsidy account and endorse the efforts of the Managing Director to obtain voluntary contributions to the subsidy account.The Committee noted that in response to a suggestion by the Food and Agriculture Organization and the World Food Council, the Executive Board has begun consideration of the question whether the Fund could extend temporary financial assistance to low income member countries when such countries are adversely affected by crop failure or a sharp increase in the world price of food items, especially cereals.Recognising the seriousness of the problem faced by these member countries, the Committee urged the Executive Board to give prompt consideration to the matter.The Committee had a discussion on the recommendations of the Programme of Immediate Action of the Group of 24 relating to monetary issues and in this connection noted that the Executive Board had initiated an in depth examination of the issues involved in these recommendations, such as those relating to the SDR allocations, the link between SDR allocations and development finance and the participation of developing countries and the decision making of the Fund.In this connection, the Committee asked the Executive Board to give active consideration in the months before the next meeting of the Interim Committee to the question of the appropriate level of SDI locations and agreed that the Executive Board should carry out the more comprehensive study of a possible link between SDI locations and development finance.On the subject of the participation of developing countries in the decision making in the Fund, the Committee found that the matter needed further consideration and noted the intention of the Executive Board to return to this important topic at an early date.In connection with the 8th Quota Refuge, the Committee urged the Executive Board to pursue its consideration on the remaining issues raised by the recommendations of the Group of 24 with a view to arriving at widely acceptable solutions.The Board should report on these matters at the next meeting of the Committee.The Committee welcomed the recent decision of the Executive Board to simplify the SDR, as a result of which, beginning of January 1, 1981, the valuation and interest rate basket of the SDR will become identical and consist of five currencies, that is, the US dollar, the Dutch mark, the French fry, the Chipenesian and the pound sterling.This important action should further enhance the attractiveness of the SDR and promote its use by public as well as private holders.The Committee also welcomed the increase in the past few months in the number of official institutions that can hold and deal in SDRS.The Committee asked the Executive Board to give early attention to the question of adjusting the SDR interest rate to the full market rate and that of eliminating the remaining reconstitution requirement.The Committee reiterated its intention to continue this study of the subject of the substitution account.Finally, I'm pleased to remind fellow governors that Gabon has graciously offered to host the next meeting of the interim committee, which will be held in Liberville on May 21 next year.Finally, ladies and gentlemen, men, please allow me to take the liberty, in order to save time, to add a few remarks.As Governor of of Austria in this position, as well as temporary chairman of the Interim Committee, I would like to welcome the Governors of the People's Republic of China, Zimbabwe, St.Lucia, Saint Vincent and the Grenadines to our meeting wherein they are participating for the first time.Also, I would like to express my gratitude to the Government of the United States for the hospitality offered to us.Again, concerning the World Economic situation, I cannot but agree with the Managing Director's analysis.In particularly, I share the concern about high inflation, slow growth rates, high unemployment and large imbalances between groups of countries.This obviously unfavourable World Economic situation demands an acceleration of the adjustment process.We are convinced that only well adjusted economies will be able to guarantee the growth rates necessary to facilitate the development process and to improve the unemployment situation.In addition, higher economic activity in the industrialized countries would contribute in reducing the deficit of the external imbalances of the developing countries.The experience of the 70s clearly shows that positive adjustment requires medium or long term structural policies.They have also shown that a structural policy can only be successful within a framework of stability.Furthermore, it is crucial to look for adequate solutions in the energy field.This leads us inevitably to the conclusion that an orderly retreat out of all is the order of the day.This can be achieved by opening up new resources, developing alternative energy sources, conserving and recycling energy.To accomplish this, objective investments are necessary.They would at the same time stimulate domestic demand and increase employment and thereby reducing the demand for imports.The major aim is to create the market out of a crisis.Permit me to say a few words on the development of the Austrian economy.For 1980, we expect a real growth rate of the order of 3 1/2 percent in real terms, with less than 2% unemployment, which could be considered quite satisfactory.We could, however, not detach ourselves from the worldwide wave on inflation.Thus, the expected average rise of consumer price index for this year will be in the range of 6 1/2 percent, largely due to the excessively high energy prices.The deficit of our current account has increased and will amount to 2 1/2 percent of our GDP this year.Dealing with this situation, we are further forced to maintain a restrictive policy stance.The hard currency policy will be continued, supported by restrictive monetary policy measures and a tight fiscal policy for 81.A further reduction of the federal budget deficit is envisaged.Because of the worldwide imbalances, the IMF will have to assume an increasing role in the recycling process.It is obvious that the Fund will have to lend for longer periods and show more flexibility in its policies.The Fund must, however, expect that countries to which it lands relatively large amounts for unusually long periods are prepared to meet certain conditions.It goes without saying that the extension of its task will affect the financial position of the Fund itself.Therefore, I would like to advocate that the work of the Eighth Quarter Refuge be speeded up and that we give Mr.de la Rocier all our support in his efforts to supplement the Fund's resources to adequate borrowing.With respect to Austria's cooperation with international financial institution, I want to point out that we are, of course participating in the seventh general refuge of IMF quotas.Furthermore, Austria is prepared to make a voluntary contribution to the subsidy account in the Fund.Austria has voted in favour of the resolution of the Bank's capital increase with regard to either 6.I'm happy to report that parliamentary procedures to implement ostracia in this operation is well underway.In this context, I wish to pay my special respect to a man who's to a man who's in 68 has been responsible for the Bank's remarkable performance.President McNamara, whose outstanding personal capacity we have admired over the years as the World Bank enters into a new era of challenges, we can only accept with deepest regret President McNamara's decision to retire.I also would like to use this opportunity to thank Mr.de la Rocier on the staff of the IMF as well as the World Bank for the excellent job they again have done before closing.Mr.Chairman, let me say a few words on the future relationship between developed and developing countries.The north-south relationship is overshadowed not only by economic strains but also by political conflicts.We should therefore welcome all efforts to avoid confrontation and continue the north-south dialogue successfully.The report of the Brunt Commission has clearly underlined the necessity of a closer cooperation between North and South.Let me conclude, Mr.Chairman, with a quotation from this stimulating report.All nations will benefit from a strengthened global economy, reduced inflation and improved climate for growth and investment.All nations will benefit from better management of the world's finite resources.All nations industrialised and developing market and centrally planned economies have a clear interest in greater security and then improve political capability and leadership to manage global problems.Thank you very much.Thank you, Mr.Andrush.Before I call on the next speaker I, I want to note that many governors have asked to speak this week and to enable us to hear all of them, I request that each speaker makes his remarks as briefly as possible.Governors usually, as you know, speak on behalf of both the Fund and the Bank and I, I would like to repeat my commendation of of the practice choosing 1 governor to make a statement on behalf of a group of member countries.Thank you.I now call upon the Governor of Luxembourg.I now call the governor.I now call the Governor for Indonesia.Mr.Chairman, fellow Governors, distinguished delegates, the measures introduced by governments, with a few to improving the economy of their countries have apparently borne some fruit.As indicated in this year's Funds Annual Report and the World Economic Outlook, their paramount target was to reduce inflation, and while it remains unacceptably high at present, rates of price increases in industrial countries measured by GNP deflators turned out to be lower than evidenced by consumer price indices.Also, there appears to be a better balance among industrial countries as far as current account surpluses and deficits are concerned, while exchange markets have been relatively calm, whether the recession itself, particularly in the largest economy, the United States, has bottomed out, as implied by some indicators, as perhaps too early to determine.On the whole, however, the situation of the world economy, whether examined for the short run or for the longer run, remains bleak.Growth, inflation and balance of payments developments continue to be precarious, and policies to combat inflation are becoming somewhat uncertain, which may tempt governments to relax their fiscal and monetary stance.Most disturbing of all is the widening gap between the countries of the North and South, on which in particular the Brand Commission drew our attention.Recently also the special session of the United Nations has tried to agree on solutions within the global framework.The dialogue, as we know, has failed.The increasing resource gap faced by developing countries, especially the poorer among them, not only dooms them to live at often sub human levels, but it also threatens to become a serious factor of impediment as far as the world economy is concerned.One of the lasting features of the Branch Commission report is it's convincing analysis of the interdependence of all economies.Neither the North nor the South can go it alone.The North needs expanding markets to sustain its growth and welfare.Those markets cannot come into being without the thought increasing its purchasing power, which could only be enhanced by growth, trade and the degree of resources transfer.Protectionism in the industrial North and the withholding of resources transfer.For whatever reason are self defeating, they reduce the revenues of the sort and therefore imports from the North and in the end both sides would be the losers.Both the Fund and the Bank drew attention to the increasing deficits of a great number of countries of all importing LDCs.In particular, the problem is that of the non oil developing countries for which resources have to be found for the short run as well As for the long run, as the World Development Report and the Brand Commission convincingly argue.It is understandable that both in the North and the South ideas and proposals have been developed to remedy the situation.They all have one thing in common.More resources are needed and a variety of suggestions have been made, ranging from increasing official development assistance to better access to capital markets, facilitating and increasing investments, reforming existing institutions and the setting up of new financial entities.At that, there is a need to involve developing countries more and the decision making process because their interests are at stake.The possibilities and practicability of the various proposals have to be carefully examined and discussed in the appropriate FORA, but meanwhile the need for financing in the period 198081 has to be met immediately.It seems to me, Mr.Chairman, that we cannot wait under perhaps more lasting and comprehensive solutions for the resource gap identified by the Bank and the Fund, the United Nations and the Brand Commission would be agreed upon by the relevant countries.We cannot allow a great number of developing countries to collapse in the meantime.Under these circumstances, the one practical and pragmatic approach for the immediate.Ahead is to turn to and examine the possibilities of existing and already operating institutions.In our case, those institutions are the International Monetary Fund and the World Bank.President McNamara has over the years succeeded to increase the resources and consequently the lending capacity of the World Bank.An innovative decision taken recently is to extend loans for structural adjustments, which are aimed at relieving balance of payments pressures while at the same time introducing structural changes so that current deficits could be reduced to sustainable levels.We believe that resources for this purpose should be increased without impairing the other activities of the bank, which implies that it needs more resources itself.The bank with its excellent standing in the capital market could tap more from it but it is Hanford by its present so-called gearing ratio.It seems to me that this ratio could be changed without endangering the bank's solvency.I do not wish to to exhaust the list of possibilities.They have been discussed by the development committee.I now would like to turn to the fund.The fund is not a development institution.It extends financial assistance for the purpose of restoring balance of payments.This equilibrium equilibrium is an important condition for the smooth functioning of the monetary system, of which the fund is the international guardian.A number of critical observations have been made with regard to the International Monetary system and desires for a reform have been expressed.The present system is not perfect and the Fund would be the first to recognise its short shortcomings.In fact, the introduction of the present system includes a provision for continuing scrutiny and the possibility for changes.I happen to be closely associated with the reform of the Bretton Woods system, during which I believe we have considered a great number of possible schemes, the one which is in place now as a compromise between what is desirable and possible.It can and must be improved, but the road is long and rough and great caution has to be exercised.Under the present circumstances.I would like to strongly advocate the greater exercise of the surveillance authority of the Fund.In fact, the present system would function much better if all countries, the larger industrial countries and particularly, would follow policies aimed at strengthening their underlying conditions.At this in this respect in particular, that the front should exercise in a forceful manner its surveillance.The present system, with its lack of built in stabilizers, needs, like an orchestra, a conductor, without whom its performance would not produced the the desired results.The conductor is the front, which, however, has to act more through persistent persuasion rather than through coercion or prescriptions.The Fund, based on Article 4 consultations and the examination of the world economy, should unwaveringly continue to remind the larger countries, in particular, to follow appropriate policies aimed at putting sound underlying conditions in place.Meanwhile, possibilities to improve the system itself have to be explored, including enhancing the role of the SDR, which would make the system less dependent on a single currency.At this, as the guardian of the monetary system that the Fund extends resources to countries in need to improve their balance of payments because their underlying conditions are imbalanced.Lately, disequilibria have become more numerous and pronounced.To its credit, the Fund has been aware of its rule.The oil facility and subsequently the Supplementary Financing Facility were initiatives to ease the financial needs of countries related to their widening current account deficits.The Fund is placed before new challenges.In the period 198081 changes have taken place not only in the magnitude of deficits, but also in their nature.Deficits are not only related to cyclical or other temporary and therefore relatively easily reversible causes, but also to more continuing factors which require structural adjustments.In order to make deficits sustainable.More resources and longer time are required to correct imbalances.Recognizing the new problems, the Fund has now enlarged the access of countries to its resources.Lengthen the period for adjustment and adapted conditions for adjustment to the different situation than in the past.We should support Managing Director in his efforts to acquire new resources and to instigate and submit new policies.In this connection, it is essential that the Funds 7 quota increase be completed as soon as possible.It is also important that the new allocation of SDRS be considered promptly.Efforts to improve the quality of SDRS should also be actively continued.As far as potential lenders are concerned, we hope that industrial countries would cooperate and not isolate themselves under the pretext of balance of payments problems which in their case are sustainable.It is the strength of their economy which is the basis for financial cooperation and again, the resources transfers to the developing countries through the Fund will flow back to them in the form of purchases.All in all, Mr.Chairman, the situation for the poorer developing countries is grief.We have to try to make use of existing institutions to meet their immediate needs.Mr.Chairman, I would like to use this opportunity to extend our sincere thanks to President McNamara for his untiring services to the less developed countries.We in Indonesia particularly, have certainly benefited greatly from his development policies and his leadership as President of the World Bank.We regret his departure, and this is the last annual meeting to express our appreciation to him.Finally, on behalf of my delegation, I would like to thank the United States government and people for the efficient arrangement in connection with all meetings and for the hospitality which we are enjoying in this great country.Thank you.I thank the governor for Indonesia and I now call the.Mr.Chairman, Distinguished Governors Excellencies, President of the World Bank, the Managing the Director of International Monetary Fund.Ladies and gentlemen, never before in the history of the Bretton Woods institution has the comprehension of the dominant problems in the world economy been Sonia.Yet the political will for the minimization of these problems seem to be so very distant.Are we to continue to exert our efforts at these international FORA in a state of mirage with no Oasis insight?As we were entering the decade of the 70s with the ever widening income gap between the North and the South, the prevailing development related discussions within the Bretton Woods Institutions centred around the Pearson Commission Report, which was published with the support of the World Bank.The Pearson Commission Report demonstrated the correct comprehension of the dominant problem in the world economy when it observed that four countries were becoming poorer and poorer while rich countries were getting richer and richer.Because the nature of North-south economic relations was such that it generated at times of trade structure, we benefited the rich at the expense of the poor as the solution to the problem of perennial underdevelopment, the Pearson Commission recommended the strengthening of north-south economic relations, specifically in terms of additional aid, trade and foreign investment in the South.The scientific examination of the North-south economic relations during the 70s does indicate that indeed, these relations were characterized by additional aid, trade and foreign investment.In the South, However, we know only too well the decimal results of the 70s, where the gap between the poor and the rich grew even wider.It is essentially because of these well known dismal results existent in the world's economy that the management of the World Bank again took a most timely initiative that resulted in the formation of the Brand Commission.In what must be considered as an objective comprehension of the problems confronting us all, the Brand Commission not only acknowledges the state of washing worsening underdevelopment in the South, but it does provide us with a rather disconcerting forecast that the 1980s could witness even greater catastrophes than the 1930s.Mr.Chairman, Sir, distinguished Governors, it is against the foregoing background that we are met here at the 1980 annual meetings of the Bretton Woods Institutions.Institutions, as we are poised to do, battle yet once again with the warring problems in the world's economy.Let us welcome the membership of all new countries, particularly China and Zimbabwe, into the World Bank and the International Monetary Fund, and express the ardent hope that their active participation in the struggle for economic and social progress might very well make the positive difference between the hopelessness of facing The Mirage of false development and the hopefulness of experiencing the Oasis in real development.The issues before us at these annual meetings are clear.As workable solutions to our problems keep evading us, what we clearly need to do is to adopt as realistic an attitude as possible in our attempt at reversing the Bretton Woods institutional inertia.The issues of inflation and energy continue to face us.The issues of debt and deficits are perennial in character.The overriding issue of reform in the nature of the operationality of the world economy is still on our agenda.The overwhelming mounting tensions in our world must serve as a reminder that unless people as individuals and people as governments participate meaningfully in decisions that affect them, there can be no lasting solution to the burning problems which set us all ablaze.Let us realize that we cannot expect any people anywhere to continue to have confidence in institutions whose decisions continue to make the people poorer and poorer.We cannot expect that people who possess raw materials will not want to acquire the capacitors to process them in an appreciable extent.We cannot expect people who surrender their raw materials at on variable price prices to set supinely and not be accepted in seeking to influence decisions on the framework within which money is valued.Those people who expect other people to self destruct are indeed the proponents of the doomsday scenario for the world's economy.The realities of our times dictate that we will survive only if we cooperate with each other.It is in this spirit of cooperation, Chairman, Distinguished Governors, that we, the African Governors, seize this fleeting movement to address ourselves very briefly for the following issues which we consider to be not only of immense significance to Africa but of great importance to the Bretton Woods Institution.1 Reforming the International Monetary system.We, the African Governors, support fully the Program of Immediate Action as presented by the Group of 24 to the Interim Committee of Fund Governors at the 1979 Belgrade Annual Meetings.The Program of Immediate Action is a positive step in the direction of paving the way for the South to have some meaningful influence on the framework for creating and distributing international means of payment.2 minimizing negative balance of payment effects.We, the African Governors, hold the view that quarters of the International Military Fund should be increased substantially so as to facilitate the use of a higher level of fund resources.In this regard, we could not overemphasize the need for the establishment of a medium term balance of payments facilitate as proposed by the Group of 24 in efforts geared at expanding the funds resources.The movement towards the operationality of the concept of the Funder Resource Recycling Facility will contribute positively to the easing of the unfavourable effects of changes in the balance of payments.3.The search for energy cost saving alternatives.We, the African Governor, welcome the initiative of the World Bank in the direction of establishing an Energy Affiliate with the Bank for the purpose of financing the development of various sources of energy in the developing countries.Every airport should be made by all member countries to ensure that the Energy affiliate is operationalized prior to the 1981 Annual Meeting of the Bretton Woods Institutions.4 Maximizing the flow of World Bank resources We, the African governors, recall that the World Bank lending program for the fiscal.1981 to 1985 was based on the economic situation that obtained in 19177.However, assumptions regarding the rate of inflation relevant to the lending program are now considered to have been underestimated by nearly 50%.Therefore, it is clear that the 5% annual rail growth rate in the lending by the World Bank for the fiscal.1981 to 1985 is significantly inadequate.Consequently, in the light of the most recent reality, we, the African governors, propose that the annual real growth rate in the World Bank lending for the fiscal.Under consideration be adjusted upward.A variety of approaches to increasing bank resources has been advanced at various international fora.These approaches include the changing of the getting ratio, increasing the subscribed stock with us, requiring additional paid in capital and establishing a separately capitalized energy affiliates.We, the African governors, do not view these approaches as being mutually exclusive.However, there is the problem of the choice of those approaches that can be made more readily implementable.From our experience, we know that those approaches whose implementation calls for financial contribution are the most difficult to operationalize.Therefore, we, the African governors, urge that those approaches which are not tied to financial contribution should be implemented immediately, while the other approaches receive timely consideration.As we seek to expand the bank's lending capacity, we must not overlook the need for efficient disbursements and the relevance of rich financing.The record of the Bank Group, particularly the International Development Association, with respect to disbursements should definitely be improved.Breach Finally, breach financing is vitally necessary in the interest of ensuring that interruptions from 1 replenishment to another are minimised.Although the $12 billion six replenishment of the International Development Association does mark a significant increase in resources under the World Bank Group, we note that the inadequacy of these association resources remains a disturbing reality.It is in the knowledge of this fact that we, the African governors, call upon donor countries to approve of the relevant legislation for effecting the flow of additional resources to the International Development Association.It is in this regard that the intervention made by the President of the United States of America earlier today was reassuring when he mentioned that efforts are now on the way in the Legislature of the United States of America respect to approving of the 6th Replenishment.In seeking to expand the role of the World Bank Group, we pause here to join our distinguished our fellow distinguished, distinguished governors in paying tribute to Mr.Robert McNamara, President of the Bank, who is extending these annual meetings for the last time in his present official capacity.We, the African Governors recognize the immense efforts of Mr.McNamara in expanding the Bank, particularly in terms of attending to the critical needs of the poorest of the poor people.We wish Mr.McNamara well in his future endeavours as we express the ardent hope that he will somehow manage to pursue the development oriented ideals of the Bretton Woods institution in his new capacity.In closing, Mr.Chairman, distinguished Governors, as we seek to find new and better ways for cooperating, we must do so in full realization of the catastrophic consequences which emanates from the absence of fundamental change in our attitudes towards each other as people and our government.In the relevant words of the Brand Commission Court, we believe that nations, even on grounds of self-interest, can join in the common task of ensuring survival to make the world a more peaceful and less to make the world more peaceful and less uncertain.A fundamental change in relations between North and South as well as between East and West is crucial to this task on court.As for our part, we the African Governors hold firmly the view that what is needed for fundamental change is fundamental action and now more than ever before is the time for such action.African governments have begun to act with the adoption of the Lagos Plan of Action for the implementation of the Monrovia Strategy which emphasizes self-reliance in charting a plan of action which calls for us as Africans to depend upon ourselves by cooperating among ourselves.Non African members should not view such action as being antagonistic.To cooperate to cooperation with non African countries fall from it well, how can we dare stand here and call for cooperation abroad when we do not care to cooperate at home?Cooperation within the African economy will strengthen Africa's capacity to cooperate within the world.Mr.Chairman and distinguished Governors, it is my great pleasure to have the opportunity to state my view for the first time as Governor for Japan.First of all, I'd like to extend my hearty will come to our neighbouring friend in Asia, the People's Republic of China, which has since the first delegation headed by Governors de Paufer and from Piencheng.I have no doubt that China will make constructive contribution to the hand and bank.Between also extended my worst congratulation to Saint Lucia, Saint Vincent, the Grenades and Zimbabwe, our newest members at the 1st Annual Meeting in the 1980s.I tried to view the experience during the last decade and to summit the challenge of this decade.In the 1980s, seventies, the world economy has undergone severe tests in many respects.First, and the most significant was the emergency of energy resources as a grave constraint on the economic growth.In the 80s.We have to make utmost effort to free the economic growth from the constraint of oil supply through conserving energy and development, developing alternative resources.The second challenge we faced in the last decade was worldwide inflation.The problem inflation had discouraged private investment and slowed down productivity cross in spite of the gradual spreads of recession over the economy is to pursue with solid determination and in generals the difficult strike against inflation through stability in prices.We want to regain the business and household confidence in future and liberalize the economy.It would, in the end, be to the sustained economic growth.I strongly hope that countries with great emphasis over the world economy assume their international responsibilities by exercising economic discipline and implementing appropriate petroleum policy.Southeast in the 70s was the dodge payment in branches between oil exporting and oil importing countries.These imbalances may persist for considerable time.We cannot despair the fear of stagnant World Trade and disorder in the international finance mechanism.In order to prevent this possibility from materializing, it is intention in the 1st place that each country in the bus through appropriate policy measure.To deduce this embrace as far as possible adequate energy policies and anti inflation measures to which I define above should be implemented effectively for the purpose of the adjustment of the standard imbalances as well.Sit down.I need to improve the mechanism of challenging fund from surplus to deficit country.In order to facilitate the recycling of fund, tireless majors have been taken in the world financial market and international financial institution.It is to be hoped that in year to come each country will make the best use of this placing mechanism.In this connection, I hope in particular that surplus countries promote stable fraud or fund to all exporting developing country.Mr.Chairman, now I struck to turn to the International Monetary problem to reflect on the 70s and build the 80s in the Mid East of continued turbulence in the 70s institutional device in the International Monetary system.We sought for to facilitate the development of the world economy, but major achievement is in the management of the exchange rate system in decent year through operation among monetary authorities that have been strengthening major to counter disruptive fruition in exchange rate during the decade that right OK it improved further the management of the protein exchange rate.So to close the cooperation among the monetary ositase.Another major achievement in the International Monetary system in the seventh case is the creation of the SDR in the 80s.We need improve institutional environmental condition and hence increase attractiveness and credibility of the SDR in order to make it the principal reserve asset and international currency.In reality, we will come the decent agreement of the executive part of the hand on market simplification of is they are valuation basket so that to make it identical with international rate basket.I believe this is an important step toward increasing confidence in this Dr.Mr.Chairman, now I try to take up the issue of the developing countries.Despite the CBL World Economic environment in the 70s, developing countries as a for have maintained a higher rate of growth than in sterilized countries than in sterilized countries.I'd like to pay my highest tribute tribute to the performance of this country.It is admitted, however, that many problems still remain unsolvable for the developing countries.On other hand, the industrialized countries are now faced with the treatment of inflation decision and the payment in branches, all of which could adversary affect the capacity to extend aid to developing country.I believe that in order to solve the problem under these circumstances, it's necessary for each country not to have the cost to the trade protection and to take further effort for international cooperation.It is also strongly hopes to believe that present aid 40 seats, 40 seats in order to make the development assistance more effective while expanding it to steadily.Mr.Chairman, let me present my view on the expect role of Japan and Bank in the 80s to tackle the problem of the world economy, International Monetary affairs and developmental stance.First, I would like to emphasize the law of the fund as a nucleus of the International Monetary system.I strum with that fund will continue to keep across difference on the major International Monetary and the financial problem.Second, with the view to supporting the branch growth brass growth of the world economy.The fund should promote promote cooperation economical policies of member countries through its severance and as the mean.I endorse the Fund view which gives the highest priority to the containment of inflation.The third law of the Fund consists of proving financial facilities necessary for member countries with balance of payment difficulties.I basically agree to the Fund.Realistic applause to pursue.Flexibility lending policies taking account of the site and the nature of the deficit.However, in added access to the fund facilities should not lead to such lending as may be provided for by development assistance institution, neglecting the essential and demand their fundamental role of the fund.The fund should maintain its basis characteristic of providing financing to the necessary extent only when the borrowing country exercise for the adjustment of the payment.In Brazil, the expansion of the funds resources should be derived primaries through increase in quotas borrowing shall be recommended on the other temporary major.In this connection I might add that occasion of further general increase in quotas, appropriate adjustment need to be made so that members quotation deflects it economic reality.Now I should like to differ to the activities of the World bankrupt.I hope the financing resources for the bank would be strengthened as early as possible by the gender chapter includes, so that the individual efforts of developing countries can be vaguely supported.Japan is ready to participate possibility in the general chapter increase, and at the same time, we intended to give favorable consideration as a birth to the banks funding in total chapter market.We subscript from the same point of view to the substantial share in the 6th depurbishment of the International Development session.We have completed the necessary demos, tech procedures and have notified the association of our subscription.Member countries are strongly added to do their best to make the depression effective at Irish time in order to avoid disruption of activity of the association and address.This morning, President McNamara revealed that it would be his final address at this forum.On this occasion, I would like to express my sincere appreciation of his excellent leadership and far deaching insight which has greatly contributed to indulge activities of the World Bank Group.In addition, let me assure you that we will cooperate continuous and positively with regional development issue institution which along with the World Bank Group are operating to meet particular needs of the respective region.Mr.Chairman, let me briefly explain the decent development in the Japanese economy and the policy management.The two and half time increase in the oil price since December 1978 has exerted a severe and profound impact on Japanese economy.Due 33 to this increase in oil price amounted to more than $30 billion since the third quarter of 1979.The current amount has been decoding about 50 cars mainly by this additional payment.Although sign of improvement at sea this century in the current account that deduction of a deficit seems undikely with respect to the price level or the rate of increase in for sale price accelerated since the second-half of 1979 due mainly to external factor, it was possible possibility progressively become moderate and is now considered to have passed the peak.On the other hand, SIMA price are still rising at the high rate and therefore crowd watch is required required.The overall economy had kept steady growth still the beginning of this year, owing that to the increase in private fixed investment.However, the peace has been slowing down thereafter.In order to cope with this situation, comprehensive package of economic major was a month announced by government early this month.Thus, we are ready to take flexible majors paying close attention to the development of the economy while seeking for stability in prices and the maintaining the aggregate demand at the appropriate appropriate labor.In the process of adjustment of the Japanese economy to the changing World Economic environment, there are two major problems, namely the significant deficit in the government budget as well as in the external balance.In particular, the distribution of fiscal soundness is indispensable for fulfilling our international duty as well As for ensuring steady and balanced growth of the economy.Therefore, the most important and urgent task before us it is to adjust our economy to a long time pass of the steady growth through appropriate politics policies, passing at the same time this relation of chief scar soundness.Now I tried to touch brief upon our development assistance policy.First, you are assured that target will be achieved after great effort to double the annual amount of our offshore development assistance within the three-year period ending this year.While we are determined to continue to take positive stance on the offshore development assistance in spite of severe budgetary situation, we intended to pay closer attention to the needs of developing countries so that the effects of our aid effort should be enhanced.Second, even with the domestic social and economical problem, we have been striving to expand both imports from and the flow of fun to developing countries.Mr.Chairman, the last decade was the period of trials for the world economy.This take it also appear to be a hard one.Heard of challenging tasks.The sound development of the world economy hints on each member country to make utmost effort toward overcoming difficulties of its own economy by the spirit of international cooperation in mind.One of my favorite maxim say that the possible duty lies in what is near.However high a mountain maybe the bus to the top can always be found.In another word, whatever we made to do, we must charter out step by step what we can only when each country makes steady progress, whether the international cooperation and cooperation become fruitful, Where this base belief Japanese dedicated to contribute to the International Society through the sustained development of the domestic economy, keeping harmony with our world economy.Thank you.I thank the.Tengo El altonor deseruso la palabra en esta reunion anual de Governadores del fondo Monetary International and representacion de Bolivia.Brazil.Colombia, Costa Rica, Chile, Ecuador.El Salvador.Guatemala.Cristiana IT Honduras, Mexico, Nicaragua, Panama, Paraguay.Peru.Republic of Americana.Suriname, Trinidad.Tobago.Uruguay.Venezuela.Espana imipropio Pais la Republic Argentina quisieran primer lugar Agra desert al paisa amfitrion a Los Estados Unidos a SU puelo yasuo gabierno la hospitalia quino bring the next occasion Y Permanente mente como SE de del fondo monetario international tambien quiero tender medium benita a la representacion de la republica popular China asicomas Santa Lucia as ambicente granadinas YA Zimbabwe in virtue la incorporacion de to paises Durant El tracurso lutimo ano la comunidad de naciones mienbras El fondo monetario international en nominal tiempo abreviare El texto crito que sia preparado para Acer conocer Los Punto de Vista de este Grupo de paices ante de foro occasions que El centerese conocerlo en forma completa El mimos en cuentras UD position en la secretaria correspondent El sistem economico international enfuenta una de fisier Cos juntura caminasa comprometer sue tablia presente la perspectivea de SU punsora miento futuro a la transformaciones SU fridas en El curso la de carmilo resetenta.Rental incremental superaveta gregado anqueno generalizado de la naciones E portado de petrolio que estimal cancel ET ano onreco historico de ciento de MI migiones dolares observamo sifras de physitarias de sequente SE MI migones Paolo paises in du chalisaos Y de centi tentido MI migiones dolares para que Ros en desaroso no petrolitos ETA sifras.In decan Clara mental a deficiency situation inferenta la majoria la naciones del Mundo the perspective parlano centa Uno sompoca la guenas estimandos El deficito la paises in this arrozo no petroleros en ochenta mil migione doles zamo la tencion so reta situacion context or implicancia serias par la tavidad El sitem Economico International duante la deca del seitente.Los paises en desa Rosa and recorrido Merida creciente lo Marcos international de capital para complimentary Laura internal en El financiamiento suplanet inversion a si como para permitting incrementos Elon niveles de reserve cinemaro lo tamos algunas circumstancias que pueden entor peser este proceso de intermediacion financier en este centido.De tacan elecho de que la evaluation del Rico por parte del toria en nacionales ivancos cetorna veces de proportiona mente retritiva de la cignacion del Crete international as Y coma la tendencia alguna faizes concentro financieros de rosado implemental controllers ETA's attitudes junto cor elecho de cola faizes en desarroso de ban competiti rap tension de prestamos.Calais E major medida conecoramias into chalisadas pueden difficulta El acceso de numeroso paises in desaroso aricio marcados and priando la difficultais enfrentan en la presente Cos juntura una pecto de la inflacion.Que no a recibido mucha tension en SU influencia sobre El perfil de vencimientos de la de de terna de occasional naciones que recurren al financia miento El mercados International de capital la inflacion International introducion acevia de victorciones que affecta levolosion del rijo El funciona miento la Mercado de capitales la principal desa proviene de SUS effectos de la tasa de interes.La tasa nominales interes inclusion on elemento de mantenimento de valor UN elemento de tasa interes real la inclusion de la totalidad de la pagor nominales interes en El rubro servicio de la cuenta coriente distortiona la magnitude real de concepto al include como des equilibrio la quenrelidad ES una mortisacionas El erada de la de exagrando tanto Los de fisito paisa de guores.Como Los superavi de Los agrevores esta distortion affecta level ocean del riejo Y de Toyota portanto lor termino financieros de concertacion de nuevos operaciones then tradesta cosuntura International cacao de cribid so in certain propuestas contenias and programmer action in mediata El Grupo de venticuat so finalidad.Acido proponer via de solucion a Los sigente problema que enfrental si Tema Monetary International Y contemplant amilo medios paravanzar E la tauracion de Nuevo de Economic International macurto yaquita tio intersuppuntos El programa senala la recesidad de tableser unbinculo direct inter la creacion delicacies International ya transferencio de recursos of real E pal desarros a si coma la conveniencia.The incremental la quotas de la paises in this erosion El fundamentario International del treinti tres El cuarentae cinco for cien en ETA circumstances surge natural mente de la prunta fundamentales que actitur de vealdo Tara Fundamentario International en re laciona La Junta lo de S equilibrios antemencionados equal de vezer El papel del fondo en El proceso de reciplage recurso financiates.La characteristica de todes equilibrios recurrent El proceso de jutte contendo una de cuada combination de politica de restriction de demanda Y amplacion Y retrupracion de Fer E muy especialmente tas ultimas afinde corajir ya de cua das E trupturas economicas a la nueva circuitance eras imprecindive le que SE disena cola de Vida consideration la circumstances especiales de cada Pais.Politica sectoriales ID inversion 10 Dientes a corregir di torciones empresion relativos eureorientar la composition Y direction del GAT conrepecto al papel del fondo Monetary International El recyclage El recursos la naturalisa de logicilibrios la circus tanzas de la que cuentran Gran numero de Pais ES officialmente desaroso tornado impressing deeply.LA institutional ampli ESO fusion activa ETA process ETA Tito cerra premamente cutifica. He's a tenant cuen de la responsabilidad del fondo inclusion facilita de la hoste lo Pais en niembros a la Nuevo a relida economic ental centido resulta necesario conveniente la dapitacion de la condicionalidad la ampriacion de la accessor of recurso de la animo ETA extensional of. Fina semin.Todo ezo sinde cuidar la relacionentetos elementos Y la cue masaun la miente nacia rejorsos la insufficiencia liquid de conditionada yelento tramico de la mento la cotta la paise miembros sujeren recurrita lende damiento como complimento a de cuado de recurso fundamental que de Vere continuar ciendo la contribution de surprise miembros a trabejes supports en Estes entido.El fondo de verao tilisar la Fuentes recursos que la provena la condicione mas convenient cuirando de recurida la mimas cuando SE necesari simultania mente ES independence ale que SE le de la puerta en vience a la septima revision de cuatas is enicee quantuantes El proceso de la octava revision afinda and Pierre la bassa de recurso probs duente lo dos ultimos anos.Senecho diverso progresos en mejora la cantilla de la de riches officiales de giro afind de lo grelo que TiVo de converteros El principala TiVo de reserva El si Tema Monetary International Las a cigacione correspondentes alteser Perrigo la de pasion de la tasa de interes la ampriacion del Banco de rango de operaciones altorisadas la reducion del recremento reconstitution El lamento de lumerioto tenedores.Constitutional una de to progress additionalmente la reducion de numero de moneda que lo component ELA identidad inter la canasta de evaluation is the interest represented in advance de grand significacion la major esta villidad is significantly sidad queselogra facilitera la queneralisation desuso comativo monetario Eno marcados frivos sin embargo.Cornell opjeto real SAR El ror de Los eritos especiales de hero tentro El Sistema monetario International cias E necesario inciti E la mejora SU characteristica comactivo inclusion dos utilizaciono la Mercado prevalos dentro ET de contexto considerable necessario una cigacion supplementaria dorante luti mano del tercer perio la Vaz en consoranza con la TiVo de si motao del conveno constitutivo.E en lo cassia la nuevas a signaciones ETA deven contemplar a de cuadamente la necia globales delicious international de Largo Plas en funcion de richa variable ETI vamos a propiada una signacion de nomenos de diemis migiones a nuales de richos especiales de hero pal cuarto perido de vas en lo que concierno la supervision de la politica de tipo de cambiola fais en miembros.ETA Brescia nalticulo cuarto El conveno constitutivo la mima de villa de rejirse as a la principal E moneras Y tendera Vita la exce Siva variabilidad or rejede de Los tipos de cambio effecto de facilitate crecimiento commercial international Y lorar cimetria en El processor de jutel valenci pal Los procedimientos Y tituios a comienzo MI nueste de Nuevo reciente complementacion.Constituting significant tigos avances and eloro ET OS of the tios a pozamo la reciente solicitude de la fau paraquel fondo proveda finance miento additional del Valencia de paolos a la paise miembro de vacos ingresos que en frentan transitory amente unao mento no costo de importacion de elements especialmente seriales inattentional Los affectos humanos in Borlucras perezo de creationi traditional.Dentro la facilia de financia mentor compensatory vemos asimimo la necesiada estimula El papel creciente El fondo monetario El Banco mundial instituciones associadas ensufusion de trementos para la cooperation Economico International El mimo tiempo la creciente importancio la marcado mundiales de capital de reverse complementada forum fortale cimiento estos organis.As a grandos independencia respectful influence excess siba que pueda de carcer la naciones Hua Uno Grupo desas poroto Lao de siores altar la necesidad de mantener la impartialidad Y presidencia political estas institucion como garantilla para tolo pisemien la reciente orientacion por parte El fondo Monetary International.I consider majori finance a mentos a plazo man largos cunta cola nueva politica del Banco mundial a derivado na major collaboration ET ambassiti tucciones dicia relacion de verisa Rojas en UN Marco que mantenga la individual ya Las responsibilidades Y funciones propios de carranquitucion the entral context of global que Carlo de crivid and on necessary tackle importance urquenza la lucha Contra inflation.De la reduccione financial mentor de seclibo de cuenta Korean de la posicion Contra la creciente tendencia protectionistas quisira de taca la contribution de MI propio Pais la Republic Argentina en la implementation de Merida connete fin permita 7 ETA libertad nuita nacion cuentre embarcada en UN processo de Lucia frontal conta la inflacion.A viendo doptados Y mimo la medias necesari de junte valancia paros implementado UN ambicioso programa de elimination de restrictiones tantal commercial de viennes comoro monumento de capitales con El fin de integrasio economia plena mental economy International esta manera center la vazos paran cricimento economico accelerado ISO tenido ante de conclude.Here represent a reconocimiento de la naciones a medical Latina caribe Espana arcionor de la rosier El persona del fondo monetario international force UN teres edificacion en relaciona tolo faisen miembros E specialmenta queros en desa Rojo Y Los enuestranacion yanquil me toca MI avlar en la runion correspondental fondo monetario no puedo menos que terminal esta palabras con expression.Del reconocimiento nitropaises a la question de la realizada Grande masti una de California la porcion McNamara and El Banco mundiara londecia de tacado for SU dedicacion SU intelligencia SU machinacion enfrentando grave problemas El Mundo ya travestos action brigante alejabo la Marca in the level electoria de tucion.Seat of member countries through its surveillance and as a mean I endorse the front view which gives the highest price.I thank the Governor for Argentina and I now call the Governor for Germany.Chairman, ladies and gentlemen, as we enter the 80s, we worry about the unsatisfactory economic growth, rampant inflation and the hardships suffered by people in the poorer countries. In this situation, the world is looking towards the IMF and the World Bank, it rightly expects.Them to help restore stable economic growth and to ease the burden of adjustment during the transitional period. President McNamara, to whom we owe deep gratitude, is about to depart from his office. He has worked untiringly for humane development process. Under his leadership, the World Bank has made major contributions.To this 'cause I feel, Mr. McNamara, a deep personal loss of not being able to work with you anymore in your present function, and we trust that your successor will continue in the same great tradition of hard work and dedication and meet the standards that you have established today. Many expectations are held with regard to the IMF and the World Bank.This is hardly surprising in view of the enormous dimensions of the current economic and social problems. We must explore with an open mind solutions for these problems, but we must be careful not to intervene too hastily in well tried and well functioning systems. We must check each proposal carefully to see.Whether it can be integrated in the aims and objectives of these well functioning institutions. The IMF is at the very centre of the International Monetary system, a system which is constantly evolving in response to the changing economic and political environment. We must try to form a clearview of the direction in which International Monetary system should evolve.Only on this basis we can determine the role which the IMF is supposed to play. Mr. Chairman, to restore, to secure and to maintain peace in all part of the world is the most important precondition for social and economic progress. The growing conflict in the Gulf area makes this doubly clear after so many cruel conflicts all over the world.Like an Indochina, which has been shaken by violence for 30 years, I call upon all leaders in politics and the media and public life to condemn war and violence as the worst enemy of social progress. The widespread squandering of resources on armament and military destruction is contrary to all international efforts to achieve social and economic progress.We must increasingly work for peaceful solution to such conflicts, first of all through appropriate social and economic development policies which should be so designed as to allow all men to live their lives in dignity, productively and in self determination, the independent Commission under the chairmanship of Willie Brunt has rightly stated.History has taught us that wars produce hunger, but we are less aware that mass poverty can lead to war or chaos. While hunger rules, peace cannot prevail. Both in industrialized and in developing countries, a distressingly large part of GMP is absorbed by armament expenditures.Almost 6% in 77, according to one estimate. If only part of these funds were tapped for peaceful purposes, this could be the breakthrough to more tolerable living conditions for a countless number of human beings. Let me again quote from the report of the brand Commission. They say the military expenditure of only half a day would suffice.To finance the whole malaria eradication programme of the World Health Organization and less would be needed to conquer river blindness, which is still a scourge of millions. It is deeply alarming to see that in the last 10 years, military expenditure in developing countries increased by 7 to 8% annually. My government therefore advocates.Practical confidence building measures not only for Europe but for all other parts of the world as well. We also advocate greater transparency of military aid and weapons expenditure by establishing appropriate registered at the UN the development and growth prospects not only of the LDCs but of the world economy as a whole.Depend on the availability of resources to finance large payment imbalances. These imbalances have been greatly intensified by recent oil price increases, and they may become an almost intolerable burden for many developing countries. Our experience with more than 30 years of development policy demonstrates that money alone will achieve relatively little sustained development. Depends.On the modernisation of social and economic structures, the preservation of cultural traditions and values, and on providing adequate opportunities to individuals to make full use of their potential.Each country economic and social progress depends above all on its own efforts.In this context, the Brand Commission has rightly insisted on the need for economic and social reform.My government will continue to assist, particularly those governments in the third world that I'm willing to carry out needed structural changes.The developing countries must determine their own course for development in providing assistance in all it's different forms by transferring capital and know how or by technical assistance.Our aim is to ensure that aid resources are put to optimum use.The Federal Republic of Germany, in cooperation with other countries and international financial institutions, has made a special effort to help Turkey overcome her social and economic difficulties.I wish to express my deep gratitude to the IMF and the World Bank for their most valuable contribution to these joint efforts.I very much hope that Turkey, like many other countries of the Third World, will find a way to combine economic progress with a peaceful and democratic social development.Repeated oil price increases have put severe strains on industrialized countries since 73.Low rates of growth and increasing unemployment have often created serious, serious social and economic problems.The sharp rise in current account deficits of industrialized countries forces these countries to go through a difficult period of adjustment.Even more serious is the situation for the oil importing developing countries, many of which have to use the bulk of their foreign exchange earnings just to purchase the bare minimum of oil.It is tragic indeed that all the development assistance provided by donor countries.It's insufficient to cover the increase in the oil bill of developing countries from 79 to 80.Temporary balance of payments.Financing of this magnitude must be accompanied by determined efforts of all countries, in particularly the developing countries themselves, to reduce their dependence on oil inputs.Their own energy resources must be developed and energy must be used more economically and more efficiently.All groups of countries should join in one common effort.This can be achieved if we all bear in mind our common interest in a functioning system of World Trade, in a growing world economy, in lower rates of inflation and in higher level levels of employment.Oil exporting countries are interested in a secure and profitable investment of their financial surpluses.The developing countries want to activate the unused labour resources or to make follow you follow use of the country's economic potential.I appeal to the governments of industrialized countries, to OPEC countries and non oil developing countries to join in a mutual interest in a pact for economic growth and social progress.My government has more than one stated its readiness and desire to have an energy dialogue with a view to make oil supplies more secure and to protect the world economy from abrupt price shocks.My government welcomes and supports the intention to enter into global negotiations next year on all major economic issues.We should, however, avoid duplication of work and fragmentation of responsibilities.We have therefore advocated an efficient and decentralized approach.United Nations family comprises well established and efficient institutions with proven competence, experience and initiative.IMF and World Bank in particular have demonstrated that they are able to adapt their policies to changing economic circumstances.No international organization has mobilized such large sums for the benefits of its members as the IMF and the World Bank Group have succeeded to do.We earnestly desire to avoid impairing the efficiency of these institutions.Today's large payment imbalances, though they are likely to persist for a number of years, are basically of a temporary nature.They can and they must.They can and they must be overcome by adjustment.If the efforts to reduce these imbalances are to succeed, oil consumption must be drastically reduced and oil bills must be cut.Germany, while achieving impressive real growth since 73, has consumed less oil in 19180 than in 19173.In volume terms, we have reduced oil consumption in 19180 by 8%, but we have to pay more for this smaller quantity with the result that the burden on our current account has heavily increased.At the same time, oil producing and industrialized countries should provide capital, knowledge, capability and experience in order to formulate and implement adequate technological solutions to close the energy gap in cooperation with the countries concerned.This is one side of the problem.The other one is is the need to increase exports to obtain foreign exchange to pay for oil imports.This calls for less, not more protectionism.Industrialized countries should open their markets for the products of of developing countries, and they should assist them in building new production plants, marketing the export goods, and stabilizing their commodity earnings.The IMF is well equipped to play an important part in overcoming the formula economic problems with which the world is faced.In doing so, the IMF can draw on the confidence that has built up over more than three decades.The IMF is in a unique position, and it bears a special responsibility to provide for the right balance between financing and adjustment.I welcome the IMF's readiness to adjust flexibly to the changing needs of its members, but it should be made clear that it's monetary character must be preserved.The IMF was created as the guardian of internal and external monetary stability.It should resist all attempts that might call this mandate into question.The conditionality of its lending must be maintained.The IMF should continue to implement it flexibly, taking due account of the economic, social and political circumstances of each deficit country and with a realistic assessment of the time needed for structural adjustments.The IMF must remain in a position to assist it's members with substantial amounts to meet the increased financial needs.For these reasons, we have to insist that the mechanisms of the world monetary systems will not be impaired and not be burdened with functions that would adversely affect the proper role.We are doing so not for formal but for important economic reasons, which, in the final analysis, are also connected with the development prospects of the third world countries.The inflationary creation of money is of no use to anyone.Inflation impairs confidence and it undermines the readiness and the mechanisms for capital formation and investment.In this connection, it is also true to say that we are seemingly conflicting.Interest can be reconciled in the longer run.To the extent that there is a global need to supplement existing currency reserves, I support continuing the allocation of SDRS in the fourth basic.As to the amount of allocation, the time has not yet come for firm conclusion.Immediate recycling problems have for a while pushed into the background the idea of a dollar substitution account.I do not feel, however, that this plan should be discarded.We should include in our deliberation on the further development of the monetary system, on work on the substitution account should be resumed at a suitable time.There is no doubt that we are entering a very difficult.Charged with great uncertainties.We have no choice but to take up this challenge.We should not permit growth, pessimism or resignation to gain the upper hand.We should rather fully use the growth potential that still exists despite increasing problems.We should bear in mind that qualitative growth is the only way of overcoming both economic and social problems, and that we must do all we can to activate the forces that such growth requires.The World Economic situation is not without elements of strength.Technological progress will continue to give substantial impulses to investment and growth.The need to save energy and to substitute oil is creating powerful new investment motives.The long term nature of the energy problem and the need to invest and to adjust have become very clear to all of us.This necessity to adjust stimulates investments that should make economic activity less susceptible to fluctuations in the private sector demand.On the other hand, inflationary forces in most countries are still dangerously active.I welcome, therefore, that the Interim Committee has once again underscored that priority must be given to the fight against inflation.The stability oriented policy and a monetary policy aim to curb inflationary expectations is the key to economic growth.To pursue such a policy means a fiscal policy that encourages rather than discourages private investment.It means to pave the way to sustain growth and secure employment.It is particularly gratifying to see that the dollar appears to have overcome its period of weakness.A strong dollar is still a precondition for a sound world economy, but the expected further strengthening of the current account of the US will present present new challenges to America's economic policy makers.This should enable the United States to resist the call for import restrictions and to take up once again a proper place in the provision of development aid that is worthy of such a great nation.My government takes a dispassionate view of the Federal Republic's current account deficit.We can live with this deficit for a while, but in the medium term the Federal Republic should regain equilibrium and external trade.My government relies on a policy aimed to eliminate the underlying causes of the deficit by making the German economy less dependent on oil and more competitive by means of structural adjustments.Increased productivity, research and innovation.I can assure you that there is absolutely no intention of manipulating our current balance by competitive devaluation, export subsidies, import restrictions or other barriers to trade, which would be totally incompatible with our concept of economic policy.Let me now turn to the World Bank.In the past year, the three institutions of the World Bank Group have again succeeded in achieving a substantial increase in their commitments.Bearing this in mind, I considered a matter of urgency to put into effect the doubling of the Bank's capital as rapidly rapidly as possible.We are prepared to make our contribution at the agreed time.I must, however, point out, as I did in Belgrade, that we cannot see how the new capital subscription can be implemented before the evaluation of the bank's capital and the maintenance of value issue has been finally settled.Other suggested methods of raising the lending capacity of the bank can only be a complement to, not a substitute for, the general capital increase.In this connection, President McNamara has mentioned a new capital increase relating only to the callable capital, as well as a change in the gearing ratio.Both possibilities seem tempting at first glance, since this would avoid additional payment obligation.One should not overlook, however, that the bank can borrow on the international capital market only as long as it maintains its sound financial structure and remains a blue chip issuer.In view of the need of the poorest developing countries for concessional aid, the federal public of Germany attaches special importance to the activities of Ida.Accordingly, we played an active part in bringing about Ida 6.In order to enable Ida to continue making commitments and until Ida 6 enters into force, my government has decided to participate in the bridging measures.I should like to announce here that the Federal Republic of Germany is ready, under this bridging operation to make an advanced contribution equivalent to its first to its entire first instalment.We appeal to all members who have not yet given notification of their contribution to accelerate their parliamentary procedures in order to enable the carefully negotiated agreement to enter into force in the spring of this year.The Bank reacted with speed and flexibility to the new financing requirements of developing countries by adding structural adjustment loans to its range of lending facilities.This new type of loan can help the developing country to make the inevitable for necessary long term adjustments to the World Economic situation.We assume that in the case of loans of this type in particular, there will be even closer consultation and collaboration between the Bank and the Fund.In July you received from the Bank the study entitled Energy in the Developing Countries.It shows it is possible to invest in developing countries with good progress prospects of success in this sector, and it describes the role the World Bank Group could play here.The Bank estimates that about 12 billion U.S.dollars in additional funds will be required for the period until 1985.We all should search for ways of jointly resolving this key financial problems in the next few years.I consider this to be the most urgent task for the World Bank Group in the very near future.Consequently, we are looking forward with great interest to the proposals on the preparation at the Bank for a concept on the formation of an energy affiliate or facility, such as that suggested at the World Economic Summit in Venice.We shall examine these proposals very carefully and we are prepared to take an active part in consultations on how to realise the Bank's new energy concept, including an equitable participation of all members of the World Bank Group.Thank you very much for your attention, I think.
World Bank Annual Meeting, 30 September 1980, tape 2
13 topics
Topics are based on a machine-generated summary of the recording. Selecting a topic will highlight all segments in the recording related to that topic.
30 keywords
Keywords are machine generated based on important terms in the recording. Selecting a keyword will highlight all uses of that term in the recording.
Timed Transcript
0:00:01.36
States of America.
0:00:29.48
Mr.
0:00:29.84
Chairman, fellow governors, distinguished guests, it is my pleasure and my privilege to present the President of the United States.
0:00:51.37
Thank you very much, Secretary Miller, Chairman Jamal, Mr.
0:00:57.53
Delarosiere, Mr.
0:00:59.93
McNamara, Governors of the Fund and the Bank, distinguished delegates and guests.
0:01:08.36
It's a special pleasure for me as President of our country to welcome you again for this meeting, which is so important to the entire world.
0:01:17.48
This is the 35th annual meeting of his two great institutions, and it's also a special pleasure for me to welcome the new members.
0:01:27.36
Your presence here symbolizes a commitment of more than 140 countries to a dynamic system of international Economic Cooperation and to its central institutions, as you well know, the International Monetary Fund and the World Bank.
0:01:45.8
Your commitment strengthens the prospects for a lasting peace, because peace cannot be assured if hundreds of millions of people are offered no hope of escape from hunger or poverty or economic instability or deprivation.
0:02:06.2
The Bank and the Fund provide that hope.
0:02:11.36
Both institutions are rapidly adapting to new circumstances and new changes, and also new challenges.
0:02:21.28
We support this process of adapting to change.
0:02:26.12
The response of a changing world can best be charted within these institutions, acting in your own fields of competence and experience.
0:02:38.84
Your work should not be diverted by extraneous political disputes.
0:02:46.72
And as you mold and adapt, you must be assured that your decisions will not be determined or renegotiated in some other meeting.
0:02:58.64
Your record of success justifies this vote of confidence.
0:03:03.84
Any political pressure or unwarranted influence from any international forum which might undermine your integrity would be neither necessary nor desirable.
0:03:17
The Fund is the world's principal official source of balance of payments financing so far this year.
0:03:25.88
Fund programs of more than 5 1/2 billion dollars have been arranged.
0:03:32.08
Even more is needed, and action is underway to explain to expand these resources.
0:03:39.2
The IMF is also adopting important changes in policy, making it more responsive to changing needs and the concerns of its members during the last 12 years.
0:03:55.36
During the last 12 months, the World Bank Group has lent more than $12 billion to developing member countries.
0:04:03.72
Nearly $4 billion of that was provided on concessional terms to the poorest nations.
0:04:11.56
The Bank is mounting initiatives to enable developing countries to find and produce more energy while also carrying out other important bank functions.
0:04:23.64
An enlarged World Bank program for energy exploration and development would benefit all of us.
0:04:31.68
The World Bank has also launched a programme of lending and advisory services to help developing nations and to help them make the structural adjustments required by higher energy prices.
0:04:45.56
It's not possible for me to discuss the role of the World Bank without paying personal and professional tribute to the leadership and the dedication of Robert McNamara.
0:04:59.56
Over the last 12 years, under Bob McNamara's outstanding leadership, the Bank has become the focus of world cooperation to improve the human condition and a fine example of how such cooperation can be effective.
0:05:19.76
Bob, you will leave to your successor a high standard and a firm foundation for the future based on an open heart, sensitivity about people's human needs and the sound economic judgement that has maintained the integrity of the World Bank.
0:05:41.8
US support of the Fund and the Bank reflects both our fundamental humanitarian principles and also our own economic interest.
0:05:50.92
Legislation enabling our participation in the IMF quota increase passed the House of Representatives last week.
0:05:59.88
I'm now pressing for a passage of this legislation in the Senate, and I will sign it as soon as it reaches my desk.
0:06:08
Moreover, I will urge the Congress of our country to give high priority to the 6th Ida Ida replenishment later this year.
0:06:17.56
Next year we will submit legislation for our subscription to the general capital increase of the World Bank.
0:06:25.44
Both the Fund and the World Bank Group must have all the resources they need for their crucial work.
0:06:34.56
Let me also mention several other steps the United States has taken that will help to stabilize the world economy.
0:06:43.48
We've adopted a strong anti inflation program, a fiscal and monetary restraint.
0:06:49.2
We've begun a nationwide program to revitalize our own industrial base and to accelerate productivity worth growth.
0:06:58.24
This new program will increase the portion of our own gross national product devoted to investment in new industry and in new jobs and in new production.
0:07:10.52
The program will reduce inflation.
0:07:13.08
It will restore innovation and vigor to our economy.
0:07:18.44
And we've also put into place a comprehensive program to rebuild my country's energy base.
0:07:27.24
This new program is already paying rich dividends.
0:07:31.76
It's already bearing fruit.
0:07:34.16
In the last three years, for instance, we've reduced oil imports by 24%.
0:07:41.76
This year we are drilling more oil and gas wells than any other year in history, and this year we are producing more coal in my country than in any previous year in history.
0:07:54.72
We are acting to ensure that the United States can meet much of the world's need for coal.
0:08:02.32
We've started a massive investment program to increase production of synthetic fuels.
0:08:07.96
We're spending $4 billion a year on energy research and development and additional billions of dollars on incentives to use energy more efficient in our homes, in our industries, our commerce and our transportation.
0:08:25.8
Because of sustained oil production and because of worldwide conservation measures, the world's oil stocks are now at an all time high, and these reserves will help to offset the effect of temporary reductions in supply such as that which has been caused by the present conflict between Iran and Iraq.
0:08:50.92
However, we are keenly aware that some nations are seriously threatened by even a temporary interruption in normal oil supplies.
0:09:00.72
Thus, we are working with your countries in the United Nations and through other public international forum to end this conflict as quickly as possible.
0:09:12.56
Our energy program is part of a far reaching effort to which we pledged ourselves at the recent Venice Economic Summit conference.
0:09:22.52
Our common goal there, as expressed by the seven nations involved, is to conserve more oil and to produce the equivalent in alternative fuels of 15 to 20 million barrels of oil per day by the end of this decade.
0:09:41.64
This will ease pressure on world oil markets.
0:09:46.16
It will alleviate balance of payments problems and will let developing countries obtain a larger share of the world oil supply now and in the future.
0:09:56.88
The common purpose of all countries in both our domestic and International Energy actions should be to strengthen the world economy and to assure fair treatment for all nations.
0:10:09.4
Our common goal should be to minimize the threat of abrupt changes in the price of oil, to assure a reasonable, predictable level of supply of energy, to avoid compounding inflationary pressures that robbed us all The oil importing countries and the oil exporting countries as well can all contribute to this effort.
0:10:38.08
We all have a stake in its outcome.
0:10:42.72
This meeting comes at a crucial time for us all.
0:10:46.24
The world has come to place enormous confidence in your judgement, in the judgement and the services of the World Bank and the International Monetary Fund.
0:10:58.72
That confidence down through the years has never been misplaced, and I'm certain that it will be even more justified by your actions and your services in the future.
0:11:11.68
On behalf of the United States of America, I assure you that we intend to remain active in the decisions made within these two institutions and supportive of the work which lies ahead of us all.
0:11:25.84
Congratulations on what you've accomplished.
0:11:28.88
My full support and best wishes now and in the future.
0:11:32.4
Thank you very much.
0:14:21.6
This afternoon's session will be devoted to the business of the Fund and of the World Bank and its affiliates.
0:14:29.48
I have pleasure in calling first Mr.
0:14:32.64
Andrush, the temporary Chairman of the Interim Committee of the Fund and Governor of Austria.
0:14:52.32
Mr.
0:14:53.04
Chairman, Mr.
0:14:54.2
de la Rocier, Mr.
0:14:55.56
McNamara, fellow Governors and distinguished delegates and guests.
0:15:02.04
Since the last annual meetings of the Boards of Governors, the Interim Committee has met twice, once in Hamburg in April 1980 and again one day before yesterday here in Washington.
0:15:17.68
These were the 14th and 15th meetings of the Committee respectively.
0:15:23.68
Mr.
0:15:24.44
Pandolfi, the Committee Chairman, was unable to attend the 15th meeting, much to the regret of all participants, as it was necessary for him to return urgently to Italy.
0:15:39.92
In his absence, I had the honour of being selected to serve as the Temporary Chairman of the Committee.
0:15:47.84
After the conclusion of the meeting, I took the first opportunity to convey to Mr.
0:15:53.52
Pandolfi how very much the Committee had missed his participation and also to assure him that the meeting had been a fruitful one.
0:16:03.8
It now gives me great pleasure, and I deem it a privilege to report to you in my capacity as the Temporary Chairman of the Interim Committee on our recent discussions at the 15th meeting.
0:16:20.04
I do not need to remind Governors that our current meetings are being held against the backdrop of a very difficult World Economic outlook that, as most of us would agree, has on the whole change has on the whole changed for the worst since Belgrade last year.
0:16:40.64
The serious problems of high inflation, slow growth, high unemployment and large payments imbalances among groups of countries continue to plague the world economy, though their intensity and incidents might have changed.
0:16:59.04
Under these circumstances, the Committee reminded firmly convinced that the fight against inflation must not be relaxed as control of inflation and defeat of inflationary expectations are the prerequisites for achieving a better investment performance and higher economic growth.
0:17:21.52
But particularly troublesome at the present juncture is the situation of the non oil developing countries.
0:17:29.16
The Committee noted that the combined current account deficit of the non oil developing countries was projected for 81 at $80 billion, more than twice the 78 deficit, and expressed concern about the problems of financing this deficit, especially in the case of the low income countries.
0:17:53.28
The Committee for so a great and urgent need for more official development assistance to the latter countries from the industrial and oil exporting countries.
0:18:05.2
For developing countries not so heavily dependent on concessional assistance, the Committee emphasized the importance of their having adequate access to export and capital markets in the industrial countries.
0:18:20.36
In this connection, it was also observed that the number of developing countries themselves could contribute to facilitating the necessary capital inflows by following policies designed to bolster confidence regarding their economic prospects.
0:18:39.84
Governors would no doubt be particularly interested in the consideration given by the Committee to the evolution and adaptation of fund policies in response to the difficulties confronting us.
0:18:52.2
The Committee welcomed the policy direction followed by the funds since the Hamburg meetings toward increasing energetically it's role in promoting balance of payments adjustment and financing payments deficits of members.
0:19:07.36
Several salient features in this policies, some aspects of which still need to be elaborated by the Executive Board, were widely endorsed by the Committee.
0:19:17.72
Namely, first, programs are being designed to stretch the necessary economic adjustment over longer periods than normal in the past.
0:19:27
Second, the traditional emphasis on demand management in adjustment programs is being supplemented by measures to elicit appropriate supply responses.
0:19:40.2
Third, member success to fund resources in relation to quotas is being substantially increased on this matter.
0:19:48.56
The broad conclusion of the committee was that the provision of up to 200% of a member's quota year, which would amount to up to 600 percent of a three-year.
0:20:00.64
Excluding uses under the.
0:20:03.08
Compensatory and buffer stock financing facilities would be a generally reasonable guideline in the present circumstances, provided adequate adjustment policies were adopted.
0:20:16.76
And finally and 4th, the present revised guidelines on conditionality are sufficiently flexible to accommodate the adaptations now necessary.
0:20:28.32
It was noted with satisfaction that on the basis of this policy, the Fund has already agreed to provide large amounts of resources to several members in support of programs that envisage adjustment over longer periods than has been the normal practice hitherto.
0:20:46.44
The Committee agreed that in order for the Fund to be able to meet requests for assistance under these new policy on the use of its resources, it will be necessary that the Fund supplemented resources by further borrowing.
0:21:00.64
And in view of the magnitude of the expected need, the Executive Board and the Managing Director should make as soon as possible the necessary arrangements to enable the Funds to borrow from various potential sources of financing, not excluding a possible resource to the private markets, if this were indispensable.
0:21:23.2
Nevertheless, it was stressed that the fund should continue to place primary reliance on subscriptions and the members quotas as a source of financing of the funds operations.
0:21:37.12
In this connection, the Committee urged those members that have not yet consented to increase in their quotas provided for in the resolution of the Board of Governors on the 7th General Refuge to make every effort to do so as soon as possible.
0:21:54.44
Moreover, it endorsed the intention of the Executive Board to begin preparatory work on the eighth general review of quotas, including a review of the criteria by which quotas are calculated.
0:22:09.76
The Committee welcomed the agreement reached in the Executive Board on the establishment of a subsidy account designed to reduce the cost to low income member countries of the use of the funds resources under the Supplementary financing facility and the intention of the Board to complete the arrangements for putting such an account into effect.
0:22:34.32
In this connection, the Committee noted the intention to use a part of the proceeds from repayments of loans by the Trust Fund to provide resources to the subsidy account and endorse the efforts of the Managing Director to obtain voluntary contributions to the subsidy account.
0:22:53.04
The Committee noted that in response to a suggestion by the Food and Agriculture Organization and the World Food Council, the Executive Board has begun consideration of the question whether the Fund could extend temporary financial assistance to low income member countries when such countries are adversely affected by crop failure or a sharp increase in the world price of food items, especially cereals.
0:23:23.56
Recognising the seriousness of the problem faced by these member countries, the Committee urged the Executive Board to give prompt consideration to the matter.
0:23:35.2
The Committee had a discussion on the recommendations of the Programme of Immediate Action of the Group of 24 relating to monetary issues and in this connection noted that the Executive Board had initiated an in depth examination of the issues involved in these recommendations, such as those relating to the SDR allocations, the link between SDR allocations and development finance and the participation of developing countries and the decision making of the Fund.
0:24:10.96
In this connection, the Committee asked the Executive Board to give active consideration in the months before the next meeting of the Interim Committee to the question of the appropriate level of SDI locations and agreed that the Executive Board should carry out the more comprehensive study of a possible link between SDI locations and development finance.
0:24:37.24
On the subject of the participation of developing countries in the decision making in the Fund, the Committee found that the matter needed further consideration and noted the intention of the Executive Board to return to this important topic at an early date.
0:24:53.36
In connection with the 8th Quota Refuge, the Committee urged the Executive Board to pursue its consideration on the remaining issues raised by the recommendations of the Group of 24 with a view to arriving at widely acceptable solutions.
0:25:11.6
The Board should report on these matters at the next meeting of the Committee.
0:25:16.96
The Committee welcomed the recent decision of the Executive Board to simplify the SDR, as a result of which, beginning of January 1, 1981, the valuation and interest rate basket of the SDR will become identical and consist of five currencies, that is, the US dollar, the Dutch mark, the French fry, the Chipenesian and the pound sterling.
0:25:43
This important action should further enhance the attractiveness of the SDR and promote its use by public as well as private holders.
0:25:52.6
The Committee also welcomed the increase in the past few months in the number of official institutions that can hold and deal in SDRS.
0:26:02.04
The Committee asked the Executive Board to give early attention to the question of adjusting the SDR interest rate to the full market rate and that of eliminating the remaining reconstitution requirement.
0:26:15.96
The Committee reiterated its intention to continue this study of the subject of the substitution account.
0:26:24.2
Finally, I'm pleased to remind fellow governors that Gabon has graciously offered to host the next meeting of the interim committee, which will be held in Liberville on May 21 next year.
0:26:39.52
Finally, ladies and gentlemen, men, please allow me to take the liberty, in order to save time, to add a few remarks.
0:26:49.28
As Governor of of Austria in this position, as well as temporary chairman of the Interim Committee, I would like to welcome the Governors of the People's Republic of China, Zimbabwe, St.
0:27:01.48
Lucia, Saint Vincent and the Grenadines to our meeting wherein they are participating for the first time.
0:27:10.16
Also, I would like to express my gratitude to the Government of the United States for the hospitality offered to us.
0:27:17.52
Again, concerning the World Economic situation, I cannot but agree with the Managing Director's analysis.
0:27:25.72
In particularly, I share the concern about high inflation, slow growth rates, high unemployment and large imbalances between groups of countries.
0:27:37.84
This obviously unfavourable World Economic situation demands an acceleration of the adjustment process.
0:27:46.04
We are convinced that only well adjusted economies will be able to guarantee the growth rates necessary to facilitate the development process and to improve the unemployment situation.
0:27:59.56
In addition, higher economic activity in the industrialized countries would contribute in reducing the deficit of the external imbalances of the developing countries.
0:28:11.92
The experience of the 70s clearly shows that positive adjustment requires medium or long term structural policies.
0:28:21.28
They have also shown that a structural policy can only be successful within a framework of stability.
0:28:28.68
Furthermore, it is crucial to look for adequate solutions in the energy field.
0:28:35.68
This leads us inevitably to the conclusion that an orderly retreat out of all is the order of the day.
0:28:43.96
This can be achieved by opening up new resources, developing alternative energy sources, conserving and recycling energy.
0:28:54.16
To accomplish this, objective investments are necessary.
0:28:57.96
They would at the same time stimulate domestic demand and increase employment and thereby reducing the demand for imports.
0:29:07.08
The major aim is to create the market out of a crisis.
0:29:12.36
Permit me to say a few words on the development of the Austrian economy.
0:29:16.76
For 1980, we expect a real growth rate of the order of 3 1/2 percent in real terms, with less than 2% unemployment, which could be considered quite satisfactory.
0:29:28.76
We could, however, not detach ourselves from the worldwide wave on inflation.
0:29:34.52
Thus, the expected average rise of consumer price index for this year will be in the range of 6 1/2 percent, largely due to the excessively high energy prices.
0:29:46.56
The deficit of our current account has increased and will amount to 2 1/2 percent of our GDP this year.
0:29:53.88
Dealing with this situation, we are further forced to maintain a restrictive policy stance.
0:29:59.2
The hard currency policy will be continued, supported by restrictive monetary policy measures and a tight fiscal policy for 81.
0:30:08.48
A further reduction of the federal budget deficit is envisaged.
0:30:13.84
Because of the worldwide imbalances, the IMF will have to assume an increasing role in the recycling process.
0:30:20.84
It is obvious that the Fund will have to lend for longer periods and show more flexibility in its policies.
0:30:28.64
The Fund must, however, expect that countries to which it lands relatively large amounts for unusually long periods are prepared to meet certain conditions.
0:30:38.64
It goes without saying that the extension of its task will affect the financial position of the Fund itself.
0:30:45.12
Therefore, I would like to advocate that the work of the Eighth Quarter Refuge be speeded up and that we give Mr.
0:30:52.64
de la Rocier all our support in his efforts to supplement the Fund's resources to adequate borrowing.
0:31:01
With respect to Austria's cooperation with international financial institution, I want to point out that we are, of course participating in the seventh general refuge of IMF quotas.
0:31:11.92
Furthermore, Austria is prepared to make a voluntary contribution to the subsidy account in the Fund.
0:31:17.92
Austria has voted in favour of the resolution of the Bank's capital increase with regard to either 6.
0:31:24.36
I'm happy to report that parliamentary procedures to implement ostracia in this operation is well underway.
0:31:31.72
In this context, I wish to pay my special respect to a man who's to a man who's in 68 has been responsible for the Bank's remarkable performance.
0:31:43.4
President McNamara, whose outstanding personal capacity we have admired over the years as the World Bank enters into a new era of challenges, we can only accept with deepest regret President McNamara's decision to retire.
0:32:00.92
I also would like to use this opportunity to thank Mr.
0:32:04.12
de la Rocier on the staff of the IMF as well as the World Bank for the excellent job they again have done before closing.
0:32:12.16
Mr.
0:32:12.44
Chairman, let me say a few words on the future relationship between developed and developing countries.
0:32:18.56
The north-south relationship is overshadowed not only by economic strains but also by political conflicts.
0:32:26.44
We should therefore welcome all efforts to avoid confrontation and continue the north-south dialogue successfully.
0:32:35.84
The report of the Brunt Commission has clearly underlined the necessity of a closer cooperation between North and South.
0:32:42.92
Let me conclude, Mr.
0:32:44.08
Chairman, with a quotation from this stimulating report.
0:32:49.56
All nations will benefit from a strengthened global economy, reduced inflation and improved climate for growth and investment.
0:32:59.04
All nations will benefit from better management of the world's finite resources.
0:33:04.56
All nations industrialised and developing market and centrally planned economies have a clear interest in greater security and then improve political capability and leadership to manage global problems.
0:33:21.72
Thank you very much.
0:33:30.69
Thank you, Mr.
0:33:31.53
Andrush.
0:33:33.01
Before I call on the next speaker I, I want to note that many governors have asked to speak this week and to enable us to hear all of them, I request that each speaker makes his remarks as briefly as possible.
0:33:49.4
Governors usually, as you know, speak on behalf of both the Fund and the Bank and I, I would like to repeat my commendation of of the practice choosing 1 governor to make a statement on behalf of a group of member countries.
0:34:03.44
Thank you.
0:34:04.68
I now call upon the Governor of Luxembourg.
0:36:04.92
I now call the governor.
0:36:09.96
I now call the Governor for Indonesia.
0:36:33.33
Mr.
0:36:33.61
Chairman, fellow Governors, distinguished delegates, the measures introduced by governments, with a few to improving the economy of their countries have apparently borne some fruit.
0:36:52
As indicated in this year's Funds Annual Report and the World Economic Outlook, their paramount target was to reduce inflation, and while it remains unacceptably high at present, rates of price increases in industrial countries measured by GNP deflators turned out to be lower than evidenced by consumer price indices.
0:37:23.76
Also, there appears to be a better balance among industrial countries as far as current account surpluses and deficits are concerned, while exchange markets have been relatively calm, whether the recession itself, particularly in the largest economy, the United States, has bottomed out, as implied by some indicators, as perhaps too early to determine.
0:37:54.64
On the whole, however, the situation of the world economy, whether examined for the short run or for the longer run, remains bleak.
0:38:07.44
Growth, inflation and balance of payments developments continue to be precarious, and policies to combat inflation are becoming somewhat uncertain, which may tempt governments to relax their fiscal and monetary stance.
0:38:27.2
Most disturbing of all is the widening gap between the countries of the North and South, on which in particular the Brand Commission drew our attention.
0:38:40.28
Recently also the special session of the United Nations has tried to agree on solutions within the global framework.
0:38:51.4
The dialogue, as we know, has failed.
0:38:55.52
The increasing resource gap faced by developing countries, especially the poorer among them, not only dooms them to live at often sub human levels, but it also threatens to become a serious factor of impediment as far as the world economy is concerned.
0:39:17.2
One of the lasting features of the Branch Commission report is it's convincing analysis of the interdependence of all economies.
0:39:28.16
Neither the North nor the South can go it alone.
0:39:33.12
The North needs expanding markets to sustain its growth and welfare.
0:39:38.88
Those markets cannot come into being without the thought increasing its purchasing power, which could only be enhanced by growth, trade and the degree of resources transfer.
0:39:55.4
Protectionism in the industrial North and the withholding of resources transfer.
0:40:01.88
For whatever reason are self defeating, they reduce the revenues of the sort and therefore imports from the North and in the end both sides would be the losers.
0:40:16.8
Both the Fund and the Bank drew attention to the increasing deficits of a great number of countries of all importing LDCs.
0:40:25.96
In particular, the problem is that of the non oil developing countries for which resources have to be found for the short run as well As for the long run, as the World Development Report and the Brand Commission convincingly argue.
0:40:45.92
It is understandable that both in the North and the South ideas and proposals have been developed to remedy the situation.
0:40:56.24
They all have one thing in common.
0:40:59
More resources are needed and a variety of suggestions have been made, ranging from increasing official development assistance to better access to capital markets, facilitating and increasing investments, reforming existing institutions and the setting up of new financial entities.
0:41:23.6
At that, there is a need to involve developing countries more and the decision making process because their interests are at stake.
0:41:34.16
The possibilities and practicability of the various proposals have to be carefully examined and discussed in the appropriate FORA, but meanwhile the need for financing in the period 198081 has to be met immediately.
0:41:55.4
It seems to me, Mr.
0:41:56.48
Chairman, that we cannot wait under perhaps more lasting and comprehensive solutions for the resource gap identified by the Bank and the Fund, the United Nations and the Brand Commission would be agreed upon by the relevant countries.
0:42:16.84
We cannot allow a great number of developing countries to collapse in the meantime.
0:42:25.16
Under these circumstances, the one practical and pragmatic approach for the immediate.
0:42:31.88
Ahead is to turn to and examine the possibilities of existing and already operating institutions.
0:42:42.24
In our case, those institutions are the International Monetary Fund and the World Bank.
0:42:50.28
President McNamara has over the years succeeded to increase the resources and consequently the lending capacity of the World Bank.
0:43:02.56
An innovative decision taken recently is to extend loans for structural adjustments, which are aimed at relieving balance of payments pressures while at the same time introducing structural changes so that current deficits could be reduced to sustainable levels.
0:43:26.16
We believe that resources for this purpose should be increased without impairing the other activities of the bank, which implies that it needs more resources itself.
0:43:42.48
The bank with its excellent standing in the capital market could tap more from it but it is Hanford by its present so-called gearing ratio.
0:43:54.88
It seems to me that this ratio could be changed without endangering the bank's solvency.
0:44:03.96
I do not wish to to exhaust the list of possibilities.
0:44:08.76
They have been discussed by the development committee.
0:44:13.24
I now would like to turn to the fund.
0:44:16.8
The fund is not a development institution.
0:44:20.24
It extends financial assistance for the purpose of restoring balance of payments.
0:44:25.92
This equilibrium equilibrium is an important condition for the smooth functioning of the monetary system, of which the fund is the international guardian.
0:44:40.24
A number of critical observations have been made with regard to the International Monetary system and desires for a reform have been expressed.
0:44:52.16
The present system is not perfect and the Fund would be the first to recognise its short shortcomings.
0:45:02.92
In fact, the introduction of the present system includes a provision for continuing scrutiny and the possibility for changes.
0:45:16
I happen to be closely associated with the reform of the Bretton Woods system, during which I believe we have considered a great number of possible schemes, the one which is in place now as a compromise between what is desirable and possible.
0:45:36.44
It can and must be improved, but the road is long and rough and great caution has to be exercised.
0:45:45.68
Under the present circumstances.
0:45:48.52
I would like to strongly advocate the greater exercise of the surveillance authority of the Fund.
0:45:57.52
In fact, the present system would function much better if all countries, the larger industrial countries and particularly, would follow policies aimed at strengthening their underlying conditions.
0:46:15.04
At this in this respect in particular, that the front should exercise in a forceful manner its surveillance.
0:46:24.92
The present system, with its lack of built in stabilizers, needs, like an orchestra, a conductor, without whom its performance would not produced the the desired results.
0:46:41.72
The conductor is the front, which, however, has to act more through persistent persuasion rather than through coercion or prescriptions.
0:46:54.04
The Fund, based on Article 4 consultations and the examination of the world economy, should unwaveringly continue to remind the larger countries, in particular, to follow appropriate policies aimed at putting sound underlying conditions in place.
0:47:15.8
Meanwhile, possibilities to improve the system itself have to be explored, including enhancing the role of the SDR, which would make the system less dependent on a single currency.
0:47:33.12
At this, as the guardian of the monetary system that the Fund extends resources to countries in need to improve their balance of payments because their underlying conditions are imbalanced.
0:47:47.44
Lately, disequilibria have become more numerous and pronounced.
0:47:53
To its credit, the Fund has been aware of its rule.
0:47:56.88
The oil facility and subsequently the Supplementary Financing Facility were initiatives to ease the financial needs of countries related to their widening current account deficits.
0:48:14
The Fund is placed before new challenges.
0:48:17.28
In the period 198081 changes have taken place not only in the magnitude of deficits, but also in their nature.
0:48:29.08
Deficits are not only related to cyclical or other temporary and therefore relatively easily reversible causes, but also to more continuing factors which require structural adjustments.
0:48:46.16
In order to make deficits sustainable.
0:48:50.76
More resources and longer time are required to correct imbalances.
0:48:57.48
Recognizing the new problems, the Fund has now enlarged the access of countries to its resources.
0:49:05.92
Lengthen the period for adjustment and adapted conditions for adjustment to the different situation than in the past.
0:49:17.6
We should support Managing Director in his efforts to acquire new resources and to instigate and submit new policies.
0:49:30.04
In this connection, it is essential that the Funds 7 quota increase be completed as soon as possible.
0:49:39.32
It is also important that the new allocation of SDRS be considered promptly.
0:49:46.92
Efforts to improve the quality of SDRS should also be actively continued.
0:49:54.32
As far as potential lenders are concerned, we hope that industrial countries would cooperate and not isolate themselves under the pretext of balance of payments problems which in their case are sustainable.
0:50:11.6
It is the strength of their economy which is the basis for financial cooperation and again, the resources transfers to the developing countries through the Fund will flow back to them in the form of purchases.
0:50:30.72
All in all, Mr.
0:50:31.64
Chairman, the situation for the poorer developing countries is grief.
0:50:37.92
We have to try to make use of existing institutions to meet their immediate needs.
0:50:47.68
Mr.
0:50:47.96
Chairman, I would like to use this opportunity to extend our sincere thanks to President McNamara for his untiring services to the less developed countries.
0:51:01.16
We in Indonesia particularly, have certainly benefited greatly from his development policies and his leadership as President of the World Bank.
0:51:13.68
We regret his departure, and this is the last annual meeting to express our appreciation to him.
0:51:23.28
Finally, on behalf of my delegation, I would like to thank the United States government and people for the efficient arrangement in connection with all meetings and for the hospitality which we are enjoying in this great country.
0:51:39.52
Thank you.
0:51:48.19
I thank the governor for Indonesia and I now call the.
0:52:18.88
Mr.
0:52:19.12
Chairman, Distinguished Governors Excellencies, President of the World Bank, the Managing the Director of International Monetary Fund.
0:52:48.36
Ladies and gentlemen, never before in the history of the Bretton Woods institution has the comprehension of the dominant problems in the world economy been Sonia.
0:53:02.52
Yet the political will for the minimization of these problems seem to be so very distant.
0:53:11.68
Are we to continue to exert our efforts at these international FORA in a state of mirage with no Oasis insight?
0:53:22.96
As we were entering the decade of the 70s with the ever widening income gap between the North and the South, the prevailing development related discussions within the Bretton Woods Institutions centred around the Pearson Commission Report, which was published with the support of the World Bank.
0:53:43.88
The Pearson Commission Report demonstrated the correct comprehension of the dominant problem in the world economy when it observed that four countries were becoming poorer and poorer while rich countries were getting richer and richer.
0:54:00.16
Because the nature of North-south economic relations was such that it generated at times of trade structure, we benefited the rich at the expense of the poor as the solution to the problem of perennial underdevelopment, the Pearson Commission recommended the strengthening of north-south economic relations, specifically in terms of additional aid, trade and foreign investment in the South.
0:54:31.08
The scientific examination of the North-south economic relations during the 70s does indicate that indeed, these relations were characterized by additional aid, trade and foreign investment.
0:54:47.88
In the South, However, we know only too well the decimal results of the 70s, where the gap between the poor and the rich grew even wider.
0:55:02.48
It is essentially because of these well known dismal results existent in the world's economy that the management of the World Bank again took a most timely initiative that resulted in the formation of the Brand Commission.
0:55:17.52
In what must be considered as an objective comprehension of the problems confronting us all, the Brand Commission not only acknowledges the state of washing worsening underdevelopment in the South, but it does provide us with a rather disconcerting forecast that the 1980s could witness even greater catastrophes than the 1930s.
0:55:42.56
Mr.
0:55:44.76
Chairman, Sir, distinguished Governors, it is against the foregoing background that we are met here at the 1980 annual meetings of the Bretton Woods Institutions.
0:55:57.36
Institutions, as we are poised to do, battle yet once again with the warring problems in the world's economy.
0:56:07.6
Let us welcome the membership of all new countries, particularly China and Zimbabwe, into the World Bank and the International Monetary Fund, and express the ardent hope that their active participation in the struggle for economic and social progress might very well make the positive difference between the hopelessness of facing The Mirage of false development and the hopefulness of experiencing the Oasis in real development.
0:56:39.68
The issues before us at these annual meetings are clear.
0:56:44.68
As workable solutions to our problems keep evading us, what we clearly need to do is to adopt as realistic an attitude as possible in our attempt at reversing the Bretton Woods institutional inertia.
0:57:01.12
The issues of inflation and energy continue to face us.
0:57:06.24
The issues of debt and deficits are perennial in character.
0:57:10.56
The overriding issue of reform in the nature of the operationality of the world economy is still on our agenda.
0:57:18.48
The overwhelming mounting tensions in our world must serve as a reminder that unless people as individuals and people as governments participate meaningfully in decisions that affect them, there can be no lasting solution to the burning problems which set us all ablaze.
0:57:39.6
Let us realize that we cannot expect any people anywhere to continue to have confidence in institutions whose decisions continue to make the people poorer and poorer.
0:57:51.96
We cannot expect that people who possess raw materials will not want to acquire the capacitors to process them in an appreciable extent.
0:58:03.6
We cannot expect people who surrender their raw materials at on variable price prices to set supinely and not be accepted in seeking to influence decisions on the framework within which money is valued.
0:58:19.24
Those people who expect other people to self destruct are indeed the proponents of the doomsday scenario for the world's economy.
0:58:29.04
The realities of our times dictate that we will survive only if we cooperate with each other.
0:58:36.36
It is in this spirit of cooperation, Chairman, Distinguished Governors, that we, the African Governors, seize this fleeting movement to address ourselves very briefly for the following issues which we consider to be not only of immense significance to Africa but of great importance to the Bretton Woods Institution.
0:58:59.28
1 Reforming the International Monetary system.
0:59:04.36
We, the African Governors, support fully the Program of Immediate Action as presented by the Group of 24 to the Interim Committee of Fund Governors at the 1979 Belgrade Annual Meetings.
0:59:20.16
The Program of Immediate Action is a positive step in the direction of paving the way for the South to have some meaningful influence on the framework for creating and distributing international means of payment.
0:59:34.52
2 minimizing negative balance of payment effects.
0:59:39.36
We, the African Governors, hold the view that quarters of the International Military Fund should be increased substantially so as to facilitate the use of a higher level of fund resources.
0:59:53.6
In this regard, we could not overemphasize the need for the establishment of a medium term balance of payments facilitate as proposed by the Group of 24 in efforts geared at expanding the funds resources.
1:00:10.32
The movement towards the operationality of the concept of the Funder Resource Recycling Facility will contribute positively to the easing of the unfavourable effects of changes in the balance of payments.
1:00:24.6
3.
1:00:25.84
The search for energy cost saving alternatives.
1:00:30.8
We, the African Governor, welcome the initiative of the World Bank in the direction of establishing an Energy Affiliate with the Bank for the purpose of financing the development of various sources of energy in the developing countries.
1:00:46
Every airport should be made by all member countries to ensure that the Energy affiliate is operationalized prior to the 1981 Annual Meeting of the Bretton Woods Institutions.
1:01:00.24
4 Maximizing the flow of World Bank resources We, the African governors, recall that the World Bank lending program for the fiscal.
1:01:12.44
1981 to 1985 was based on the economic situation that obtained in 19177.
1:01:22.44
However, assumptions regarding the rate of inflation relevant to the lending program are now considered to have been underestimated by nearly 50%.
1:01:35.08
Therefore, it is clear that the 5% annual rail growth rate in the lending by the World Bank for the fiscal.
1:01:43.72
1981 to 1985 is significantly inadequate.
1:01:49.36
Consequently, in the light of the most recent reality, we, the African governors, propose that the annual real growth rate in the World Bank lending for the fiscal.
1:02:01.4
Under consideration be adjusted upward.
1:02:05.08
A variety of approaches to increasing bank resources has been advanced at various international fora.
1:02:12.6
These approaches include the changing of the getting ratio, increasing the subscribed stock with us, requiring additional paid in capital and establishing a separately capitalized energy affiliates.
1:02:28.4
We, the African governors, do not view these approaches as being mutually exclusive.
1:02:36.24
However, there is the problem of the choice of those approaches that can be made more readily implementable.
1:02:46.2
From our experience, we know that those approaches whose implementation calls for financial contribution are the most difficult to operationalize.
1:02:56.8
Therefore, we, the African governors, urge that those approaches which are not tied to financial contribution should be implemented immediately, while the other approaches receive timely consideration.
1:03:15.08
As we seek to expand the bank's lending capacity, we must not overlook the need for efficient disbursements and the relevance of rich financing.
1:03:26.96
The record of the Bank Group, particularly the International Development Association, with respect to disbursements should definitely be improved.
1:03:37.08
Breach Finally, breach financing is vitally necessary in the interest of ensuring that interruptions from 1 replenishment to another are minimised.
1:03:49.4
Although the $12 billion six replenishment of the International Development Association does mark a significant increase in resources under the World Bank Group, we note that the inadequacy of these association resources remains a disturbing reality.
1:04:11.68
It is in the knowledge of this fact that we, the African governors, call upon donor countries to approve of the relevant legislation for effecting the flow of additional resources to the International Development Association.
1:04:28.12
It is in this regard that the intervention made by the President of the United States of America earlier today was reassuring when he mentioned that efforts are now on the way in the Legislature of the United States of America respect to approving of the 6th Replenishment.
1:04:49.08
In seeking to expand the role of the World Bank Group, we pause here to join our distinguished our fellow distinguished, distinguished governors in paying tribute to Mr.
1:05:04.48
Robert McNamara, President of the Bank, who is extending these annual meetings for the last time in his present official capacity.
1:05:16.24
We, the African Governors recognize the immense efforts of Mr.
1:05:21.2
McNamara in expanding the Bank, particularly in terms of attending to the critical needs of the poorest of the poor people.
1:05:30.88
We wish Mr.
1:05:31.8
McNamara well in his future endeavours as we express the ardent hope that he will somehow manage to pursue the development oriented ideals of the Bretton Woods institution in his new capacity.
1:05:47.68
In closing, Mr.
1:05:48.72
Chairman, distinguished Governors, as we seek to find new and better ways for cooperating, we must do so in full realization of the catastrophic consequences which emanates from the absence of fundamental change in our attitudes towards each other as people and our government.
1:06:10.8
In the relevant words of the Brand Commission Court, we believe that nations, even on grounds of self-interest, can join in the common task of ensuring survival to make the world a more peaceful and less to make the world more peaceful and less uncertain.
1:06:29.6
A fundamental change in relations between North and South as well as between East and West is crucial to this task on court.
1:06:40.4
As for our part, we the African Governors hold firmly the view that what is needed for fundamental change is fundamental action and now more than ever before is the time for such action.
1:06:56.56
African governments have begun to act with the adoption of the Lagos Plan of Action for the implementation of the Monrovia Strategy which emphasizes self-reliance in charting a plan of action which calls for us as Africans to depend upon ourselves by cooperating among ourselves.
1:07:16.88
Non African members should not view such action as being antagonistic.
1:07:21.44
To cooperate to cooperation with non African countries fall from it well, how can we dare stand here and call for cooperation abroad when we do not care to cooperate at home?
1:07:36.68
Cooperation within the African economy will strengthen Africa's capacity to cooperate within the world.
1:08:17.16
Mr.
1:08:17.76
Chairman and distinguished Governors, it is my great pleasure to have the opportunity to state my view for the first time as Governor for Japan.
1:08:34.96
First of all, I'd like to extend my hearty will come to our neighbouring friend in Asia, the People's Republic of China, which has since the first delegation headed by Governors de Paufer and from Piencheng.
1:08:59.52
I have no doubt that China will make constructive contribution to the hand and bank.
1:09:11
Between also extended my worst congratulation to Saint Lucia, Saint Vincent, the Grenades and Zimbabwe, our newest members at the 1st Annual Meeting in the 1980s.
1:09:34.6
I tried to view the experience during the last decade and to summit the challenge of this decade.
1:09:48.44
In the 1980s, seventies, the world economy has undergone severe tests in many respects.
1:09:59.4
First, and the most significant was the emergency of energy resources as a grave constraint on the economic growth.
1:10:12.72
In the 80s.
1:10:15.04
We have to make utmost effort to free the economic growth from the constraint of oil supply through conserving energy and development, developing alternative resources.
1:10:33.16
The second challenge we faced in the last decade was worldwide inflation.
1:10:41.64
The problem inflation had discouraged private investment and slowed down productivity cross in spite of the gradual spreads of recession over the economy is to pursue with solid determination and in generals the difficult strike against inflation through stability in prices.
1:11:12.6
We want to regain the business and household confidence in future and liberalize the economy.
1:11:26.72
It would, in the end, be to the sustained economic growth.
1:11:33.84
I strongly hope that countries with great emphasis over the world economy assume their international responsibilities by exercising economic discipline and implementing appropriate petroleum policy.
1:12:00.52
Southeast in the 70s was the dodge payment in branches between oil exporting and oil importing countries.
1:12:14.36
These imbalances may persist for considerable time.
1:12:20.76
We cannot despair the fear of stagnant World Trade and disorder in the international finance mechanism.
1:12:34.72
In order to prevent this possibility from materializing, it is intention in the 1st place that each country in the bus through appropriate policy measure.
1:12:52.4
To deduce this embrace as far as possible adequate energy policies and anti inflation measures to which I define above should be implemented effectively for the purpose of the adjustment of the standard imbalances as well.
1:13:20.04
Sit down.
1:13:21.76
I need to improve the mechanism of challenging fund from surplus to deficit country.
1:13:30.8
In order to facilitate the recycling of fund, tireless majors have been taken in the world financial market and international financial institution.
1:13:49.52
It is to be hoped that in year to come each country will make the best use of this placing mechanism.
1:14:01.2
In this connection, I hope in particular that surplus countries promote stable fraud or fund to all exporting developing country.
1:14:16.16
Mr.
1:14:16.56
Chairman, now I struck to turn to the International Monetary problem to reflect on the 70s and build the 80s in the Mid East of continued turbulence in the 70s institutional device in the International Monetary system.
1:14:42.12
We sought for to facilitate the development of the world economy, but major achievement is in the management of the exchange rate system in decent year through operation among monetary authorities that have been strengthening major to counter disruptive fruition in exchange rate during the decade that right OK it improved further the management of the protein exchange rate.
1:15:28.56
So to close the cooperation among the monetary ositase.
1:15:34
Another major achievement in the International Monetary system in the seventh case is the creation of the SDR in the 80s.
1:15:44.92
We need improve institutional environmental condition and hence increase attractiveness and credibility of the SDR in order to make it the principal reserve asset and international currency.
1:16:08.2
In reality, we will come the decent agreement of the executive part of the hand on market simplification of is they are valuation basket so that to make it identical with international rate basket.
1:16:33.48
I believe this is an important step toward increasing confidence in this Dr.
1:16:42.44
Mr.
1:16:43.32
Chairman, now I try to take up the issue of the developing countries.
1:16:51.24
Despite the CBL World Economic environment in the 70s, developing countries as a for have maintained a higher rate of growth than in sterilized countries than in sterilized countries.
1:17:11.52
I'd like to pay my highest tribute tribute to the performance of this country.
1:17:21.84
It is admitted, however, that many problems still remain unsolvable for the developing countries.
1:17:33.28
On other hand, the industrialized countries are now faced with the treatment of inflation decision and the payment in branches, all of which could adversary affect the capacity to extend aid to developing country.
1:17:55.84
I believe that in order to solve the problem under these circumstances, it's necessary for each country not to have the cost to the trade protection and to take further effort for international cooperation.
1:18:13.72
It is also strongly hopes to believe that present aid 40 seats, 40 seats in order to make the development assistance more effective while expanding it to steadily.
1:18:34.2
Mr.
1:18:34.56
Chairman, let me present my view on the expect role of Japan and Bank in the 80s to tackle the problem of the world economy, International Monetary affairs and developmental stance.
1:18:53.2
First, I would like to emphasize the law of the fund as a nucleus of the International Monetary system.
1:19:02.8
I strum with that fund will continue to keep across difference on the major International Monetary and the financial problem.
1:19:15.24
Second, with the view to supporting the branch growth brass growth of the world economy.
1:19:24.24
The fund should promote promote cooperation economical policies of member countries through its severance and as the mean.
1:19:37.68
I endorse the Fund view which gives the highest priority to the containment of inflation.
1:19:51.12
The third law of the Fund consists of proving financial facilities necessary for member countries with balance of payment difficulties.
1:20:07.28
I basically agree to the Fund.
1:20:10.16
Realistic applause to pursue.
1:20:13.6
Flexibility lending policies taking account of the site and the nature of the deficit.
1:20:22.84
However, in added access to the fund facilities should not lead to such lending as may be provided for by development assistance institution, neglecting the essential and demand their fundamental role of the fund.
1:20:49
The fund should maintain its basis characteristic of providing financing to the necessary extent only when the borrowing country exercise for the adjustment of the payment.
1:21:06.52
In Brazil, the expansion of the funds resources should be derived primaries through increase in quotas borrowing shall be recommended on the other temporary major.
1:21:24.44
In this connection I might add that occasion of further general increase in quotas, appropriate adjustment need to be made so that members quotation deflects it economic reality.
1:21:47.4
Now I should like to differ to the activities of the World bankrupt.
1:21:57.56
I hope the financing resources for the bank would be strengthened as early as possible by the gender chapter includes, so that the individual efforts of developing countries can be vaguely supported.
1:22:17.52
Japan is ready to participate possibility in the general chapter increase, and at the same time, we intended to give favorable consideration as a birth to the banks funding in total chapter market.
1:22:41.84
We subscript from the same point of view to the substantial share in the 6th depurbishment of the International Development session.
1:22:56.76
We have completed the necessary demos, tech procedures and have notified the association of our subscription.
1:23:07.84
Member countries are strongly added to do their best to make the depression effective at Irish time in order to avoid disruption of activity of the association and address.
1:23:27.12
This morning, President McNamara revealed that it would be his final address at this forum.
1:23:40.32
On this occasion, I would like to express my sincere appreciation of his excellent leadership and far deaching insight which has greatly contributed to indulge activities of the World Bank Group.
1:24:07.08
In addition, let me assure you that we will cooperate continuous and positively with regional development issue institution which along with the World Bank Group are operating to meet particular needs of the respective region.
1:24:35.8
Mr.
1:24:36.08
Chairman, let me briefly explain the decent development in the Japanese economy and the policy management.
1:24:47.2
The two and half time increase in the oil price since December 1978 has exerted a severe and profound impact on Japanese economy.
1:25:05.36
Due 33 to this increase in oil price amounted to more than $30 billion since the third quarter of 1979.
1:25:20.48
The current amount has been decoding about 50 cars mainly by this additional payment.
1:25:30.8
Although sign of improvement at sea this century in the current account that deduction of a deficit seems undikely with respect to the price level or the rate of increase in for sale price accelerated since the second-half of 1979 due mainly to external factor, it was possible possibility progressively become moderate and is now considered to have passed the peak.
1:26:19.8
On the other hand, SIMA price are still rising at the high rate and therefore crowd watch is required required.
1:26:35.16
The overall economy had kept steady growth still the beginning of this year, owing that to the increase in private fixed investment.
1:26:49.76
However, the peace has been slowing down thereafter.
1:26:58.36
In order to cope with this situation, comprehensive package of economic major was a month announced by government early this month.
1:27:13.48
Thus, we are ready to take flexible majors paying close attention to the development of the economy while seeking for stability in prices and the maintaining the aggregate demand at the appropriate appropriate labor.
1:27:37.72
In the process of adjustment of the Japanese economy to the changing World Economic environment, there are two major problems, namely the significant deficit in the government budget as well as in the external balance.
1:28:02.92
In particular, the distribution of fiscal soundness is indispensable for fulfilling our international duty as well As for ensuring steady and balanced growth of the economy.
1:28:26.64
Therefore, the most important and urgent task before us it is to adjust our economy to a long time pass of the steady growth through appropriate politics policies, passing at the same time this relation of chief scar soundness.
1:28:56.92
Now I tried to touch brief upon our development assistance policy.
1:29:04.72
First, you are assured that target will be achieved after great effort to double the annual amount of our offshore development assistance within the three-year period ending this year.
1:29:24.16
While we are determined to continue to take positive stance on the offshore development assistance in spite of severe budgetary situation, we intended to pay closer attention to the needs of developing countries so that the effects of our aid effort should be enhanced.
1:29:55.72
Second, even with the domestic social and economical problem, we have been striving to expand both imports from and the flow of fun to developing countries.
1:30:19.56
Mr.
1:30:19.92
Chairman, the last decade was the period of trials for the world economy.
1:30:28.04
This take it also appear to be a hard one.
1:30:33.28
Heard of challenging tasks.
1:30:37.28
The sound development of the world economy hints on each member country to make utmost effort toward overcoming difficulties of its own economy by the spirit of international cooperation in mind.
1:30:56.52
One of my favorite maxim say that the possible duty lies in what is near.
1:31:06.08
However high a mountain maybe the bus to the top can always be found.
1:31:15.04
In another word, whatever we made to do, we must charter out step by step what we can only when each country makes steady progress, whether the international cooperation and cooperation become fruitful, Where this base belief Japanese dedicated to contribute to the International Society through the sustained development of the domestic economy, keeping harmony with our world economy.
1:32:00.88
Thank you.
1:32:11.32
I thank the.
1:33:50.4
Tengo El altonor deseruso la palabra en esta reunion anual de Governadores del fondo Monetary International and representacion de Bolivia.
1:34:02.6
Brazil.
1:34:03.92
Colombia, Costa Rica, Chile, Ecuador.
1:34:08.96
El Salvador.
1:34:10.44
Guatemala.
1:34:11.88
Cristiana IT Honduras, Mexico, Nicaragua, Panama, Paraguay.
1:34:20.96
Peru.
1:34:22.04
Republic of Americana.
1:34:24
Suriname, Trinidad.
1:34:25.68
Tobago.
1:34:26.96
Uruguay.
1:34:28.2
Venezuela.
1:34:29.68
Espana imipropio Pais la Republic Argentina quisieran primer lugar Agra desert al paisa amfitrion a Los Estados Unidos a SU puelo yasuo gabierno la hospitalia quino bring the next occasion Y Permanente mente como SE de del fondo monetario international tambien quiero tender medium benita a la representacion de la republica popular China asicomas Santa Lucia as ambicente granadinas YA Zimbabwe in virtue la incorporacion de to paises Durant El tracurso lutimo ano la comunidad de naciones mienbras El fondo monetario international en nominal tiempo abreviare El texto crito que sia preparado para Acer conocer Los Punto de Vista de este Grupo de paices ante de foro occasions que El centerese conocerlo en forma completa El mimos en cuentras UD position en la secretaria correspondent El sistem economico international enfuenta una de fisier Cos juntura caminasa comprometer sue tablia presente la perspectivea de SU punsora miento futuro a la transformaciones SU fridas en El curso la de carmilo resetenta.
1:40:22.12
Rental incremental superaveta gregado anqueno generalizado de la naciones E portado de petrolio que estimal cancel ET ano onreco historico de ciento de MI migiones dolares observamo sifras de physitarias de sequente SE MI migones Paolo paises in du chalisaos Y de centi tentido MI migiones dolares para que Ros en desaroso no petrolitos ETA sifras.
1:40:48.24
In decan Clara mental a deficiency situation inferenta la majoria la naciones del Mundo the perspective parlano centa Uno sompoca la guenas estimandos El deficito la paises in this arrozo no petroleros en ochenta mil migione doles zamo la tencion so reta situacion context or implicancia serias par la tavidad El sitem Economico International duante la deca del seitente.
1:41:18.36
Los paises en desa Rosa and recorrido Merida creciente lo Marcos international de capital para complimentary Laura internal en El financiamiento suplanet inversion a si como para permitting incrementos Elon niveles de reserve cinemaro lo tamos algunas circumstancias que pueden entor peser este proceso de intermediacion financier en este centido.
1:41:46.52
De tacan elecho de que la evaluation del Rico por parte del toria en nacionales ivancos cetorna veces de proportiona mente retritiva de la cignacion del Crete international as Y coma la tendencia alguna faizes concentro financieros de rosado implemental controllers ETA's attitudes junto cor elecho de cola faizes en desarroso de ban competiti rap tension de prestamos.
1:42:14.84
Calais E major medida conecoramias into chalisadas pueden difficulta El acceso de numeroso paises in desaroso aricio marcados and priando la difficultais enfrentan en la presente Cos juntura una pecto de la inflacion.
1:42:33.6
Que no a recibido mucha tension en SU influencia sobre El perfil de vencimientos de la de de terna de occasional naciones que recurren al financia miento El mercados International de capital la inflacion International introducion acevia de victorciones que affecta levolosion del rijo El funciona miento la Mercado de capitales la principal desa proviene de SUS effectos de la tasa de interes.
1:43:02.92
La tasa nominales interes inclusion on elemento de mantenimento de valor UN elemento de tasa interes real la inclusion de la totalidad de la pagor nominales interes en El rubro servicio de la cuenta coriente distortiona la magnitude real de concepto al include como des equilibrio la quenrelidad ES una mortisacionas El erada de la de exagrando tanto Los de fisito paisa de guores.
1:43:32.36
Como Los superavi de Los agrevores esta distortion affecta level ocean del riejo Y de Toyota portanto lor termino financieros de concertacion de nuevos operaciones then tradesta cosuntura International cacao de cribid so in certain propuestas contenias and programmer action in mediata El Grupo de venticuat so finalidad.
1:43:59.16
Acido proponer via de solucion a Los sigente problema que enfrental si Tema Monetary International Y contemplant amilo medios paravanzar E la tauracion de Nuevo de Economic International macurto yaquita tio intersuppuntos El programa senala la recesidad de tableser unbinculo direct inter la creacion delicacies International ya transferencio de recursos of real E pal desarros a si coma la conveniencia.
1:44:28.28
The incremental la quotas de la paises in this erosion El fundamentario International del treinti tres El cuarentae cinco for cien en ETA circumstances surge natural mente de la prunta fundamentales que actitur de vealdo Tara Fundamentario International en re laciona La Junta lo de S equilibrios antemencionados equal de vezer El papel del fondo en El proceso de reciplage recurso financiates.
1:44:57.76
La characteristica de todes equilibrios recurrent El proceso de jutte contendo una de cuada combination de politica de restriction de demanda Y amplacion Y retrupracion de Fer E muy especialmente tas ultimas afinde corajir ya de cua das E trupturas economicas a la nueva circuitance eras imprecindive le que SE disena cola de Vida consideration la circumstances especiales de cada Pais.
1:45:26.24
Politica sectoriales ID inversion 10 Dientes a corregir di torciones empresion relativos eureorientar la composition Y direction del GAT conrepecto al papel del fondo Monetary International El recyclage El recursos la naturalisa de logicilibrios la circus tanzas de la que cuentran Gran numero de Pais ES officialmente desaroso tornado impressing deeply.
1:45:53.6
LA institutional ampli ESO fusion activa ETA process ETA Tito cerra premamente cutifica. He's a tenant cuen de la responsabilidad del fondo inclusion facilita de la hoste lo Pais en niembros a la Nuevo a relida economic ental centido resulta necesario conveniente la dapitacion de la condicionalidad la ampriacion de la accessor of recurso de la animo ETA extensional of. Fina semin.
1:46:23.36
Todo ezo sinde cuidar la relacionentetos elementos Y la cue masaun la miente nacia rejorsos la insufficiencia liquid de conditionada yelento tramico de la mento la cotta la paise miembros sujeren recurrita lende damiento como complimento a de cuado de recurso fundamental que de Vere continuar ciendo la contribution de surprise miembros a trabejes supports en Estes entido.
1:46:51.6
El fondo de verao tilisar la Fuentes recursos que la provena la condicione mas convenient cuirando de recurida la mimas cuando SE necesari simultania mente ES independence ale que SE le de la puerta en vience a la septima revision de cuatas is enicee quantuantes El proceso de la octava revision afinda and Pierre la bassa de recurso probs duente lo dos ultimos anos.
1:47:19.6
Senecho diverso progresos en mejora la cantilla de la de riches officiales de giro afind de lo grelo que TiVo de converteros El principala TiVo de reserva El si Tema Monetary International Las a cigacione correspondentes alteser Perrigo la de pasion de la tasa de interes la ampriacion del Banco de rango de operaciones altorisadas la reducion del recremento reconstitution El lamento de lumerioto tenedores.
1:47:48.24
Constitutional una de to progress additionalmente la reducion de numero de moneda que lo component ELA identidad inter la canasta de evaluation is the interest represented in advance de grand significacion la major esta villidad is significantly sidad queselogra facilitera la queneralisation desuso comativo monetario Eno marcados frivos sin embargo.
1:48:15.36
Cornell opjeto real SAR El ror de Los eritos especiales de hero tentro El Sistema monetario International cias E necesario inciti E la mejora SU characteristica comactivo inclusion dos utilizaciono la Mercado prevalos dentro ET de contexto considerable necessario una cigacion supplementaria dorante luti mano del tercer perio la Vaz en consoranza con la TiVo de si motao del conveno constitutivo.
1:48:43.76
E en lo cassia la nuevas a signaciones ETA deven contemplar a de cuadamente la necia globales delicious international de Largo Plas en funcion de richa variable ETI vamos a propiada una signacion de nomenos de diemis migiones a nuales de richos especiales de hero pal cuarto perido de vas en lo que concierno la supervision de la politica de tipo de cambiola fais en miembros.
1:49:10.84
ETA Brescia nalticulo cuarto El conveno constitutivo la mima de villa de rejirse as a la principal E moneras Y tendera Vita la exce Siva variabilidad or rejede de Los tipos de cambio effecto de facilitate crecimiento commercial international Y lorar cimetria en El processor de jutel valenci pal Los procedimientos Y tituios a comienzo MI nueste de Nuevo reciente complementacion.
1:49:38.72
Constituting significant tigos avances and eloro ET OS of the tios a pozamo la reciente solicitude de la fau paraquel fondo proveda finance miento additional del Valencia de paolos a la paise miembro de vacos ingresos que en frentan transitory amente unao mento no costo de importacion de elements especialmente seriales inattentional Los affectos humanos in Borlucras perezo de creationi traditional.
1:50:06.92
Dentro la facilia de financia mentor compensatory vemos asimimo la necesiada estimula El papel creciente El fondo monetario El Banco mundial instituciones associadas ensufusion de trementos para la cooperation Economico International El mimo tiempo la creciente importancio la marcado mundiales de capital de reverse complementada forum fortale cimiento estos organis.
1:50:34.88
As a grandos independencia respectful influence excess siba que pueda de carcer la naciones Hua Uno Grupo desas poroto Lao de siores altar la necesidad de mantener la impartialidad Y presidencia political estas institucion como garantilla para tolo pisemien la reciente orientacion por parte El fondo Monetary International.
1:51:01.84
I consider majori finance a mentos a plazo man largos cunta cola nueva politica del Banco mundial a derivado na major collaboration ET ambassiti tucciones dicia relacion de verisa Rojas en UN Marco que mantenga la individual ya Las responsibilidades Y funciones propios de carranquitucion the entral context of global que Carlo de crivid and on necessary tackle importance urquenza la lucha Contra inflation.
1:51:30.72
De la reduccione financial mentor de seclibo de cuenta Korean de la posicion Contra la creciente tendencia protectionistas quisira de taca la contribution de MI propio Pais la Republic Argentina en la implementation de Merida connete fin permita 7 ETA libertad nuita nacion cuentre embarcada en UN processo de Lucia frontal conta la inflacion.
1:51:56.76
A viendo doptados Y mimo la medias necesari de junte valancia paros implementado UN ambicioso programa de elimination de restrictiones tantal commercial de viennes comoro monumento de capitales con El fin de integrasio economia plena mental economy International esta manera center la vazos paran cricimento economico accelerado ISO tenido ante de conclude.
1:52:25.12
Here represent a reconocimiento de la naciones a medical Latina caribe Espana arcionor de la rosier El persona del fondo monetario international force UN teres edificacion en relaciona tolo faisen miembros E specialmenta queros en desa Rojo Y Los enuestranacion yanquil me toca MI avlar en la runion correspondental fondo monetario no puedo menos que terminal esta palabras con expression.
1:52:54.56
Del reconocimiento nitropaises a la question de la realizada Grande masti una de California la porcion McNamara and El Banco mundiara londecia de tacado for SU dedicacion SU intelligencia SU machinacion enfrentando grave problemas El Mundo ya travestos action brigante alejabo la Marca in the level electoria de tucion.
1:53:32.44
Seat of member countries through its surveillance and as a mean I endorse the front view which gives the highest price.
1:53:46.08
I thank the Governor for Argentina and I now call the Governor for Germany.
1:54:03.08
Chairman, ladies and gentlemen, as we enter the 80s, we worry about the unsatisfactory economic growth, rampant inflation and the hardships suffered by people in the poorer countries. In this situation, the world is looking towards the IMF and the World Bank, it rightly expects.
1:54:30.68
Them to help restore stable economic growth and to ease the burden of adjustment during the transitional period. President McNamara, to whom we owe deep gratitude, is about to depart from his office. He has worked untiringly for humane development process. Under his leadership, the World Bank has made major contributions.
1:54:59.12
To this 'cause I feel, Mr. McNamara, a deep personal loss of not being able to work with you anymore in your present function, and we trust that your successor will continue in the same great tradition of hard work and dedication and meet the standards that you have established today. Many expectations are held with regard to the IMF and the World Bank.
1:55:27.8
This is hardly surprising in view of the enormous dimensions of the current economic and social problems. We must explore with an open mind solutions for these problems, but we must be careful not to intervene too hastily in well tried and well functioning systems. We must check each proposal carefully to see.
1:55:54.36
Whether it can be integrated in the aims and objectives of these well functioning institutions. The IMF is at the very centre of the International Monetary system, a system which is constantly evolving in response to the changing economic and political environment. We must try to form a clearview of the direction in which International Monetary system should evolve.
1:56:22.24
Only on this basis we can determine the role which the IMF is supposed to play. Mr. Chairman, to restore, to secure and to maintain peace in all part of the world is the most important precondition for social and economic progress. The growing conflict in the Gulf area makes this doubly clear after so many cruel conflicts all over the world.
1:56:51.56
Like an Indochina, which has been shaken by violence for 30 years, I call upon all leaders in politics and the media and public life to condemn war and violence as the worst enemy of social progress. The widespread squandering of resources on armament and military destruction is contrary to all international efforts to achieve social and economic progress.
1:57:19.68
We must increasingly work for peaceful solution to such conflicts, first of all through appropriate social and economic development policies which should be so designed as to allow all men to live their lives in dignity, productively and in self determination, the independent Commission under the chairmanship of Willie Brunt has rightly stated.
1:57:48.04
History has taught us that wars produce hunger, but we are less aware that mass poverty can lead to war or chaos. While hunger rules, peace cannot prevail. Both in industrialized and in developing countries, a distressingly large part of GMP is absorbed by armament expenditures.
1:58:14.72
Almost 6% in 77, according to one estimate. If only part of these funds were tapped for peaceful purposes, this could be the breakthrough to more tolerable living conditions for a countless number of human beings. Let me again quote from the report of the brand Commission. They say the military expenditure of only half a day would suffice.
1:58:42.04
To finance the whole malaria eradication programme of the World Health Organization and less would be needed to conquer river blindness, which is still a scourge of millions. It is deeply alarming to see that in the last 10 years, military expenditure in developing countries increased by 7 to 8% annually. My government therefore advocates.
1:59:10.04
Practical confidence building measures not only for Europe but for all other parts of the world as well. We also advocate greater transparency of military aid and weapons expenditure by establishing appropriate registered at the UN the development and growth prospects not only of the LDCs but of the world economy as a whole.
1:59:37.64
Depend on the availability of resources to finance large payment imbalances. These imbalances have been greatly intensified by recent oil price increases, and they may become an almost intolerable burden for many developing countries. Our experience with more than 30 years of development policy demonstrates that money alone will achieve relatively little sustained development. Depends.
2:00:06.44
On the modernisation of social and economic structures, the preservation of cultural traditions and values, and on providing adequate opportunities to individuals to make full use of their potential.
2:00:21.12
Each country economic and social progress depends above all on its own efforts.
2:00:28.2
In this context, the Brand Commission has rightly insisted on the need for economic and social reform.
2:00:35.48
My government will continue to assist, particularly those governments in the third world that I'm willing to carry out needed structural changes.
2:00:45.6
The developing countries must determine their own course for development in providing assistance in all it's different forms by transferring capital and know how or by technical assistance.
2:00:57.92
Our aim is to ensure that aid resources are put to optimum use.
2:01:03.76
The Federal Republic of Germany, in cooperation with other countries and international financial institutions, has made a special effort to help Turkey overcome her social and economic difficulties.
2:01:17
I wish to express my deep gratitude to the IMF and the World Bank for their most valuable contribution to these joint efforts.
2:01:25.72
I very much hope that Turkey, like many other countries of the Third World, will find a way to combine economic progress with a peaceful and democratic social development.
2:01:38.68
Repeated oil price increases have put severe strains on industrialized countries since 73.
2:01:46.48
Low rates of growth and increasing unemployment have often created serious, serious social and economic problems.
2:01:54.64
The sharp rise in current account deficits of industrialized countries forces these countries to go through a difficult period of adjustment.
2:02:04.56
Even more serious is the situation for the oil importing developing countries, many of which have to use the bulk of their foreign exchange earnings just to purchase the bare minimum of oil.
2:02:18
It is tragic indeed that all the development assistance provided by donor countries.
2:02:23.44
It's insufficient to cover the increase in the oil bill of developing countries from 79 to 80.
2:02:31.4
Temporary balance of payments.
2:02:35
Financing of this magnitude must be accompanied by determined efforts of all countries, in particularly the developing countries themselves, to reduce their dependence on oil inputs.
2:02:47.56
Their own energy resources must be developed and energy must be used more economically and more efficiently.
2:02:55.24
All groups of countries should join in one common effort.
2:02:59.92
This can be achieved if we all bear in mind our common interest in a functioning system of World Trade, in a growing world economy, in lower rates of inflation and in higher level levels of employment.
2:03:17.08
Oil exporting countries are interested in a secure and profitable investment of their financial surpluses.
2:03:24.4
The developing countries want to activate the unused labour resources or to make follow you follow use of the country's economic potential.
2:03:33.8
I appeal to the governments of industrialized countries, to OPEC countries and non oil developing countries to join in a mutual interest in a pact for economic growth and social progress.
2:03:48.36
My government has more than one stated its readiness and desire to have an energy dialogue with a view to make oil supplies more secure and to protect the world economy from abrupt price shocks.
2:04:02.96
My government welcomes and supports the intention to enter into global negotiations next year on all major economic issues.
2:04:11.72
We should, however, avoid duplication of work and fragmentation of responsibilities.
2:04:18.12
We have therefore advocated an efficient and decentralized approach.
2:04:23.6
United Nations family comprises well established and efficient institutions with proven competence, experience and initiative.
2:04:32.6
IMF and World Bank in particular have demonstrated that they are able to adapt their policies to changing economic circumstances.
2:04:41.8
No international organization has mobilized such large sums for the benefits of its members as the IMF and the World Bank Group have succeeded to do.
2:04:52.76
We earnestly desire to avoid impairing the efficiency of these institutions.
2:04:59.28
Today's large payment imbalances, though they are likely to persist for a number of years, are basically of a temporary nature.
2:05:08.84
They can and they must.
2:05:10.24
They can and they must be overcome by adjustment.
2:05:13.6
If the efforts to reduce these imbalances are to succeed, oil consumption must be drastically reduced and oil bills must be cut.
2:05:23.28
Germany, while achieving impressive real growth since 73, has consumed less oil in 19180 than in 19173.
2:05:35.28
In volume terms, we have reduced oil consumption in 19180 by 8%, but we have to pay more for this smaller quantity with the result that the burden on our current account has heavily increased.
2:05:51.84
At the same time, oil producing and industrialized countries should provide capital, knowledge, capability and experience in order to formulate and implement adequate technological solutions to close the energy gap in cooperation with the countries concerned.
2:06:10.08
This is one side of the problem.
2:06:11.76
The other one is is the need to increase exports to obtain foreign exchange to pay for oil imports.
2:06:19.24
This calls for less, not more protectionism.
2:06:22.8
Industrialized countries should open their markets for the products of of developing countries, and they should assist them in building new production plants, marketing the export goods, and stabilizing their commodity earnings.
2:06:38.72
The IMF is well equipped to play an important part in overcoming the formula economic problems with which the world is faced.
2:06:47.32
In doing so, the IMF can draw on the confidence that has built up over more than three decades.
2:06:54.48
The IMF is in a unique position, and it bears a special responsibility to provide for the right balance between financing and adjustment.
2:07:04.28
I welcome the IMF's readiness to adjust flexibly to the changing needs of its members, but it should be made clear that it's monetary character must be preserved.
2:07:16.48
The IMF was created as the guardian of internal and external monetary stability.
2:07:22.44
It should resist all attempts that might call this mandate into question.
2:07:28.32
The conditionality of its lending must be maintained.
2:07:32.6
The IMF should continue to implement it flexibly, taking due account of the economic, social and political circumstances of each deficit country and with a realistic assessment of the time needed for structural adjustments.
2:07:48.4
The IMF must remain in a position to assist it's members with substantial amounts to meet the increased financial needs.
2:07:56.76
For these reasons, we have to insist that the mechanisms of the world monetary systems will not be impaired and not be burdened with functions that would adversely affect the proper role.
2:08:10.12
We are doing so not for formal but for important economic reasons, which, in the final analysis, are also connected with the development prospects of the third world countries.
2:08:22.88
The inflationary creation of money is of no use to anyone.
2:08:27.4
Inflation impairs confidence and it undermines the readiness and the mechanisms for capital formation and investment.
2:08:36.24
In this connection, it is also true to say that we are seemingly conflicting.
2:08:41.2
Interest can be reconciled in the longer run.
2:08:44.52
To the extent that there is a global need to supplement existing currency reserves, I support continuing the allocation of SDRS in the fourth basic.
2:08:56.56
As to the amount of allocation, the time has not yet come for firm conclusion.
2:09:02.92
Immediate recycling problems have for a while pushed into the background the idea of a dollar substitution account.
2:09:10.84
I do not feel, however, that this plan should be discarded.
2:09:15.04
We should include in our deliberation on the further development of the monetary system, on work on the substitution account should be resumed at a suitable time.
2:09:27.12
There is no doubt that we are entering a very difficult.
2:09:30.88
Charged with great uncertainties.
2:09:32.96
We have no choice but to take up this challenge.
2:09:36.6
We should not permit growth, pessimism or resignation to gain the upper hand.
2:09:41.4
We should rather fully use the growth potential that still exists despite increasing problems.
2:09:47.8
We should bear in mind that qualitative growth is the only way of overcoming both economic and social problems, and that we must do all we can to activate the forces that such growth requires.
2:10:01.8
The World Economic situation is not without elements of strength.
2:10:06.28
Technological progress will continue to give substantial impulses to investment and growth.
2:10:12.28
The need to save energy and to substitute oil is creating powerful new investment motives.
2:10:19.36
The long term nature of the energy problem and the need to invest and to adjust have become very clear to all of us.
2:10:27.4
This necessity to adjust stimulates investments that should make economic activity less susceptible to fluctuations in the private sector demand.
2:10:37.68
On the other hand, inflationary forces in most countries are still dangerously active.
2:10:43.96
I welcome, therefore, that the Interim Committee has once again underscored that priority must be given to the fight against inflation.
2:10:52.88
The stability oriented policy and a monetary policy aim to curb inflationary expectations is the key to economic growth.
2:11:02.68
To pursue such a policy means a fiscal policy that encourages rather than discourages private investment.
2:11:10.6
It means to pave the way to sustain growth and secure employment.
2:11:15
It is particularly gratifying to see that the dollar appears to have overcome its period of weakness.
2:11:21.8
A strong dollar is still a precondition for a sound world economy, but the expected further strengthening of the current account of the US will present present new challenges to America's economic policy makers.
2:11:36.64
This should enable the United States to resist the call for import restrictions and to take up once again a proper place in the provision of development aid that is worthy of such a great nation.
2:11:49.96
My government takes a dispassionate view of the Federal Republic's current account deficit.
2:11:55.08
We can live with this deficit for a while, but in the medium term the Federal Republic should regain equilibrium and external trade.
2:12:03.16
My government relies on a policy aimed to eliminate the underlying causes of the deficit by making the German economy less dependent on oil and more competitive by means of structural adjustments.
2:12:16.64
Increased productivity, research and innovation.
2:12:20.72
I can assure you that there is absolutely no intention of manipulating our current balance by competitive devaluation, export subsidies, import restrictions or other barriers to trade, which would be totally incompatible with our concept of economic policy.
2:12:41
Let me now turn to the World Bank.
2:12:43.56
In the past year, the three institutions of the World Bank Group have again succeeded in achieving a substantial increase in their commitments.
2:12:52.32
Bearing this in mind, I considered a matter of urgency to put into effect the doubling of the Bank's capital as rapidly rapidly as possible.
2:13:01.8
We are prepared to make our contribution at the agreed time.
2:13:06.28
I must, however, point out, as I did in Belgrade, that we cannot see how the new capital subscription can be implemented before the evaluation of the bank's capital and the maintenance of value issue has been finally settled.
2:13:21.32
Other suggested methods of raising the lending capacity of the bank can only be a complement to, not a substitute for, the general capital increase.
2:13:33.36
In this connection, President McNamara has mentioned a new capital increase relating only to the callable capital, as well as a change in the gearing ratio.
2:13:44.04
Both possibilities seem tempting at first glance, since this would avoid additional payment obligation.
2:13:51.28
One should not overlook, however, that the bank can borrow on the international capital market only as long as it maintains its sound financial structure and remains a blue chip issuer.
2:14:05.12
In view of the need of the poorest developing countries for concessional aid, the federal public of Germany attaches special importance to the activities of Ida.
2:14:15.4
Accordingly, we played an active part in bringing about Ida 6.
2:14:19.72
In order to enable Ida to continue making commitments and until Ida 6 enters into force, my government has decided to participate in the bridging measures.
2:14:31.44
I should like to announce here that the Federal Republic of Germany is ready, under this bridging operation to make an advanced contribution equivalent to its first to its entire first instalment.
2:14:44.76
We appeal to all members who have not yet given notification of their contribution to accelerate their parliamentary procedures in order to enable the carefully negotiated agreement to enter into force in the spring of this year.
2:15:00.72
The Bank reacted with speed and flexibility to the new financing requirements of developing countries by adding structural adjustment loans to its range of lending facilities.
2:15:12.32
This new type of loan can help the developing country to make the inevitable for necessary long term adjustments to the World Economic situation.
2:15:22.32
We assume that in the case of loans of this type in particular, there will be even closer consultation and collaboration between the Bank and the Fund.
2:15:32.44
In July you received from the Bank the study entitled Energy in the Developing Countries.
2:15:39.2
It shows it is possible to invest in developing countries with good progress prospects of success in this sector, and it describes the role the World Bank Group could play here.
2:15:52.24
The Bank estimates that about 12 billion U.S.
2:15:56.08
dollars in additional funds will be required for the period until 1985.
2:16:01.48
We all should search for ways of jointly resolving this key financial problems in the next few years.
2:16:08.52
I consider this to be the most urgent task for the World Bank Group in the very near future.
2:16:14.8
Consequently, we are looking forward with great interest to the proposals on the preparation at the Bank for a concept on the formation of an energy affiliate or facility, such as that suggested at the World Economic Summit in Venice.
2:16:30.32
We shall examine these proposals very carefully and we are prepared to take an active part in consultations on how to realise the Bank's new energy concept, including an equitable participation of all members of the World Bank Group.
2:16:47.32
Thank you very much for your attention, I think.
No Results
Detail
-
Title
World Bank Annual Meeting, 30 September 1980, tape 2
-
Description
Audio recording of World Bank and IMF Annual Meeting. Includes speech by United States President Jimmy Carter.
-
Creator
World Bank Group
-
Date
09/30/1980
-
Creative Commons
-
Filename
arc_77I---Annual-Meeting-September-30--1980.mp4
-
Usage Terms
The records that were created by the staff of The World Bank are subject to the Bank’s copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers.