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Bruce Fitzgerald

This paper reviews the World Bank lending for structural adjustment. The World Bank has always stressed the need to use limited investable resources efficiently. It has attempted to identify investment priorities in recipient countries and lent for projects that promised a high rate of return. The Bank’s Operational Manual defines structural adjustment lending as nonproject lending to support programs of policy and institutional change necessary to modify the structure of an economy so that it can maintain both its growth rate and the viability of its balance of payments in the medium term.

Philippe Bourcier and Mohsen Shirazi

Many developing countries could use natural gas to reduce oil imports or allow larger oil exports. What are the economic, institutional, and contractual issues that need attention?

International Monetary Fund
This paper studies recent developments in tourism in the East Caribbean countries (ECC) and reviews government policies to support tourism. The paper also presents a model to explain the movements of tourist arrivals to the region during 1970-86. The estimated model is used to project future tourist arrivals in the ECC.
Mr. Jaewoo Lee and Man-Keung Tang
We revisit the time-honored link between productivity and the real exchange rate. Consistent with the traditional view, we find that higher labor productivity tends to lead to appreciation of the real exchange rate. Contrary to the traditional view, however, we find that the positive productivity effect is transmitted through the real exchange rate based on tradable prices, rather than through relative prices between tradables and nontradables. Moreover, higher total factor productivity is found, if anything, to lead to depreciation of the real exchange rate. These last two pieces of evidence provide support for the emerging view that limited tradability of goods and services provides scope for the strategic pricing decision, which has material consequences for the aggregate real exchange rate.
Bension Varon

The Third United Nations Conference on the Law of the Sea, took place in Caracas from June 20 to August 31,1974. The conference failed, at least in the sense that none of the most important issues raised were settled, and no agreements were signed. Does this failure matter very much? Why did the failure occur and will later international conferences be able to produce better results?