Convention on Settlement of Investment Disputes
A significant step toward encouraging the international flow of private capital by improving the climate for investment was taken on October 14, 1966, with the entering into force of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. The Convention, sponsored by the World Bank, was submitted to the Bank’s member governments for signature and ratification on March 18, 1965. It entered into force 30 days after the deposit of the twentieth instrument of ratification, which took place on September 14, 1966. The Convention provides for the establishment, under the Bank’s auspices, of an International Centre which will provide facilities for the voluntary settlement, by conciliation or arbitration, of disputes between governments and foreign investors. The governing body of the Centre will be an Administrative Council consisting of one representative of each State party to the Convention. The President of the World Bank will be ex officio Chairman of the Council. The Council held its first meeting in February.
Multilateral Investment Insurance Scheme
Bank staff members completed the draft of a multilateral investment insurance scheme designed to insure new private investment made in a developing country against risk of a noncommercial nature. The draft study was requested by the United Nations Conference on Trade and Development (UNCTAD) and was based on earlier work done by the Organization for Economic Cooperation and Development (OECD). The draft has been submitted to member governments for review and comment.
Consultative Group on Korea
The Consultative Group on development assistance to Korea held its first meeting in Paris on December 13, 1966 under the chairmanship of the Bank. Australia, Belgium, Canada, China, France, Germany, Italy, Japan, and the United States were represented. Also attending the meeting were representatives of the International Monetary Fund, the United Nations Development Program, and observers from the United Kingdom. The Group heard a statement from Mr. Key Young Chang, Deputy Prime Minister of Korea, on the country’s current five-year plan, setting forth the main issues and an outline of the various measures the Government had taken and proposed to take to reach the goals of the plan. The statement, together with the documentation prepared earlier by the Government of Korea and by the World Bank, constituted the framework of the Group’s discussions. The various members of the Group endorsed the view expressed by the World Bank that the performance and management of the Korean economy in recent years had been impressive, and agreed further that the current plan provided a suitable policy framework for future development.
The Korean Consultative Group brings to ten the number of such groups sponsored by the World Bank, the other being groups for Colombia, India, Malaysia, Nigeria, Pakistan, Peru, the Sudan, Thailand, and Tunisia. The Bank is a member of Consortia for Greece and Turkey administered by the OECD and a participant in a consultative group for Ecuador organized by the Inter-American Development Bank.
World Bank Bond Offering in Canada
In November 1966, the Bank offered in Canada a new issue of $20 million 614 per cent 25-year Canadian Dollar Bonds. The bonds, which will mature in 1992, were offered through a syndicate of investment dealers and banks headed by Wood Gundy Securities Limited, Dominion Securities Corporation Limited, and A. E. Ames & Co. Limited. The issue was offered at 98 and accrued interest. This was the Bank’s sixth offering in Canada. The previous issue was offered in February 1966.
World Bank Loan to IFC
In October 1966, the Executive Directors of the World Bank approved a loan of $100 million to the International Finance Corporation (IFC). The loan, the first from the Bank to IFC, follows the completion of amendments to the charters of the Bank and IFC in late 1965, under which IFC is permitted to borrow up to approximately $400 million from the Bank for use in the lending part of its operations. Initially, the funds will be used to reimburse IFC for the loan portions of its investments, making it possible for the Corporation to free ultimately its entire share capital and reserve, amounting to some $131 million, to make equity investments.
|Brazil||Five loans for Electric Power||100.60|
|Loans made during second quarter of fiscal 1967||$281.60|
|Loans made during first quarter of fiscal 1967||344.80|
|Total amount lent during the first half of fiscal 1967|
ended December 31, 1966
|Credits extended during second quarter of fiscal 1967||$ 90.00|
|Credits extended during first quarter of fiscal 1967||214.59|
|Total for the first half of fiscal 1967 ended December 31, 1966||$304.59|
|Country||Type of Project||Amount|
|Kenya||Hotel and Tourist Facilities||3,204,459|
|Investments announced during second quarter of fiscal 1967||$15,017,459|
|Investments announced during first quarter of fiscal 1967||19,526,464|
|Total investments announced during first half of fiscal 1967 ended December 31, 1966||$34,543,923|
The fiscal year began on July 1, 1966.
The fiscal year began on July 1, 1966.
Finance and Development is published quarterly, in English, French, and Spanish, by the International Monetary Fund and the International Bank for Reconstruction and Development, Washington, D.C. Opinions expressed in articles and other material are those of the writer or writers; they are not statements of Fund or Bank policy.
The contents of Finance and Development may be freely quoted provided that due acknowledgment is made.
International Monetary Fund
The IMF Staff Papers is a technical journal containing articles by members of the staff of the Fund. It reflects experience gained in work in the Fund, but the views expressed are not necessarily the official views of the Fund. Staff Papers is published three times a year, in March, July, and November. The subscription is $6.00 a year or $2.50 for a single copy; university libraries, faculty members, and students may obtain it for $3.00 a year or $1.00 a single copy. Here is the list of contents of the November 1966 issue:
TRENDS IN PAYMENTS IMBALANCES, 1952-64
Rudolf R. Rhomberg
THE PRESENT SYSTEM OF RESERVE CREATION IN THE FUND
POLICIES ON THE USE OF FUND RESOURCES
USE AND ACCEPTANCE OF RESERVE CLAIMS
J. Marcus Fleming
ROLE OF EXPORT TAXES IN DEVELOPING COUNTRIES
Richard Goode, George E. Lent, and P. D. Ojha
FUND MEMBERS’ ADHERENCE TO THE PAR VALUE REGIME: EMPIRICAL EVIDENCE
Margaret G. de Vries
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Agricultural Development in Tropical Africa
Vol. 1, The Synthesis
Vol. 2, The Case Studies
by John C. de Wilde et al
THE PROFITABLE employment of people on the land is one of the most important aims of the underdeveloped countries today. Agriculture has lagged behind other sectors of the economy in practically all of them, but still absorbs the greater part of their populations; it will remain the basis of their economies for a long time. This study analyzes selected experiences with a view to providing data and guidelines for future agricultural development.
Tropical Africa was chosen as the area for study because it offered the most diverse selection of programs, societies, soils, and climatic conditions. Case studies were made of five areas in Kenya, two in Mali, two in Uganda, and one each in Tanzania, Upper Volta, the Republic of Chad, and Ivory Coast; and a number of experiences elsewhere in Africa also were evaluated. Volume I draws certain conclusions regarding the factors conditioning successful agricultural development in tropical Africa; Volume II presents the case studies on which this assessment is based.
These volumes were published for the International Bank for Reconstruction and Development. Volume I costs US$6.50 and Volume II costs US$12.50. The combined price for both volumes is US$15. They may be ordered from The Johns Hopkins Press, Baltimore, Maryland, 21218, U.S.A.