World Bank Document

More documents

Recommendations

Info

usually one calendar or fiscal year. It covers the are usually differentiated as long-term rates-the flows of real resources (including factor services, current rates payable on financial instruments, such as the services of labor and capital) across the such as bonds, having maturities of more than one boundaries of the domestic economy, changes in year-and short-term rates-those on such instruforeign assets and liabilities resulting from eco- ments maturing in one year or less. The real interest nomic transactions, and transfer payments to and rate is the nominal rate adjusted to account for from the rest of the world. Balance of payments changes in the price level. accounts comprise two broad categories: the cur- * Intermediation. The process whereby a private rent account, which measures merchandise trade, or official financial agency accepts funds from factor and nonfactor service income, and transfer investors and onlends them to borrowers. receipts and payments, and the capital account, * Maturity. For a loan, the date at which the final which measures changes in domestic and foreign repayment of principal is to be made. Short-term capital assets and liabilities. loans are those with original maturity of a year or * Current account balance. A representation of the less; medium- and long-term loans are those with transactions that add to or subtract from an econ- original or extended maturity of more than one omy's stock of financial items. It is given as the year. sum of net exports of goods and nonfactor ser- * Reserves. A country's international reserves vices, net factor income, and net transfers. Official comprise its holdings of monetary gold and special capital grants are excluded. drawing rights; its reserve position in the Interna- * Debt reorganization. Any change in the pay- tional Monetary Fund; its holdings of foreign ment arrangements associated with an existing exchange under the control of monetary authoristock of debt mutually agreed upon by the bor- ties; its use of IMF credit; and its existing claims on rower and the lender. In debt refinancing, new loans nonresidents that are available to the central are negotiated to meet debt service obligations on authorities. Reserves are also expressed in terms of existing debt. In debt rescheduling, arrangements the number of months of imports of goods and are agreed upon for postponing payments of prin- services they could pay for. cipal or interest or otherwise changing the terms of * Resource balance. The difference between repayment or of interest charges. exports of goods and nonfactor services and e Debt service. The sum of interest payments and imports of goods and nonfactor services. repayments of principal on external debt. The debt * Spread. The difference between a reference rate service ratio is total debt service divided by exports used to price loans and the rate at which funds are of goods and services. lent to final borrowers. A widely used reference * External debt. Debt that is owed to nonresi- rate is the London interbank offered rate, or dents. World Bank data, unless otherwise speci- LIBOR-the rate at which banks participating in fied, cover external debt that has an original or the London market are prepared to lend funds to extended maturity of one year or more and that is the most creditworthy banks. Another is the U.S. repayable in foreign currency, goods, or services. prime rate. Transactions with the International Monetary * Terms of trade. A measure of the relative level of Fund are excluded (with the exception of Trust export prices compared with import prices. Calcu- Fund loans). A distinction in medium- and long- lated as the ratio of a country's index of export unit term debt is made between private nonguaranteed value to the import unit value, this indicator shows debt and public and publicly guaranteed debt. changes over a base year in the level of export * Interest rates. The nominal rate on a given loan is prices as a percentage of import prices. the percentage stipulated in the loan contract and * Trade balance. The difference between mermay be expressed as a fixed rate, that is, an interest chandise exports f.o.b. and merchandise imports rate that is constant over the duration of the loan, f.o.b. or as a variable, or floating, rate, an interest rate that is recalculated at fixed intervals (such as every six National accounts months). Variable interest rates consist of a base rate (such as the six-month London interbank * Gross domestic product. The total final output of offered rate) plus a margin, or spread. Market, -or goods and services produced by an economy-that world, rates reflect the terms of borrowing at any is, by residents and nonresidents, regardless of the given time in private capital markets; market rates allocation to domestic and foreign claims. It is calx
culated without making deductions for deprecia- Turkey, which are induded among the middletion. income developing economies. This group is com- * Gross national product. The total domestic and monly referred to in the text as industrial econoforeign output claimed by residents. It comprises mies or industrial countries. gross domestic product adjusted by net factor . East European nonmarket economies include the income from abroad. Factor income comprises following countries: Albania, Bulgaria, Czechosloreceipts that residents receive from abroad for fac- vakia, German Democratic Republic, Hungary, tor services (labor, investment, and interest) less Poland, Romania, and USSR. This group is somesimilar payments made to nonresidents abroad. It times referred to as nonmarket economies. is calculated without making deductions for depre- . Sub-Saharan Africa comprises all thirty-nine ciation. developing African countries south of the Sahara, * Investment. The sum of gross domestic fixed excluding South Africa, as given in Toward Susinvestment and the change in stocks (or invento- tained Development in Sub-Saharan Africa: A Joint Prories). Gross domestic investment covers all outlays gram of Action (World Bank 1984). of the private and public sectors for additions to . Middle East and North Africa includes Afghanithe fixed assets of the economy, plus the value of stan, Algeria, Arab Republic of Egypt, Iran, Iraq, change in stocks (or inventories). Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, * Savings. Gross domestic savings is defined as Oman, Saudi Arabia, Syrian Arab Republic, Tunithe difference between GDP and total consump- sia, Turkey, Yemen Arab Republic, People's Demotion, and gross national savings are obtained by cratic Republic of Yemen, and United Arab Emiradding net factor income from abroad and net cur- ates. rent transfers from abroad to gross domestic sav- . East Asia comprises all low- and middleings. income countries of East and Southeast Asia and the Pacific, east of, and including, Burma, China, Country groupings and Mongolia. e South Asia includes Bangladesh, Bhutan, * Developing countries are divided into: low- India, Nepal, Pakistan, and Sri Lanka. income economies, with 1983 gross national product * Latin America and the Caribbean comprises all (GNP) per person of less than $400; and middle- American and Caribbean countries south of the income economies, with 1983 GNP per person of United States. $400 or more. Middle-income countries are also * Major borrowers are countries with disbursed divided into oil exporters and oil importers, identified and outstanding debt estimated at more than $15 below. billion at the end of 1983 and comprise Argentina, * Middle-income oil exporters comprise Algeria, Brazil, Chile, Egypt, India, Indonesia, Israel, Angola, Cameroon, People's Republic of the Republic of Korea, Mexico, Turkey, Venezuela, Congo, Ecuador, Arab Republic of Egypt, Gabon, and Yugoslavia. Indonesia, Islamic Republic of Iran, Iraq, Malaysia, Mexico, Nigeria, Peru, Syrian Arab Republic, Trin- Acronyms and initials idad and Tobago, Tunisia, and Venezuela. * Middle-income oil importers comprise all other BIS Bank for International Settlements. middle-income developing countries not classified DAC The Development Assistance Committee of as oil exporters. A subset, major exporters of manu- the Organisation for Economic Co-operation and factures, comprises Argentina, Brazil, Greece, Development comprises Australia, Austria, Hong Kong, Israel, Republic of Korea, Philippines, Belgium, Canada, Denmark, Finland, France, Fed- Portugal, Singapore, South Africa, Thailand, and eral Republic of Germany, Italy, Japan, Nether- Yugoslavia. lands, New Zealand, Norway, Sweden, Switzer- * High-income oil exporters (not included in devel- land, United Kingdom, United States, and oping countries) comprise Bahrain, Brunei, Commission of the European Communities. Kuwait, Libya, Oman, Qatar, Saudi Arabia, and EC The European Communities comprise United Arab Emirates. Belgium, Denmark, France, Federal Republic of * Industrial market economies are the members of Germany, Greece, Ireland, Italy, Luxembourg, the Organisation of Economic Co-operation and Netherlands, and United Kingdom. Development, apart from Greece, Portugal, and FAO Food and Agriculture Organization. xi
Page 1 and 2: Public Disclosure Authorized Public
Page 3 and 4: World Development Report 1985 Publi
Page 5 and 6: Foreword This is the eighth World D
Page 7 and 8: Contents Definitions and data notes
Page 9 and 10: A.4 Population and composition of G
Page 11: Definitions and data notes Capital
Page 15 and 16: Part I Overview and Historical Pers
Page 17 and 18: Figure 1.2 Trends in selected debt
Page 19 and 20: countries depend on three variables
Page 21 and 22: ties includes many countries in Lat
Page 23 and 24: intermediation of the World Bank an
Page 25 and 26: In dealing with all these issues, t
Page 27 and 28: tury. By contrast, net capital infl
Page 29 and 30: tees on terms that seldom preserved
Page 31 and 32: mid-1960s and France a few years la
Page 33 and 34: Table 2.2 (continued) Country group
Page 35 and 36: Table 2.3 Net resource receipts of
Page 37 and 38: anking assets and liabilities. They
Page 39 and 40: Box 2.3 How inflation affects loan
Page 41 and 42: Box 2.4 The changing nature of debt
Page 43 and 44: agreement has been reached with Ecu
Page 45 and 46: Part II Role of Economic Policies 3
Page 47 and 48: Table 3.1 Current account balances
Page 49 and 50: eceipts minus social security outla
Page 51 and 52: expected to be high-a view consiste
Page 53 and 54: story. Difficulties had started ear
Page 55 and 56: Box 3.4 The costs of protecting sug
Page 57 and 58: 4 Foreign borrowing and developing-
Page 59 and 60: World Development Indicators, Table
Page 61 and 62: Box 4.1 The debt cycle hypothesis A
Page 63 and 64:
guarantee that enough foreign excha
Page 65 and 66:
Figure 4.5 Borrowing and growth in
Page 67 and 68:
Box 4.4 Guidelines for borrowing De
Page 69 and 70:
have been forced to reschedule thei
Page 71 and 72:
happened to different developing co
Page 73 and 74:
Figure 4.6 Change in investment, sa
Page 75 and 76:
Figure 4.7 The composition of credi
Page 77 and 78:
tion started increasing consumer su
Page 79 and 80:
Box 4.6 Capital flight in the South
Page 81 and 82:
and tighter fiscal and monetary pol
Page 83 and 84:
Export Rehabilitation Program to pr
Page 85 and 86:
5 Managing foreign finance The prev
Page 87 and 88:
Box 5.2 Integrated debt management:
Page 89 and 90:
vate borrowing more carefully. In M
Page 91 and 92:
available to the country. Some tech
Page 93 and 94:
The maturity structure of debt earl
Page 95 and 96:
developing countries greatly. For e
Page 97 and 98:
help to develop debt management sys
Page 99 and 100:
Part III Mechanisms for Internation
Page 101 and 102:
Box 6.1 The growth and distribution
Page 103 and 104:
Box 6.2 The deployment of the OPEC
Page 105 and 106:
Box 6.3 The international interbank
Page 107 and 108:
investment grew steadily for much o
Page 109 and 110:
"graduation" of some developing cou
Page 111 and 112:
Figure 7.1 Net receipts of official
Page 113 and 114:
issue is the right balance between
Page 115 and 116:
tive performance of different count
Page 117 and 118:
tion of aid directly supports priva
Page 119 and 120:
happened in the absence of aid. Two
Page 121 and 122:
gram. This involves close collabora
Page 123 and 124:
Box 7.8 Aid coordination Aid coordi
Page 125 and 126:
Figure 8.1 Net position of developi
Page 127 and 128:
Box 8.2 Arab banks and internationa
Page 129 and 130:
default clauses would ensure that a
Page 131 and 132:
perceived creditworthiness of devel
Page 133 and 134:
Debt rescheduling and the banks Ban
Page 135 and 136:
Box 8.7 Increasing the flexibility
Page 137 and 138:
Box 8.9 World Bank cofinancing The
Page 139 and 140:
9 Direct and portfolio investment T
Page 141 and 142:
Box 9.1 Direct foreign investment i
Page 143 and 144:
however, there has been a positive
Page 145 and 146:
By contrast, some of the newly indu
Page 147 and 148:
ecognition of the relevance of this
Page 149 and 150:
Table 9.2 Return on investment in e
Page 151 and 152:
Part IV Perspectives and Policies f
Page 153 and 154:
ently estimated at slightly more th
Page 155 and 156:
mies would continue to grow faster
Page 157 and 158:
Middle-income countries Major expor
Page 159 and 160:
Table 10.6 Net financing flows to d
Page 161 and 162:
cies and performance against the me
Page 163 and 164:
Table A.3 GDP, 1980, and growth rat
Page 165 and 166:
Table A.7 Consumption, savings, and
Page 167 and 168:
Table A.9 Change in export prices a
Page 169 and 170:
Table A.12 Composition of debt outs
Page 171 and 172:
problems in the Latin American coun
Page 173 and 174:
Interbank Market: A Descriptive Stu
Page 175:
Diversification in the Nineteenth C
Page 179 and 180:
Contents Key 168 Introduction 169 M
Page 181 and 182:
Table 21. Labor force 214 Populatio
Page 183 and 184:
Introduction The World Development
Page 185 and 186:
that it is a weighted average; the
Page 187 and 188:
Life expectancy The map classifies
Page 189 and 190:
GNP per capital Life Area Average a
Page 191 and 192:
Average annual growth rate (percent
Page 193 and 194:
GDP' Distribution of gross domestic
Page 195 and 196:
Average annual growth rate (percent
Page 197 and 198:
Distribution of gross domestic prod
Page 199 and 200:
Value added Food aid Fertilizer con
Page 201 and 202:
Distribution of manufacturing value
Page 203 and 204:
Energy consumption Average annual e
Page 205 and 206:
Merchandise trade Average annual gr
Page 207 and 208:
Percentage share of merchandise exp
Page 209 and 210:
Percentage share of merchandise imp
Page 211 and 212:
Destination of merchandise exports
Page 213 and 214:
Destination of manuiactu red export
Page 215 and 216:
Receipts Gross international reserv
Page 217 and 218:
Public and publicly guaranteed medi
Page 219 and 220:
External public debt Interest payme
Page 221 and 222:
Average interest Average Average Co
Page 223 and 224:
OPEC Amount 1975 1976 1977 1978 197
Page 225 and 226:
Average annual growth Hypothetical
Page 227 and 228:
Crude Crude Percentage Percentage o
Page 229 and 230:
Percentage of population of Pretgof
Page 231 and 232:
Urban population Percentage of urba
Page 233 and 234:
Life expectancy at Iniant birth (ye
Page 235 and 236:
Daily calorie supply Population per
Page 237 and 238:
Number Number enrolled in enrolled
Page 239 and 240:
Percentage of total expenditure Hou
Page 241 and 242:
Percentage of total current revenue
Page 243 and 244:
Percentage share of household incom
Page 245 and 246:
appropriateness of the exchange rat
Page 247 and 248:
and electricity, water, and gas. Al
Page 249 and 250:
import unit value index, this indic
Page 251 and 252:
The summary measures in this table
Page 253 and 254:
Data are mainly derived from the Wo
Page 255 and 256:
and other training institutions by
Page 257:
Bibliography of data sources Nation
Page 260:
World Devlelopment Report 1985 focu
show all

World Bank Document

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?