THE STRUCTURE AND FUNCTION OF MULTILATERAL AID INSTITUTIONS

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June 1, 1975
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Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 For Official Use Only The Structure and Function of Multilateral Aid Institutions ER RP 75-17 June 1975 Copy N2 259 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 FOR OFFICIAL USE ONLY Foreword This publication is intended to serve as a general reference on multilateral assistance to the LDCs: the institutions involved, their purpose, membership, and funding. It also provides estimates of the amount of multilateral aid provided to LDCs in 1974. The data were derived from official sources, where available, and supplemented by estimates that are conservative. The Office of Economic Research has published other aid-related reports dealing with multilateral and bilateral aid to LDCs. Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 FOR OFFICIAL USE ONLY Foreword This publication is intended to serve as a general reference on multilateral assistance to the LDCs: the institutions involved, their purpose, membership, and funding. It also provides estimates of the amount of multilateral aid provided to LDCs in 1974. The data were derived from official sources, where available, and supplemented by estimates that are conservative. The Office of Economic Research has published other aid-related reports dealing with multilateral and bilateral aid to LDCs. Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 FOR OFFICIAL USE ONLY STATI NTL THE STRUCTURE AND FUNCTION OF MULTILATERAL AID INSTITUTIONS KEY FINDINGS 1. There are now 14 major multilateral aid institutions dispensing aid to less developed countries (LDCs). Some, such as the World Bank Group and the International Monetary Fund (IMF), carry out worldwide operations. Others, such as those sponsored by the Organization of Petroleum Exporting Countries (OPEC), operate exclusively within a selective regional or cultural framework (see the center- fold). ? Multilateral institutions as a group committed about US $9 billion to LDCs in 1974, an increase of nearly 60% from 1973. Disbursements topped $4.5 billion. ? The World Bank Group remained the leading donor; the IMF Oil Facility, funded primarily by OPEC, also made a major contribution. ? Non-project assistance to meet emergency needs of the LDCs formed a large portion of multilateral aid ? $3 billion. 2. We foresee no further additions to the list of major multilateral institutions for several years, although new aid outlets may develop within the established structures. OPEC will continue to be a major source of funding for these institutions. In the short run, emergency aid will continue to account for a significant share of the total. We expect project aid gradually to return to prominence, with the World Bank Group and IMF taking on increased responsibilities for channeling assistance. DISCUSSION The Institutions 3. Multilateral assistance ? a direct outgrowth of post-World War II international efforts to help reconstruct Europe's war-damaged economies ? has developed into a complex of 14 major institutions plus their subsidiary agencies. Note: Comments and queries regarding this publication are welcomed. They may be directed to Extension 5291. of the Office of Economic Research, Code 143, Approved For Release 2000/05/15 : CIA-RDP79T01098A00050010M1-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 These institutions provided some $9 billion (see Table 1) of aid to LDCsi in 1974, accounting for about one-third of all official aid pledged.' Among them, UN agencies, including the World Bank and International Monetary Fund, accounted for more than two-thirds of the total, regional institutions about one-fifth, European Community-sponsored institutions 7%, and the new Arab-sponsored agencies 4%. This distribution follows roughly the pattern of recent years, except that regional banks had smaller shares (see Table 2). 4. The World Bank (IBRD); its soft loan affiliate, the International Development Agency (IDA); and the International Monetary Fund (IMF), which provides 7-year credits through the new Oil Facility (see Table 3), are the major sources of global multilateral financial assistance.3 Other agencies of the United Nations also provide small amounts of technical, social, and commodity assistance on a worldwide basis (see Table 4). As a group, these multilateral organizations provided $6.2 billion worth of aid during 1974. 5. Regional aid institutions did not emerge until 1959 with the establishment of the Inter-American Development Bank (IDB). Subsequently, regional development banks have been established for all areas of the Third World (see Tables 5a, b, and c). They include banks for Central America, Africa, Asia, and most recently (in 1970) for the Caribbean. All of the regional banks emphasize assistance for regional social and economic development programs, especially multinational projects or projects of common concern. As a group, regional banks committed $1.8 billion worth of aid during 1974. 6. The regional development bank concept follows a uniform pattern -- most are modeled after the World Bank. Usually the regional banks have been funded by capital subscriptions from developing nations, only part of which is paid in. This capital is used as guarantee for bond issues floated in private capital markets. Most of the banks also have established soft loan windows similar to that of the IDA that are funded by developed nation sponsors and by a part of the income from banking operations. 7. Beyond the two broad groupings ? those with global interests and those confined to specific regional interests ? there is a growing number of multilateral aid organizations bound together by mutual political, commercial, religious, or 1. The LDCs include all countries of Africa except the Republic of South Africa; all countries of East Asia except Hong Kong and Japan; Malta, Portugal, Romania, Spain, and Yugoslavia in Europe; and all countries in Latin America, the Near East, and South Asia. 2. Aid from governments and international bodies whose members are governments. 3. The International Finance Corporation (IFC), also a World Bank affiliate, is not included as an aid donor, because it provides risk capital to private entities. 2 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 cultural interests. Most important among these are the agencies associated with the European Community (EC) and, more recently, with the Arab states (see Tables 6 and 7a, b, and c). Together, such agencies accounted for about $1 billion of aid in 1974. The EC has used the European Investment Bank (EIB), the European Development Fund (EDF), and the Cheysson Fund for emergency aid to perpetuate EC members' historic commercial ties with certain LDCs. 8. During 1974, special-interest aid outlets mushroomed under OPEC sponsorship. Indeed, for a time it appeared that there would be as many new multilateral OPEC-sponsored institutions as there were oil-exporting states, each seeking to provide aid to LDCs with close ethnic, religious, or political ties. Implementing the agreements was another story. Only three of the seven Arab agencies that had been set up were actually in operation by the end of 1974. Several special funds for African and Arab states and the Islamic Solidarity Fund were relegated to the status of administrative units within established financial organizations. Performance in 1974 9. Multilateral aid pledged to LDCs in 1974 equaled $9 billion, $3.3 billion above 1973. OPEC played a critical role in expanding multilateral aid activities, accounting for roughly 45% of all the aid channeled through these institutions. Influenced primarily by political considerations and high rates of return on secure investments, OPEC channeled about 4% of its oil receipts to LDCs through multilateral agencies. This included $2.1 billion of OPEC purchases of World Bank bonds,' $1 billion for the IMF Oil Facility, $300 million to UN agencies, and $350 million extended to LDCs directly by Arab multilateral organizations. An additional $1 billion of OPEC funds was committed in capital subscriptions to Arab institutions. 10. The World Bank Group, with commitments of $4.5 billion, continued as the principal source of multilateral aid to LDCs in 1974. It was followed by the regional bank groups that provided $1.8 billion and the IMF Oil Facility with commitments of $1.2 billion. The EC channels provided $600 million. Arab multilateral agencies, still neophytes in the aid business, extended about $350 million, all to Arab or African states. 11. During 1974, multilateral aid agencies disbursed about $4.5 billion, up nearly 50% from 1973. A large share (40%) was provided for emergency assistance 4. Approximately $1.5 billion was actually transferred by the end of 1974. 3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 and came from the IMF Oil Facility, UN emergency operations, and those of the European Community and Arab states. The remaining $2.7 billion was mostly project aid, previously committed by development banks. Characteristics of Multilateral Assistance 12. Multilateral aid has conventionally been intended to promote economic development, primarily for infrastructure projects. Multilateral agencies have concentrated their assistance on bankable projects ? i.e. projects able to pay the rates charged by private capital markets. Institutions providing this kind of aid and carrying the largest share of the aid burden (the World Bank and regional banks) charge near the commercial interest rates. These ranged up to 8%-8-1/4% in 1974. The credits allow 10-30 years for amortization. To accommodate equally basic needs for poorer LDCs that cannot afford these terms, a soft loan window has been established in most multilateral development banks. These windows usually offer low-interest or interest-free loans and allow up to 50 years for repayment. Eligibility for these soft loans usually requires some sort of poverty test such as a low per capita income level. Still an important component of the aid total, concessional lending fell to about 15% of total development aid in 1974, from 30% in 1973. 13. Most of the institutions provide technical assistance in order to assure the implementation of their programs. Technical aid activities, nevertheless, comprise less than 1% of the total outlays of these organizations. Most of the agencies administer the UN technical assistance programs as well as their own. Increasingly, they also are providing technical support for bilateral lending programs. 14. Inflation, accelerated by sharply increased prices for oil and food, created urgent LDC demands for emergency balance-of-payments assistance in 1974. These demands could not have been satisfied by the conventional multilateral organizations. ?A few UN agencies were equipped to provide emergency funds, but nowhere near the scale required. Only the creation of the IMF Oil Facility and the burgeoning Arab multilateral aid organizations made it possible for increased amounts of multilateral aid to reach the most seriously affected countries (MSAs),5 especially India, Pakistan, and Sahelian Africa. The new Arab facilities enhanced the options of a number of African and Arab nations because of softer terms and larger availabilities. In total, emergency resources in 1974 amounted to about $1.8 billion. For the first time medium- and long-term balance-of-payments aid 5. Most seriously affected countries (MSAs) are defined by UN criteria to include low per capita income (not exceeding $400), sharp increase in import costs of essentials relative to export earnings, high ratio of debt service to export earnings, and low level of foreign exchange reserves to meet requirements. 4 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 became an important aspect (20%) of multilateral assistance, although it was a far smaller part of the aid total than development assistance. Prospects 15. The proliferation of multilateral institutions will probably not continue, although additional concessional aid outlets are planned within the global institutions. OPEC will continue to be a major source of funding for multilateral assistance through agencies created by its members and through such institutions as the IBRD and IMF. ? OPEC funding of global aid institutions will provide the major oil exporters with a sound investment and good return on their money. ? Assistance from OPEC multilateral institutions will tend to parallel aid from established multilateral agencies. ? Reliance on established institutions for feasibility studies and technical services will smooth the road for OPEC bilateral and multilateral aid implementation. 16. The established multilateral agencies, particularly the IBRD and the IMF, will take on increased responsibility for channeling aid. The World Bank is considering a 52% expansion of its annual commitments during the next five years, while the IMF Oil Facility is prepared to expand significantly its assistance in 1975, the last year of its existence. In addition, new aid channels are being considered, especially a Special Trust Fund within the IMF for long-range balance-of-payments assistance for the poorer LDCs and a third window in the IBRD to provide credits on terms between those of the World Bank and the IDA (30-year repayment after a 7-year grace at 4% interest). 17. Emergency operations will again be the focus of multilateral aid activities because of the threat to LDC solvency posed by the adjustments to increases in the cost of energy. Beyond the next year or two, long-term development efforts again are expected to take center stage. The LDCs, gaining more clout, will press for sustained programs of development. Multilateral channels, less subject to the vagaries of national political decisions, will be the aid vehicle that the LDCs will prefer. 5 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 APPENDIX STATISTICAL TABLES 7 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Multilateral A European and Arab States and Areas of Cor EIB European Investment Bank Major Recipient Turkey; $98 million OAPEC-AFESD Arab Fund for Economic and Social Development Major Recipients Sudan; $43 million Syria; $25 million Somalia; $23 million Special Fund for Poorest Arab States Major Recipient Sudan; $37 million CDB Caribbean Development Bank Major Recipient Jamaica; $9 million BCIE Central American Bank for Economic Integration IDB lnteramerican Development Bank and Fund for Special Operations Major Recipients Mexico; $186 million Argentina; $183 million Brazil; $181 million Western Hemisphere 566240 6-75 Worldwide UN United Nations Major Reci, India; 1 Bangla IMF International Monetary Fund: Special Oil Facility Major LDC Recipients India; $242 million Yugoslavia; $168 million Pakistan; $118 million Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Table 1 Aid Commitments to Developing Nations by Multilateral Institutions, 1974 Million US $ A World Bank Group IBRD IDA IMF Oil Facility Commitments/ Disbursements Regional Development Institutions Special-Interest Agencies Arab EC All Other Total Total 3,278.1 1,257.8 1,194.4 1,828.5 341.8 623.2 480.61 9,004.4 Africa 717.5 332.2 179.9 125.8 247.7 331.6 120.8 2,055.5 Algeria 157.5 21.3 178.8 Botswana 9.5 3.0 2.7 15.2 Burundi __ 5.0 __ 7.0 2.8 14.8 Cameroon 34.1 5.6 2.8 4.7 4.5 51.7 Central African Republic 3.3 1.5 3.0 4.0 11.8 Chad 11.0 2.7 4.4 4.4 2.9 25.4 Congo 1.2 1.2 Dahomey 2.1 1.2 2.6 2.1 8.0 Equatorial Guinea __ 0.2 0.2 Ethiopia 52.9 __ 7.1 183.82 4.1 247.9 Gabon 5.0 __ 4.8 8.4 18.2 Gambia 2.4 2.2 0.4 5.0 eci; Ghana. 12.4 __ 4.8 4.4 4.8 26.4 $ Guinea. 4.2 8.0 0.8 3.2 16.2 ;lac Guinea-Bissau __ -- __ 0.2 0.2 Ivory Coast 47.6 __ 13.5 -- 3.6 38.3 2.5 105.5 Kenya 10.4 33.5 38.7 3.6 1.8 6.0 5.4 99.4 Lesotho .... 4.0 5.5 4.4 1.6 12.5 Liberia 4.0 __ __ 2.4 1.8 8.2 Malagasy Republic 6.8 22.4 4.2 __ 2.4 13.6 4.6 54.0 Malawi 12.0 4.8 0.6 3.8 21.2 Mali 8.0 4.4 3.9 8.3 24.6 Mauritania __ 7.9 8.9 5.8 9.4 25.0 Mauritius 18.5 3.5 1.4 23.4 Morocco 141.0 __ 9.6 18.6 169.2 Niger 5.0 __ 0.2 3.9 9.1 Nigeria 127.5 __ 5.7 -- 133.2 Rwanda 6.3 5.1 1.0 1.4 2.4 16.2 Senegal 3.0 4.6 3.8 2.4 13.8 Sierra Leone __ 5.2 4.1 1.8 3.1 14.2 Somalia..18.0 -- 3.3 31.0 15.6 5.5 73.4 Sudan __ 34.7 57.5 9.2 80.6 5.0 187.0 Swaziland 3.5 5.0 __ 2.2 2.1 12.8 Tanzania 65.0 61.2 34.2 4.8 7.1 9.0 12.0 193.3 Togo 6.0 3.4 0.9 1.7 12.0 Tunisia 64.1 4.1 6.8 75.0 Uganda 6.0 5.8 5.6 17.4 Upper Volta 8.0 0.4 2.7 2.5 13.6 Zaire .... 10.0 6.4 37.8 54.2 Zambia 20.0 4.8 6.2 31.0 Regional -- -- __ 1.7 33.6 35.3 East Asia 765.0 115.0 109.3 377.0 0.7 24.6 1,391.6 Burma.. 41.0 -- 16.3 57.3 Fiji.. __ 0.4 0.4 Indonesia 137.5 57.5 __ 78.1 6.8 279.9 Laos 6.1 1.0 7.1 Malaysia 185.0 65.5 250.5 Philippines 208.0 9.5 58.3 0.7 3.7 280.2 Samoa __ 0.8 0.8 Singapore 19.5 19.5 . South Korea 85.0 108.9 89.5 283.4 Footnotes at end of table. 8 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 14 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Table 1 Aid Commitments to Developing Nations by Multilateral Institutions, 1974 (Continued) Million US $ World Bank Group IDA IMF Oil Facility Commitments/ Disbursements Regional Development Institutions Special-Interest Agencies Arab EC All Other Total East Asia (Continued) IBRD South Vietnam 20.5 1 . 0 21.5 Thailand 130.0 7.0 41.6 178.6 Tonga 0.3 .... 0.3 Regional .... .... 12.1 12.1 Latin America 538.2 36.2 223.8 1,141.1 24.7 57.0 2,021.0 Antigua.... .... 0.1 0.1 Argentina 183.0 183.0 Barbados 9.5 9.5 Belize 1.8 I .8 Bolivia. .... 6.2 47.0 53.2 Brazil 59.5 181.3 240.8 Chile 13.6 .... 97.3 110.9 Colombia 8.0 50.2 58.2 Costa Rica 23.5 22.7 54.7 100.9 Dominica .... 2.2 2.2 Dominican Republic 21.0 37.2 58.2 Ecuador. 23.2 .... 55.9 .... 79.1 El Salvador 19.5 6.0 21.6 33.9 2.6 83.6 Grenada .... 0.1 0.1 Guadeloupe 2.6 2.6 Guatemala .... 19.9 .... 19.9 Guyana 12.9 1.0 13.9 Haiti .... 10.0 4.6 0.5 1.0 3.1 19.2 Honduras 3.0 3.0 20.3 38.8 3.4 3.2 71.7 Jamaica. 46.5 9.0 .... 55.5 Mexico 212.0 186.0 398.0 Netherlands Antilles .... .... 8.2 8.2 Nicaragua 4.0 12.1 16.1 Panama .... 8.9 15.5 24.4 Paraguay 24.5 11.0 50.5 86.0 Peru 26.0 65.5 91.5 St. Kitts 0.1 0.1 St. Vincent 0.2 0.2 Surinam .... .... 9.5 9.5 Trinidad and Tobago 23.0 6.1 29.1 Uruguay .... 91.5 21.6 113.1 Venezuela 22.0 22.0 West Indies 2.3 .... 2.3 Regional .... .... 9.0 .... 47.1 56.1 Near East 426.9 86.5 11.3 6.0 94.1 2.7 28.9 656.4 Egypt 85.0 55.0 6.0 22.0 3.4 171.4 Iran 210.5.... 4.7 215.2 Israel 35.0 35.0 Jordan.....7.5 .... 7.5 Lebanon N.A.N.A. .... North Yemen.... 8.6 25.0 2.4 36.0 Oman 8.4.... 0.2 8.6 Saudi Arabia.... .... 2.1 2.1 South Yemen 5.4 11.3 22.1 1.6 5.7 46.1 Syria 88.0 10.0 25.0 1.1 124.1 Regional.... 10.4 10.4 Footnotes at end of table. 9 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 id Institutions centration, 1974AppAgesInFicoAffitase 2000/05/15 : CIA-RDP79T01098A000500080001-3 i ADB Asian Development Bank and Fund Major Recipients Pakistan; $105 million South Korea; $89 million Indonesia; $78 million ? oients 38 million idesh; $33 million IBRD-IDA World Bank Group: International Bank for Reconstruction and Development Major Recipients Yugoslavia; $256 million Turkey; $228 million Mexico; $212 million International Development Association Major Recipients India; $443 million Bangladesh; $120 million A Africa proved For Release 2000/05/15 : CIA-RDP79TO AFDB African Development Bank and Fund Major Recipients Morocco; $10 million Sudan; $9 million Mauritania; $ 9 million ASFA Arab Special Fund for African States Major Recipients Ethiopia; $7 million Tanzania; $7 million EDF European Development Fund Major Recipient Sahel-Ethiopia; $64 million 1098A000500080001-3 Approved For Release 2000/05/15: CIA-RDP79T01098A000500080001-3 Table 1 Aid Commitments to Developing Nations by Multilateral Institutions, 1974 (Continued) Million US $ World Bank Group IBRD IDA IMF Oil Facility Commitments/ Disbursements Regional Development Institutions Special-Interest Agencies All Other Total Arab EC South Asia 112.0 687.9 450.5 178.6 164.1 96.7 1,689.8 Afghanistan .... 14.2 .... 14.2 Bangladesh 120.0 48.9 54.0 42.3 33.2 298.4 Cambodia .... .... 1.6 1.6 India 52.0 443.1 242.0 .... 110.0 37.7 884.8 Nepal 13.8 .... 3.1 .... .... 16.9 Pakistan 60.0 87.0 118.5 104.6 3.1 7.0 380.2 Sri Lanka. 24.0 41.1 2.7 8.7 9.3 85.8 Regional .... 7.9 7.9 Other 718.5 219.6 99.4 13.7 1,051.2 Cyprus 14.0 7.7 0.7 0.8 23.2 Greece 30.0 43.8 1.2 75.0 Romania 190.0 2.0 192.0 Turkey 228.0 98.7 2.6 329.3 Yugoslavia 256.5 168.1 0.8 425.4 Regional .... 6.3 6.3 Unspecified 3 138.9 138.9 Including three major UN agencies World Food Program (WFP), the United Nations Development Program (UNDP), and the Secretary General's Special Account for Emergency Operations. 2 Including EC commitments to Sahelian Africa as a region. 3 Including 1118 million under the World Food Program. Table 2 Aid Commitments to Less Developed Nations by Multilateral Aid Institutions' 1973 Million US $ 1974 Global Total 5,700 9,000 World Bank Group 3,800 4,550 IMF Oil Facility 1,200 Other United Nations agencies 200 500 European Community 400 600 Regional development banks 1,300 1,850 Arab special interest agencies.. . N egl. 350 1 Because of rounding, components may not add to the total shown. 10 Approved For Release 2000/05/15: CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 1974 commitments Headquarters Membership Date established Decisionmaking body Purpose Resources and status. Terms of loans. Recipients Table 3 Global International Aid Institutions: Specialized Agencies of the United Nations World Bank Group International Bank for Reconstruction and Development (IBRD) $3.3 billion Washington, D.C. 124 members who also belong to I MF 1945 Board of Governors and the Exec- utive Directors Finance development projects and programs $30.4 billion subscribed, $3.0 bil- lion paid in, with the remainder callable. Depends on capital markets for major share of re- sources; outstanding borrowings of $9.6 billion, as of 30 June 1974 8%, 20-25 years, including 5 years' grace All members are eligible, but loans usually are made only to mem- bers with per capita income less than $850 International Development Association (IDA) $1.3 billion Washington, D.C. 113 members who also belong to IMF and IBRD 1960 Board of Governors and the Executive Directors Finance development projects and programs $11.6 billion pledged, $7.1 bil- lion paid in from subscription, voluntary contributions, and IBRD transfers 3/47, service charge, 50 years, including 10 years' grace Members with per capita in- come less than $375 to supple- ment IBRD loans on terms that are less burdensome on balance of payments International Monetary Fund (Oil Facility) $1.2 billion to LDCs Washington, D.C. 126 members 1974 Executive Board Finance current account deficits resulting from increased petro- leum prices $3.7 billion made available in 1974, principally by oil-export- ing states for both LDCs and developed countries 3-7 years repayment, 71/4% in- terest Oil-importing members meeting certain criteria on the scope and nature of balance-of-pay- ments problems 11 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 1974 commitment Headquarters. Date established Governing group Membership Purpose and resources.. Aid terms Table 4 Major United Nations Aid Programs United Nations Development Program (UNDP) $228 million New York 1949 Governing Council account- able to ECOSOC Open to all UN members Preinvestment and technical assistance for development projects in LDCs Grant World Food Program (WFP) $118 million Rome 1961 24-man IGC which is elected by FAO and ECOSOC Open to all UN members Provide food assistance as a backup to development pro- grams; provide emergency food assistance Grant United Nations Educational, Scientific United Nations Secretary General's and Cultural Organization Industrial Development Special Account (UNESCO) Organization (UNIDO) 1974 commitments $135 million N.A. N.A. Headquarters . New York Paris Vienna Date established 1974 1945 1967 Governing group Secretary General 34-member Executive 45-member Industrial De- Board velopment Board Membership 33 most seriously affected Open to all UN members Open to all UN members LDCs Purpose and resources Balance-of-payments assist- Provide support for mem-Assist in transfer of indus- ance for the MSAs ber efforts to eliminate illiteracy trial technology to LDCs Aid terms Grant Grant Grant ' Because indicative planning commitments are made over several years and tend to overestimate allocations, actual expenditure figures have been used. 12 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Table 5a Regional Development Institutions Africa African Development Bank (AFDB) African Development Fund (AFDF) 1974 commitments $88 million, cumulative $217 million $46 million, began operations in 1974 (1964-74) Headquarters. Abidjan, Ivory Coast Abidjan, Ivory Coast Membership 40 members, limited to independent African 16 non-African nations and AFI)11 countries Date established 1964 1971 agreements signed Decisionmaking body Board of Governors 12-man Board of Governors weighted evenly between regional and non-regional mem- bers. Fund administered by AFDB Purpose Financing development projects particularly Concessional loans comparable to IDA of regional or multi-national projects World Bank Group Resources and status $484 million authorized capital, $440 million $214 million authorized, 8145 million sub- subscribed, $193 million paid in as of scribed, $102 million paid in by the end June 1974 of 1974 Terms of loans 6% with 3/4% commitment fee, 15- 30 years, Interest-free, 3/4% administrative charge, 50- including 3 -10 years' grace year repayment with 10 years' grace, loans to a maximum 10 million units of account ' for regional projects and $5 million units of account for national projects Aid recipients. African members African members, especially least developed 1. One unit of account equals $1.21. Table 5b Regional Development Institutions Asia Asian Development Bank (ADB) Asian Development Fund (ADF) 1974 commitments $548 million, cumulative $2.0 billion None (1966-74) Headquarters Manila Manila Membership 27 regional members and 14 non-regional, 27 regional members and 14 non-regional, including the United States including the United States Date established 1966 1972 agreement signed operative 28 June 1974 Decisionmaking body Board of Governors Board of Governors Purpose Finance foreign exchange costs of projects Concessional loan fund administered by A 1)B to promote economic development comparable to IDA of World Bank Group Resources and status Authorized $2.8 billion, subscribed $2.8 bil- Authorized $525 million, subscribed $461 lion. Paid in $503 Million as of November million, $245 million paid in. Additional 1973, with outstanding borrowing of $283 $257 million will be transferred from fund million as of 31 December 1974 previously contributed to the terminated multi-purpose Special Fund Terms of loans. 81/4%, 10 30 years repayment, including 40 years with 10 years' grace, 1% interest 3 -7 years' grace Aid recipients. Asian members Asian members 13 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 1974 commitments Ileadquarters Membership Date established .Decisionmaking body . Purpose Resources and status.. Terms of loans. Aid recipients. Table 5c Regional Development Institutions Latin America Interamerican Development Bank (IDB) $1.1 billion, cumulative $6.5 billion (1959-74) Washington, D.C. 24 Western Hemisphere mem- bers, including the United States and Canada 1959 Board of Governors Accelerate economic develop- ment of Latin American mem- bers, collectively and indi- vidually Subscribed $10.3 billion (includ- ing $4.4 billion contributed toward the Fund for Special Operation, the concessional loan fund comparable to IDA) 15-30 year maturities at 8"/0. Fund for Special Operations loans for 20-40 year terms at 1% 4% Latin American members Central American Bank for Economic Integration (CABEI) N.A. Tegucigalpa, Honduras Guatemala, El Salvador, lion- duras, Nicaragua, Costa Rica 1961 10-member Board of Governors (2 from each member country) Promotion of economic integra- tion and balanced develop- ment of members $60 million authorized and $40 million subscribed 3%-8% interest, repayment up to 15 years Members 14 Caribbean Development Bank $13.6 million, cumulative $58 million Bridgetown, Barbados 16 members, including the United Kingdom, Canada, and West Ger- many 1970 7-member Board of Governors Promote economic integration of Car- ibbean members and finance devel- opment projects with special atten- tion to members with limited access to other capital $100 million authorized, $66 million paid in plus a $53 million Special Development Fund, the equivalent of the IDA in the World Bank Group, subscribed to by non-re- gional members and the United States. Trinidad and Tobago es- tablished a $5 million Special Fund for least developed members Commercial rates to larger members and 2- lie% repayable over 35 years for the Special Fund Caribbean members Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Table 6 Special Interest Aid Institutions Sponsored by The European Community ' European Investment Bank European Development Fund (EIB) (EDF) Cheysson Fund 1974 commitments $141 million to associated states S165 million $120 million headquarters..Luxembourg Luxembourg Brussels Membership 9 Community members 9 Community members 9 Community members Date established 1958 1958 1974 Decisionmaking body Board of Governors and 18 Di- Board of Governors and 18 Di- Council of Ministers of European rectors rectors Community Purpose Funding for projects in public Economic and special develop- Emergency bala,nce-of-payments and private sectors of mutual ment assistance assistance Community interest Resources and status 1.5 billion units of account2 Community budget allocations Community contributions subscribed, 20% paid up plus for five-year periods and EIB funding from capital markets contributions. Soft loan win- dow of European Investment Bank Terms 8-25 years, 21/20/--61/2% Grants or loans with repayments Grants up to 40 years, including 10 years' grace at PA, Recipients Associated states (members are Associated states 17 of the LDCs on the UN's L974 eligible for borrowing at mar- most seriously affected list ket interest rates) The EC also participates in the Food Aid Convention (FAC). 2 One unit of account equals $1.21. 15 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Table 7a Special Interest Aid Institutions Sponsored by Arab Islamic States For Arab States Arab Fund for Economic and Social Development (AFESD) 1974 commitments $176 million Ileadquarters Kuwait Membership All 20 Arab League members Date established Agreement signed in 1968; first meeting November 1972 Decisionmaking body Arab League Purpose Loans to Arab League members for pro- ductive investment in public and private sectors, especially joint ventures among Arab states Resources and status Authorized capital $338 million Terms of loans 10 years or more at 4%.-6% interest, eventually may establish a soft loan counter like IDA Aid recipients Members of Arab League are eligible OAPEC Fund for the Poorest Arab States $80 million Kuwait OAPEC members 1974 Arab League, administered through AFESD Provide balance-of-payments assistance to non-oil-producing Arab states Authorized capital $80 million, all paid in 10-year maturity, after a 10-year grace, interest free Mauritania, Morocco, North Yemen, So- malia, South Yemen, and Sudan Table 7b Special Interest Aid Institutions Sponsored by Arab Islamic States For Islamic States Islamic Development Bank (IDB) 1974 commitments None headquarters Saudi Arabia Membership 27 members of Islamic Conference Date established Agreement signed in March 1972, not yet in operation Decisionmaking body Board of Governors Purpose Project loans to member countries, for industrial development, may also make equity investments Resources and status Authorized capital $2.4 billion, subscribed $1.2 billion Terms of loans Interest free, other terms unknown Aid recipients Islamic Conference Members, 27 Arab and Islamic states signed charter, Iraq and Syria have also applied for membership 16 Islamic Solidarity Fund None 35 Islamic nations February 1974; agreement not yet in operation Seven-member executive committee, ap- proval by Islamic Foreign Ministers Conference Emergency relief assistance and cultural enrichment for Moslem nations Authorized capital unknown; pledged $30 million, $2.0 million paid in Grants and interest free loans Islamic states Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Table 7c Special Interest Aid Institutions Sponsored by Arab Islamic States For Africa Arab Bank for Economic Development in Africa 1974 commitments.... None Headquarters Membership Date established Decisionmaking body . Purpose Resources and status Terms of loans Aid recipients. Khartoum Arab League Agreement signed at Sixth Arab Summit, November 1973 Governing council including Saudi Arabia, Jordan, UAE, Bahrain, Tunisia, Qatar, and Kuwait Soft loans for development Authorized capital $500 million, $206 million subscribed 50-year repayment, low interest African states Arab Special Fund for Africa Arab Technicial Assistance Fund for Africa 888 million disbursed of $176 million None committed Cairo (Arab League Secretariat) Arab League Agreement signed June 1974, dis- Agreement signed January 1974 bursement began in October 1974 Arab League Loans to help compensate for in- Finance technical assistance creased oil costs, special attention needs for African states to land-locked and drought- stricken nations; to develop African oil resources, to com- pensate for economic loss because of break in relations with Israel Authorized capital $200 million to Authorized capital $25 million, be maintained at same level, $195 paid in, minimum 89, million million paid in as of January 1975. UAE, Saudi Arabia, Kuwait, and Eraq pledged to increase their 1974 capital contributions 25 years with 10-year repayment, interest free African oil-importing states, except African nations, but eventually Sudan and Morocco may benefit other LDCs 17 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Ana1yst:1=== D/TA (Pro, 04) ? CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION 25X1A DISSEM: 30 Jun 75 NO ELITE SERIES NUMBER ER RP 75-17 CLASSIFICATION OF REPORT FOR OFFICIAL USE ONLY DISTRIBUTION TO RC DATE OF DOCUMENT June 1975 NUMBER OF COPIES 300 NUMBER IN RC 0 33 DATE COPY NO. (S) RECIPIENT SENT RETURNED 1-2 DDI 27 Jun 75 3-6 Reserve 7 D/OER 25X1A II 1 Jul 75 8 DD/OER m 9 via 0/D/OER - m 10 SA/ER D/SA/ER IT 11 ' Ch/D/D m 12 ' DCh/D/D m 13 D/TA 25X1A n 25X1A 14-25 NIO Reg. m 26 OGCR/CD 8 Ju1TM75 27-29 30,31 32,33 133,134 44 135-138 139 is--- Ct/Lt 75 25X1C 140 141 ./ 124,125 17 Jul 75 126 II 127 IT 128 m 129-131 II 132 m 34 St/A/R 21 Jul 75 35 St/P ' 1 Jul 75 36,37 James Matter, State/INR/REC 8 Jul 75 38 OCl/WE, 6G42, Hq. 1 2bX1 A 39,123 D/TA 8 Jul 75 40-43 Filed in St/P/C IT 44 Linda Lowenstein, AID/AA/IDC State/IA 8 Jul 75 m 25X1A 45 Wendell Woodbury; 123-146 Recid in. St/P/C 25X1A 30 Jun 75 123-141 See above TI 142-146 Filed in St/P/C 17 Ja 75 25X1A 2111151k 25X1 A 25X1A iligariffil ..' ap pez ..16-- P) A 67 L._ :;)- M , t r-irS, I-0\ 76 25X1A -ICA - R D P 7 9 TO 1 UM ADOW OMR 3001 -3 FORM n 2-65 0 L?53 (13) COPY A ? proved ror Keiease zuumono . U1A-KIJI" IU UUMUUUbUULMULUU1-.3 NO(S) RECIPIENT . SENT RETURNED (-/ k-k - HEM :s411. 5"" ) 4 efr'c (5) TAW / FYGNINSIMIMPAPINEMIF p=simari 3 IFIPARCIM I / 2 5 1C 25X1A , 0 OrThielliMIMIWArlffl 5-G 7 71S, Approved I-or Release 2UUU/tibi1b : /9 I Ul LMAULMUUUtiUUU1-J uUIAL USE NLY Di s se ci*grirk6 I WA aAlliDp7v1cel1attAted500080001 -3 No. of Copies NO ELITE DISSEM Finished Intelligence Project, Room 154, 1 . STATSPEC 4 6 1 2 1 1 5 10 1 3 3 6 1 1 STATINTL 1 4 3 3 STATINTL 2 1 Approved 39 Recipient DDI/SSG, Room GD0442, Eq. Room 1005, Key Bldg. Room GB38, Eq. PSD Bldg. STATINTL Room 4)329, Eq. STATINTL OTR/II, Room 926, CoC OWI, Room 1D0409, Hq. D/CRS, Room 2E60, Eq. CRS/ADD/Std. Dist., Room GF28, Eq. OSR, Room 3F50, Eq. DCD/SD, Room 811, Key Bldg. OSI, Room 6F30, Eq. OPR, Room 3E63, Eq. OCI, Room 7G15, Eq. INDICO, Room 7F30, Eq. STATINTL Congressional Support Officer, Room 7F36, Eq. OCl/Special Projects, Room 7G07, Eq. OGCR, Room 1011, Magazin NPIC/IB, Room 1S31.5, IAS, Room 1S518, CGAS/ESG, Room 2G40, Eq, Chairman, COMIREX, Room e Bldg. 3E14, Eq. 11.111M DDI Iaha 1 /15 : OER, Room 3G31, STATINTL STATINTL en-ient Staff Room 21-'28 P7910109dA000500080601-3 Nil OFFICIAL USE ONLY ? TIT),C1 JSE 1 Di s s rAipprtive sliF0 rf (Rte Gage12(010010,5/141: 7314-RDPVT015:0318-A60b500080001-3 (continued) No. of Copies Recipient STATI NTL 7 National Security Agency, Attn: Room 2E024, Ft. Meade, Md, 1 Commandant, The National War College, Attn: NWCLB/CR, Attn: Mr. Robert H. Ferguson X 8 Department of the Treasury, Document Analysis and Dissemination Section, Room 4308, 15th St. & Pa. Ave., N. W. (1-Bernard Kiwi( Zinman, LA; I -Henry Lee, IA) 1 John Dale Pafenberg, INAKB, Department of the Air Force, Room 4A870, Pentagon 10 Defense Intelligence Agency, DS-4C, A Bldg., AHS xx 63 Dept. of State, INR/CC, Room 6510, New State Bldg. 1 - Leo Tansky, Chief, Trade and Resources Div., INR 1 - Frank Thomas, El3f0DF 1 - Do, glas Forman. IO/CMD 50 - suggested distribution for Embassies in Vienna, 3 cys for Brussels(' cy for Ralph Moore. US Mission to NATO; 1 cy for US Mission to the European Communities), Copenhagen. London, Paris, Bonn, Rome, Luxembourg, The Hague, Bern, Zurich, Belgrade, Manila, Djakarta, Seoul, Kuala Lumpur, Zcys for Bangkok(1 cy for US Rep to SEATO). Ottawa, gigkeasac Algiers. Addis Ababa, Abidjan, Tripoli, Rabat, Lagos. Khartoum, Dar es Salaam, Dacca, Cairo, New Delhi, Tehran, Baghdad. Amman', Kuwait, Islamabad, Jidda, Damascus, Ankara, Abu Dhabi, Doha, Buenos Aires. Bridgetown. Rio de Janeiro, Santiago, Tegucigalpa, Mexico City, Montevideo, and Caracas 36KKOMICIXIXIMIX xicantxmarxxxxxtue (see attached sheet) MICROFICHE 1 - Camera original to Archives 1 Diaso copy to Archives 1 - Silver Duplicate to CRS/CLD/DSB, Room 1H1124, Hq. 1 - Diaso copy to OGCR, Room 507, Magazine Bldg. 1 - Diaso copy to OER/St/P/C, Room 41'41, Hq. Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 -2- 7 Fall OFFICIAL USE OM Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Dissemination List for OER Report. RP 75-17 (Job 544-342) (continued) No. of Copies Recipient Miss Susanne C. Swenson, Federal Reserve Board, ITC, Rm. 518C, Watergate Office Bldg., 600 New Hampshire Ave., N. W. for R. J. Irvine Reference Information Center. U.S. Arms Control and Disarmament Agency, Rm. 5664. New State Bldg. Attn: Mr. Roger Pajak, MEA/ET. Rm. 2318 Mimia Robinson, SER/MO/CM/AID, Rm. B-461, NS Attn: Mr. Howard Sternberger. PPC/IA/BBC. Rm. 3841 Council on International Economic Policy, Rm. 204, EOB Attn: Mr. J. M. Dunn 1 Agency Archives 58 Agency Records Center Total: 300 copies Approved For Release 20paii0Npaft-Otrytity098A000500080001-3 ) SECRET Approved;,-for Releaae-26/00/05/15 : CIA-RDP79T01098A000500080001-3 Project No. jr, Title: %---.07er./ 40) Responsible An and Branch: V7I9 SOVIET BLOC 25X1A PACIFIC Bulgaria, Sofia Czechoslovakia, Prague Germany, Berlin Hungary, Budapest Poland, Warsaw Romania, Bucharest USSR, Moscow EUROPE .stria, Vienna emaboiTeigium, Brussels I 1,4-1 copy of all reports for iE Milton-KovnevI., US Mission o NATO) ,...4-1--copy for US Mission to the European Communities) '4,3-ienmark, Copenhagen b.-Et-gland, London Finland, Helsinki Pirance, Paris. ..pe-rmany, nn Munich Iceland, Reykjavik Ireland, Dublin art-aii, Rome 4.-L-Tiiembourg, Luxembourg Malta, Velletta ...Pifilierlands, The Hague Norway, Oslo Portugal, Lisbon Spain, Madrid Sweden, Stockholm eth 1-109re:i 6.SeOftzerland, arefn- Geneva 1:44-4-4.414e. ...Yugoslavia, Belgrade Australia, Canberra Melbourne y.Philippines, Manila New Zealand, Wellington 'FAR EAST Burma, Rangoon Formosa, Taipei Hong Kong alitIO-nesi a, Djakarta Japan, Tokyo 0.-1C6cea, Seoul Laos, Vientiane .Malaysia, Kuala Lumpur Singapore 1?..1-1-ra1land, Bangkok (2 cys - I cy for US Rep to SEATO Vietnam, Saigon (2 cys if report receives Vietnam distribution) i,reArVADA, OTTAWA (see reverse side) Approved For Release 2000/058SCR IRDP79T01098A000500080001-3 SECRET Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 AFRICA kitigeria, Algiers Botswana, Gaberones Burundi, Bujumbura Cameroun, Yaounde Central African Republic, Bangui Chad, Fort Lamy Congo, Kinshasa Dahomey, Cotonou Addis Ababa Gabon, Libreville Gambia, Bathurst Ghana, Accra Guinea, Conakry c.).106ir-y Coast, Abidjan Kenya, Nairobi Lesotho, Maseru Liberia, Monrovia .....TerilYy-a, Tripoli Malagasy Republic, Tananarive Mali, Bamako Malawi, Zomba Mauritania, Novakchott Mauritius, Port Louis .....MtScocco, Rabat Mozambique, Lourenco Marques Niger, Niamey ?...14i-leria, Lagos , Rhodesia, Salisbury Rwanda, Kigali Senegal, Dakar Sierra Leone, Free Town Somalia, Mogadis cio South Africa, Pretoria ....811-1an, Khartoum Swaziland, Mbabane rilzania, Dar es Salaam Togo, Lome Tunisia, Tunis Uganda, Kampala Upper Volta, Ouagadougou Zambia, Lusaka NEAR EAST AND SOUTH ASIA fg istan, Ceylon, Colombo Cyprus, Nicosia I.Firypt, Cairo Greece, Athens 1(dia, New Delhi 1..1-fan, Tehran A...U.-a4, Baghdad Israel, Tel Aviv &Jot-clan, Amman Kuwait Lebanon, Beirut Nepal, Katmandu I-Pakistan, Stidi Arabia, Jidda 'South Yemen, Aden Syria, Damascus AnkAtrzt.4...; AftRa4.4../ Ag+lr-dt. ,....krientina, Buenos Aires Bahamas, Nassau oPrgrbados, Bridgetown Bolivia, La Paz 4....2rrazi1, Rio de Janeiro Ar.ohrfe, Santiago Colombia, Bogota Costa Rica, San Jose Dominican Republic, Santo Domingo Ecuador, Quito El Salvador, San Salvador Guatemala, Guatemala Guyana, Georgetown Haiti, Port au Prince 4,146nduras, Tegucigalpa Jamaica, Kingston 1.,.botercico, Mexico City Nicaragua, Managua Panama, Panama Paraguay, Asuncion Peru, Lima Trinidad, Port of Spain ?..JJ-rtguay, Montevideo 4,34e-r1ezue1a, Caracas Approved For Release 2000/05/1?EateilDP79T01098A000500080001-3 FaLnEnijAn ir.J1Cts. Approved For Release Avulnuopwrtu.,vmEDETTO1098A000500080001-3 MEMORANDUM FOR: CRS/ADD Release SUBJECT: Release of ER RP 75-17, The Structure and Function dr-- Mulillateral Aid Institutions, June 1975, For Official Use Only, to Foreign Governments 1. It is requested that the attached copy of subject report be forwarded as follows: #139 STATI NTL 2. All OER responsibilities as defined in the DDI memorandum of 13 August 1952, "Procedures for Dissemination of Finished Intelligence to Foreign Governments, as applicable to this report have been fulfilled. STATI NTL 1 Attachment tho dissemination requested by this memorandum bos been cQmpletedk byt Ofatgi 6 ?,6 Chief, St/P/C/ER Approved ForRelease2000/05/15 : CIA-RDP79T01098A000500080001-3 FOR OFFICIAL USE OM *ked SECRET mrs-yri-rn4 nno A rtflAGE-XeCiA / 7 Approvuu rui rwmcibv LLKIVIV.A1 1%1 . ?-? 11-v9m-el 1?11?,140,01.0/-1 ? ...., PUBLICATIONS SOURCE SURVEY USE OF INFORMATION FROM COLLECTION PROGRAMS IN FINISHED INTELLIGENCE GENERAL INSTRUCTIONS Rating forms will be completed for each finished intelligence publication prepared by the DD/I and DDS&T. This is a machine-supported system and information must be gathered in a formatted fashion. Therefore, each analyst will complete the NON-SHADED parts of section I and II of this form. Please type or print legibly. Questions should be directed to CGAS/HSG, Room 2G 40, x1829 (red) or x5577 (black). SECTION I - PUBLICATION TITLE AND CONTENT NAME AND A ae\ 25X1 A CARD I XXAAAAAAAAAAAAAAAAAAXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX SURVEY NO. 1-6 RECORD TYPE (7-8) DATE PUBLISHED (9-12) PUBLICATION NUMBER (13-23) FOR OCI ONLY CIB PUBLICATION ()ATE (13-18) 0 1 MO IC, YR '.7 1 /7 - 7 MO 1 DAY 1 YR 1 TITLE (24-80) 24 T k-k E S R u, 0_, 7 (k, R 0, f\ a `1 0, c\ T I 0 iti 52 53 0 ?c--- M kX * 'I L. l' -1- Q. R G, \ (A ..r 0 1. n S -i- t I -it- 80 ? CARD 2 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX SURVEY NO. (1-6) RECORD TYPE (78) OFFICE (9-10) 01 OCI 03 OSR 06 CRS 08 OWI 02 OER 04 OBGI 07 OSI 09 OPR 0 2 40 DIA 60 State 70 Treasury , JOINT OFFItE (specify: i - -) TOPICAL CATEGORY I GEOGRAPHIC AREA CATEGORY . Domestic Politics USSR International Relations Eastern Europe XEconomics China Military Other Far East Science & Technology Near East/N. Africa Geography South Asia Biography Africa Latin America Western Europe `i LIST SPECIFIC COUNTRIES: WD( / CLUJ 1/4. Of -01 TO BE COMPLETED BY CGAS REC TYPE (7-8) TOPIC (1142) AREA (13-16) -- 1:: : 1 1!..1i1111 1111:115 - 'so ?Y-it ? .. OBSOLETE FORM .,492 6- 7 4 .2 PREVIOUS EDITIONS SECRET E 2&3 IMPDET CL BY 007622 (10-13-43) SECRET i.L :P. A._ I.. _ Se : e?:i eee-eee:eee e For each col ection program contributing information to the publication, check only the highest rating that is applicable. More than one collection program may be rated as Key, Supplemental, or Incidental for each publication. If the source did not provide any reporting useful in the publication, check the box labeled Not Applicable. If a single publication treats more than one geographic area and/or topical category and the source mix for each varied then additional forms must be completed; e.g. India?economics?State and Japan?economics?FIk's. Rating categories are defined as follows: Key?Information from a particular collection program was of such importance that basic conclusions of the finished intelligence ? item could not have been reached without it. Supplemental?Information from a particular collection program was important but not essential to basic conclusions of the finished intelligence item. Incidental?Information from a particular collection program was useful or interesting primarily as background but was used only incidentally in the finished intelligence item. 1 (2) (3) (4) CARD COL COLLECTION PROGRAMS (17) 1. OVERHEAD IMAGERY (19) 2. COMINT (211 3. ELINT (23) 4. TELEMETRY (25) 5. RADINT (27) 6. DEFECTOR RPTS (e.g., FIRK's) (291 7. DDO Rpts (FIR'S) 2-5X 1 B (31) 8. STATE (FSO) REPORTS I 9. DOD Human Source Reporting I (32) (a) Defense Attache I (33) I (34) (b) Other I (35) 10. DDO/DCD Rpts (00's) I (37) 11. HMS PRESS, RADIO & TV REPORTS I (39) vi 2. Translation of Foreign Lang. documents by FBIS/JPRS, etc. 1 (40) I (41) *13. Non-USIB Agency Rpts. (USIA, AID, other such reports) I Open Literature (professional journals, US wire ser., items, etc.) I (45) *15. OTHER (IMF, OECD, foreign government reports, etc.) I KIQ Related Publication: Yes No *for Items No. 12, 13, 1 4, (rid 15 specify source of reporting used. KEY INTELLIGENCE QUESTION(S)-KIQ TRA LATIONS: 50 51 52 53 54 55 NON-USIB AGEN Y(S): 1st KIQ # 2nd KIQ # OPELLITERATURE: . -e -S---S- (A) t re- %-erv (56-60.1r _j_ OTHER: f fid4F1 (A) o r I ot,ci,? ic /DOCUMENT TYPE (61-62) 02 GH 06 GR 10 WR/SR 14 BR 32 NIB 51 IODW 03 GM 07 IR 11 IH 15 TM 53 EIW 04 IM 08R 12 IB 16 RS 05M 09 RA 13 RP 63 64 (65-69) (70-7 CLASSIFICATION: ?..,...) ;r r) ... . , ,,,,a_i u F Se_ C)/7 CLASSIFICATION CONTROLS: List DDO FIR's and Defector reports that were key or supplemental information sources: , appr9ved For RspIppe 3990/95/1q: kRigp791-Fip ORqA000t5000poqoi -3 . his space also ou e u o is spea lc repo , o r an s, n were o excep Iona value. SECRET A rOved For Release 2000/05/45S:EZEZRDP79T01098A000500080001-3 RECORD OF REVIEW OF OER PUBLICATIONS FOR SECURITY/SANITIZATION APPROVAL SUBJECT $ *re g CO 44 .-1) 7,5-.0.7,...? frg f/' SECURITY REVIEW 7,S7 TIZING INST ZING ITEM DATE INITIALS REVVE ire UNEDITED DRAFT 25X1A EDITED DRAFT DEI,ETIEL, gfrofto CO! 4:40 4.414::14.0' 07 i RELEASABLE TO REMARKS ,....)444.4...t..e.e..." p.-..s.e., a_......v .."14...2,. te...4.//t,o-e4.-.4..t.?-.4., ' ? 42a-05..:4,4.0?...) . , e , t41124-Aom-.4-. J.47rei& Approved For ,01.--e-evte ?L?c-e-a-?,?-fi.--MM .?,..,e,...?,.. SUBSTITUTE 25X1C eictor....1t f i ,',I 4 ?,..1 , , /0-1z. .. /..$1..e., OPP. e. .094-_, t..t 4E- 2g ..t..... , 25X1C ,45,9140.46, 74,............... ,.. ,,,.........?,.. . . ic2...7z. Release -.e..... 11.10 er..e- -L-Az A 2000/05/15 : CIA-RDP79T01098A6/00506 a 0a 1-3 FORM 235,. OBSOLETE PREVIOUS 4.70 '-' EDITIONS SECRET GROUP I 1 Excluded from automatic ri n 61-tote (9.36-4S) ,aeeNta v51 F ?*- elpit3S9BX5 4.17 Pc2A) STATINTL STATINTL #saelk.4U) "LCLA'?"I'a' Gt-ro STATINTL STATINTL Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release IN010S/11:5AIME1W11119T01098A000500080001-3 THE STRUCTURE AND FUNCTION s OF MULTILATERAL AID INSTITUTIONS KEY FINDINGS 1. There are now 14 major multilateral aid institutions dispensing aid to less developed countries (LDCs). Some, such as the World Bank Group and the International Monetary Fund (IMF), carry out worldwide operations. Others, such as those sponsored by the Organization of Petroleum Exporting Countries (OPEC), operates exclusively within a selective regional or cultural framework (see the center- fold). ? Multilateral institutions as a group committed about US $9 billion to LDCs in 1974, an increase of nearly 60% from 1973. Disbursements topped $4.5 billion. ? The World Bank Group remained the leading donor; the IMF Oil Facility, t funded primarily by OPEC, also made a major contribution. ? Non-project assistance to meet emergency needs of ?the LDCs formed a large portion of multilateral aid ? $3 billion. 2. We foresee no further additions to the list of major multilateral 4, institutions for several years, although new aid outlets may develop within the ' established structures. OPEC will continue to be a major source of funding for these institutions. In the short run, emergency aid will continue to account for a significant share of the total. We expect project aid gradually to return to prominence, with the World Bank Group and IMF taking on increased responsibilities for channeling assistance. DISCUSSION The Institutions 3. Multilateral assistance ? a direct outgrowth of post-World War II international efforts to help reconstruct Europe's war-damaged economies ? has developed into a complex of 14 major institutions plus their subsidiary agencies. Approved For Release 2000/05/15 : elA-RDP79T01098A000500N?M1-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 These institutions provided some $9 (see Table 1) of aid to LDCs' in 1974, accounting for about one-third of all official aid pledged.2 Among them, UN agencies, including the World Bank and International Monetary Fund, .accounted for more than two-thirds of the total, regional institutions about one-fifth, European Community-sponsored institutions 7%, and the new Arab-sponsored agencies 4%. This distribution follows roughly the pattern of recent years, except that regional banks had smaller shares (see Table 2). 4. The World Bank (IBRD); its soft loan affiliate; the International Development Agency (IDA); and the International Monetary Fund (IMF), which provides 7-year credits through the new Oil Facility (see Table 3), are the major sources of global multilateral financial assistance.3 Other agencies of the United Nations also provide small amounts of technical, social, and commodity assistance on a worldwide basis (see Table 4). As a group, these multilateral organizations provided $6.2 billion worth of aid during 1974. 5. Regional aid institutions did not emerge until 1959 with the establishment of the Inter-American Development Bank (IDB). Subsequently, regional development banks have been established for all areas of the Third World (see Tables 5a, b, and c). They include banks for Central America, Africa, Asia, and most recently (in 1970) for the Caribbean. All of the regional banks emphasize assistance for regional social and economic development programs, especially multinational projects or projects of common concern. As a group, regional banks committed $1.8 billion worth of aid during 1974. f 6. The regional development bank concept follows a uniform pattern ? most are modeled after the World Bank. Usually the regional banks have been funded by capital subscriptions from developing nations; only part of which is paid in. This capital is used as guarantee for bond issues floated in private capital markets. Most of the banks also have established soft loan windows similar to that of the IDA that are funded by developed nation sponsors and by a part of the income from banking operations. ? 7. Beyond the two broad groupings ? those with global interests and those confined to specific regional interests ? there is a growing number of multilateral aid organizations bound together by mutual political, commercial, religious, or 1. The LDCs include all countries of Africa except the Republic of South Africa; all countries of East ? Asia except Hong Kong and Japan; Malta, Portugal, Romania, Spain, and Yugoslavia in Europe; and all countries in Latin America, the Near East, and South Asia. 2. Aid from governments and international bodies whose members are governments. 3. The International Finance Corporation (IFC), also a World Bank affiliate, is not included as an aid donor, because it provides risk capital to private entities. Approved For Release 2000/05/15 :2CIA-RDP79T01098A000500050001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 Approved For Release 2000/05/15 : CIA-RDP79T01098A000500080001-3 FOR OFFICIAL USE ONLY Foreword This publication is intended to serve as a general reference on multilateral assistance to the LDCs: the institutions involved, their purpose, membership, and funding. It also provides estimates of the amount of multilateral aid provided to LDCs in 1974. The data were derived from official sources, where available, and supplemented by estimates that are conservative. Approved For Release 2000/05/15 : 01A-RDP79T01098A000500080001-3 Approved For Release 2000/05/15: CIA-RDP79T01098A000500080001-3 FOR OFFICIAL USE ONLY THE STRUCTURE AND FUNCTION OF MULTILATERAL AID INSTITUTIONS KEY FINDINGS 1. There are now 14 major multilateral aid institutions dispensing aid to less developed countries (LDCs). Some, such as the World Bank Group and the International Monetary Fund (IMF), carry out worldwide operations. Others, such as those sponsored by the Organization of Petroleum Exporting Countries (OPEC), operate exclusively within a selective regional or cultural framework (see the center- fold). ? Multilateral institutions as a grOup committed about US $9 billion to LDCs in 1974, an increase of nearly 60% from 1973. Disbursements topped $4.5 billion. ? The World. Bank Group remained the leading donor; the IMF Oil Facility, funded primarily by OPEC, also made a major contribution. ? Non-project assistance to meet emergency needs of the LDCs formed a large portion of multilateral aid ? $3 billion. 2. We foresee no further additions to the list of major multilateral institutions for several years, although new aid outlets may develop within the established structures. OPEC will continue to be a major source of funding for these institutions. In the short run, emergency aid will continue to account for a significant share of the total. We expect project aid gradually to return to prominence, with the World Bank Group and IMF taking on increased responsibilities for channeling assistance. DISCUSSION The Institutions 3. Multilateral assistance ? a direct outgrowth of post-World War II international efforts to help reconstruct Europe's war-damaged economies ? has developed into a complex of 14 major institutions plus their subsidiary agencies. Approved For Release 2000/05/15: CIA-RDP79T01098A000500080001-3 1 June 1975 Approved For Release 2000/05/15 : CIA-RDP79T01095A000500080001-3 These institutions, provided some $9 billion (see Table 1) of aid to LDCs' in 1974, accounting for about one-third of all official aid pledged.' Among them, UN agencies, including the World Bank and International Monetary Fund, accounted for more than two-thirds of the total, regional institutions about one-fifth, European Community-sponsored institutions 7%. and the new Arab-sponsored agencies 4%. This distribution follows roughly the pattern of recent years, except that regional banks had smaller shares (see Table 2). 4. The World Bank (IBRD); its soft loan affiliate, the International Development Agency (IDA); and the International Monetary Fund (IMF), which provides 7-year credits through the new Oil Facility (see Table 3), are the major sources of global multilateral financial assistance.3 Other agencies of the United Nations also provide small amounts of technical, social, and commodity assistance on a worldwide basis (see Table 4). As a group, these multilateral organizations provided $6.2 billion worth of aid during 1974. 5. Regional aid institutions did not emerge until 1959 with the establishment of the Inter-American Development Bank (IDB). Subsequently, regional development banks have been established for all areas of the Third World (see Tables 5a, b, and c). They include banks for Central America, Africa, Asia, and most recently (in 1970) for the Caribbean. All of the regional banks emphasize assistance for regional social and economic development programs, especially multinational projects or projects of common concern. As a group, regional banks committed $1.8 billion worth of aid during 1974. 6. The regional development bank concept follows a uniform pattern ? most are modeled after the World Bank. Usually the regional banks have been funded by capital subscriptions from developing nations, only part of which is paid in. This capital is used as guarantee for bond issues floated in private capital markets. Most of the banks also have established soft loan windows similar to that of the IDA that are funded by developed nation sponsors and by a part of the income from banking operations. 7. Beyond the two broad groupings ? those with global interests and those confined to specific regional interests ? there is a growing number of multilateral aid organizations bound together by mutual political, commercial, religious, or 1. The LDCs include all countries of Africa except the Republic of South Africa; all countries of East Asia except Hong Kong and Japan; Malta, Portugal, Romania, Spain, and Yugoslavia in Europe; and all countries In Latin America, the Near East, and South Asia. ? 2. Aid from governments and international bodies whose members are governments.. 3. The International Finance Corporation (IFC), also a World Bank affiliate, is not included as an aid donor, because it provides risk capital to private entities. Approved For Release 2000/05/15 'a CIA-RDP79T01098A000500080001-3