"... In PAGE 57: ...03/16/01 M:\CDS\Case Examples Docs\1.doc 57 Table4 -1, cont. Economic Development Shelter, Environmental Quality and the Poor Governance and Management Finance Property Rights and Shelter Poverty Reduction Environmental Quality Target 1.... In PAGE 60: ... In subsequent years, depending on the progress attained and agreements with the donors, other cities, including secondary cities and towns could then play a more active role as beneficiaries of credit. Volume of Capital Requirements for Urban Development Though it is difficult to calculate with any precision the volume of capital needed for building and infrastructure in Vietnam, for purposes of illustration, Table4 -2 provides an estimate of the envelope of capital requirements for national urban development in the next decade.... In PAGE 60: ...ecade. Note that these figures are gross estimates. Further, they do not include transport sector. A JICA and a UK sponsored study estimated that as much as US$7 billion would be needed over the next five years alone, just for HCMC and Hanoi. The figures in Table4 -2 reflect levels of service at, or moderately above, present standards (e.g.... In PAGE 62: ... This could be launched at a conference of all key donors with a view to attracting the necessary support for the initial years. It is envisaged that the policy statement would include topics (referred to earlier in Table4... In PAGE 74: ...4 Columns do not sum to 100 because minor sectors are omitted. Source: calculated from Table4... ..."

"... In PAGE 10: ... C External dependence for di erent industries. In Table1 , we tabulate by International Standard Classi cation Code (ISIC) the fraction of investments U.S.... In PAGE 10: ... After that period, net equity issues go to zero and the usage of external nance uctuates around zero. In the third and fourth columns of Table1 , we report the external dependence and capital expenditures for mature companies ( rms that were listed for more than 10 years), while the fth and sixth columns are for young companies ( rms that were listed for less than 10 years).8 This pattern appears to be fairly standard across di erent industries, though there are exceptions.... In PAGE 24: ... Investment opportunities in di erent industries may be very di erent. For instance, the tobacco industry in the United States uses negative external nance (see Table1 ) partly because in- vestment opportunities in the Tobacco industry are small relative to the cash ows the industry generates. It may be that our measure of dependence on external nance proxies primarily for the investment intensity of a particular industry.... In PAGE 25: ... By contrast, if there is a wedge between the cost of internal and external nance which narrows as the nancial sector develops, industries generating lots of internal cash should grow relatively faster in countries with a poorly developed nancial sector. As indicated in the rst column of Table1 0, they do. This is consistent with nancial development reducing the cost of external nance.... ..."

"... In PAGE 9: ...Turning to the resolution of bank insolvency, Table5 attempts to characterize the steps taken, including changes in macro policies and a variety of variables meant to capture changes in different aspects of the incentive system confronting bankers. Note here that we sought to identify instances where countries adopted a resolution mechanism that included among other measures a recapitalization of the banking system, in order to illustrate the importance of addressing incentives and getting the message across that poor performance is costly.... In PAGE 11: ... Only eight of the 16 cases (Benin, Chile, C6te d apos;Ivoire, Finland, Malaysia, Colombia, Spain and the United States) in which the regulatory and accounting framework was substantially strengthened also saw significant improvements in the enforcement of improved regulations. Regarding the internal incentive framework, shown in the last four columns of Table5 , we also observe notable differences in whether governments implemented performance monitoring programs for banks, put measures into place that halted lending to borrowers in default, made attempts to collect on written off loans, and changed senior bank management. All of these measures are important, in that they reduce the scope for quot;evergreening quot; loans (make bad loans look good by lending more funds) and send a clear signal that debts need to be repaid and that losses will be penalized.... In PAGE 43: ...Table5 : Characterization of Restructuring Exercises 39 3g~~~~~x..... In PAGE 44: ...Table5 : Characterization of Restructuring Exercises 40 Senegal * in the aftermath of the * member of BCEAO, * member of BCEAO, * no * yes * set up of * yes 1988-1991 crisis, government therefore see Benin. therefore see Benin.... In PAGE 45: ...Table5 : Characterization of Restructuring Exercises 41 .... In PAGE 46: ...Table5 : Characterization of Restructuring Exercises 42 Argentina * fiscal reform but overall * yes public banking system * structure, staffing and * NA * NA * NA * NA 1989-9) public expenditure has not came under purview of technology of agency has fallen, mainly due to increases suparvisory agency and improved. in transfer to provinces and subjected to the same expenditures at provincial regulations as private banks; level; * regulations strengthened with * introduction of Law of regard to rcserve, capital, Convertibility; de-indexation provisioning and risk of contracts.... In PAGE 47: ...Table5 : Characterization of Restructuring Exercises 43 Uruguay * government launched * yes, new accounting * yes: number of * yes, for * until 1984, * yes, central bank * yes 1981484 stabilization program in 1985 procedures were introduced supervisors increased; national banks but loans were tried to recover which was aimed at reducing which covered classification of * external auditors are not for local rolled over; NPLs it took over fiscal deficit and monetary new loans and reserves for required to follow stricter banks. * 1985: debt from banks; but growth rates; potential losses; guidelines.... In PAGE 48: ...Table5 : Characterization of Restructuring Exercises 44 Hungpry * large macroeconomic * no substantial improvements. * yes * NA * no * flawed * no 1990s disequilibria remain; main bankruptcy laws.... In PAGE 49: ...Table5 : Characterization of Restructuring Exercises 45 Turkey * government reregulated * yes, but regulations did not * auditing techniques * NA a no; * NA . yes 1982-85 interest rates; contain loan exposure limit to were improved, but still * banks * in general, macro policies single borrowers and groups; too few auditors.... ..."

"... In PAGE 20: ....B. Higher values imply better bureaucratic performance, more predictable government, more checks, more competitive elections, but fewer executive constraints. Table3 shows the country means of the ratio of public to private investment under 16 At any given point in time, the stock of private capital is determined by the initial capital stock and the change in capital stock over time, dk/dt, or k0et*dk/dt. As long as the rate of depreciation of capital is not too low and the time period over which average rates of investment are compared is not too short, though, initial capital stocks are likely ... In PAGE 21: ...19 83 .20 As with Table 1, the results in Table3 might be sensitive to omitted variables and to possible biases created by the use of private investment rather than the private capital stock. Table 4 presents a more controlled comparison of the determinants of the ratio of public to private investment across countries.... ..."

"... In PAGE 21: ...As with Table 1, the results in Table 3 might be sensitive to omitted variables and to possible biases created by the use of private investment rather than the private capital stock. Table4 presents a more controlled comparison of the determinants of the ratio of public to private investment across countries. The log of initial income per capita (from ... In PAGE 22: ... Both might be expected to increase the demand for public goods, although again their impact on the ratio of public to private investment is unclear. Table4 reports results for predictable government, bureaucratic performance, Checks3 and the Executive Index of Electoral Competitiveness. The signs of each are as predicted and statistically significant.... ..."

"... In PAGE 8: ...74) in the period 1960/61-1994/95, for which there is no clear economic justification.5 As Table2 shows, the massive investment effort of the public sector over the last three decades had a very heterogeneous nature. Part of it took the form of basic infrastructure capital in areas such as agricultural irrigation, transport, telecommunications and power.... In PAGE 8: ... However, a rather substantial portion of total public investment was consistently devoted to industrial and commercial activities, notably in manufacturing, which in market economies are usually undertaken by the private sector (cf. the row labeled quot;other quot; in Table2 ). In addition, this latter fraction of public investment expenditures showed an increasing trend until the late 1980s, rising from under 30 percent of total public investment in the 1960s to close to 40 percent in the second half of the 1980s.... ..."

"... In PAGE 6: ...able 2. Distribution of total expenditures value by decile at the national level................................ 11 Table3 . Evolution of public spending on social sectors, 1991-2002 (values in YR billion and share in %).... In PAGE 6: ...able 2A. Macroeconomics indicators ............................................................................................... 51 Table3 A.... In PAGE 23: ... Real expenditures in social sectors per capita increased by 13 percent per year during 1996- 2001, compared with 6 percent per year for total expenditures. Table3 presents the trend in public ... In PAGE 32: ... The model takes into account three types of capital: physical capital, land, and oil rent. Appendix Table3 A shows the macro SAM for Yemen for the year 1998, which is a tabular presentation of the National Accounts. Each entry presents a payment by a column account to a row account, and the corresponding row and column sums must be equal.... In PAGE 60: ... 52 Table3 A. Yemeni macro social accounting matrix, 1998 (YR million) Activities Commodities Factors Households Government Indirect Taxes Taxes on incomes and profits Savings- Investment Tariffs Rest of World Total Activities 1247249.... ..."

"... In PAGE 15: ... 4. Asset composition Table3 presents our estimates of the broad asset composition of the portfolio of claims acquired by private external investors on developing countries during the current capital inflow episode, decomposing the flows reported in Table I into foreign direct investment (FDI), portfolio (bond and equity) flows, and other. The latter consists primarily of bank lending.... In PAGE 15: ...The recent experience is in stark contrast to what came before: i) there is a shift away from debt instruments in favor of equity instruments, both direct and portfolio; ii) within debt flows, syndicated bank loans are relatively unimportant; and iii) in contrast to the entire period 1978-89, portfolio flows have increased immensely in importance. The greatly reduced role of commercial banks during the current episode is immediately evident in the shrinkage of the category quot;other quot; during 1990-93 in Table3 . It is clear from this table that capital flows to developing countries have not expanded because banks have gotten back into the business of lending to such countries, but rather because a new category of lenders has become involved.... In PAGE 16: ... Sectoral destination There is a common perception that recent capital inflows have primarily been directed to the private sector in the recipient countries, but hard data on the sectoral distribution of capital inflows broadly defined is scarce. Table3 presents our estimates of the share of long-term private-source capital inflows reported in Table I that was invested in the private sector of the recipient economy (excluding investment guaranteed by the public sector). The last two rows of this table suggest quite a drastic change in the sectoral composition of capital inflows during the recent episode, both in relation to the debt crisis period and to the previous inflow episode.... In PAGE 31: ... With regard to external factors, we would argue that a complete story about the factors driving the new inflows must account for changes in the composition of assets acquired by external creditors as well as in the identity of domestic borrowers. As indicated in Table3 , these phenomena present a dramatic contrast between the current and previous inflow episodes. The quot;push quot; story based simply on low US interest rates fails to address this issue.... In PAGE 34: ...00 a o a,) a 0) 0) 0) o a) 0) a) 0) 0) 0) 0) 0 e projected - - - N B. An index of creditworthiness Since in the current inflow episode foreign liabilities have primarily been incurred by the private sector (see Table3 ) and to a large extent denominated in domestic currency, country risk is likely to be associated with balance of payments crises and the attendant likelihood of devaluation and the imposition of capital controls, rather than with fiscal problems.24 Without speculating about how such a crisis would play itself out internally (and specifically whether or not private liabilities would be nationalized)25, the country apos;s repayment capacity can be taken to depend on its ability to generate a trade surplus -- i.... ..."