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Volume 3, Issue 5

August 2011

THE 1818 SOCIETY

BULLETIN Volume 3, Issue 5

www.worldbank.org/1818

Save the Dates!

ANNUAL MEETING The 33rd Annual Meeting of The 1818 Society will be held on Wednesday, November 2, 2011. The Business Meeting will begin at 3:30PM in Room JB1-080. There will be a reception from 6:00PM to 7:00PM, followed by a dinner from 7:00PM to 9:00PM. Both the reception and dinner will be held in the MC Gallery. Also, on Tuesday, November 1, the day prior to the Annual Meeting, there will again, as last year, be sessions on the Staff Retirement Plan and the Retiree Medical Insurance Plan, which will give Society members an opportunity to learn more about both of these important topics, and also afford them an opportunity to ask questions. Further details will follow.

From The 1818 Society President’s Desk

Dear Members, After a two week summer break during August 1-14 2011, when the office will be closed, the level of society activity will pick up rapidly, particularly in the context of the Annual Meetings on November 1-2, 2011.

August 2011

On the Pension side, where 1818-WBG communication remains strong and constructive, our representatives on the Pension Committees, Sudhir Krishnamurthi, Jeffrey Katz, Alex Keyserlingk and Khald Siraj will be engaging in an electronic discussion with our membership on a variety of pension issues. The aim would be to secure wider member input before the more formal session with Bank Pension officials during the Annual Meetings. On medical insurance issues, there has been tardy progress on the Tower Watson Study on RMIP, which includes Medicare premium issues. The 1818 Insurance Group, led by Kabir Ahmed and recently strengthened in the financial and legal areas, is fully engaged with HR on these issues. It is our hope that sufficient progress will be registered before the Annual Meetings, but if the situation remains one for concern, opportunity will be taken at the Annual Meetings to design the more stringent steps needed to protect the interests of our membership. Carroll Long now leads the social activities of our Society. The summer cruise on the Potomac attracted a number of members, including many first time participants. The Summer Dinner at the Army and Navy Club on the 1st of September also promises to be a popular event. Several successful day trips have been organized. A visit to the Islamic Center on September 1 has already received more response than can be handled. Visits to other religious centers in the DC area will follow. For those who prefer spirits to spirituality, a trip to a Winery is also planned for October 19th, jointly with WBFN members. And a retreat of the Florida Chapter during October 27-29 should

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draw our members residing elsewhere. Also the first cruise of the 1818 Travel Club is sailing out from Baltimore to Canada for 9 days on October 6th, with eight of our members participating. Let’s wish them all the best.

[email protected]. His postal address: 103 Cabarita Rd, Avalon Beach NSW 2107 Australia and his telephone number is 61+2+99733022.

On the knowledge front, the 1818 Economics Chapter is off to a flying start with two highly successful events under its belt and firm plans for interesting events in the coming months already in place. The inauguration of the Agriculture Sector Group is planned for September 29th. Other 1818 Groups are also active. During the Annual Meeting days, a presentation of the latest World Development Report will be organized. Also, the Society's Retired and Active Living Committee (RALC), led by Sandra Hadler, will be organizing a group of interesting events on November 3rd. And two seminars ...one on Exit Tax and one on Estate Planning.... will take also place during the coming months. Further details on all the above events will be found elsewhere in this Bulletin.

Christmas Lunch and Reunion 2011 Date: Saturday, December 3, 2010 Time: 12:00 Noon Place: Thistle Euston Hotel, Cardington Street, London, NW1 2L

You might know that there are seven international retiree organization in DC and in the past two years the Society, with Jean-Yves Maillat in the lead, the 1818 Society has organized events to bring the seven siblings together to discuss retiree issues. The next event is planned for October 26th and it is heartening to witness the strong demand for this event among our siblings. Shiva (J. Shivakumar)

Chapter Events ANZ CHAPTER

Jo. Martins, with the advice of senior legal counsel, continues to take the sequential steps that might lead to a challenge to the Australian Taxation Office’s stance on the taxation of the Bank’s pension. Consultation will be resumed regarding the proposed Chapter meeting in Canberra sometime in the future. Suggestions and/or offers to work as volunteers for the Chapter can be sent to Jo. Martins at

BRITISH CHAPTER (BC)

The Thistle Hotel is located a few minutes walk, or two minutes in a taxi, from Euston Station, which has excellent Underground, bus and mainline connections. A drinks reception in the Westminster Bar will be followed by lunch in the Brasserie. Registration forms will be distributed to members in September 2011. More information can be had from Ian Hill: Email: [email protected]. Tel: 44(0) 1730 821440 or on the British Chapter website: www.1818bc.org.uk Spring Reunion and AGM 2012 Date: May 11 – 13, 2012 Place: St. George’s Hotel, Llandudno, North Wales The 2012 reunion and Annual General Meeting will be held in Llandudno, North Wales from 11 – 13 May. Accommodation will be in the St. George’s Hotel, a four-star hotel located on the sea front. With an impressive Victorian facade, the hotel promises “elegance and excellence” and recent refurbishment of all rooms and facilities ensures a comfortable venue for the reunion. Llandudno is a classic Victorian seaside resort with an elegant esplanade and two great beaches. To the west is Great Orme, a rocky promontory rising to over 500 feet (150 m) that provides spectacular views along the coast. The splendour of Snowdonia is within easy reach, and North Wales is studded with more castles than any history buff could wish for. Gardens, bird watching venues and Victorian industrial sites abound. The programme for the weekend is being developed with the help and local expertise of John and Monica Peberdy. This is likely to include a guided walk around the town on Friday

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evening, or a trip to the summit of Great Orme on Britain’s only cable tramway. On Saturday, a visit to Bodnant Gardens, a National Trust property, should provide a splendid show of rhododendrons and other late-spring flowers, followed by a trip through part of the Snowdonia National Park, affording views of some of the best scenery in Snowdonia. If time permits, a visit to the slate museum could be included. There will be an after-dinner speaker who will entertain us and amaze us all with magical illusions. Finally, Llandudno not only provides a base for further exploration of Snowdonia but is located close to Anglesey with its own range of attractions. For those wanting to extend their holiday, a fast-cat ferry from Holyhead can take you to Ireland. More detailed information on the reunion and surrounding attractions will be made available on the British Chapter website www.1818bc.org.uk

CANADIAN CHAPTER Canadian retirees who are interested in joining can contact Jim Smith on jsmith.econ @gmail.com or Helene Masson on [email protected]. Jim and Helene would also welcome help in the task of contacting other Canadians who may potentially be interested.

CHILEAN CHAPTER The Directory of 1818 Society Members has arrived. Those interested in having a copy, please contact Miguel Schloss (tel. 02-458-6050 or [email protected]) so that they can pick up their copy at the reception at Presidente Riesco 3785; Las Condes, Santiago. For future meetings, please contact Miguel Schloss (above email) or Silvia Lay at [email protected] tel. 56-2-458-6050, or 56-99-544-3856.

DUTCH CHAPTER Dates: September 8-10, 2011 Place: Harderwijk, Netherlands During the past few months, potential and actual participants should all have received various

August 2011

emails giving details about the reunion program. Here is a summary, which we hope will convince those who have been on the fence about coming to Harderwijk, to sign up. There is only little time left to do so (details further down). The program day-by-day: Thursday: this day is only lightly structured to give old friends and colleagues the opportunity to reconnect and to pursue various touristy activities as they see fit. As participants arrive at the hotel during the morning, there will be a menu of options. These include: a visit to the interesting city museum, a city or countryside bike ride (bike rentals are available at the hotel), attending a show at the well-known Dolfinarium, sailing on a traditional Dutch fishing boat, and a visit of one of the best-known wellness centers of the Netherlands (Zwaluwhoeve). For the evening meal, participants have several choices: the hotel offers a special reunion menu; we have made similar arrangements with two other restaurants (one by the waterfront), all walking distance from the hotel. Friday: we'll start the program after breakfast with a guided city walk; half-way we stop for coffee at an outdoor cafe and end up at the chapel of the old monastery around noon. An expert on Linnaeus, the famous Swedish botanist who received his PhD at the University of Harderwijk in the mid-1700s, will enlighten us with a multimedia show about this remarkable scientist in this historical setting. It's a short walk back to the hotel for a group luncheon. At 5pm, we are boarding the motor ship Isis for a Happy Hour/dinner cruise on the former Southern Sea. Saturday: after breakfast, we'll hold our annual Chapter meeting which is followed by a farewell luncheon at the hotel. If you have not signed up yet and would like to come to the Harderwijk reunion, please inform the reunion coordinator, Henk Groen, at [email protected]. Reserve your room at Hotel Baars, Harderwijk, Netherlands, for September 8/9 (email: [email protected] or call: Jose Beijen (the lady who is our contact at the hotel) at +31 341 412007. Please mention: "World Bank reunion." Please make your reservations without further delay. In addition to the cost of the hotel, participants will need to pay 75 euros per person to cover the Happy Hour/dinner cruise and various other costs (lecture, walk, conference

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room). You can either pay cash to the treasurer, Jan ter Vrugt, in Harderwijk or pay through the Chapter's bank account: A/c number 8183950, RJ van der Lugt-WB, Milsbeek, Netherlands, ref: 1818 Dutch. If you need additional information, please contact Henk Groen, the reunion coorditnator at [email protected].

The program for the meeting can be found on The 1818 Society's web site at: http://siteresources.worldbank.org/1818SOCI ETY/Events/22897939/Stralsund_and_Ruege n_Sept_2011.pdf.

Thirteenth Dutch Reunion Dates: September 6-8, 2012 (?) Place: Apeldoorn (?) (subject to coordination with other European Chapters)

The Pacific Coast of Northeast Japan is now in the early stages of recovery from the devastation of the Tsunamis spawned by the M9.0 giant undersea earthquake of March 11, 2011. Adding to the uncertainty are the frequent aftershocks, some over M7.0 in strength, over wide areas along the Northeast coast. The Government only recently announced that emergency measures to prevent radiation contamination from the four broken reactors at Fukushima No. 1 Nuclear Power Station will take many months, while the full clean-up of the site will take more than twenty years. Fear of radiation contamination has affected peace of mind in daily life not only in Japan but also in neighboring countries.

FRENCH-SPEAKING CHAPTER At its meeting of June 15, 2011 in Paris, the Board of the 1818 French Speaking Chapter decided to reconfirm the members of the Bureau in their position as follows: President: Olivier Lafourcade; Treasurer: Christian Merat; Secretary: Liviu Alston. In addition, Daniel Coyaud has kindly accepted to continue as our webmaster. The autumn trip is currently being planned. The destination will be the Loire region with its wellknown chateaux. The dates are from September 23 to 25, 2011. Additional information can be obtained from Olivier Lafourcade at [email protected] The Chapter’s website can be found at: http://www.1818france.org. For further information, please contact Olivier Lafourcade at [email protected].

GERMAN-SPEAKING CHAPTER As previously mentioned, the 2011 annual meeting of the German-Speaking 1818 Society Chapter will take place in the historic Baltic city of Stralsund, also a UNESCO world heritage site, from September 9-11, 2011. The GermanSpeaking Chapter welcomes the participation of other former or active World Bank colleagues. Given the likely large number of participants, interested colleagues are encouraged to make hotel reservations as soon as possible. Contact person at the arcona Hotel Baltic: [email protected] For further information please contact Hans Peters (EM: [email protected]) or Franz Kaps (EM: [email protected])

JAPAN CHAPTER

Under such gloomy and melancholy conditions, the Executive Committee members of the Japan Chapter of the 1818 Society almost decided to postpone the annual meeting from July to September 2011. However, members who live outside of Japan, e.g., Messrs. K. Kikuchi and H. Shibusawa, pushed for an Annual Meeting as usual in July in order to dispel the gloominess and “cheer up” the members and the earthquakeaffected areas. Accordingly, the Japan Chapter held its Fifth Annual Meeting on July 8th, 2011 at Kokiden, an outstanding Chinese restaurant of the Grand Prince Hotel Takanawa in Tokyo. There were thirty participants (including one guest). The meeting started at 6:00 p.m. followed by dinner from 7:30 p.m. Members enjoyed the fine cuisine which focused on seafood and other ingredients from the earthquake- and tsunami-devastated areas. The business meeting was preceded by a special presentation on “Environmental Reconstruction Plans for the Tsunami- Affected Areas” by Dr. Kazuhiko Takemoto (Member, ex-Deputy Minister of Environmental Affairs for Japan, and currently Senior Fellow at the United Nations University in Tokyo). He pointed out that

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separation, recycling and/or disposal of the vast amount of debris (some radioactive) provide unique challenges. Mr. Taniuchi, Special Representative of the World Bank, announced that Japan will host the 2012 Bank/IMF Annual Meetings (previously held in Japan in 1964) and requested Chapter members to support the event as volunteers. Mr. Takahashi, President said that because some members are unable to attend the once-a-year annual meetings, plans are underway to hold a second dinner meeting toward the end of the year. At the Annual Meeting, the Japan Chapter welcomed three new members, Mr. Tadashi Endo, Mr. Masaki Shiratori (ex-ED), and Ms. Yuko Shimamoto (ex-Archives). Some photos of the Annual Meeting have been posted on The 1818 Society web site under pictures of alumni events. As Japan Chapter’s membership rules are more liberal than 1818 Society’s rules in terms of eligibility, we are always welcome for you to be a new member. Please contact with our administrator through e-mail: [email protected] for details. The English-language version of the Japan Chapter’s Web Home page can now be found at http://www.geocities.jp/ societyjapan/. For further information and/ or details, the contacts in Japan are: Mr. H. Hamaguchi, Director, at harutaka_ hamaguchi@kenedix. com; Mr. T.Kudo, Director, at [email protected]; and Mr. Masayoshi Takahashi, President, at mtaka1937@ ybb.ne.jp. For the Washington DC area, contact Mr. Kunio D. Kikuchi, HQ Liaison, E-mail: kunio_kikuchi@yahoo .com.

FLORIDA CHAPTER Patricia Kittleman (bluangel1000@gmail. com) has kindly agreed to plan the 2011 Gathering of the Florida Chapter. It will be held on the West Coast of Florida in Crystal River/Homossassa Springs the last week of October. Please contact Patricia for the details of the gathering. IMPORTANT NOTICE: Karin Nordlander has decided to step down as the coordinator for the Florida Chapter, effective immediately. Therefore, we are looking for a new

August 2011

coordinator. Please contact the President of The 1818 Society ([email protected]) if you are willing to be the Florida Chapter coordinator.

Sector Group Events Each 1818 sector group would like to link up with new retirees from its sector. Right now, leaders of the sector groups review the list of new members in each 1818 Society Bulletin to spot newcomers affiliated with their sectors. Please help us improve on this hit-and-miss system by alerting the sector contacts mentioned below about new members affiliated with operational sector groups. Agriculture Sector Shawki Barghouti [email protected] 1818 Economists' Chapter Vikram Nehru [email protected] Education Sector Sverrir Sigurdsson [email protected] Energy Sector Eugene McCarthy [email protected] HNP Sector William McGreevey [email protected] Water Sector Dick MacEwen [email protected]

1818 AGRICULTURE SECTOR GROUP The Agricultural Group would like to announce its first session on September 29. Karen Brook, sector manager for agriculture and rural development in Africa, and Derek Byerlee, the director of the 2008 World Development Report on agriculture, have kindly agreed to share their views about recent development in the agricultural sector. They will discuss how the Bank and other

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development agencies are handling emerging issues in agriculture and food production, and the trend in strategic investment in the sector. Both will also discuss emerging issues of food security, rising food prices, and related challenges in agricultural productivity. Interested participants can contact The 1818 Society to reserve seats. We look forward to more suggestions from colleagues interested in agriculture and rural development for additional activities.

1818 ECONOMISTS' CHAPTER The 1818 Economists' Chapter was launched on June 20, 2011 with a presentation by Uri Dadush and William Shaw of their recently published book, Juggernaut. The PowerPoint slides of their presentation are available in the 1818 Society's website. The key messages of the presentation were that the rise of developing countries -- in particular the BRICs -- will irreversibly change the global economic landscape and trigger a seismic shift in global patterns of trade, finance, migration, and management of the global commons. At the same time, Uri and William highlighted a number of risks -- friction between the rising and the established powers, the threat of protectionism, further financial crises given inadequate and incomplete international financial reforms, and the implications of crisis change. The presentation was followed by a lively question and answer session during which 1818 Society members -- many of them eminent economists -engaged with the authors on a number of interesting issues. We would like to thank Uri and William for an excellent start to the Sector Group's proceedings. Future Economists' Chapter events possibly on the third Wednesday of the month and may include sessions on Africa, food security, and Afghanistan. If readers have suggestions on possible presenters and topics, please contact the Chapter's Chairman, Vikram Nehru (tel: 202-4732429; email: [email protected]).

1818 EDUCATION SECTOR GROUP The Education Sector Group will have a family outing on Monday August 15, 2011 at Sverrir Sigurdsson’s weekend home, on the waterfront, close to Cambridge, Eastern Shore of Maryland. The all-afternoon event will include a typical cookout, crabbing opportunities, and the use of

August 2011

water toys for those interested in splashing around in the water of Brooks Creek. To provide space beyond that provided by the house, an awning adjacent to the water will provide shade. All sector group members and their families are invited. For further information and if you would like to attend, e-mail Sverrir at [email protected]. If you are interested in getting regular information about the group’s activities, please contact Sverrir Sigurdsson (e-mail: [email protected]). The Education Sector Network keeps Sverrir informed about seminars, conferences, publications, etc., organized by the Network. He, in turn, passes that information on to those on his distribution list. In addition to Sverrir, Eluned Schweitzer (elunedrob @hotmail.com) and Marlaine Lockheed ([email protected]) are providing support and advice. The group is looking for additional volunteers to add diversity and ideas for future presentations.

1818 ENERGY SECTOR GROUP On Wednesday, June 1, Dr. David Maloney, recently retired from the A&E firm CH2 M Hill, gave a talk on the reasons why smart grids are now essential to permit the dispatch of intermittent electric power (solar and wind, primarily). He explained how global development of renewables-based power generation is hindered by grid limitations. In the Fall, we are planning two further presentations: the first on the lessons and experience in closing the Chernobyl nuclear plant (and similar plants in the ECA region); the second, on hydropower and renewables, for which we hope to invite Oskar Sigvaldason, a past President of Acres, a large Canadian engineering firm that continues to be active internationally in hydropower work. We continue to encourage our fellow energy retirees to let us have your ideas about further topics and to suggest potential speakers who may be visiting the Washington DC area later in 2011. For further information about activities of the Energy Sector Group, please contact either Mike Gillette (mj_gillette@yahoo .com), Akin

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Oduolowu (Oduolowu@yahoo. com), Yves Rovani ([email protected]); Eugene McCarthy ([email protected]); or Hal Wackman [email protected] 1818 HNP SECTOR GROUP The HNP sector group will rest for the summer, and plans to meet again in September. Please forward suggestions for fall sessions to [email protected] and we will seek to respond to all interested parties. Please induce friends and colleagues not now within reach to join our efforts. We have a site on GoogleGroups that all are invited to join. The first lunch in February was a good beginning, with a focus on current and near-term HNP strategy. The second lunch in March underlined a possible strengthening of Bank emphasis on population growth and population policy issues. This third meeting turned our attention to important details of operations. Further success depends on how Bank staff and retirees can meet and work together toward common goals. 1818 WATER SECTOR GROUP The Water Sector Group’s next luncheon meeting is tentatively scheduled for October. If you’re interested in receiving information about the Water Group’s activities, please contact Dick MacEwen at email [email protected]; tel 703-734-0367. He’ll add your name to the group’s email distribution list.

SAVE TH E DATE!

Retirement and Active Lifestyles Chapter (RALC) Retirement Facilities Fair: Aging in Place, BFSFCU Fraud Seminar November 3, 2011, 10.00am-5.00pm J Building Auditorium (Room JB1-080), 701 18th St., NW, Washington, DC Coinciding with the 1818 Society Annual Meeting, RALC is planning a series of events on Thursday, November 3, 2011 from 10.00am – 5.00pm in the J Building Auditorium. There will be presentations on Aging in Place, Fraud Awareness, plus the third “1818 Facilities Fair” for Continuing Care Retirement Communities (CCRCs) based in the Washington, DC area. Representatives from

August 2011

CCRCs in the area are being invited to provide information on their communities and will staff tables around the Auditorium. Plan to come for one or all events. Mark the date in your calendar now. If you wish to recommend a facility for inclusion in the fair, please email the name and contact information to [email protected], putting “Attention of Sandra Hadler” in the subject line. Further details will be posted on the 1818 web as the date draws closer.

An Opportunity to Join LinkedIn In an effort to improve our networking ability amongst World Bank Group alumni, a new LinkedIn group has been set up with the title:

The 1818 Society, World Bank Group Alumni Association .

This is a networking tool used by some 100 million professionals and by many alumni associations. You will be required to join LinkedIn for free at: www.linkedin.com By joining LinkedIn you will be able to join our new group, which will allow those members interested in keeping in touch with former colleagues and in expanding their personal networks to have a central point of contact. You will see that many of your former colleagues have already joined. The more members who join, the more effective this tool will become. The more professional information you provide, the more useful this tool will become.

New Members We welcome the following Bank retirees/alumni to The 1818 Society.

Group

Country of intended residence other than the USA have been added after their names. Fernando R. Archondo Michel G. Audige Amitava Banerjee India Alain A. Barbu Mohamed Arbi Ben-Achoua Leila Brumby New Zealand M. Catherine Cardona Jenny Chang Ishac Diwan Istvan Dobozi

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Nicholas E. Flanders Mohan G. Gopal India James A. Hanson Akbar Husain Romeo L. Infante Subramaniam Janakiram Rita C. Klees Renate Kloeppinger-Todd Kathie L. Krumm Evangaline R. Kumsinda Corinne Lam Yuk Tseung Betty Litorja Eduardo A. Loayza Nicole Marchant Kathleen McGann Peter Moock Moffak A. Mouchti Marta B. Peri Edward A. Pollett Richard G. Quesnel Canada Maria E. Quintero Dotilda Sidibe Carmen Torres Francisco A. Tourreilles AiChin Wee Reinhard Woytek

From the Editor I am extremely pleased to be able to include in this issue of The 1818 Society Bulletin a special historical supplement authored by fellow-1818 Society member Bill Katzenstein. I personally found it to be of great interest, in that it challenged some long-held (but not systematically examined!) views concerning the World Bank today, and how it compares with results achieved in earlier times. I hope that you, too, will find this historical supplement to be of great interest. I am hoping that this special historical supplement will be part of a regular series to be included in The 1818 Society Bulletin. Attentive readers will have noted the first of these supplements, included on the last page of the previous issue, showing the cover of the June 1956 issue of International Bank Notes and celebrating the tenth anniversary of the beginning of operations by the World Bank. I invited your comments and observations, but as I received precisely one(!) , I thought that the historical experiment was stillborn. However, when the 1818 Society office sent out the item that appeared on the Bank's Intranet celebrating the sixty-fifth anniversary of

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the beginning of operations, the office received a significant number of messages expressing thanks for sending it. So, I am encouraged to persist, and I hope to continue including an historical supplement—some serious, some amusing—in future issues of The 1818 Society Bulletin. As always, I am happy to receive your suggestions and comments. I can be reached at [email protected]. Chuck Ziegler, Editor World Bank Group Alumni Association The 1818 Society Postal Address: P.O. Box 27388 Washington DC 20038-7388 Telephone: (202) 458-1956 Fax: (202) 522-2417 E-mail: [email protected] Website: www.worldbank.org/1818 Board members – 2010/11 Kabir Ahmed, Caroll Long, Sandra Hadler, Aberra Zerabruk, Kunio Kikuchi, Hugh Henry-May, J. (Shiva) Shivakumar (Chairman), Khalid Siraj, Sverrir Sigurdsson, Adrienne Nassau (Honorary Member). Officers & Staff – 2010/11 J. (Shiva) Shivakumar - President. e-mail: [email protected] Alexander Keyserlingk - Vice President Kabir Ahmed – Vice President Jeffrey Katz - Treasurer Marilyn Manalo - Assistant Treasurer David D. Jones - Auditor Catherine Fogle - Secretary Miren Fernandez - 1818 Society Office Manager Swati Srivastava - 1818 Society Office Manager Retiree Representatives on BG Committees Sudhir Krishnamurthi - Pension Finance Jeffrey Katz - Alternate, Pension Finance A. Keyserlingk, - Pension Benefits Khalid Siraj - Alternate - Pension Benefits Publication Bulletin - Chuck Ziegler, [email protected] Chapter Contacts ANZ – Jo. M. Martins; e-mail : [email protected] Tel: (02) 997-33022 Canada – Jim Smith, e-mail: [email protected]; Tel: (613) 746-6407, Chile - Miguel or Silvia Schloss; E-mail: [email protected] Tel: (56-2) 458-6050 France - Olivier Lafourcade; e-mail: [email protected] Germany – Franz Kaps; e-mail: [email protected] The Netherlands - Robert Jan van der Lugt e-mail: [email protected] Tel: 31-71-3613860.

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Japan – Masayoshi Takahashi e-mail: [email protected] United Kingdom – Mick Nightingale

August 2011

e-mail: [email protected] Tel: 44.1789.840 418 Florida – VACANT

Responsibility Matrix June 2011

Directors

Name and E-mail Aberra Zerabruk; [email protected]

Legal adviser, Nominating Committee Liaison

Adrienne Nassau; [email protected]

Honorary Member, Discounts and Privileges

Carroll Long; [email protected]

Washington Social Events, WBFN

Hugh Henry-May; [email protected]

Legal Adviser, IFC matters

J Shivakumar; [email protected]

Chairman and President

Kabir Ahmed; [email protected]

Insurance, Long term care

Khalid Siraj; [email protected]

Communication and coordination on Tax Matters (with assistance from legal advisers), Speakers Bureau

Kunio D. Kikuchi; [email protected]

Credit Union Finance Liaison, Outreach to Country Office retirees

Sandra Hadler; [email protected]

Retirement and Active Lifestyle Chapter, WBI Database Management, Directory, Office Equipment, Sector Groups

Sverrir Sigurdsson; [email protected]

Officers

Alexander Keyserlingk; [email protected]

Volunteers

Responsibility

Marilyn Manalo; [email protected] Catherine Fogle; [email protected]

Vice President, Pensions, Webmaster Assistant Treasurer. Financial management, accounts and audit, Memorandum of Understanding with WB, Resource Mobilization Secretary, Management of the Society Office, Program Implementation, Retirement Seminars

J Shivakumar; [email protected]

President, 1818 Management, Chapters, Alumni Forum

Jeffrey Katz; [email protected]

Treasurer: Financial Policies and Financial Management of The 1818 Society; Resource mobilization

Kabir Ahmed; [email protected]

Vice President, Retiree Medical Insurance

Chuck Ziegler; [email protected]

Editor 1818 Bulletin, Annual Meeting, Archives, Bank Oral History

Daniel Ritchie; [email protected]

Positioning 1818 for 2020: Vision

Frona Hall; [email protected]

Member Remembrances

Jean-Yves Maillat; [email protected]

International Retiree Organizations

Maria Elena Anderson; [email protected]

Volunteer Coordination

Marilyn Manalo; [email protected] Sudhir Krishnamurthi; [email protected]

Community Outreach

Tom Blinkhorn; [email protected]

e-book publication

Victoria Elliott; [email protected]

Advisor, 1818 Bulletin

Pension Finance & Pension Administration

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Zafar Ahmed; [email protected]

E-MAIL SECURITY Protect Your Information: Don't Get Phished and Be Aware of Hoaxes. Don't be fooled by strangers who contact you by email or by phone. As we enjoy the summer season, the 1818 Society reminds you to be vigilant in securing your personal information assets. These threats often increase during the summer season. Phishing These are attempts to illegally obtain your passwords, ID, and ultimately your money. Use caution when providing your personal information online. Do not succumb to email or phone-based requests for your personal information, user names, or passwords, even when the message contains information such as your UPI number, your personal address, personal or bank email address, or other personal information. No legitimate organization asks for your ID, passwords or other information by email or over the phone. When registering for something on the Internet, never give both your real email address and real your password. If you need to use your email as ID, do so but do not give the password you use to read your email. Create a new password for that registration.

August 2011

Alumni University links, EXT Liaison, Access to Bank information

Don't click on links or open unexpected documents such as PDF, Word, or Excel files that come to you via Lotus Notes or your personal email from unknown sources. If they come from someone you know, verify their authenticity with the sender--(phone them) before you click or open. If it looks weird, it probably is dangerous. Trash it! Rely on your common sense. Ask yourself, why would your friend be stranded in Scotland or Uzbekistan? Fraudsters can easily put serious viruses in an attachment (not usually in the body of the email) which then takes control of your computer if you open the attachment. If in doubt, send the email to your wastebasket. If it is real and important, the sender will follow up. Hackers rarely follow up. Malicious code can be embedded by hackers in what appear to be normal documents. It can infect your machine if you open the document, allowing sensitive information to be transmitted and to become available to outsiders. Hackers can use your infected PC as a springboard to attack those in your mail list. If you receive an email from an unknown source, don't open it; send it to the trash basket. Remember to empty your trash basket regularly to ensure that bad things really get taken off your computer. You can get a free tool to clean off your computer each day at: www.piriform.com/ccleaner

Maintain a record separate from everything else, where you can register the ID and passwords for your various activities. At our ages, and even younger, one cannot recall from memory the many ID's and passwords we gather over the years. Make sure a person on trust knows where you store these records in case they need access in an emergency. There is free software to store and protect your passwords.

Use CCleaner at least once a week. You will see how much rubbish your computer collects. Besides, it may perhaps make your machine operate quicker.

Dangerous Attachments

Careful Summer Surfing

It only takes one malicious email to allow hackers to infect your computer. Yes, it’s true.

You wouldn't surf in dangerous waters. The same applies to the web: when you surf online this summer, exercise caution to protect yourself from cyber sharks. Visits only sites you trust for news, and don't click on search results that lead to sites you don't recognize, particularly those with strange domain names.

Beware of subject lines that pertain to current events or political topics. You may be on the cc or bcc line of a message that appears to be going to–or coming from— someone you know.

It is free, so go to bottom of the download box and click on: Download from Filehippo.com

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Never input any personal information on a site you don't know and trust. If you have any doubt, follow your instinct and do not do it.

Do not do sensitive and very personal work on your computer while attached to an open public wireless connection. Others may be reading your machine.

Don't click on shortened links (bit.ly) used in Twitter, Gmail, Email, or Face book etc. if you don't know the sender and cannot verify that the destination is safe, send it to trash without touching it.

A dangerous tool in the hacker's social engineering arsenal is personal contact aimed at obtaining access to your computer network. You may receive an email message from an association or group representing something with which you identify—it could be your ethnic group, your professional specialty, your country of origin, your hobbies, a magazine you subscribe to, etc. The contact follows up by making personal contact and uses flattery, or instills fear or uncertainty, to lure you into downloading specialized software on your machine in order to solicit information, facilitate further dialogues, or pursue a relationship. Once you download the software, which is actually malware, it infects your machine and enables the hacker to access important and sensitive information about you or your organization. Hackers use sophisticated programs to harvest information about you that is available online—it could be on your Facebook page or other social media; it could also be obtained from anything published under your name.

Traveling with Information Because USB drives, memory sticks, or thumb drives are small, readily available, inexpensive, and extremely portable, they are popular for storing and transporting files from one computer to another. However, these same characteristics make them appealing to attackers, who can store malicious programs on them that can infect your computer. Be sure the flash drive you're using is your own, and that it hasn't been in anyone else’s possession. Do not plug an unknown USB drive into your computer. If you find a USB drive, or if someone gives you one, don't use it. Also, never put confidential information on a flash drive. Carry confidential documents in your hand luggage; don't store them in a suitcase. Don't leave your computer unattended once you have signed on. Log out completely once your session is complete. Put a password to start up your computer so that if you lose it, no one will be able to open it and access your data. Good passwords have 8 to 12 items, including letters—caps and small—numbers, and symbols. The more the better, as hackers love to try and work out our passwords. There are even programs on sale which work to establish your passwords. Never use obvious passwords as they are hacked first. Physical Assets Safeguard all your personal equipment such as PDAs, laptops, cell phones, portable storage devices (USB sticks, memory sticks, and flash drives), and briefcases. Never leave equipment in full view—for example, in your car, in a restaurant or even in a hotel room. Caught Off Guard- Get your grandson or daughter to help. If you feel that your equipment has been compromised, contact someone to help you clean your machine. Do not continue to use it as some hackers may be reading everything you input.

You would never accept luggage from a stranger and take it onto an airplane, or accept a suspicious package at your house. By the same token, do not accept and download software from anyone. You will be putting your information or that of your entire organization at risk. Remember to beware of suspicious attachments, phone calls requesting your personal information, emails with strange subject lines, and links with suspicious names. When in doubt, don’t open or click. Never open an attachment if it comes to you in a suspicious manner, even if it appears to come from a friend. Trust your instincts. If you have any doubts about an email seemingly from a known contact, phone them before opening the attachment. One can see more on email security at: http://www.bspcn.com/2011/06/02/how-to-stopyour-gmail-account-being-hacked/ Have a great summer. Your 1818 Society Webmaster, Alexander Nicolas G. Keyserlingk Reston, Va, 20190 Cell 703 772 9545 www.keyserlingk.info

LONG-TERM CARE FAQ Why is MetLife raising the Long Term Care premium rates?

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All major Insurance carriers have or will be raising premium rates for Long-Term Care plans to cope with changes in the factors and assumptions made when the premium rates were established. Basically, more people used their long-term care insurance than was anticipated at the outset, and the number of claims, the length of claims and the use of benefits have been much higher than expected. In addition, life expectancy is increasing and far fewer policy holders dropped coverage than expected, which resulted in less forfeiture. This created a pricing issue for long term care insurers like MetLife. MetLife has the right to request a rate adjustment to the individual state insurance department for a class of policyholders. How much is the premium going to increase? MetLife is requesting a 45% increase for their entire employer group long term care book of business. The actual percentage increase may vary from state to state. Premium increases will be set according to the insurance commission’s approved premium rates in the state in which you originally purchased your insurance. This is known as the “policy issue state”. Can MetLife raise my individual premium rates? The laws governing long-term care insurance prohibit an insurance company from raising premium rates on individual policyholders. You cannot be singled out for a rate increase if you were to file numerous claims or for any other reason that might increase your risk for a future claim. However, MetLife can raise premiums to a group or class of policyholders due to unanticipated factors arising after the latest pricing. Can MetLife cancel my policy? Long-term care policies are Guaranteed Renewable, meaning that as long as you pay your premium rates, the insurance company can never cancel the policy. Can MetLife raise premium rates again later, given that they are no longer selling long-term care policies? Yes, if MetLife can justify an increase to state regulators according to the policy provisions, MetLife can increase premium rates again. MetLife may still request approval of a premium rate increase on a closed block of business due to unanticipated factors arising after the latest pricing. When state insurance departments approve an initial premium or an increase to the policy, the policy must be shown to be selfsupporting. This means increases should be unnecessary through the life of the insured pool of participants, provided the assumptions in the original pricing are correct. Most of the major insurers selling long-term care coverage, including MetLife, underestimated the premiums needed to pay claims for many of their policies. If MetLife has now done a good job in estimating future claims costs, then no further premium increase should take place. Only the future will tell if MetLife is correct in their assumptions.

August 2011

Is MetLife still financially strong? MetLife is the largest insurance company in the United States with total assets of over $730 billion as of December 31, 2010. MetLife receives strong ratings for its financial strength by agencies like A.M. Best, Fitch, Moody, and Standard & Poor. Can individual participants write a letter or petition the state insurance commission or adjudicative body deciding on the rate increase? Yes, but the likelihood of successfully blocking or attenuating a rate increase for those petitioning the state regulators will be based on the arguments made in the petition with reference to the policy provisions. Increases are reviewed by the state insurance commission according to the policy provisions. Assuming that the increase is allowed under the policy, and that MetLife can justify through reasonable methodology that an increase is needed, it is likely that state regulators will approve the requested increase. State regulators may question the methodology used, and in some cases approve an increase lower than that requested by MetLife. State regulators can also deny a rate increase request. Does the World Bank have any input into the rate increase? Once the documentation for the rate increase is received by the World Bank, we will verify that the increase is allowed under the policy, and that the methodology used is reasonable. If the World Bank finds that the increase request is incorrect, or that the methodology is unsound, the World Bank will formally dispute this with MetLife. I have been a plan member for a number of years; would it be good for me to leave the plan now, given the increased premium? If you leave the plan now and try to purchase coverage elsewhere, your rate will be based on your current age and health status. Depending on these factors, the coverage may or may not be available. Before taking such action, it would be prudent to see if more cost effective coverage is available and if you would qualify for such coverage. It is important to note that a new policy that you may purchase will likely contain provisions for class rate increases as well. If the increase in premium is not affordable, you should ask MetLife what other options may be available. See “What if I can no longer afford the coverage?” below. What if I can no longer afford the coverage? If the plan becomes too costly to afford, MetLife will be able to offer other options such as decreasing the lifetime benefits, decreasing the daily benefits, etc., to reduce your premium rates. If you have the minimum coverage available under the policy, it will not be possible to reduce the benefits any further.

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You should check to see if you have opted for the “non-forfeiture benefit” when you purchased the MetLife long-term care policy. If you have been enrolled in the LTC plan for at least three years and purchased the non-forfeiture benefit, then, as the term implies, you will not forfeit all your benefits at the end of the period covered by your final premium. You will remain eligible for a reduced benefit which will provide you some value for the money you paid into the policy. Without a non-forfeiture benefit, you get nothing, even if you paid premiums 20 years before dropping the policy. You can still enroll in the non-forfeiture benefit now, but you will not be able to take advantage of the benefit until you have been enrolled for three years. If you need verification of your non-forfeiture benefit, or you would like to discuss options to reduce your benefits to lower the premium rates, contact MetLife Toll Free at 1-800-438-6388 Will the documents concerning the rate increase be available to LTC participants? We have requested MetLife to provide these documents to participants upon request. MetLife has assured the Bank that these documents will be available either through the state insurance websites or through MetLife. The Bank will let participants know how they can receive a copy of these documents once this information is made available to us. In which state will the MetLife rate increase be filed for participants in the plan for World Bank participants? A rate increase request will be filed for each state where this policy was sold to a participant. As this is a group plan, do all participants fall under one state, or will the increase vary by state for each participant? Your increase will be according to the insurance commission’s approved premium rates in the state in which you originally purchased your insurance. This is known as the “policy issue state”. How will I know how the rate increase affects my premium rates? You will receive a personal letter from MetLife explaining the approved percentage increase for your state and the amount of your new premium. You may continue to make coverage changes according to the terms of your policy or certificate, including inflation protection offers and requests to increase or decrease coverage, without fear that this will affect your premium rates. When will this increase go into effect? MetLife expects to file with the state insurance departments starting in June 2011. The expected increase should take effect in mid-2012. Whom can I contact for more information?

August 2011

Questions on your long term care policy and claims should be directed to MetLife at their toll free number: 1-800-438-6388.

Pension Administration Kiosk at MC 1-850 The Pension Administration Kiosk at MC 1-850 is open between 9 AM and 4 PM. Please note that you can use the below link to verify the receipt of your Life Certificate. http://staff.worldbank.org/pension/lifecertificate For any questions please contact Pension Administration Division at: New Mail Stop Number MSN C 7-702 Phone: (202) 458-2977 Fax: (202) 522-1723 Email: [email protected] Website: http://staff.worldbank.org

H IDDEN—BUT ACCESSIBLE—WORLD BANK TREASURES by Charles Ziegler Deep in the World Bank’s Main Complex—on the C3 level—and in a limestone mine located miles from Washington, D.C., are many of the hidden, but now more accessible, treasures of the World Bank, which were created or received by staff, including members of The 1818 Society. I refer, of course, to the records in the custody of the World Bank Group Archives. These records were produced in the course of the conduct of the World Bank’s business since it began operations on June 25, 1946. Among these records is original source material dealing with the themes and topics of economic development. Archival records from the World Bank inform discussion of significant twentieth and twenty-first century historical events. The internal organizational and structural mechanisms of the World Bank Group are also described in the archival records. The Archives holdings are comprised of: •

•

463 million pages of paper records (200,000 linear ft.) dating back to 1946. Stacked, the boxes would reach 7 times as high as Mt. Everest. 200 oral history interviews.

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524 linear ft. photographic material. 100 linear ft. film reels. 30 linear ft. audio and video tapes. 120,000 digitized Bank documents and reports. More than 109,000 reports (1946 present); 60K new pages / year. More than 3,000 assets (oral histories, video, audio, photos, etc.) filed in Archives Digital Asset Management system (ADAM).

The main archival storage repository resides in a former limestone mine turned records storage facility. Iron Mountain, an international records management corporation, owns the underground facility, commonly known as “The Mine," which is located a significant distance from Washington, D.C. Iron Mountain operates its own records storage services and leases space to other tenants, including the U.S. Government. The WBG leases 54,000 square feet and operates its own repository, staffed by three staff members. Using the appropriate finding aids, records being sought can be readily retrieved. Requested records are sent to Washington each week night by courier from “The Mine.” Records requested by 1:00 pm by World Bank staff normally are available from the Archives by 9:00 am the following business day. And now, thanks to the new Access to Information (A2I) policy instituted just over one year ago, on July 1, 2010, these records are more accessible to members of The 1818 Society, as well as others outside the Bank interested in development topics. The new A2I policy has positioned the Bank as a transparency leader among multilateral organizations. It has moved the Bank from an approach that spelled out what information would be made publicly available under the previous disclosure policy, to one that now enables public availability of all information in the Bank’s possession, except that which is on a clear list of exceptions, such as personnel information, attorney-client privilege, and third party confidential. The new A2I policy also includes a provision that will allow for the declassification of certain types of restricted information over time – after 5, 10, or 20 years – recognizing that sensitivity of the information declines over time. The policy is

August 2011

available on line at www.worldbank.org/wbaccess. From there 1818 Society members can also access the web site of the World Bank Group Archives. Included there is the Access to Information Request Form, which 1818 Society members can use to request records under the A2I policy. From July 1-December 31, 2010—the latest period as of this writing for which figures are available, the Archives has received 240 requests under the new A2I policy. It is not unusual to see two or even three researchers at any given time in the Archives Reading Room. Given the treasures available there, perhaps you will be one of them soon!

The Fifth Group of Young Professionals celebrates its 45th anniversary by Stephen Eccles It was back in March 1966 that we first met each other – 15 very young-looking chaps, as shown in the official photograph which appeared in the Bank Notes for April of that year. There were few female professional staff in the Bank in those days, and the YP Program had yet to include any women. This photo can be seen on the 1818 Society website under Pictures of Alumni Events. Fourteen of us reported for our first day of work at the World Bank on March 7th, with one having arrived a few months earlier. From the start, we acted like a “group” and have kept quite closely in touch ever since, though 40 percent of us left the Bank fairly quickly to pursue other careers, with the others lasting until our retirement (two taking that early, as part of the 1987 reorganization). One of the reasons we acted as a “group” was because there were some serious issues with Personnel about how the Young Professional program was being managed. There was no Staff Association then, and we had to look after ourselves. Not long afterwards, the Bank’s management stopped requiring that all new YPSs join the Bank at the same time each semester, partly to head off others also acting as “groups!” Anyway, there we were – 12 of us from Europe/South Africa and three from South Asia.

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Those who left the Bank soon after graduating were Stanley Johnson (UK), Ernest Lamers (Netherlands), Ulrich Loeser (Germany). Henri Meier (Switzerland), Alex Protopapas (Greece) and Jean-Paul Vigie (France) – they followed careers in the United Nations, the European Commission and the private sector. Those remaining for a full career in the Bank Group were Samir Bhatia (India), Curt Carnemark (Sweden), Adi Davar (India), Stephen Eccles (UK), Ugo Finzi (Italy), Zia Kalim (Pakistan), Basil Kavalsky (South Africa), Ignatius Menezes (India) and Giovanni Vacchelli (Italy). Amazingly, we are all still alive and active, though sadly we have lost some spouses. Part of our acting as a "group" had been an annual dinner in Washington for all those still working at the Bank. But when 2006 came around, and we realized it had been 40 years since we first met, we decided on our first ‘international’ reunion of all members of the group. This took place in Switzerland, hosted by Henri Meier, setting a high standard for the event. While we decided to repeat this idea only every 5 years, some of us were able to assemble in Goa, India, in 2009 for an event hosted by Ignatius Menezes. This year represented our 45th anniversary, and I organized an event in the UK this June, even though I still live in the Washington area. That presented some logistical problems, but I was helped out by several friends in London and Cambridge, our two venues. The events were attended by 10 members of the group and eight spouses. The group photo of the men unfortunately shows how we have all aged. Our spouses seem to have done a little better! These group photos (by Curt Carnemark) are also available on the 1818 Society website. Our program was quite varied. Two of us came to London a little early, to take advantage of a couple of tickets I was able to get to attend Prime Minister’s Question-Time in the UK House of Commons. Our first full event was a conducted tour of the Houses of Parliament. The next day was the Queen’s Official Birthday, and six of us attended her Birthday Parade (also known as Trooping the Colour); in the late afternoon, the whole group spent a pleasant social three hours on a River Thames cruise boat – joined by some of the group’s friends and relatives. The last London

August 2011

event was a lunch hosted by the other UK member of the group and his spouse (Stanley and Jenny Johnson) in their lovely home. The whole party stayed three nights at my London club – the Oxford and Cambridge, in Pall Mall – which was a revealing experience for most. Almost everyone then moved on to Cambridge for another three days of activities. On our first afternoon, I showed off my own college (Trinity), including a private visit to our wonderful library, designed by Christopher Wren – among the treasures we looked at were manuscripts by (widely separated) College alumni Isaac Newton and A. A. Milne. We then punted on the Cam for an hour, visiting the famous college ‘backs’, before a private dinner within the College. The next morning, we listened to a fascinating lecture and slide-show by a local architect on how the various colleges had managed to combine new buildings with the old; and on the planning issues faced by this small university town and the growing industrial spin-offs from university research activities. Most of us then walked over to the Botanical Gardens – brilliant in themselves, but also the site of one of the research buildings we had just heard about. In the afternoon, we went on a private tour of parts of King’s College. To start off, the librarian showed us art by members of the Bloomsbury Group that the College had acquired. This is spread across many rooms, including several still occupied by current Fellows of the College – who kindly absented themselves during our visit. One of these sets of rooms was that occupied by Maynard Keynes. Afterwards we attended Sung Eucharist in the spectacular Chapel, sitting almost within its famous choir – quite an experience! We ended the visit with the Chaplain pointing out several features of the Chapel and giving us some of its fascinating history. On our last day, the morning was ‘free’, with some walking over to the University Library, which had put on an interesting public exhibition celebrating 400 years of the King James Bible – including the display of a Gutenberg Bible. After lunch, we had another private library visit – this time at one of Cambridge’s gems: the Parker Library at Corpus Christi College. This library is not open to the general public and doesn’t have anything printed!

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We were able to see the first book that was ever brought to England, in the 7th century. We were actually able to leaf through a collection of manuscript letters (on almost indestructible vellum) – items written by Anne Boleyn to Henry VIII, by Erasmus and by Martin Luther. The Cambridge part of the event concluded with an evening tour of Jesus College, followed by another private dinner within the College. Those of us who may survive a further five years intend to celebrate our 50th anniversary with a reunion back in Washington.

Events In D.C. Live in the DC area? Sign up for our next fun outings! Details are posted on our website, and an e-mail will be sent announcing the details of the visit. If you don’t have access to a computer, just call our office at 202-458-1956 to register! The Fall Dinner is being planned and will be announced soon. It is tentatively scheduled for September 1, 2011. More details will become available at our website www.worldbank.org/1818 The following outings are planned for the upcoming months: September 2011: Visit to the Washington Mosque the first week of September, 2011. October 2011: Visit to the Hindu Temple in Maryland the first week of October, 2011. No activities are planned for the month of August 2011 because many members are away and the Society's office will be closed the first two weeks of the month. We would like to organize a visit to a Synagogue in the DC area, and are in need of one or two volunteers to help coordinate this activity. If you are available and interested, kindly send a message to [email protected].

Cruise To New England and Canada with The 1818 Society Travel Club Bookings Still Available.

August 2011

9-Day (October 6) Royal Caribbean Cruise from Baltimore---to the beautiful scenery and historic ports of New England and Canada, visiting Portland, Maine; Bar Harbor, Maine; St. John, New Brunswick; Halifax, Nova Scotia; and Boston, Massachusetts. Dine, hike, bike, watch whales, and explore the towns. For more information, please contact Maria Gomes as soon as possible: E-mail: [email protected]

Fund-Bank 2011 Ski Club Program Preliminary Program for the Fund-Bank Ski Season 2011/12 December 8 -13, 2011 - Vail, Colorado January 12 – 17, 2012 - Copper Mountain, Colorado January 27 – Feb. 5, 2012 - France February 18 – 25, 2012 - Snowmass/Aspen, Colorado March 3 – 10, 2012 - Whitefish, Montana Flyers and trip application for each trip will be available in July. However, early sign up is essential, send your interest to: [email protected]

IMPORTANT REMINDER Required Medicare Enrollment and Retiree Medical Plan (RMIP)

the

Under the rules of the RMIP, retirees (and their covered spouse or domestic partner) are required to enroll in the National Health Plan (NHP) of the resident country registered with Pension if they are eligible on the same basis as a national of that country. In the United States, the NHP is Medicare and enrollment in Medicare is required for all eligible retirees and their spouse or partners in the RMIP. Most World Bank retirees who are now U.S. citizens or permanent residents aged 65 or over are eligible for at least Medicare Part B. Failure to enroll in Medicare Part B when eligible can result in a Medicare premium penalty if you enroll at a later date and can reduce your RMIP claim reimbursements for U.S. medical services. Further information is available on The 1818 Society web site. Click on Related Links, then

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click on Retiree Medical Insurance Plan (RMIP) and Medicare FAQs. Please Keep Your E-mail Up-to Date Please remember to inform the 1818 Society when your address, phone number or e-mail changes. The best way to do this is via e-mail ([email protected]) as it reduces typing errors.

Job Opportunities

August 2011

Job opportunities at the World Bank Group and other organizations are regularly posted on The 1818 Society’s web site at: http://1818members. wordpress.com/job-opportunities/.

Volunteer Opportunities Your presence, ideas, creativity, and skills are in demand. Visit the 1818 Society’s website at www.worldbank.org/1818 for more details, or you can contact Ms. Marilyn Manalo at [email protected].

IN MEMORIAM We regret to inform you of the deaths of the following, to whose families we extend our sincere sympathy.

Mariette Bosse-Paternostre, 82, of El Amstelveen, The Netherlands, on May 12, 2011, surviving spouse of Theodorus H. Bosse. Silvia E. Burmeister, 68, of Kitzbuehel, Austria, on May 18, 2011, spouse of retiree Harald H. Burmeister . Henry Edwin Danso, 65, of Hyattsville, Maryland, on May 15, 2011. Mr. Danso retired from the Bank in 2008. Edward R. Fried, 93, of Chevy Chase, Maryland, on May 8, 2011. Mr. Fried retired from the Bank in 1979. Jagdish Lal, 74, of Annandale, Virginia, on May 14, 2011. Mr. Lal retired from the Bank in 1998. Renee Latt, 88, of Bethesda, Maryland, on June 22, 2011. Ms. Latt retired from the Bank in 1986. Helen Susan Lesueur, 90, of Deakin, ACT, Australia, on May 1, 2011, surviving spouse of Jacob F Lesueur. Otto Maiss, 87, of Germering, Germany, on June 16, 2011. Mr. Maiss retired from the Bank in1987. Soad Hanna Matta, 87, of Cairo, Egypt, on May 31, 2011. Ms. Matta retired from the Bank in 1981. Frederick Moore, 91, of Santa Rosa, California, on July 8, 2011. Mr. Moore retired from the Bank in 1985.

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Juana Morales, 75, of Callao, Peru, on July 7, 2011. Ms. Morales retired from the Bank in 1995. Hal Reynolds, 84, of Blue Hill, Maine, on May 17, 2011. Mr. Reynolds retired from the Bank in 1989. Emmett J. Rice, 91, of Camas, Washington, on May 10, 2011. Mr. Rice retired from the Bank in 1970. Thomas Bernard Russell, 88, of Kilchberg, Switzerland, on May 20, 2011. Mr. Russell retired from the Bank in 1979.

Hameeda F. Shoaib, 83, of Toronto, Ontario, Canada, on April 29, 2011, surviving spouse of Mohamed Shoaib. Robert F. Skillings, 88, of Brunswick, Maine, on June 28, 2011. Mr. Skillings retired from the Bank in 1987. Roelof H. Snel, 91, of Tinton Falls, New Jersey, on June 6, 2011. Mr. Snel retired from the Bank in 1984. Ada R. Tannen, 88, of Annandale, Virginia, on June 12, 2011. Ms. Tannen retired from the Bank in 1985. If you would like to post information about a friend’s memorial service, you can use the link http://1818members.wordpress.com/in-memoriam/ or go to the Society’s website and click on the flower, on the upper right hand side. Look for In memorial, scroll all the way down and post your comment, it will appear on the top.

SPECIAL HISTORICAL SUPPLEMENT Gauging World Bank Productivity Over the Long Term by Bill Katzenstein One of a series of presentations that I’ve been giving on Bank history, "The World Bank: The Struggle for Cost-Effectiveness," focuses on the evolution of planning and budgeting in the organization, and the periodic highs and lows that have occurred since a first, brief downsizing in 1949. The most frequently raised question for discussion at these talks has been the extent to which Bank “productivity” or “efficiency” can be gauged over time. The very notion of tracking Bank “outputs” as if a football match, in the complex and continually evolving mission of reducing poverty through global development, may strike many as inadequate or

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infeasible. Lending and numbers of projects can be aggregated, but what about lending outcomes, not to mention “outputs” of policy formulation and promotion; country, economic and sectoral reviews; and technical assistance, partnering, research, the World Bank Institute? Yet gauging some measure of World Bank productivity has been necessary and meaningful when appropriately qualified. From time to time, stocktaking has been called for when it was apparent the organization was becoming too costly. Management and ultimately the Board have needed some quantitative indicators to help assess overall budget requirements, however limited the measures. As to data, that has been easy. Use essentially the only available long-term indicators, which reflect the organization’s primary function as a bank: specifically, administrative expenses in relation to numbers of lending projects and commitments (Figures 2 and 3 of the accompanying graphs).1/ In the McNamara years, numbers of projects under supervision and numbers of major reports were also reported. To What Extent Do the Graphs Charting Administrative Expenses and Lending Reflect Bank Productivity? The historical data are not directly indicative of Bank productivity over time because of continually changing internal and external conditions, but the data do tell a story. Lending remains the primary product of the Bank and is the single most representative indicator of "output" available over the long term. Yet the lending environment as well as the organization, its products and work processes, have substantially evolved. Lending has become more difficult since the late 1970s, and subject to a spectrum of conditionality and quality controls, while Bank activities have somewhat diversified. Evolution of Lending First, a gradual shift in the composition of lending occurred beginning in the late 1970s, from the early emphasis on infrastructure projects to more difficult and time-consuming lending in social sectors. (An early finding of the Bank's original Time Recording System established in the early 1970s was that lending in social sectors required substantially more time and expense.) Second, the number of countries assisted by the Bank increased greatly in the 1980s and 1990s. Third, by the mid-1990s, lending became the subject of all manner of qualitative concerns and standards (e.g., environment, anti-corruption). Fourth, externally-funded activities became much more significant. Fifth, development policy leadership, dissemination and support including technical assistance, have broadened as well. As such, the organization designated itself a “Knowledge Bank” in the late 1990s after lending plateaued (FY94-08 (Figure 3). Sixth, decentralization has put the Bank closer to its clients, albeit with added budget pressures and rigidities. Seventh and moreover, lending data per se do not indicate lending outcomes, which improved following the Strategic Compact of the late 1990s. (Lending outcomes had originally been expected to figure in the retrospective phase of the Bank’s planning and budgeting system conceived in the early McNamara years, but this did not occur, one difficulty being the time lag to project completion. Another constraint was the then rudimentary state of operations evaluation.) These developments, while illustrating the difficulties of applying one or a couple of mainline productivity indicators to gauge Bank productivity, demonstrate nevertheless how the organization has become more proactive and effective in its work. From this juxtaposition a major conclusion can be drawn: The Bank has been operating (in FY09-11 with the current lending surge) at historically

low ratios of administrative expenses to lending that occurred in the 1970s and 1980s, while the volume and scope of its activities and impact have expanded in many ways.

How has that been managed? Apart from limited leverage in project size and use of supplemental project authorizations, I suggest a major factor has been the wholesale transformation of the Bank's operational and administrative work environments since 1980 through now universal information technologies.

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Thirty years ago, desktop computing and email did not exist. Most country and economic data had to be engaged manually; spreadsheets prepared manually; and project economic and cost-benefit analysis performed "to order" through relatively inflexible mainframe computer algorithms. Rudimentary word processing was available but scarce, with desktop terminals costing some $50,000 (2011$) operated by staff assistants with specialized training. As a rule, in Operations, a secretary was assigned to support two or three officers, who provided handwritten drafts, or gave dictation for typing. Documents had to be shipped via air mail or UN Pouch, or dispatched with staff traveling on mission. Looking back, it's clear the revolution that occurred in the Bank's work processes and support staffing, data retrieval and analysis, and global communications has provided scope for productivity improvement that, to a certain extent, would allow the organization to do more without commensurate increases in expenses in relation to operations. (The qualifier "certain" reflects that key facets of lending operations, such as project initiation, consultation, negotiation, and on-site supervision, are hardly amenable to time savings from faster supporting processes.) Expectation of limited albeit cumulatively significant time savings has been reflected in a 1% annual presumption of productivity gain (or similar metric) applied to unit budgets over significant periods from the early 1970s to the present (originally, this was to have reflected economies of scale from rapidly expanding operations); and, moreover, permitted a total reconfiguration of administrative staffing from rote document preparation and transmittal to more substantive participation in operational and other technical tasks. Further economies and savings have also, of course, been selectively achieved in support functions, as well as specific expense categories including staff benefits. That all being said, the picture has been wholly complicated by successive reorganizations of operational processes and units. Furthermore, it is apparent that Bank lending, until recently constrained for over a decade, was limited not because of capacity problems within the organization but as a function of higher qualitative standards, together with competition from commercial lenders. Bank administrative expenses continued to increase, in part to fund higher-quality increments, network support and decentralization, as well as stronger development policy leadership and other diverse programs; as well as for inflation and the impact of a weakened dollar. The Bank retained substantial reserve capacity on account of the lending plateau of FY94-08; still, the current lending surge has been so extraordinary that difficult redeployment decisions have had to be taken, and managed, to provide for the accelerated operations while holding the net budget constant in real terms. And clearly, the budget is subject to great stresses at this time. On the basis of available historic quantitative data on total expenses and main operational outputs, is the Bank presently operating cost-effectively? With the recent surge in lending, YES, as productively as ever, and additionally taking account of intangibles not reflected in the numbers. The data per se indicate the Bank is operating close to its most efficient levels of past decades. The non-quantifiables are major: in lending, improved project outcomes commensurate with higher standards. Through greater program diversity, including trust funds and all manner of partnerships, efforts to eliminate poverty have intensified. At another level of engagement, global leadership, the Bank's invigorated policy discourse over the past 15 years appears to be achieving fruition in the widespread recognition of the importance of sound governance, as well as market liberalization. Suffice to conclude that these hallmark developments have been achieved while the Bank recently returned to the lower ratios of administrative expenses to lending that occurred in the past. ________________ Technical Background to the Materials The historical series sets out the organization's record of budgets, expenses and lending back to its startup in FY46. The budgets and expenses in the legacy record are for the Total Administrative Budget, including Boards, Staff Retirement accounts, and Grant facilities, net of reimbursements and fee income.

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(Ideally it would be useful to show both Total and Net administrative expenses over time, but to break out historical data for Net expenses would require substantial research because accounts now treated as below-the-line were not segregated in this way in summary expense reporting prior to the past decade.) Budgets, expenses, numbers of projects and lending commitments are per historical budget and retrospective documentation. Price factors for past decades are applied as were figured at that time and communicated to the Board, as detailed in the footnotes to the tables. __________________________________ 1/ The administrative expenses in the graphs indicate the Total Administrative Budget, including Boards, Staff Retirement accounts, and the Development Grant Facility (less than a tenth of total expenses), net of reimbursements and fee income.

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