the other agencies take those parts requiring grant and other softer loan funds..
6.34 Since the beginning of this decade, the Bank Group recognized the growing need to diversify its lending operations from its traditional project financing to consider support for economy-wide programme type loans. Such loans are intended to help countries make policy and other necessary wide reaching economic and social adjustments of the type needed to achieve Africa's food objectives, among others.
Being a newcommer in thiB form of lending and also aware of the added risk it entails, the Group has cautiously allocated 5 per cent of its total resources during 1982-136 directly to this new form of lending. In future the Group will need to constantly evaluate its experience with this form of lending with a view to expanding it beoause its policy adjustment orientation lends itself particularly well to the efforts to resolve the continent's food crisis which, ■
in the main,, calls for policy reforms. .
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6.35 Institutional strengthening and rationalization is another sensitive national policy area* Presently the African food economy is dominated by
numerous, and sometimes inefficient institutions* through understanding policy dialogue between the Bank Group and national governments, again based on clear Bank'Group policies and guidelines relating to institution building, it ought to be possible for the Group to strike understanding with governments on the kind of institutional adjustments necessary to enhance both the social and economic objectives of the institutions involved in food servicing. Such
policy dialogue needs to foous on the fact that institutions bent on fulfilling
■their--social1responsibilities -without adequate attention to their economic performance will not be able to achieve either objective in the lon^term.
6.36 Social and political instability in some countries results partly
from dissatisfaction with poor economic performance and especially the inequi-tability of access to income and economic opportunities. The Bank Group could promote stability within nations by increased support to projects that encourage economic growth with equity. This orientation of Bank Group programmes should continue to be achieved through the strengthening of the role of social variables in the Group's investment analysis criteria thus assigning more positive value on projects1 contribution to equitability of income distribution, job creation, and the like. For instance, this could be done by broadening the use of shadow pricing procedures in project preparation and appraisal. Increased support and encourageraont of inter-country projects and greater Bank Group support for efforts towards economic integration will continue to contribute to the promotion of
inter-country harmony.
tjpbilization of international support
6.37 The Bank Group has recognized its potential role and responsibility in
contributing to the consolidation and articulation of African perspectives on the international dialogue on development issues. The Group has, therefore, been strengthening its research and macro F«liey analysis capacity with a view to participating more effectively with other concerned African institutions and governments in the development and articulation of African responses andpositions in international development issues thereby enhancing Africa1s
capacity to secure for itself better deals in international trade, finance and other development negotiations.
-6.38 A principal role of the Bank Group, according to its charter is the
mobilization of resources from within and outside the continent for development activities in African countries. fhl» tasks is becoming increasingly difficult in view of the continuing world economic recession which not only reduces the capacity of potential donors to contribute but also disables African countries to repay their dues to the Group, thus further weakening the Group's financialstrength as well as increasing reluctance of donors to respond to the Group's resource mobilization drives. These difficulties apart, the combining of this role with the Bank Group's current involvement in the development and support for African food strategies and integrated rural development programmes, will' enable the Group to provide leadership and play a catalytic role in augmenting and channelling an increased volume of international development assistance towards the promotion of increased African food security.
Overcoming Demand Constraints and Increasing Security and Access to Food
6.39 The role of national population policies in dealing with Africa's food problem has been recognized. Due to the social and political sensitivity of this issuef the Bank Group should ideally ensure dialogue with national governments on national population policies that are commensurate with food objectives af^ter it has clarified its own guidelines on population policy;
such guidelines will need to be flexible so that they may be adjustable to
varying national requirements and senBl*ivi-fciee. The Bank Group should seek support and co-ordination of its activities in this area with related efforts of other national, regional and global institutions including the OAU, EGA, FAO and UNESCO, In addition, the Group should be prepared to provide financial and technical support for national population programmes which are in line with increased food security* This support could be incorporated in the Group's food—related operations in respective member countries.
6.40 In order to support efforts to increase consumer access to food, the Bank Group should focus its investments on programmes that generate increased employment opportunities and support policies that promote equitable wage structures. The Group's support for pricing and other policies that promote equitable terms of trade between rural and urban sectors will serve as incen tives for inoroased production of food and other products for the market. Such increased production will lower food prices for consumers as well as increase raw materials for local industries -and export markets; this should in turn increase job opportunities resulting in both improved physical and economic access to food for rural and urban consumers alike.
AJ)B and the Current Famine Situation
6.41 The proposals made so far in this paper have centred on ideas for improving Bank Group's traditional role of long-term development lending.
Suggestions have been made not only for augmenting resource flows into the food sector but also for policy adjustments by;the Bank Group and its member count ries in order to improve the effectiveness of Bank Group loans. It must "be emphasized, however, that most of these proposals will have an effect in the continet's food security situation in the medium to long-^ternu But at this
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-very moment a large number of African countries are facing food crises of famine proportions - they need immediate assistance to prevent mass starvation. This is an area in which the Group does not have adequate experience but one in which it reoognizes it has to act decisively atxL immediately* It is therefore an area in which the symposium's attention and ideas are especially called for.
6.42 Althou^i the statutes of the ADB do not allow the financing of emergency operations such as the direct provision of food aid, they authorize the Bank to establish or be entrusted with the administration of Special Funds which are consistent with its purposes and functions. Hence the establishment of both