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USSR likely to join WB in a year
THE HAGUE. Nov 29 : The Soviet Union will be ready for World Bunk membership in 12 to 18 months, but necessary market reforms may hit vul nerabk- parts of the population hard, a World Bank official said, reports Reuter.
The process could be speeded up and full membership might come earlier than in the expected two years. Ardy SlouJcsdiJk, the First Permanent World Bunk
individual republics Introduce a free market economy and soften the hardship accompli
The plan calling for 30 million dollars worth of technical aid, follows a November 5 agreement singed by World Bank President Ix'wis Preston and Soviet Leader Mikhail Gorbachev.
StoutJcsdiJk aims at a inn sullative group meeting in the first half of 1992. which oil)
The two deals do not provide the benefits attached lo full membership but are seen us first steps towards Ihat goal.
Full membership is impor tanl because of the enormous financial aid and credit help for the current account it makes possible. Sloutjesdijk said.
I Ie sees Soviet voting rights In the IMF al four ar five per «x-nt. Under the current pro-grammc. five World Bank stuff
Representative In Moscow, said.
Membership would be feasible for an umbrella economic entity which might replace the current slate. But market reform will be painful, he told u news conference to publicise his appointment. •
Prices will rise, the government will cut its work for«x- and privatisations will cause huge job losses. Stoutjcsdaijk said. Food aid is an important short-term need, he added.
The Soviet Union has applied for full membership of the International Monetary Fund (IMF) and the World Hank.
But lack of reliable statistics about its ailing economy and problems over IMF voting rights are hurdles to full nrni-bership.
The Moscow office of the World Bunk, operative from January I. will carry oul a two year plan to help Moscow and
include Western countries and international bodies, to estimate the financial help needed.
Tt 1s important that inter national organisations set up programmes tn cooperation with the republics. Thal is a better basis to solve the debt problem which has so far only been postponed and nol solved", he said.
G-7 nations last week unveiled an aid plan lo help Soviet republicg_aye rev me problems with repaying foreign debt.
This plan Included a one-year deferral of principal debt repayments, support for shortterm credit Unes and guarantees provided by export credit agencies in G-7 countries. The Soviet Union has a total foreign debt of about 68 billion Dollars.
The November 5 agreement came one month after Gorbachev reached a special association accord with the IMF.
in Mom-ow will be assisted by visiting committees studying food, housing and social problems and advising on macro-econiomlc reforms.
The programme Is scheduled on macro-economic reforms. The programme Is scheduled to last for two years but the 30 million Dollars could run oul very soon. StoutJcsdiJk said.
Stouljesdijk was especially worried about the swial unrest that could fellow economic reforms.
The shops are empty and the lines in the streets grow every day. There are rumours that this will lead to uprisings among the population, he said.
The Russian Federation, the biggest Soviet republic is about to launch a radical programme of price liberalisation, privatisation atnd oilier reforms that could mean a winter of soaring inflation and uncnipfoymcnt.