GLOBAL DEVELOPMENT FINANCE CLASSIfies

. Appendix 1 Debt Burden Indicators and Country Classifications Country classifications for 1998 GLOBAL DEVELOPMENT FINANCE CLASSIfies indebtedness based on two ratios: the ratio of the present value of total debt service to GNP and the ratio of the present value of total debt service to exports. These ratios cast a country s indebtedness in terms of two important aspects of its potential capacity to service the debt: exports (because they provide foreign exchange to service debt) and GNP (because it is the broadest measure of income generation in an economy). The 138 countries report debt data to the World Bank s Debtor Reporting System (DRS). 1 GNP and export data are from World Bank files, as shown in the Country Tables volume of Global Development Finance. Export figures are earnings from goods and services, including worker remittances. Data on official grants are not included, although they may be a stable source of foreign exchange in some countries. Until two years ago, indebtedness was estimated as the average of the ratios for the last three years. This methodology, however, did not fully capture the debt position of reporting countries. For instance, the resulting classification based on this methodology did not reflect the current position of countries benefiting from debt relief in the past two years. To reflect such instances of permanently reduced debt, Global Development Finance 1997 98 adjusted the classification methodology, which will continue to be used this year. The two indebtedness ratios in Global Development Finance 1999 are calculated as follows: The ratio of the present value of total debt service in 1997 to average GNP in 1995, 1996, and 1997. (In cases where a joint debt sustainability analysis has been undertaken in the context of the Heavily Indebted Poor Countries (HIPC) Debt Initiative, countries are classified based on the ratio of the present value of public and publicly guaranteed debt to exports of goods and services, excluding worker remittances.) The ratio of the present value of total debt service in 1997 to average exports (including workers remittances) in 1995, 1996, and 1997. If either ratio exceeds a critical value 80 percent for debt service to GNP ratio and 220 percent for the debt service to exports ratio the country is classified as severely indebted. If the critical value is not exceeded but either ratio is three-fifths or more of the critical value (that is, 48 percent for the present value of debt service to GNP and 132 percent for the present value of debt service to exports), the country is classified as moderately indebted. If both ratios are less than three-fifths of the critical value, the country is classified as less indebted. Countries are further classified as lowincome if 1997 GNP per capita was $785 or less and as middle-income if 1997 GNP per capita was more than $785 but less than $9,655. Combining these criteria leads to the identification of severely indebted low-income countries (SILICs), severely indebted middle-income countries (SIMICs), moderately indebted low-income countries (MILICs), moderately indebted middle-income countries (MIMICs), less indebted low-income countries (LILICs), and less indebted middle-income countries (LIMICs; table A1.1). The use of critical values to define the boundaries between indebtedness categories implies that changes in country classifications should be interpreted with caution. If a country has an indicator 99

G L O B A L D E V E L O P M E N T F I N A N C E Table A1.1 Income and indebtedness classification criteria Indebtedness classification PV/XGS less than 220 percent PV/XGS less than PV/XGS higher than 220 but higher than 132 percent or 132 percent percent or PV/GNP higher PV/GNP less than 80 percent and PV/GNP less Income classification than 80 percent but higher than 48 percent than 48 percent Low-income: GNP per capita Severely indebted Moderately indebted Less-indebted less than $785 low-income countries low-income countries low-income countries Middle-income: GNP per capita Severely indebted Moderately indebted Less-indebted middlebetween $786 and $9,655 middle-income countries middle-income countries income countries Note: PV/XGS is present value of debt service to exports of goods and services. PV/GNP is present value of debt service to GNP. Source: World Bank. that is close to the critical value, a small change in the indicator may trigger a change in indebtedness classification even if economic fundamentals have not changed significantly. Moreover, these indicators do not represent an exhaustive set of useful indicators of external debt. They may not, for example, adequately capture the debt servicing capacity of countries in which government budget constraints are key to debt service difficulties. Countries (such as the franc zone countries in Africa) that allow the use or free conversion of a foreign currency can face government budget difficulties that are related to servicing external public debt, but that are not necessarily reflected in balance of payments data. In other countries, the servicing of domestic public debt may be a source of fiscal strain that is not reflected in balance of payments data. Moreover, rising external debt may not necessarily imply payment difficulties, especially if there is a commensurate increase in the country s debt servicing capacity. Thus, these indicators should be used in the broader context of a country-specific analysis of debt sustainability. The discount rates used to calculate present value are interest rates charged by Organisation for Economic Co-operation and Development (OECD) countries for officially supported export credits. They represent, on average, the most favorable terms for fixed-rate nonconcessional debt that countries are able to contract in international loan markets. The rates are specified for 19 currencies, including G-7 currencies British pounds, Canadian dollars, French francs, German marks, Italian lire, Japanese yen, and U.S. dollars. International Bank for Reconstruction and Development (IBRD) currency-pool loans, International Development Association (IDA) credits, and International Monetary Fund (IMF) loans are discounted at the Special Drawing Rights (SDR) lending rate. For debt denominated in other currencies, discount rates are the average of interest rates on export credits charged by other OECD countries. In present value calculations, debt service on fixed-rate loans is determined and each payment discounted to compute its present value. For variablerate loans, for which the future debt service payment cannot be precisely determined, debt service is calculated using the rate at the end of 1997 for the base specified for the loan. Classification of low-income countries Applying the present value methodology to 1995 97 data, 32 countries are classified as SILICs, 14 as MILICs, and 12 as LILICs (table A1.2). There is one change from last year in the indebtedness classification of low-income countries: Yemen joined the moderately indebted group, owing to its debt rescheduling. Classification of middle-income countries In the middle-income group, 12 countries are classified as SIMICs, 21 as MIMICs, and 43 as LIMICs. There were seven changes in the indebtedness classification since last year. Mexico left the moderately indebted group and joined the less indebted group because of improvements in the present value of debt-to-exports ratio. 100

D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.2 Classification of DRS economies Severely indebted Severely indebted Moderately indebted Moderately indebted Less indebted Less indebted low-income middle-income low-income middle-income low-income middle-income Angola Argentina Bangladesh Algeria b Albania c Barbados Burkina Faso Bolivia Benin Belize a Armenia Belarus Burundi Brazil Cambodia Chile Azerbaijan Botswana Cameroon Bulgaria Chad Colombia Bhutan Cape Verde Central African Ecuador Comoros Dominica a Eritrea China c Congo, Dem. Gabon Gambia, The Equatorial Guinea bc Kyrgyz Costa Rica Congo, Guyana c India Georgia Lesotho Croatia Côte d Ivoire Indonesia Kenya Hungary Moldova Czech Ethiopia Jamaica Lao PDR Macedonia, FYR Mongolia Djibouti Ghana Jordan Pakistan Malaysia Nepal Dominican Guinea Peru Senegal Mauritius a Tajikistan Egypt, Arab Guinea-Bissau Syrian Arab Togo Morocco Turkmenistan c El Salvador Haiti Yemen, b Panama Estonia Honduras Zimbabwe Philippines Fiji Madagascar Slovak a Grenada Malawi St. Vincent and the Guatemala Mali Grenadines Iran, Islamic Mauritania Thailand Kazakhstan Mozambique Tunisia Latvia Myanmar Turkey Lebanon Nicaragua Uruguay Lithuania Niger Venezuela Maldives Nigeria Malta Rwanda Mexico b São Tomé and Principe Oman Sierra Leone Papua New Guinea Somalia Paraguay Sudan Poland Tanzania Romania Uganda Russian Federation Vietnam Samoa Zambia Seychelles Solomon South Africa Sri Lanka c St. Kitts and Nevis St. Lucia Swaziland Tonga Trinidad and Tobago Ukraine Uzbekistan Vanuatu Note: Tables A1.2 and A1.3 classify all World Bank member economies and all other economies with populations of more than 30,000. Economies are divided among income groups according to 1997 GNP per capita, calculated using the World Bank Atlas method. Income groups are low-income, $785 or less; lower-middle-income, $786 3,125; upper-middle-income, $3,126 9,655; and high-income, $9,655 or more. The table excludes Bosnia and Herzegovina, the Federal of Yugoslavia (Serbia and Montenegro), Liberia, and Slovenia because of lack of data. a. Countries whose indebtedness has increased. b. Countries whose indebtedness has decreased. c. Countries whose income classification has changed. Source: World Bank Debtor Reporting System. Six countries joined the moderately indebted group: Algeria and Equatorial Guinea are reclassified as moderately indebted because of improvements in the debt-to-exports exports ratio (Algeria) and debt-to-gnp ratio (Equatorial Guinea). However, Belize, Dominica, and Mauritius are reclassified as a result of increases in debt-to-gnp ratios and the Slovak is reclassified as a result of an increase in the debt-to-export ratio. Notes 1. This number includes the of Korea, which is classified as a high-income country by the World Bank. 101

G L O B A L D E V E L O P M E N T F I N A N C E Table A1.3 Classification of non-drs economies Severely indebted Severely indebted Moderately indebted Less indebted low-income middle-income middle-income middle-income Afghanistan Cuba Gibraltar Antigua and Barbuda Namibia Iraq Bahrain Saudi Arabia Kiribati Suriname Korea, Dem. Libya Note: Tables A1.2 and A1.3 classify all World Bank member economies and all other economies with populations of more than 30,000. Economies are divided among income groups according to 1996 GNP per capita, calculated using the World Bank Atlas method. Income groups are low-income, $785 or less; lower-middle-income, $786 $3,125; upper-middle-income, $3,126 $9,655; and high-income, $9,655 or more. Source: World Bank Debtor Reporting System. Table A1.4 Major economic indicators, 1997 (millions of U.S. dollars) Country EDT PV TDS INT XGS GNP Albania 706 544 39 23 551 2,515 Algeria 30,921 29,344 4,420 2,074 16,225 44,815 Angola 10,160 8,764 841 358 5,308 4,384 Argentina 123,221 119,661 19,969 7,424 34,003 318,617 Armenia 666 451 28 17 478 1,751 Azerbaijan 504 374 78 20 1,154 4,323 Bangladesh 15,125 8,650 705 186 6,663 43,082 Barbados 644 634 103 42 Belarus 1,162 1,084 150 75 8,379 22,334 Belize 383 347 31 13 336 616 Benin 1,624 702 55 23 604 2,111 Bhutan 89 47 6 1 121 328 Bolivia 5,248 3,295 475 212 1,362 7,766 Bosnia and Herzegovina 1,026 890 43 42 Botswana 562 455 104 29 4,892 Brazil 193,663 184,211 38,091 11,557 66,405 801,940 Bulgaria 9,858 9,298 932 497 6,460 9,732 Burkina Faso 1,297 721 52 18 439 2,389 Burundi 1,066 548 29 9 100 947 Cambodia 2,129 1,617 10 6 922 3,045 Cameroon 9,293 7,929 513 232 2,520 8,506 Cape Verde 220 139 12 4 213 419 Central African 885 527 13 4 216 1,003 Chad 1,027 550 35 12 281 1,574 Chile 31,440 30,178 4,418 1,561 21,632 74,119 China 146,697 134,687 18,445 6,918 214,848 886,059 Colombia 31,777 30,322 4,527 2,011 17,028 91,166 Comoros 197 127 2 1 60 194 Congo, Dem. 12,330 11,414 13 13 1,458 5,307 Congo, 5,071 4,490 112 57 1,805 1,821 Costa Rica 3,548 3,278 558 208 4,742 9,320 Côte d Ivoire 15,609 13,003 1,360 521 4,657 9,441 Croatia 6,842 6,595 1,120 374 9,414 19,453 Czech 21,456 20,622 4,405 1,099 31,274 51,385 Djibouti 284 175 7 2 232 497 Dominica 161 129 12 5 132 226 Dominican 4,239 3,850 461 202 7,466 14,622 Ecuador 14,918 13,600 1,891 823 6,106 17,240 Egypt, Arab 29,849 21,265 1,928 986 21,479 76,490 El Salvador 3,282 2,791 279 152 3,980 11,176 Equatorial Guinea 283 223 6 2 431 490 Eritrea 76 36 1 1 395 830 102

D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.4 Major economic indicators, 1997 (continued) (millions of U.S. dollars) Country EDT PV TDS INT XGS GNP Estonia 658 637 54 27 3,725 4,675 Ethiopia 10,079 8,277 99 47 1,047 6,338 Fiji 213 195 39 13 1,266 2,033 Gabon 4,285 4,218 433 261 3,307 4,479 Gambia, The 430 227 27 7 233 400 Georgia 1,446 1,073 46 43 720 5,250 Ghana 5,982 3,919 506 143 1,712 6,754 Grenada 105 80 9 3 303 Guatemala 4,086 3,629 362 162 3,667 17,593 Guinea 3,520 2,473 161 55 750 3,693 Guinea-Bissau 921 636 10 4 56 251 Guyana 1,368 988 133 56 737 682 Haiti 1,057 595 35 18 218 2,807 Honduras 4,698 3,803 505 193 2,421 4,569 Hungary 24,373 22,984 7,685 1,681 25,914 44,305 India 94,404 76,087 10,832 3,668 53,008 379,064 Indonesia 136,174 128,552 19,736 6,727 65,818 208,686 Iran, Islamic 11,816 11,193 6,274 978 19,466 123,560 Jamaica 3,913 3,600 641 208 3,963 4,007 Jordan 8,234 7,494 621 307 5,606 7,031 Kazakhstan 4,278 4,182 502 228 7,700 21,965 Kenya 6,486 4,872 648 214 3,017 10,024 Korea, of 143,373 135,947 14,548 6,989 168,929 437,320 Kyrgyz 928 663 43 23 684 2,170 Lao PDR 2,320 930 28 8 429 1,753 Latvia 503 471 133 28 3,048 5,396 Lebanon 5,036 4,866 734 296 5,098 15,342 Lesotho 660 441 45 18 706 1,272 Liberia 2,012 1,900 0 0 Lithuania 1,541 1,393 319 68 5,307 9,387 Macedonia, FYR 1,543 1,632 120 70 1,369 2,187 Madagascar 4,105 2,909 212 94 786 3,442 Malawi 2,206 1,144 78 27 628 2,478 Malaysia 47,228 44,108 7,109 2,833 95,387 93,507 Maldives 160 97 29 4 426 310 Mali 2,885 1,239 78 24 644 2,470 Malta 1,034 984 65 54 3,154 3,374 Mauritania 2,453 1,767 114 44 443 1,046 Mauritius 2,472 2,386 283 147 2,591 4,362 Mexico 149,690 144,685 42,453 10,219 131,125 390,170 Moldova 1,040 936 123 51 1,127 1,810 Mongolia 718 461 60 20 516 984 Morocco 19,321 17,206 3,082 1,034 11,575 32,498 Mozambique 5,526 3,305 104 45 562 2,573 Myanmar 5,074 4,191 116 15 1,448 Nepal 2,398 1,249 98 28 1,445 4,934 Nicaragua 5,677 4,537 326 144 1,028 1,858 Niger 1,579 1,020 61 15 310 1,831 Nigeria 28,455 26,968 1,416 576 18,172 37,620 Oman 3,602 3,392 474 177 8,034 Pakistan 29,665 23,360 4,059 1,233 11,242 62,401 Panama 7,715 7,335 1,657 418 9,709 8,401 Papua New Guinea 2,273 1,844 374 85 2,490 4,036 Paraguay 2,053 1,876 228 103 4,118 9,877 Peru 30,496 27,816 2,936 1,438 9,500 60,872 Philippines 45,433 43,298 4,541 2,201 49,120 85,657 Poland 39,890 35,867 2,562 1,477 41,981 135,290 Romania 10,442 9,881 1,583 578 10,059 31,724 Russian Federation 125,645 118,832 6,774 5,063 103,800 479,531 Rwanda 1,111 616 22 10 165 1,850 Samoa 156 78 5 2 130 195 Table continues on next page 103

G L O B A L D E V E L O P M E N T F I N A N C E Table A1.4 Major economic indicators, 1997 (continued) (millions of U.S. dollars) Country EDT PV TDS INT XGS GNP São Tomé and Principe 261 149 7 3 13 39 Senegal 3,425 2,280 247 89 1,620 4,427 Seychelles 149 130 15 5 369 529 Sierra Leone 1,149 724 20 10 93 812 Slovak 9,989 9,248 1,375 425 11,281 19,340 Solomon 135 88 6 1 242 367 Somalia 2,561 2,204 South Africa 25,222 24,006 4,774 1,371 37,192 125,810 Sri Lanka 7,638 5,262 428 147 6,655 15,035 St. Kitts and Nevis 62 44 6 2 153 255 St. Lucia 152 121 13 7 590 St. Vincent and the Grenadines 258 231 17 11 289 Sudan 16,326 15,183 58 15 1,118 8,951 Swaziland 368 308 32 15 1,257 1,447 Syrian Arab 20,865 18,751 563 202 6,082 16,509 Tajikistan 901 691 37 8 804 2,020 Tanzania 7,177 5,319 161 50 1,245 7,382 Thailand 93,416 91,302 11,716 5,586 76,157 149,257 Togo 1,290 839 55 16 676 1,444 Tonga 61 37 6 1 82 190 Trinidad and Tobago 2,162 2,118 547 150 3,126 5,555 Tunisia 11,323 10,534 1,413 538 8,843 18,037 Turkey 91,205 82,271 10,716 3,921 58,101 193,550 Turkmenistan 1,771 1,660 263 68 759 2,794 Uganda 3,708 2,059 191 45 863 6,565 Ukraine 10,901 10,418 1,356 669 20,513 49,118 Uruguay 6,652 6,402 742 453 4,803 19,882 Uzbekistan 2,761 2,605 516 192 3,980 24,749 Vanuatu 48 29 2 1 148 233 Venezuela 35,542 35,036 8,634 2,312 27,600 85,481 Vietnam 21,629 19,490 907 325 11,623 24,193 Yemen, 3,856 2,793 98 38 3,722 5,029 Yugoslavia, Fed. Rep. (Serbia/Montenegro) 15,107 15,018 53 53 Zambia 6,758 5,042 268 73 1,348 3,661 Zimbabwe 4,961 4,183 677 228 3,116 8,488 Not available. Note: For definition of indicators, see Sources and Definitions section (pages 179 85). Numbers in italics are from debt sustainability analyses undertaken in the context of the Heavily Indebted Poor Countries Debt Initiative. Present value estimates for these countries are for public and publicly guaranteed debt only, and export figures exclude worker remittances. Sources: World Bank Debtor Reporting System and staff estimates. 104

D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.5 Key indebtedness ratios, 1997 (percent) Country EDT/XGS PV/XGS EDT/GNP PV/GNP TDS/XGS INT/XGS Albania 93 72 27 21 5 3 Algeria 212 201 73 69 30 14 Angola 209 181 282 244 17 7 Argentina 393 382 42 40 64 24 Armenia 160 108 32 22 7 4 Azerbaijan 56 42 13 10 9 2 Bangladesh 251 144 37 21 12 3 Barbados 50 49 38 38 8 3 Belarus 17 16 6 5 2 1 Belize 118 106 64 58 9 4 Benin 344 149 78 34 12 5 Bhutan 79 42 30 16 5 1 Bolivia 402 252 73 46 36 16 Bosnia and Herzegovina 269 234 44 38 11 11 Botswana 19 16 12 10 4 1 Brazil 315 299 26 24 62 19 Bulgaria 149 141 93 88 14 8 Burkina Faso 427 237 54 30 17 6 Burundi 1,077 554 113 58 29 9 Cambodia 233 177 70 53 1 1 Cameroon 404 345 114 97 22 10 Cape Verde 110 69 53 33 6 2 Central African 414 246 83 50 6 2 Chad 354 190 67 36 12 4 Chile 154 148 48 46 22 8 China 80 74 19 17 10 4 Colombia 201 192 38 36 29 13 Comoros 324 208 95 61 4 1 Congo, Dem. 737 682 232 215 1 1 Congo, 323 286 280 248 7 4 Costa Rica 82 76 39 36 13 5 Côte d Ivoire 367 305 166 138 32 12 Croatia 76 74 36 35 13 4 Czech 70 67 41 39 14 4 Djibouti 127 79 58 36 3 1 Dominica 129 104 74 59 9 4 Dominican 61 55 33 30 7 3 Ecuador 259 236 87 79 33 14 Egypt, Arab 147 105 44 31 10 5 El Salvador 94 80 32 27 8 4 Equatorial Guinea 120 95 98 77 3 1 Eritrea 22 10 10 5 0 0 Estonia 21 20 14 14 2 1 Ethiopia 1,129 927 168 138 11 5 Fiji 17 16 11 10 3 1 Gabon 134 132 95 94 14 8 Gambia, The 202 106 111 59 13 3 Georgia 252 187 34 26 8 8 Ghana 352 230 90 59 30 8 Grenada 69 52 37 28 6 2 Guatemala 121 108 26 23 11 5 Guinea 472 331 97 68 22 7 Guinea-Bissau 2,562 1,769 374 258 27 10 Guyana 197 143 220 159 19 8 Haiti 526 296 38 21 17 9 Honduras 223 181 113 91 24 9 Hungary 114 107 56 53 36 8 India 187 151 27 21 21 7 Indonesia 228 215 66 62 33 11 Iran, Islamic 57 54 11 11 30 5 Jamaica 99 91 99 91 16 5 Table continues on next page 105

G L O B A L D E V E L O P M E N T F I N A N C E Table A1.5 Key indebtedness ratios, 1997 (continued) (percent) Country EDT/XGS PV/XGS EDT/GNP PV/GNP TDS/XGS INT/XGS Jordan 157 143 123 112 12 6 Kazakhstan 63 61 21 20 7 3 Kenya 215 162 70 53 21 7 Korea, of 90 85 31 30 9 4 Kyrgyz 163 117 34 24 8 4 Lao PDR 544 218 130 52 6 2 Latvia 19 18 9 8 5 1 Lebanon 106 102 38 36 15 6 Lesotho 100 67 52 35 7 3 Liberia Lithuania 36 33 19 17 7 2 Macedonia, FYR 112 119 74 78 9 5 Madagascar 520 369 120 85 27 12 Malawi 419 217 108 56 15 5 Malaysia 51 48 52 49 8 3 Maldives 42 25 57 34 8 1 Mali 512 220 116 50 14 4 Malta 32 30 31 29 2 2 Mauritania 498 358 237 171 23 9 Mauritius 95 92 59 57 11 6 Mexico 131 127 46 44 37 9 Moldova 102 92 48 43 12 5 Mongolia 143 92 75 48 12 4 Morocco 166 148 58 52 27 9 Mozambique 1,185 708 257 153 22 10 Myanmar 376 310 9 1 Nepal 191 100 52 27 8 2 Nicaragua 638 510 336 268 37 16 Niger 478 309 84 54 18 5 Nigeria 173 164 88 84 9 4 Oman 49 46 34 32 6 2 Pakistan 253 199 47 37 35 11 Panama 83 79 97 92 18 5 Papua New Guinea 80 65 50 40 13 3 Paraguay 48 44 22 20 5 2 Peru 358 327 52 47 34 17 Philippines 111 106 55 52 11 5 Poland 100 90 31 28 6 4 Romania 107 101 32 31 16 6 Russian Federation 125 118 30 29 7 5 Rwanda 944 523 73 40 19 8 Samoa 130 65 83 41 4 1 São Tomé and Principe 2,294 1,306 659 375 58 22 Senegal 222 147 76 51 16 6 Seychelles 46 40 30 26 5 2 Sierra Leone 982 619 136 86 17 8 Slovak 89 83 54 50 12 4 Solomon 61 39 39 25 3 1 Somalia South Africa 70 67 20 19 13 4 Sri Lanka 126 87 55 38 7 2 St. Kitts and Nevis 44 31 26 19 4 1 St. Lucia 38 31 27 22 3 2 St. Vincent and the Grenadines 160 143 97 87 11 7 Sudan 1,530 1,423 218 203 5 1 Swaziland 31 26 27 22 3 1 Syrian Arab 331 298 131 118 9 3 Tajikistan 111 85 45 35 5 1 Tanzania 543 403 112 83 12 4 Thailand 124 121 57 56 16 7 Togo 192 125 98 63 8 2 Tonga 81 49 34 21 8 2 106

D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.5 Key indebtedness ratios, 1997 (continued) (percent) Country EDT/XGS PV/XGS EDT/GNP PV/GNP TDS/XGS INT/XGS Trinidad and Tobago 72 70 43 42 18 5 Tunisia 129 120 63 59 16 6 Turkey 182 164 50 45 21 8 Turkmenistan 145 135 48 45 21 6 Uganda 485 269 61 34 25 6 Ukraine 56 54 18 18 7 3 Uruguay 153 147 36 35 17 10 Uzbekistan 69 65 12 11 13 5 Vanuatu 35 21 21 13 2 1 Venezuela 138 136 46 46 33 9 Vietnam 222 200 97 87 9 3 Yemen, 109 79 88 64 3 1 Yugoslavia, Fed. Rep. (Serbia/Montenegro) Zambia 521 389 203 151 21 6 Zimbabwe 165 139 63 53 23 8 Not available. Note: For definition of indicators, see Sources and Definitions section (pages 179 85). Numbers in italics are from debt sustainability analyses undertaken in the context of the Heavily Indebted Poor Countries Debt Initiative. Present value estimates for these countries are for public and publicly guaranteed debt only, and export figures exclude worker remittances. Sources: World Bank Debtor Reporting System and staff estimates. 107

G L O B A L D E V E L O P M E N T F I N A N C E Table A1.6 Classification of economies by income and region, 1999 Sub-Saharan Africa Asia Europe and Central Asia Middle East and North Africa East and Eastern Income Southern East Asia Europe and Rest of Middle North group Subgroup Africa West Africa and Pacific South Asia Central Asia Europe East Africa Americas Lowincome Angola Burundi Comoros Congo, Dem.. a Eritrea Ethiopia Kenya Lesotho Madagascar Malawi Mozambique Rwanda Somalia Sudan Tanzania Uganda Zambia Zimbabwe Benin Burkina Faso Cameroon Central African Chad Congo, Rep. of Côte d Ivoire Gambia, The Ghana Guinea Guinea-Bissau Liberia Mali Mauritania Niger Nigeria São Tomé and Principe Senegal Sierra Leone Togo Cambodia Lao PDR Mongolia Myanmar Vietnam Afghanistan Bangladesh Bhutan India Nepal Pakistan Albania Armenia Azerbaijan Bosnia and Herzegovina Kyrgyz Moldova Tajikistan Turkmenistan Yemen, Rep. of Haiti Honduras Nicaragua Middleincome Lower Djibouti Namibia Swaziland Cape Verde Equatorial Guinea China Fiji Indonesia Kiribati Korea, Dem. Marshall Micronesia, Fed. Sts. Papua New Guinea Philippines Samoa Solomon Thailand Tonga Vanuatu Maldives Sri Lanka Belarus Bulgaria Georgia Kazakhstan Latvia Lithuania Macedonia, FYR b Romania Russian Federation Ukraine Uzbekistan Yugoslavia, Fed. Rep. of c Iran, Islamic Iraq Jordan Syrian Arab West Bank and Gaza Algeria Egypt, Arab Morocco Tunisia Belize Bolivia Colombia Costa Rica Cuba Dominica Dominican Ecuador El Salvador Guatemala Guyana Jamaica Panama Paraguay Peru St. Vincent and the Grenadines Suriname Upper Botswana Mauritius Mayotte Seychelles South Africa Gabon American Samoa Malaysia Palau Croatia Czech Estonia Hungary Slovak Isle of Man Turkey Bahrain Lebanon Oman Saudi Arabia Libya Malta Antigua and Barbuda Argentina Barbados Brazil Chile Grenada Guadeloupe Mexico Puerto Rico St. Kitts and Nevis St. Lucia Trinidad and Tobago Uruguay Venezuela Subtotal: 157 26 23 22 8 26 2 10 6 34 108

D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.6 Classification of economies by income and region, 1999 (continued) Sub-Saharan Africa Asia Europe and Central Asia Middle East and North Africa East and Eastern Income Southern East Asia Europe and Rest of Middle North group Subgroup Africa West Africa and Pacific South Asia Central Asia Europe East Africa Americas Highincome OECD Australia Japan Korea, New Zealand Austria Belgium Denmark Finland France Germany Greece Iceland Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom Canada United States Non- OECD Reunion Brunei French Polynesia Guam Hong Kong, China d Macao New Caledonia Northern Mariana Singapore OAE e Slovenia Andorra Channel Cyprus Faeroe Greenland Liechtenstein Monaco Israel Kuwait Qatar United Arab Emirates Aruba Bahamas, The Bermuda Cayman French Guiana Martinique Netherlands Antilles Virgin (U.S.) Total: 211 27 23 35 8 27 27 14 6 44 Note: This table classifies all World Bank member economies, and all other economies with populations of more than 30,000. For operational and analytical purposes, the World Bank s main criterion for classifying economies is gross national product (GNP) per capita. Every economy is classified as low-income, middle-income (subdivided into lower-middle and upper-middle), or high-income. Other analytical groups, based on regions and external debt, are also used. Classification by income does not necessarily reflect development status, although low-income and middle-income economies are sometimes referred to as developing economies. The use of the term is convenient; it is not intended to imply that all economies in the group are experiencing similar development or that other economies have reached a preferred or final stage of development. Economies are divided according to 1997 GNP per capita, calculated using the World Bank Atlas method. Income groups are low income, $785 or less; lower-middleincome, $786 $3,125; upper-middle-income, $3,126 $9,655; and high-income, $9,656 or more. a. Formerly Zaire. b. Former Yugoslav of Macedonia. c. Federal of Yugoslavia (Serbia/Montenegro). d. On 1 July 1997 China resumed sovereignty over Hong Kong. e. Other Asian economies Taiwan, China. Source: World Bank data. 109

G L O B A L D E V E L O P M E N T F I N A N C E Table A1.7 Classification of economies by income group and indebtedness category, 1999 Income group Subgroup Severely indebted Moderately indebted Less indebted Not classified by indebtedness Lowincome Afghanistan Angola Bosnia and Herzegovina Burkina Faso Burundi Cameroon Central African Congo, Dem. a Congo, Côte d Ivoire Ethiopia Ghana Guinea Guinea-Bissau Haiti Honduras Madagascar Malawi Mali Mauritania Mozambique Myanmar Nicaragua Niger Nigeria Rwanda São Tomé and Principe Sierra Leone Somalia Sudan Tanzania Uganda Vietnam Zambia Bangladesh Benin Cambodia Chad Comoros Gambia, The India Kenya Lao PDR Pakistan Senegal Togo Yemen, Zimbabwe Albania Armenia Azerbaijan Bhutan Eritrea Kyrgyz Lesotho Moldova Mongolia Nepal Tajikistan Turkmenistan Liberia Middleincome Lower Bolivia Bulgaria Cuba Ecuador Guyana Indonesia Iraq Jamaica Jordan Peru Syrian Arab Algeria Belize Colombia Dominica Equatorial Guinea Georgia Macedonia FYRb Morocco Panama Philippines St. Vincent and the Grenadines Thailand Tunisia Belarus Cape Verde China Costa Rica Djibouti Dominican Egypt, Arab El Salvador Fiji Guatemala Iran, Islamic Kazakhstan Kiribati Korea, Dem. Latvia Lithuania Maldives Namibia Papua New Guinea Paraguay Romania Russian Federation Samoa Solomon Sri Lanka Suriname Swaziland Tonga Ukraine Uzbekistan Vanuatu Yugoslavia, Fed. c Marshall Micronesia, Fed. Sts. West Bank and Gaza Upper Argentina Brazil Gabon Chile Hungary Malaysia Mauritius Slovak Turkey Uruguay Venezuela Antigua and Barbuda Bahrain Barbados Botswana Croatia Czech Estonia Grenada Lebanon Libya Malta Mexico Oman Poland Saudi Arabia Seychelles South Africa St. Kitts and Nevis St. Lucia Trinidad and Tobago American Samoa Guadeloupe Isle of Man Mayotte Palau Puerto Rico 110

D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.7 Classification of economies by income group and indebtedness category, 1999 (continued) Income group Subgroup Severely indebted Moderately indebted Less indebted Not classified by indebtedness Highincome OECD Australia Austria Belgium Canada Denmark Finland France Germany Greece Iceland Ireland Italy Japan Korea, Luxembourg Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom United States Non- OECD Andorra Aruba Bahamas, The Bermuda Brunei Cayman Channel Cyprus Faeroe French Guiana French Polynesia Guam Greenland Hong Kong, China d Israel Kuwait Liechtenstein Macao Martinique Monaco Netherlands Antilles New Caledonia Northern Mariana Qatar Reunion Singapore Slovenia United Arab Emirates Virgin (U.S.) OAE e Total: 211 48 35 64 64 Note: This table classifies all world Bank member economies, plus all other economies with populations of more than 30,000. Income group: Economies are divided according to 1997 GNP per capita, calculated using the World Bank Atlas method. The groups are: low-income, $785 or less; lower-middle-income, $786 $3,125; upper-middle-income, $3,126 $9,655; and high-income, $9,656 or more. Indebtedness: Standard World Bank definitions of severe and moderate indebtedness are used to classify economies in this table. Severely indebted means either that the present value of debt service to GNP exceeds 80 percent or that the present value of debt service to exports exceeds 220 percent. Moderately indebted means either of the two key ratios exceeds 60 percent of, but does not reach, the critical levels. Present value calculation is not possible for economies that do not report detailed statistics to the World Bank Debtor Reporting System (DRS). Instead, the following methodology is used to classify non-drs economies. Severely indebted means three of four key ratios (averaged over 1995 97) are above critical levels: debt to GNP (50 percent); debt to exports (275 percent); debt service to exports (30 percent); and interest to exports (20 percent). Moderately indebted means three of the four key ratios exceed 60 percent of, but do not reach, the critical levels. All other classified low- and middle-income economies are listed as less indebted. a. Formerly Zaire. b. Former Yugoslav of Macedonia. c. Federal of Yugoslavia (Serbia/Montenegro). d. On 1 July 1997 China resumed sovereignty over Hong Kong. e. Other Asian economies Taiwan, China. Source: World Bank data. 111