Here are some of the issues that finance ministers and central bank presidents are considering during the annual meetings of the International Monetary Fund and World Bank in Seoul this week:
*A general capital increase for the World Bank. The World Bank makes long-term loans to developing countries to enable them to pave the way for increased industrialization and to improve their social and economic conditions. Like any bank, the World Bank needs capital -- invested funds that serve as a cushion against loan losses. The World Bank's capital comes from its member countries -- both the donor countries like the United States and the borrowing countries like Brazil or India. If the World Bank is to continue to increase its lending, it will need an increase in capital within two years, according to President A. W. Clausen. The decision on whether and how much to increase the capital will not be made in Seoul, but the political decision to begin negotiations might be.
*International Development Association funding. The IDA is an affiliate of the World Bank that makes interest-free development loans for 50 years to the world's poorest countries -- generally those that have annual per capita incomes of less than $400. Unlike the World Bank, which has interest income and repayments coming in all the time that it can lend out, IDA has no resources except for contributions by rich countries. IDA is in the middle of a three-year, $9 billion loan program that began July 1, 1984. Countries apparently have agreed to begin discussing how much money should be raised from rich countries for a new IDA program to begin July 1, 1987.
*Latin American debtors. Latin American nations owe foreigners $360 billion and have been chafing under the need to raise enough dollars to pay the interest on their debts and rekindle their economies. The United States is expected to propose a new program to funnel billions of dollars of World Bank loans and private commercial bank loans to help Latin America grow again.
*Surveillance. Delegates undoubtedly will be discussing how to improve overall world economic health and how the IMF should use its leverage to persuade countries like the United States to reduce their budget deficits and countries like West Germany and Japan to take steps to increase economic growth.