George Woods and the World Bank

PREFACE. George David Woods became the fourth president of the World Bank on January 1, 1963. John F. Kennedy, personally, urged Woods to accept. In August, 1962, Eugene Black invited Woods to the White House where Kennedy told Woods, in effect: Everything we in the United States have done since the end of the war, including the Marshall Plan, to try to build a peaceful and stable world is threatened by the growing gap between the poor and the rich countries. If that is not solved, it is going to cause the collapse of all our policies, including American foreign policy. We have to do something about this, and I think the World Bank, of the institutions available, is the most promising. This is our chosen instrument, and I want you, George Woods, to be the one to make the Bank a bridge between the poor and the rich countries. 1 Born in poverty, raised in Brooklyn by his adoring mother after the early death of his father, John Woods, and lacking a college education, George Woods, nonetheless, brought an impressive background to the task. At age 17, he became a messenger boy for Harris, Forbes and Company; at age 50, he was Chairman of the Board of the First Boston Corporation, an investment-banking firm which "was raising more money for more corporations than any other investment-banking house in the world. ,,2 As a young man in his twenties, accompanied by the young Arthur Dean who later served as chief negotiator to end the Korean War and, incidentally, was Woods's "best man", Woods won the account of the Nippon Light and Power Company. As a Broadway Angel, he made a small fortune in the theater by backing Sailor Beware, Dead End and Outward Bound. During the dark days of the depression, Woods successfully marketed the bonds of the Southern California Edison Company. He "saved" Ringling Brothers, Barnum and Bailey and the New York Times. He had a distinguished career in Washington during World War II as a Colonel in the General Staff Corp under Generals Somervell and Clay. Through a merger with Mellon Securities Corporation after World War II, George Woods made First Boston, at that time, the largest publicly-owned investment banking firm in the United States. In 1952, First Boston, together with Morgan Stanley, began to manage the new World Bank bonds. That same year, Woods headed a World Bank mission to investigate the possibility of expanding and amalgamating two steel companies in India. Later, he helped to organize development banks in India, Pakistan and the Philippines. He played an important role in settling the compensation for the previous shareholders of the Suez Canal Company after its nationalization. Woods, in New York, was in almost daily contact with Black, in Washington. Woods knew more about the World Bank than anyone nominated to be president, with the possible exception of Eugene Black himself, who had already been the United States Executive Director for two years before becoming president. Woods was a banker. In the words of Woods's wife, Louise, "He never suffered fools gladly." He was very bright, however; his was probably the keenest intellect of any president of the World Bank, and he presided over a significant transition in the Bank's history: from Eugene Black, who firmly established the Bank and sold its bonds to the world, to Robert McNamara, who greatly expanded the Bank and increased its lending, perhaps excessively. 1. Robert W. Oliver, "A Conversation with Irving Friedman, I," Conversations About George Woods and the World Bank, Washington, D.C., March 1974, pp. 26-7. 2. "The Biggest Underwriter Finds the Big Money." Business Week, March 6,1971, p. 64. 2 Woods emphasized education and agriculture. He expanded the economics staff. He looked outward to the international organizations which could assist development. He took in the newly independent nations of Africa. He tried greatly to increase the lending of the International Development Association. In 1935, Woods married the vivacious Louise Teraldson. They were a marvelous team. Louise accompanied George as he flew hither and yon on missions for the World Bank. She didn't seek entry to Woods's world of finance, nor he to her world of assisting young people from the Institute for International Education or the World Bank's Young Professional's Program. They had no children, but they were together in the evening dining, more likely than not, at the Twenty One Club in New York or entertaining in Washington. This is the story of a remarkable man who rose from the Brooklyn Navy Yard to a position of preeminence in the investment banking business. From the pinnacle of that vantage point, he was able increasingly to turn his attention to public affairs until, in 1963, he became President of the World Bank. He succeeded because of hard work, a brilliant mind, and attention to detail. His path was not without pitfalls, but he persevered; he left the Bank with the dream of greatly increased economic assistance based on "a Grand Assize." He was the right man in the right place for his time

Debt and development

The external indebtedness of many developing countries -Mexico, Brazil and Argentina in particular -- has been of considerable international concern. The debts arose partly because of changes in international banking practices and partly because of unwise short-term borrowing by governments accustomed to continuing international inflation. The problem has been made worse by high world-wide interest rates caused in part by the historically high domestic deficits of the United States government. There are signs that the crisis may be easing, however, and that moderate growth may Boon resume in Latin America

Localization of Large Polarons in the Disordered Holstein Model

We solve the disordered Holstein model via the DMRG method to investigate the combined roles of electron-phonon coupling and disorder on the localization of a single charge or exciton. The parameter regimes chosen, namely the adiabatic regime, $\hbar\omega/4t_0 = \omega' < 1$, and the `large' polaron regime, $\lambda < 1$, are applicable to most conjugated polymers. We show that as a consequence of the polaron effective mass diverging in the adiabatic limit (defined as $\omega' \to 0$ subject to fixed $\lambda$) self-localized, symmetry breaking solutions are predicted by the quantum Holstein model for infinitesimal disorder -- in complete agreement with the predictions of the Born-Oppenheimer Holstein model. For other parts of the ($\omega'$, $\lambda$) parameter space, however, self-localized Born-Oppenheimer solutions are not expected. If $\omega'$ is not small enough and $\lambda$ is not large enough, then the polaron is predominately localized by Anderson disorder, albeit more than for a free particle, because of the enhanced effective mass. Alternatively, for very small electron-nuclear coupling ($\lambda \ll 1$) the disorder-induced localization length is always smaller than the classical polaron size, $2/\lambda$, so that disorder always dominates. We comment on the implication of our results on the electronic properties of conjugated polymers

Health and Wages - Panel data estimates considering selection and endogeneity

This paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP) we find the health variable to suffer from measurement error and a number of tests provide evidence that selection corrections are necessary. Good health leads to higher wages for men, while there appears to be no significant effect for women. Contingent on the method of estimation, healthy males are estimated to earn between 1.3% and 7.8% more than those in poor health.health; wages; fixed effects; sample selection; instrumental variables

Pretentiously detecting power cancellation

Granville and Soundararajan have recently introduced the notion of pretentiousness in the study of multiplicative functions of modulus bounded by 1, essentially the idea that two functions which are similar in a precise sense should exhibit similar behavior. It turns out, somewhat surprisingly, that this does not directly extend to detecting power cancellation - there are multiplicative functions which exhibit as much cancellation as possible in their partial sums that, modified slightly, give rise to functions which exhibit almost as little as possible. We develop two new notions of pretentiousness under which power cancellation can be detected, one of which applies to a much broader class of multiplicative functions

On strong solutions for positive definite jump-diffusions

We show the existence of unique global strong solutions of a class of stochastic differential equations on the cone of symmetric positive definite matrices. Our result includes affine diffusion processes and therefore extends considerably the known statements concerning Wishart processes, which have recently been extensively employed in financial mathematics. Moreover, we consider stochastic differential equations where the diffusion coefficient is given by the alpha-th positive semidefinite power of the process itself with 0.5<alpha<1 and obtain existence conditions for them. In the case of a diffusion coefficient which is linear in the process we likewise get a positive definite analogue of the univariate GARCH diffusions.Comment: version to appear in Stochastic Processes and Their Applications, 201

The capacity of non-identical adaptive group testing

We consider the group testing problem, in the case where the items are defective independently but with non-constant probability. We introduce and analyse an algorithm to solve this problem by grouping items together appropriately. We give conditions under which the algorithm performs essentially optimally in the sense of information-theoretic capacity. We use concentration of measure results to bound the probability that this algorithm requires many more tests than the expected number. This has applications to the allocation of spectrum to cognitive radios, in the case where a database gives prior information that a particular band will be occupied.Comment: To be presented at Allerton 201