Consulting Engineers and the World Bank

Author(s): HERBERT D. VOGEL

Source: The Military Engineer, Vol. 56, No. 373 (September-October 1964), pp. 331-332
Published by: Society of American Military Engineers
Stable URL: https://www.jstor.org/stable/44574829
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 Consulting Engineers
and the World Bank
# By BRIG. GEN. HERBERT D. VOCEL
United States Army, Retired

main concern of the Bank is that the firm selected

shall have had satisfactory experience on compar-
EVERY
EVERY found culiar
foundto exactly placeculiar
exactly itself. theto
theonsame. itself.
earthOften hasIntwobenefits
In same. 110their 110 two
Often inherent instances
areinstances will
their resources, will benefitsthey
they are pe-bebe able projects ; that the staff to be assigned to the par-
available just for the taking - as from the climate ticular work is qualified and adequate; and that the
and scenery, the seashores and the lakes - but more terms under which the firm is to be employed are
often resources must be developed. Efforts and tal- such as to assure exemplary execution of the project.
ents of people must be applied to make them useful. The need for a project is not in itself a criterion
Both tasks and benefits will accrue to the people who for its justification, for need may be born largely of
inhabit the area ; who, individually and collec- desire. A basic question is whether it can yield re-
tively, comprise the greatest resource of all. But,turns sufficient to pay for itself and contribute sub-
great as this human resource may be, it must be stantially to the general economy. In some cases,
nurtured and exploited with care. however, this may be too demanding.
There is no easy road to the full development of In the case of a power development there should
human resources. Education, training, and exper- be no question but that the project will be both self-
ience are hard to attain, and skills are acquired supporting and self-liquidating. It must give prom-
slowly. Yet all of this is necessary for the develop-
ise of returns sufficient to defray the costs of main-
ment of natural resources; for their conversiontenance,
to operation, depreciation, debt service, and
taxes, along with provisions for expansion at rates
goods of trade and commerce. Unless a country can
produce commodities for trade, its economy will fail.
low enough to encourage it.
In former years the pace of progress was much Not all borrowings, however, are for revenue pro-
slower than it is today. Nations and their people ducing projects. In the field of resource develop-
functioned within smaller spheres, international ment there are many needed and worth-while under-
competition was less keen, and communications had takings that cannot be revenue-producing in them-
not developed to the point of keeping everyone in- selves, yet may create human advantages bearing so
strongly upon the welfare and advancement of the
formed of everyone else's status and progress, there-
by making unrest the rule, and "keeping-up-with- nation as to warrant justification. Some, such as
the-Joneses" an international game. flood control and navigation projects, may be sup-
All this has changed; nations with new-found in-ported by direct benefit-cost ratios; others may need
dependence seek rapid progress; their people de- to be considered, at least in part, in the light of
mand a better life - not just for their children to- secondary benefits anticipated.
morrow, but for themselves, today. They cannot - SELECTION OF A CONSULTANT
and will not - be satisfied to wait for the slow ac-
quisition of either the skills to build and create The Bank
for maintains an extensive file of informa-
themselves or the money to finance on a pay-as-you- tion on consulting firms from which capabilities and
go basis. Since these vital ingredients to progress experience
are records may be quickly ascertained. Al-
not otherwise available to these nations, theytogether, must about twelve hundred firms are listed along
be borrowed. The International Bank for Recon- with their personnel, not as a "register" of "ap-
struction and Development was established proved" to assist
firms, but as a working information file. For
in financing needed and worth-while undertakings obvious reasons,
of blanket approval could not be ac-
the developing nations. Included in such assistance corded to any firm by the bank.
is the provision of engineering skills and knowledge. As an international organization the Bank insures
Professional services are required at several stages that its loans are put to work on an international
of a project. When it is first considered, studies basis. Consultants of all countries are treated
must be undertaken to determine its feasibility. equally, the main consideration being that of capa
There would be few limits to modern engineering bility for the particular task. This principle is in-
achievement if cost were not a consideration. But voked so strongly that the Bank resists requests b
nearly everything has a price tag, and the important borrowers for lists of firms from which they ma
thing to determine is that it can be justified. This make
is a a choice. It is realized that impartiality is diffi
responsibility of the country seeking the loan, cult
andto maintain and any suggestions, however we
the assistance of consulting engineers is generally intended, might serve to favor some consultants o
needed. Their selection is extremely important for
the consultants of some countries over others who
experience and judgment weigh heavily in feasibil- might be equally qualified.
ity studies of proposed projects. Moreover, the same The same attempt to be impartial is made by the
engineering firm may be employed in connection Bank in instances where it serves as an executing
with the ultimate project design and execution. The for studies financed in part by the United
agency

The Military Engineer, No. 373 331

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Nations Special Fund or from its own resources. In obtained at lowest cost to the borrower. While the
such cases, its role in the selection of consultants is borrower may not be concerned with the first of
more active, involving collaboration with the govern- these objects, his interests with respect to the latter
ment or its responsible agency. Care is taken to pre- are identical with those of the Bank. Thus, Bank
pare an initial list that will include candidate firms and borrower find themselves working together in
from a number of countries. full harmony on most phases of every project.
Large consulting firms have obvious advantages Whatever the popular impressions of the banker
over the smaller ones in making themselves known and engineer, or however each may have regarded the
and gaining contracts. They can point to the many other, the fact stands out that both are funda-
large projects they have worked on, they can list mentally economists and conservationists. The good
more employees with greater collective experience,banker is interested in making loans, but he will in-
they can afford to establish and maintain offices in sist upon a worth-while purpose, the execution of
many countries around the world, they can send out that purpose with efficiency and dispatch, and results
representatives to make known their capabilities, andthat will justify the expenditures. The good engineer
they can publish large and expensive brochures, is interested in making loans too, but his loans are of
richly illustrated in color. skill and knowledge rather than money. Since they
A small firm, while at a disadvantage to competeare his wealth - his stock in trade - he will insist upon
for the big jobs, which it probably could not under- the same requirements.
take in any case, has much to offer in personal Early in the century, before the engineering arts
services for the smaller ones. Its top men, being less had acquired their great complexities, before speciali-
pressed with organizational details, can give greater zations had developed in every conceivable field, the
attention to the assignment. With less overhead to engineer was a fairly simple person. Portrayed
carry and fewer people on the regular payroll, a di- usually as standing behind a transit in field attire, he
versity of specialized talent may be drawn from the was described as "one who can do with one dollar
ranks of individual consultants to fit the job. what any fool can do with two." This certainly
In seeking consultants in resource development the would not have put him at odds with his banker
project itself is something of a guide. If it is a friends. But there was not a definite alliance between
major undertaking such as a large multipurpose them for the simple reason that no need had appeared
dam involving power and perhaps lockage, it is for large-scale undertakings requiring their joint
obvious that only a large firm would be equipped to efforts. Phrases such as "population explosion" had
handle it. For lesser tasks, such as planning a net- not been invented, there was enough unpolluted water
work of feeder roads, designing a water system, orin the flowing streams to satisfy the needs of the peo-
studying the feasibility of a limited power station, a ple, and industries had not encroached on the rivers
small firm may prove more adaptable and provide so far as to be threatened by annual floods.
greater satisfaction. A firm, otherwise qualified, Then came two world wars, each in its time to speed
should not be dropped merely because of its size. up research and discovery. New industries arose to
The price of the service may be another consid-turn out new products, fabricated from new materials.
eration in the selection of consulting firms. Such aIncreasing demands on the part of growing popula-
firm is, of course, an organization made up of pro-tions turned attention to the large-scale development
fessional men that will be guided by professionalof natural resources. Now the need for money and
ethics in computing its fee. But this does not meanengineering were joined. Each proposed project
that the price is not negotiable. A country should presented a new set of problems, including economic
first of all attempt to get the best firm for its de- and engineering feasibility, adequacy of design, ex-
velopment work, and price should not be considered ecution of construction, and planning for effective
at that point. Only after a choice has been made onuse after completion. Engineers in growing numbers
the basis of ability to perform should cost be con-were needed.
sidered. If a suitable price cannot then be arranged, The growing alliance between the banker and the
the next best firm under consideration may be asked engineer has now become secure. Engineers are called
for its estimates.
upon more and more for opinions in international
work and domestic banks have their staff engineers
COMMON INTERESTS
as well. This has not changed the underlying princi-
The Bank is vitally interested in the way a bor- ple that an engineer's service should be to his client :
rower undertakes a project, because of the purposein the case of a study conducted by the Bank the re-
for which it was created: to provide and facilitate sponsibility of the engineer is to the Bank; when a
international investment in projects intended to in- project is financed by a loan and the engineer is
crease production, raise living standards, and help employed by a borrower, his responsibility is to the
bring about a better balance in world trade. If these borrower. But this presents no conflict, because his
purposes are to be accomplished, international com-aims, the aims of the borrower, and those of the
petition for the work must be assured and it must beBank are the same: to get the job done best at the
prosecuted in such a way that best results will be least cost.

A new and growing alliance between the banker and the

engineer is being brought about by the demand for resource
development
332 The Military Engineer, September-October, 1964

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