Finance & Development: banking on a global presence

Folio: The Magazine for Magazine Management, June 15, 1995

It would stand to reason that Finance & Development - a joint venture of the International Monetary Fund (IMF) and World Bank, specialized agencies of the United Nations - would be an international franchise from its inception. But when it made its debut in 1964, readers found only English, French and Spanish versions. Gradually, the magazine added German, Arabic and Portuguese editions in the 1970s, and a Chinese edition in the 1980s. Now, the push is to expand into the former Soviet Union by the first half of 1996, with a 15,000 circulation edition that will cost an estimated $80,000 to produce the largest-circulation edition is the English version (50,000 readers) and the smallest is the Arabic edition (6,000).

"We need to provide information on what a market economy is and how to privatize," says Claire Liuksila, editor in chief. "There's such dearth of information out there."

The cost of creating an international edition varies, depending on the available distribution channel and printer partner in each country. And the process can take anywhere from 18 months to two years, according to Liuksila. The Portuguese and German editions are the most pricey, while the Chinese edition is the leas expensive to translate and produce. "We are constrained," she says. "Because we are an international organization, we try to print in the country where the language originates."

As a primarily members-only publication, the magazine's goal is "to reach as many people in our member countries as possible," Liuksila adds. "When the magazine started, there were 100 countries that were members of the IMF and World Bank. With the opening of former Communist countries, there are now 179 member countries. That's why we are publishing in seven languages."

The Washington, D.C-based free quarterly now reaches 120,000 high-level government officials, academics, students, libraries and think-tanks, with the same content in all editions. Although the publication is distributed free by surface mail, with readers requalifying by mail every three years, those wishing to receive it by air mail are charged $20 a year. Liuksila would like the magazines to convert to paid circulation eventually. "We might end tip with a sliding scale for subscribers. Readers from developing countries might pay less than those from industrial countries," she says.

And, with the World Bank and IMF facing tighter budgets, a new phase is being heralded for the magazine: adding paid advertising to the currently largely ad-free magazine, which to date has limited itself to house ads. Finance & Development is now targeting commercial banks and companies like AT&T that may want to bring in telephone systems or otherwise develop the infrastructure in developing countries, says Sylvia Chatfield, an ad sales consultant who specializes in international advertising. "We will crack something by September," she says. "It's an unusual sell. It's one of the few places where you can bring together public and private sectors. If you're building a toll road in Mexico, you reed both private and public approval for tile contracts."

"Advertising is an opportunity nobody had thought about," Liuksila admits. "We probably have one of the best mailing lists around. We have a list of every mover and shaker in the government and finance worlds that would appeal to major construction companies and financial institutions."

In spite of the magazine's support from its parent organizations, its executives believe the time is ripe to consider further developing the franchise's strength, even given its already established presence throughout the world. Future projects may include publishing via the Internet and spinning off articles into a book or a CD-ROM. "We're very strongly supported, and yet we don't have a commercial purpose," says Liuksila. "Still, that doesn't mean we don't think in commercial terms."