The World Bank expects to lend up to US$1.5 billion a year to
China between now and 2010 to help it combat poverty and
environmental and sustainable development challenges, according to
a World Bank conference held yesterday.
The bank said that its board of directors has endorsed a new
Country Partnership Strategy (CPS) for China covering the period
between 2006 and 2010.
Poverty alleviation, helping China to integrate into the world
economy, strengthening its financial sector, improving public and
market institutions, and environmental protection are the five
major objectives of the new five-year plan.
In support of the five major objectives, the CPS includes a
large program of analytical and advisory services, and research and
training to facilitate policy discussions and underpin future
lending.
"The new Country Partnership Strategy recognizes clearly that
helping China to strengthen its economy, manage its resources and
environment and improve governance are important not only for the
Chinese people but also for people all over the world," according
to World Bank President Paul Wolfowitz.
Under the scheme the bank will lend up to US$1.5 billion
annually to China, with about 70 percent of the cash going to
proposed projects in inland provinces.
"China remains a developing country, with GDP (gross domestic
product) per capita about US$1,740 and more than 135 million people
living on less than a US$1 a day, mostly in rural areas and in
inland provinces which lag behind," the bank said.
"The key aim of our strategy is to help China address its
environmental challenges, social challenges and poverty
challenges," said David Dollar, the World Bank's China country
director.?
The plan has a big role for the International Finance
Corporation (IFC), the World Bank's private sector arm, which
expects new investments in China to exceed US$500 million per
year.
"IFC will continue to provide technical assistance to help
improve the business environment in China, while complementary
investments help to strengthen the financial sector, shift assets
into the private sector and encourage the private sector to adopt
international best practices," IFC's Executive Vice President Lars
Thunell said.
According to Dollar, IFC's lending will go directly to the
private sector, with a focus on small and medium-sized enterprises
outside the coastal areas.
(Xinhua News Agency May 25, 2006)