Video chat with David Dollar (2)
Updated: 2008-02-22 16:32
CD: So let's talk about, first of all, one of the latest developments in what China has been doing as a member of the World Bank. China has become a contributor member of the International Development Association, which is a part of the World Bank system. But we haven't heard any further arrangements or any figures about what China is going to do as a part of the IDA. Do you have any information?
DD Well, first let me say I think the amount is not that important. The important news here is that for the first time China has contributed to that part of the World Bank which makes the very concessional loans to low income countries in Africa and in Asia. China used to be a big recipient of those concessional loans, so it's a very important milestone that China now for the first time is contributing. I know that China gave about $30 million to a similar fund at the Asian Development Bank, so I think it's reasonable to think the contribution is going to be similar; in that kind of range.
CD: All right. But China is still at this point a beneficiary, or a recipient of the World Bank balance. There are all sorts of financial arrangements. How big or extensive is the benefit that China is getting from the World Bank.
DD China is a middle income country. So it borrows on our commercial terms. And right now China is borrowing about $1.5 billion per year for roughly 12 to 13 projects. So it's not a large amount of money for China, but I think China is trying to do is to spread that over a number of important areas and really use the World Bank projects to help innovate in some key areas where it has issues, like environmental areas and social areas.