World Bank to lend US$2 billion to China
By Zheng Lifei (China Daily)
Updated: 2006-05-25 08:54
The World Bank expects to lend up to US$2 billion a year to China between now
and 2010 to help it combat poverty and environmental and sustainable development
challenges.
The bank said yesterday that its board of directors has
endorsed a new Country Partnership Strategy (CPS) for China for
2006-2010.
Poverty alleviation, helping China integrate into the world
economy, the strengthening of its financial sector, improving public and market
institutions and environmental protection are the five major objectives of the
new five-year plan, the bank said.
"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," World Bank President
Paul Wolfowitz said.
Under the scheme the bank will lend up to US$1.5
billion annually to China, with about 70 per cent 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, the World Bank
said.
"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.
IFC's lending, David said,
will directly go to the private sector, with a focus on small and medium-sized
enterprises outside the coastal areas.
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