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October 13 , 2008

China: An Evaluation of World Bank Assistance


"In the past quarter century, China has had one of the highest rates of sustained economic growth and poverty reduction in the world. But challenges of inequality and environmental degradation have emerged in the last decade or so, and the unfinished reform agenda poses fiscal, financial, and social risks. Because of its long-term involvement in China, the World Bank has had a substantial cumulative impact in many areas. This book evaluates the relevance and effectiveness of Bank assistance to China since the early 1990s. The author finds that the Bank has made important contributions to economic reform, poverty reduction, infrastructure development, and environmental protection, but has fallen short of its objectives in promoting fiscal and financial reforms to reduce inequality and risk. This book also addresses the variability of the environmental safeguard policy and procedures. The author contends that the Bank still has a role to play in China, but with a reduced lending program and without IDA resources, both the Bank and China need to adapt in order to make the best use of Bank assistance. "

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