China's GDP may be 40 percent smaller than previously estimated,
according to a World Bank report, but the bank's president says the
statistics used in the finding are subject to further
adjustment.
The report, released Monday, examines prices in 146 countries to
establish more accurate rankings of economic might, poverty and
wealth. Using the purchasing power parity method, which eliminates
the effect of exchange rates, the report found that China's GDP is
40 percent smaller than originally thought.
The finding incorporated new price data gathered with the Asian
Development Bank and the Chinese government in 12 urban areas in
China.
But World Bank president Robert Zoellick said at a news
conference in Beijing yesterday that the numbers are not complete
because they do not capture rural prices.
"I suspect as the price data for all of China is taken into
account, you probably see further adjustment of this price survey,"
Zoellick said.
"This is an evolving process of building a statistical base in
China and other developing countries," he said, adding that the
World Bank is not drawing any policy conclusions based on the
report.
During the conference, Zoellick also said China could play
greater role in boosting the growth of developing regions, such as
Africa.
"China and the World Bank could share expertise in development
and work with partners to create opportunities and hope in more
countries."
Zoellick welcomed the nation's first contribution to the
International Development Association (IDA), the bank's arm that
provides grants and interest-free loans to the world's poorest
countries.
China, which has received 9.9 billion from IDA since 1981, has
made a "modest but significant" step in contributing to the record
$41 billion IDA raised last week. But the amount was not
disclosed.
"It's a significant breakthrough to have China become a
contributor," Zeollick said. "It signals China's intention to help
shape the international aid architecture through multinational
channels."
According to Zeollick, the World Bank is now discussing the
possibility of cooperating with Chinese banks and authorities in
Africa, such as the Export-Import Bank of China and the Ministry
and Commerce.
(China Daily December 19, 2007)
