Yesterday the World Bank's Board of Executive Directors approved
a US$20 million loan to support China's economic reform. It is the
fifth in a series of technical cooperation projects that the Bank
has funded since 1983.
The China Economic Reform Implementation Project aims to
significantly increase the adoption and use of sound reform and
development strategies, policies and plans in China. This will be
achieved through institutional capacity building through a series
of technical assistance subprojects tailored to address specific
challenges facing the government at the national and sub-national
levels. The project has a strong focus on learning of new knowledge
as well as on replication and scaling up efforts that
work.?
"The key words to describe this project are 'reform and
development' and 'technical assistance'," said Chunlin Zhang, World
Bank task manager for the project. "It is designed to assist
government decision makers who are determined to implement a reform
and development agenda in their departments or regions, but face a
lack of technical knowledge and capacity. In supplying the
knowledge and capacity they need, the project is driven by real
demand and focused on achieving results."
Subprojects will focus on a range of objectives reducing
poverty, inequality and social exclusion; improving public and
market institutions; managing scarce resources and environmental
challenges; financing sustained and efficient growth; integrating
China into the world economy; or promoting achievement by China of
the Millennium Development Goals.
The Department for International Development (DfID) of the
Government of the United Kingdom has approved a grant of ?5.71
million to co-finance this project. It aims to support sub-national
governments implementing projects focused on poverty reduction and
the achievement of the Millennium Development Goals. "DFID grant
funding will enable the poorer parts of China to benefit from the
access to external expertise this project will support, and so help
promote achievement of the more equitable and harmonious society
that is the objective of the new 11th Five-Year Guidelines". DFID's
Deputy Representative Chris Athayde said.
The project will be implemented by Ministry of Finance of China.
Central government departments and local governments can apply for
subproject funding from Ministry of Finance any time during the
period of project implementation (2006-2011). The proceeds of the
loan and grant will finance consulting services, workshops,
training, study tours and other capacity building activities. The
International Department of Ministry of Finance will issue detailed
guidelines for preparation of subproject proposals. Subprojects
will be required to produce "strategies, policies, implementation
plans and mechanisms" that may significantly contribute to the
achievement of a project objective, and to be clearly defined in
light of the practical challenges that the subproject is designed
to address.
The US$20 million loan from the International Bank for
Reconstruction and Development is repayable in 20 years with a
five-year grace period.
(China.org.cn April 12, 2006)