China and the World Bank
[4] Since its entry into the World Bank, China has transformed into a market-based economy and has experienced rapid economic and social development.
After the Communist victory in 1949 in the Chinese Civil War, the Chinese Communist Party proclaimed the People's Republic of China (PRC) on the mainland while the Republic of China (ROC) government retreated to the island of Taiwan, formerly a Japanese colony it acquired in 1945 after the end of hostiles in World War II.
Subsequently, the Legislative Yuan passed all loans made by the World Bank and other international lending agencies for Taiwan development projects.
[7] The World Bank served as a catalytic role in kick-starting China's economic development,[8] when the country initially received approval of its first project loan in 1981.
[10] Also as important, the technical assistant from the World Bank in areas such as how to appraise and implement priority projects, how to encourage innovation and introduce new technologies, and how to develop institutions and policy instruments needed for good economic management.
Initially, China was a recipient of International Development Association (IDA), the Bank's low-income country arm, and received up to $9.95 billion in concessional loans until 1999.
According to World Bank Group's Country Partnership Strategy, the bank's activity is classified under five pillars: "integrating China in the world economy; reducing poverty, inequality, and social exclusion; managing resource scarcity and environmental challenges; financing sustained and efficient growth; and improving public and market institutions".
[2] Since the opening up of this relationship, there has been many successes, which include China's economic performance since the market reforms of 1979, urbanization, social developments, and education and health services.
On the one side, World bank represents a traditional multilateral organization which provides aid on conditions of political freedom and human rights.
On the other side, China represents an immerging new organization that generally provides aid with no conditions and emphasize stability as a crucial threshold for continuing investment.
[15] Among them are primarily projects regarding to transportation, public administration, water sanitation&waste, agriculture, industry&trade, and energy&extractives.
According to World Bank, the string of infrastructure investment could "lift 32 million people out of moderate poverty conditions if implemented fully".
[2] In the year 2000, the World Bank also stopped the China Western Poverty Reduction project that was originally going to resettle over 58,000 Chinese farmers into Tibet.
