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East Asia & Pacific is facing some great development challenges today: urbanization, protection of the environment, the need to find renewable energy sources and many others. This site wants to create a conversation around those important issues. More »

Public Sector Development

Largest ever World Bank loan to Vietnam signals country's swift path to middle-income status

Submitted by James I Davison on Thu, 2010-01-14 14:45

Last month, Vietnam and the World Bank signed the credit agreement for a loan that is historic for the rapidly developing country. Not only is it the largest ever World Bank loan to Vietnam, but it is also the first from its International Bank for Reconstruction and Development (IBRD) – meaning the country is a step closer to reaching middle-income status by this year.

A few days earlier, I caught up with Martin Rama, the Bank’s lead economist in Hanoi, and asked him a few questions. In a short video interview (embedded below), Rama explains why this $500 million loan, meant in part to strengthen public investment in Vietnam, is so significant to the country.

"This is a country that has had 20 years of spectacular growth without a substantial increase in inequality – with one of the fastest reductions in poverty that we have ever documented. There is much for Vietnam to be proud of."


  
Read more about the development policy loan to Vietnam here.