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China

Will the Asian Infrastructure Investment Bank become the new musketeer?

Arturo Ardila's picture
On Monday, China officially launched the Asian Infrastructure Investment Bank (AIIB) in a ceremony with representatives from the bank's 57 founding-member countries. AIIB will have a capital base of US$100 billion, three-quarters of which come from within Asia.
 
Infrastructure is a growing need for Asia,
and collaboration is critical to filling
gaps. Photo: World Bank

At the inaugural ceremony in the Great Hall of the People, Chinese President Xi Jinping reaffirmed the new institution's mission, saying that "Our motivation [for setting up the bank] was mainly to meet the need for infrastructure development in Asia and also satisfy the wishes of all countries to deepen their co-operation."

Indeed, the AIIB is a major piece of China's regional infrastructure plan, which aims to address the huge needs for expanding rail, road and maritime transport links between China, central Asia, the Middle East and Europe. But the AIIB should also represent a huge opportunity for cooperation not only between countries in the region but also with other multilateral development banks.

Our experience working on transport mega-projects co-financed by several multilateral development banks (MDBs) already shows that this collaboration is much needed and critical for the success and viability of mega-projects. The most recent experience with the Quito Metro Line One Project, for example, shows that the co-financing banks – World Bank, Inter-American Development Bank, Andean Development Corporation and European Investment Bank –  brought not only their financial muscle but also their rich and diverse global knowledge and experience.  Incidentally, because of the Quito Metro project, all the MDBs involved in the project were dubbed as the  “musketeers, ” precisely due to the high degree of collaboration and team work that is making this project a success.

Increasing value for money in procurement under railway projects in China

Jianjun Guo's picture
 Yang Aijun / World Bank


China has experienced substantial economic growth over three decades, with sustained annual GDP growth rates of 8%-10%. In order to maintain the growth, the government seeks to accelerate the process of industrialization and urbanization started in the 12th Five Year Plan (2011-2015).

China has made investment in transport infrastructure a centerpiece of its strategy, with investment in the rail sector specifically increasing, in recognition of lower cost, higher energy efficiency, and lower carbon emission of rail transport compared with road and air transport.

China has built the world’s largest high-speed rail network, which includes 16,000 kilometers of rail connecting 160 cities on the mainland. China’s Mid- and Long-term Railway Network Plan (2004-2020), adopted in 2004 and updated in 2008, contains an ambitious program of railway network development, with an aim of increasing the public railway network from 75,000 km to 120,000 km, among which 25,000 route-km will be fast passenger railway routes.

Procurement of high-speed railway projects in China is complex and transaction heavy. The technology is constantly changing due to innovation by designers and manufacturers, and the inclusion of multiple agencies and officials can increase the complexity.

New accounts in China drive global financial inclusion figures

Eric Duflos's picture

Nearly eight in 10 adults in China now have a bank account, according to the 2014 Global Findex. This represents a 15 percentage point increase since 2011. According to the survey, the number of global unbanked has decreased from 2.5 billion to 2 billion in the past three years, and China’s progress has been a major driver of this change. In fact, the 2014 Findex found that of the world’s 500 million newly banked adults, more than one third (180 million) live in China.

Three positive trends emerge from this data.

1. Rural and poor people constitute many of the “newly banked” adults.
Sixty-six percent of the poorest quintile in China now have a formal account which represents an increase of 28 percentage points over the past three years. The rural population – which includes most of the poor in China - also saw a major increase of 20 percentage points with 74 percent of rural adults formally banked in 2014. Women have significantly benefitted from this growth and are now almost as financially included as men.


Source: World Bank Findex 2014

In China, High-speed Rail Increases Mobility and Drives Growth in Underdeveloped Regions

Gerald Ollivier's picture
Nanguang Railway is one of six rail lines currently supported by the World Bank in China and one of three that recently became operational. With a route length of 576 kilometers (358 miles), it connects the capital cities of Guangxi Zhuang Autonomous Region and Guangdong Province of China. 
 
Guangxi is rich in natural resources and home to dozens of ethnic minorities. But economic development has been relatively slow there compared with coastal regions in China. The high-speed railway system will help monetize Guangxi’s natural resources by bringing in more business opportunities and tourists.  In this sense, the line will not only benefit local people in terms of transportation but also help boost the local economy.

The reality behind Chinese unemployment data

Shuaizhang Feng's picture

Looking behind the official Chinese unemployment statistics, over the last 30 years there have been large fluctuations in the number of people without work. This is despite the uniformity of the official statistics. By looking at household survey data and other sources, Shuaizhang Feng proposes a more realistic estimate. Moreover, he examines how different groups within China are suffering disproportionately from unemployment, which suggests courses of action for the country’s policy makers. 

WeChat: Social media for knowledge exchange

Jingrong He's picture
What is the relationship between procurement and social media?

Procurement practitioners are using social media to exchange information and experiences. To allow for this exchange of knowledge and ideas, The China Public Integrity and Openness team of the Governance Global Practice (PIO-GGP) has established a WeChat Platform. The platform encourages the discussion of procurement ideas and strategies for all procurement practitioners, regardless of geography.
 

Edtech and MOOC Times in China

Michael Trucano's picture
The Chinese word for MOOC is ... MOOC
The Chinese word for MOOC is ... MOOC

If you want to see the future of online education, lots of people will tell you to head out to Silicon Valley or New York City or Cambridge (either of them) or London -- or to some other ('highly developed') place that tends to be written about by the (English-speaking) press. Fair enough: You can find lots of cool stuff going on in such locations.

I tend to think that it can be even more interesting to talk with local groups and people exploring 'innovation at the edges', especially those who are trying to solve educational challenges in places outside of the 'highly developed industrialized economies' of North America and Europe, Australia and Japan. If you believe that some of the most interesting innovations emerge at the edges, talking with NGOs, start-ups and companies in places like Nairobi or Cape Town, Mumbai or Bangalore, Jakarta or Karachi, who are trying to address educational needs, contexts and challenges of a different nature and magnitude than one finds in, say, Germany or Canada or Korea, can be pretty eye-opening. Observing what is happening in 'developing countries' -- where, after all, most of the world lives -- can provide a quite different perspective on what the 'future of education' might look like. This is especially the case in places where people are not trying to port over educational applications, content and experiences developed e.g. for desktop PCs and laptops, but are rather pursuing a mobile first approach to the use of technologies in education.

If you want to get a glimpse of what the (or at least "a") future of online education might look like in much of the world, you might want to direct your gaze to consider what's happening in a place that combines attributes from, and shares challenges with, education systems in both 'highly developed' and 'less developed' countries, somewhere with a significant urban population as well as large populations in rural areas. A place, in other words, like ... China.

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Looking at the impact of changes to Chinese labor laws

Albert Park's picture
There have been many concerns about recent changes to Chinese labor laws, aimed at increasing the formality of employment and improving the funding of social insurance programs. A recent set of studies by the Hong Kong University of Science and Technology has looked at the impacts of those changes. Both employers and employees report that the new rules are being enforced and that the cost of employment has gone up. But this has not added to the overall level of unemployment, due to the strong growth rate in the economy generally.


 

India, China and our growth forecasts

Kaushik Basu's picture

Last month, the World Bank and IMF both put out predictions that, this year, India would overtake China in terms of GDP growth rate. This caused a flutter and was widely reported around the world. How robust is this prediction and what does it really mean?

First, this is not as monumental a milestone as some commentators made it out to be. China has had one of the most remarkable growth runs witnessed in human history, having exceeded an annual growth of 9% from 1980 to now. Four decades ago its per capita income was close to India’s, but now it is four times as large as India’s. None of all this is going to change in a hurry.

With this caveat in mind, it is a year in which India deserves to feel good. It is expected to top the World Bank’s chart of growth rates in major nations of the world. This has never happened before. Before 1990, India did occasionally grow faster than China, mainly because China’s growth gyrated wildly during the pre-Deng Xiaoping period. It was, for instance, minus 27% in 1961, when Mao Zedong’s Great Leap Forward resulted in the world’s biggest famine, and it was 17% and 19% in 1969 and 1970, respectively--a relief in the wake of the Cultural Revolution. Fluctuations of this magnitude would be intolerable to India’s polity.

Thinking globally: Local governments leading the way to a global climate solution

Thomas Kerr's picture
California wind power. Bryan Siders/Creative Commons


The Canadian Province of Ontario announced last month that it would join California and Quebec in linking their cap-and-trade programs to curb greenhouse gas emissions. The move was met with approval by carbon market watchers, as local governments showed how they could avoid the lengthy political battles sometimes faced by national governments preparing submissions to the United Nations Framework Convention on Climate Change.

At a time when governments are looking for ambition, could this sort of local government action be the start of something much bigger?

Last week, I attended the Navigating the American Carbon World (NACW) event in Los Angeles to explore whether the momentum we are seeing to price carbon is evident on the ground. I found a lot of local government leadership on climate change.


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