The World Bank and China: Future Prospects

Asia and the Pacific Policy Studies (APPS), Forthcoming

6 Pages Posted: 23 Dec 2013 Last revised: 8 Oct 2014

See all articles by Ralph Huenemann

Ralph Huenemann

University of Victoria - Peter B. Gustavson School of Business

Date Written: December 22, 2013

Abstract

The time has come (is arguably long overdue) to develop a new basis for the World Bank’s work in China. For nearly two decades, the Bank and China have been engaged in a mutual game of 'let’s pretend', because the annual increments to China’s foreign exchange reserves have been larger than the Bank’s annual loans to China since about 1994. Now China’s national income per capita measured on the purchasing power parity basis is rapidly approaching the high-income level at which China will 'graduate' (receive no further World Bank loans). In this context, two alternatives may usefully be discussed. First possibility: shift the qualification for Bank lending from national units to subunits like provinces. Second possibility: continue the Bank’s analytical and advisory activities even after the lending ceases.

Keywords: World Bank, China, graduation, make-believe, pro-poor

Suggested Citation

Huenemann, Ralph, The World Bank and China: Future Prospects (December 22, 2013). Asia and the Pacific Policy Studies (APPS), Forthcoming. Available at SSRN: https://ssrn.com/abstract=2371126 or http://dx.doi.org/10.2139/ssrn.2371126

Ralph Huenemann (Contact Author)

University of Victoria - Peter B. Gustavson School of Business ( email )

Business & Economics Building, Room 256
Victoria, British Columbia
Canada

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