Countries and Regions

	Table of Contents
p. 1 of 21 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Policy and Development Issues C. Poverty Assessment D. Assessment of Socio-Environmental Performance E. Governance: Sound Development Management F. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Subregional Economic Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - People's Republic of China

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I. Country Performance Assessment

1. The People’s Republic of China (PRC) successfully weathered the Asian crisis. Three consecutive years of expansionary fiscal policy and interest rate reductions enabled the country to contain the adverse effects of the Asian crisis, maintain a stable exchange rate, and achieve robust growth. Coupled with targeted antipoverty programs by the Government, the robust growth and the economic stability enabled the PRC to continue its commendable progress in reducing poverty. With the completion of the negotiations with the major trading partners for membership in the World Trade Organization (WTO), PRC is entering the 21st century with a sense of achievement based on good socio-economic performance. (sSee Appendix 1). for PRC’s country performance indicators.

2. PRC has made remarkable progress in reducing absolute poverty. The number of rural people below the official poverty line (of Y635 per capita income per year) was about 34 million (3.8 percent of the rural population) in 1999. However, PRC’s fight against poverty. Despite these commendable achievements, PRC’s fight against poverty is far from over. World Bank estimates of people living below $1 per day in 1998 ranged from 106 million¹ (11.5 percent of the rural population) to 230 million people (18.5 percent of the total population).² The incidence of poverty in the interior provinces is much higher than that of national average, especially in the western parts of the country. Poverty is multi-dimensional. Roughly half of children in households at or below the absolute poverty line are at least mildly malnourished. Poor educational, health and nutritional status are intertwined with poverty. Education and health conditions in the poor areas and poor families are far below the national average. Urban unemployment and poverty which were largely nonexistent in the early 1990s, but are now emerging as new economic challenges.

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