Home 
Countries and Regions Country Assistance Plans Document
|
Country Assistance Plans - People's Republic of China
V. Donor Activities and Aid Coordination92. PRC does not have a formal aid group to coordinate its external assistance. As part of the Government’s 1998 reorganization, steps were taken to streamline foreign aid management. Responsibility for major lenders (e.g. ADB; World Bank; Japan Bank for International Cooperation-JBIC; and most bilateral export credit agencies) was consolidated in the Ministry of Finance (MOF). The Ministry of Foreign Trade and Economic Cooperation continues to be responsible for most of the agencies that provide grant financing to PRC. This reorganization improved the Government’s ability to coordinate major donors. The State Development Planning Commission (SDPC), under the guidance of the State Council, acts as the coordinating arm of the Government for the review and approval of projects proposed for external assistance. ADB regularly consults with major donors and contributes to the UNDP development assistance report (see Appendix 3, pages 1 and 2). The establishment of PRCM in June 2000 will enable ADB to play a greater role in local aid coordination and buildding stronger relationship with other funding sources. 93. The World Bank Group is the largest multilateral donor to PRC. Its operational strategy focuses on poverty alleviation, environment improvement, removing infrastructure bottlenecks, and supporting macroeconomic and strategic reforms. The World Bank’s core areas of strategic focus during the 2001-2005 include: (i) giving greater attention to the development of human and natural capital; (ii) expanding the role for the non-State sector; and (iii) improving efficiency in resource use to cope with the increased trade and investment integration expected during 2001-2005. The World Bank’s annual lending program to PRC declined to $2.1 billion in the 2000 fiscal year with the phasing out of IDA credits on 30 June 1999. The end of PRC’s access to IDA will result in less World Bank lending in the health and education sectors and for direct poverty alleviation. 94. UNDP’s fourth country programming (1996-2000), focuses on human resource development, job creation in inland areas and public administration and management. The UNDP program priorities also cover poverty mitigation, governance and environment, which are expected to remain the focus of its fifth country program to be prepared once the UNDP development framework is finalized by the end of 2000. Through PRCM, ADB have provided comments on emerging partnership framework for the future cooperation between the group and PRC. In addition to its periodic assessments of the economy, IMF provides advice on macroeconomic management, including the development of the legislative framework for strengthening the central bank and commercializing and restructuring the banking sector. Through PRCM, ADB is participating in various IMF missions. 95. Japan, through JBIC, is the largest source of bilateral financing to PRC and is mainly involved in physical infrastructure, water resource development and environment improvement projects. Under the Fifth Yen Credit (1999 and 2000 fiscal years), JBIC committed 390 billion yen (about $3.7 billion) for 28 projects. In addition, a special tied yen credit totaling 500 billion yen (about $4.7 billion) in three years (1999-2001) was committed. In the future JBIC financing for traditional infrastructure sectors such as transport and power will be less dominant than in previous packages. The Japan International Cooperation Agency provides about $140 million equivalent annually in grant and technical assistance. Other major sources of bilateral funding are the European Union, Germany, the United Kingdom, Canada, Australia, France, Italy and Spain (Appendix 3, page 3). Contacts with the local donor community have strengthened with the establishment of PRCM. 96. ADB shares information on its operations with all major donors and draws their attention to the availability of the CAP on ADB’s Web Page. There are formal coordination meetings held on an annual basis with JBIC. ADB has shared country operational strategies with the Canadian International Development Agency, the Department for International Development (DFID) of the United Kingdom, KfW of Germany, and AusAid. ADB and DFID are collaborating on the proposed Social Security Reform Program Loan in particular on areas relating to the social safety net for the urban poor. Because the pipelines of other donors are full for several years in advance, it is difficult to arrange formal bilateral cofinancing. There is, however, room to improve donor coordination by involving other donors more closely in promoting a wider dissemination of the results of ADB TAs of a policy or strategic nature. One of the tasks of PRCM will be to address this issue, PRCM’s attendance in the informal luncheon meetings among donor agencies will also contribute to aid coordination.
|
RSS Feeds
Back
Top of page