China, People's Republic of : Promoting Partnerships for South–South Cooperation II

Public sector management / Economic affairs management

During the August 2014 country programming mission, the government requested ADB to provide a TA to continue to promote partnerships for South-South cooperation. The TA will enable continuation of South-South knowledge cooperation between PRC and other DMCs as pursued under TA 7974-PRC: Promoting Partnerships for South-South Cooperation. TA 7974-PRC supported the PRC-ADB knowledge sharing platform activities which led to increased knowledge exchange among DMCs. The TA is included in the PRCs country operations business plan, 2015-2017 as a firm TA for the 2015 pipeline. The design and monitoring framework is in Appendix 1.

The impact of the proposed TA will be enhanced knowledge solutions in DMCs; enhanced knowledge partnerships in DMCs and strengthened knowledge cooperation between the PRC and other DMCs. The outcome of the proposed TA will be improved effectiveness of knowledge sharing. Success in achieving the outcome will be measured by the (i) increased participation of DMCs in knowledge sharing workshops with the PRC; and (ii) improved satisfaction of participants in knowledge sharing workshops.

The main outputs of the TA are (i) increased awareness of best practices and emerging issues and challenges among the PRC and DMCs in the region; and (ii) strengthened high impact policy recommendations, enabling improved sector policy making and capacity building among the PRC and DMCs in the region. The outputs will be measured by: (ii) 2 KSP workshops completed by 2017; and (ii) three publications on the results of the workshops completed by 2017.

Since the reforms initiated some three decades ago, the PRC has experienced unprecedented economic growth over the past decade. Gross Domestic Product (GDP) growth has averaged about 9% per year and per capita income has increased thirteen fold, with transformational improvements in human wellbeing and quality of life. Overall, PRCs GDP grew from 3.4% of global GDP in 2000 to 11.3% in 2012. It is the worlds second largest economy and importer. Rapid growth has been accompanied by a number of structural problems, including economic imbalances, rising inequality, resource constraints, and environmental degradation. The PRCs diverse and rich development experiences and lessons learned in dealing with the development challenges are valuable for other developing countries. The PRC can also learn from the developmental lessons of other countries and build on their successes. The PRC also needs more developmental lessons of other countries, especially high impact, constructive policy recommendations and best practices. Increasing better awareness of emerging development issues and challenges and sharing best practices among the PRC and other DMCs in the region is essential for regional cooperation and development.

Knowledge and innovation is a core theme in Asian Development Bank (ADB)s country partnership strategy for the PRC since 2008. In the PRC country partnership strategy for 2011-2015, knowledge cooperation underpins the long-term PRC-ADB partnership. Knowledge solutions is one driver of change, with knowledge sharing to be more actively promoted in all priority sectors to promote best practices and scaling up of demonstration projects. The findings of the IED mission on CAPE in November 2014 indicated that nearly all TA projects completed during 2006-2014 have been rated successful or highly successful. ADB has made significant policy contributions, a wide range of knowledge products and services, and played an important role in fostering regional cooperation among the PRC and neighboring countries. ADB has been supporting South-South knowledge sharing through (i) Regional Knowledge Sharing Initiative (RKSI) to promote knowledge exchange, dissemination, and coordination; (ii) ADB-PRC Knowledge Sharing Platform (KSP) to share knowledge, facilitate dialogue, and strengthen partnerships and networks among the PRC and other Developing Member Country (DMCs); and (iii) sector-focused knowledge hubs with the PRCs centers of excellence to share knowledge in a particular sector.

A KSP was established by the PRC Ministry of Finance (MOF) and ADB in 2009 to promote South-South cooperation as a vehicle to share solutions for key emerging development issues and challenges faced by developing countries in the Asia and Pacific region; contribute to sound development management and policy making; and promote regionally inclusive development. ADB acts as facilitator to promote evidence-based learning between the PRC and other DMCs and contributes to the conceptualization, design, and financing of KSP activities. Since 2009, six KSP events have been organized.

The KSP has proved to be an effective country-led platform for sharing experiences in addressing the regions challenges in different sectors. It also promotes networking and creates a community of policymakers across the region. It was showcased as a model South-South learning initiative at the High-Level Forum on Aid Effectiveness held in Busan, Republic of Korea, in 2011. The knowledge-sharing workshop on urbanization led to collaboration between ADB and the College of Architecture and Urban Planning of Tongj University to establish the urban knowledge hub in March 2010, for sharing good practice approaches in urban planning. Subsequently, knowledge hubs covering the water sector and eco-compensation were established with Tsinghua University and the Chinese Agricultural University, respectively.

Based on the changing development cooperation landscape in PRC and

Knowledge solutions enhanced. (MTR 2020)

Knowledge partnerships in DMCs enhanced. (MTR 2020)

Knowledge cooperation between the PRC and other DMCs strengthened. (Knowledge Management Directions and Action Plan, 2013-2015)

Effectiveness of knowledge sharing improved

1. Awareness and adoption of best practices in addressing and emerging issues increased

2. Knowledge-sharing partnership among the PRC and DMCs in the region enhanced

3. High impact policy recommendations strengthened

On 2 June 2017, the TA completion date was extended from 30 November 2017 to 31 December 2018. A second extension was approved on 21 November 2018, extending the TA to December 2019. On 20 August 2019, The TA was again extended from 31 December 2019 to 15 November 2020. The TA supported the following:

(i) The TA supported the 8th Knowledge Sharing Event on GDI and Global Delivery Initiative on 2-4 November 2016 in Chongqing, PRC. The event was jointly organized by MOF, WB, ADB, GIZ and USAID in Chongqing during 2-4 November, with participation from PRC Government. Participants from 15 countries in the region attended the event.The event covered the following: (i) achievements in operational knowledge cooperation, (ii) country and regional success stories (organized by ADB) and (iii) capturing and exchanging operational knowledge from the region.

(ii) The TA supported three innovation workshops in the PRC on 8-10 May 2019. The workshops covered rural vitalization, elderly care, and human capital development and were participated in by more than 200 participants from the government, IFIs, and development partners. The workshops discussed ways to promote innovative practices through learning from international and domestic experiences, and identified key priorities in the PRC.

(iii) Preparations are on the way for the TA-supported study on poverty reduction and sustainable development. Experts have contributed various chapters of the study which is currently being finalized. This study aims to deepen understanding of the sustainable public social spending framework supporting the poverty reduction efforts in the PRC. The focus will be on education, health care, and old-age care. Three cases on the poverty reduction experience of Guangdong, Hunan, and Yunnan provinces are also included.

(iv) Three knowledge sharing events in line with the poverty reduction study were supported by the TA:- Poverty Reduction and Sustainable Development Interim Workshop on 29 April 2020 which discussed initial research outline for the study. This was participated mainly by researchers and authors of the study.- Poverty Reduction and Sustainable Development. 2nd Review Workshop, 11 August 2020. Researchers and authors shared their initial findings on the various chapters of the study on poverty reduction. - 3rd virtual seminar on 'Poverty Reduction and Sustainable Development_, 29 September 2020. Experts and researchers presented on findings and case studies on Guangdong, Hunan, and Yunnan provinces. Around 40 participants from MOF and ADB attended.

(iv) The background papers for the study are now being reviewed and prepared to be published as working papers. The study is also being reviewed and prepared to be published as a technical study.

The TA was completed on 15 November 2020 and financially closed on 16 March 2021.