Open AccessThe W orld B ank and C hina: Future Prospects
Author(s) -
Huenemann Ralph W.
Publication year - 2014
Publication title -
asia and the pacific policy studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 14
ISSN - 2050-2680
DOI - 10.1002/app5.8
Subject(s) - china , purchasing power parity , foreign exchange reserves , chinese financial system , per capita , context (archaeology) , economics , work (physics) , per capita income , exchange rate , business , financial system , finance , political science , geography , engineering , population , mechanical engineering , demography , archaeology , sociology , law
The time has come (is arguably long overdue) to develop a new basis for the W orld B ank's work in C hina. For nearly two decades, the B ank and C hina have been engaged in a mutual game of ‘let's pretend’, because the annual increments to C hina's foreign exchange reserves have been larger than the B ank's annual loans to C hina since about 1994. Now C hina's national income per capita measured on the purchasing power parity basis is rapidly approaching the high‐income level at which C hina will ‘graduate’ (receive no further W orld B ank loans). In this context, two alternatives may usefully be discussed. First possibility: shift the qualification for B ank lending from national units to subunits like provinces. Second possibility: continue the B ank's analytical and advisory activities even after the lending ceases.