User:Ruy043/China and the World Bank

China Joining the World Bank
The People's Republic of China (PRC) did not join the IMF and the World Bank until April 1980. Prior to that, the Republic of China represented China in these two financial institutions. The Republic of China originally joined the IBRD on December 27, 1945. However, the PRC took the ROC's position in 1980 as China and joined the World Bank. The partnership between China and the World Bank began in April 1980 when Deng Xiaoping first met the then president of the World Bank Robert McNamara, when the World Bank has began its dedication in assisting China's economic development. The World Bank served as a catalytic role in kick-starting China's economic development, when the country initially received approval of its first project loan in 1981. These projects have primarily focused on financing technical assistance such as pension reform, urban housing reform, energy market reform, environmental protection, labor market development, social safety net development, interest rate liberalization and external trade liberalization. In 1989, the World Bank suspended nearly one year of its loan to China as a response to the Tiananmen Square Incident for China's repression of and use of lethal violence towards student protests. In addition to receiving loans for projects, the World Bank has played an important role in advising China on its economic reform policies introduced back in the 1980s. Overall, there has been many success in development over 30 years, which includes economic performance since the market reforms of 1979, urbanization, social developments, and education & health services.

Recent Relation with the World Bank
As China grows in its economic power, it overtook large European nations in voting power at International Bank for Reconstruction and Development (IBRD) in 2010, with a jumping increase from 2.77% to 4.42%. In the end of 2019, China holds 5.05% of total votes in IBRD, behind United States (16.37%) and Japan (8.21%), while having more voting power than Germany (4.3%), UK (4%), France (4%), and India (3.11%). In 2016, China approved its first SDR bond issuer to IBRD by People's Bank of China, to serve its increasing involvement in international finances. Also as China's development solidifies, the World Bank has since shifted its objectives, and focusing on involvements that would support greener growth and sustainable energy, promote more inclusive development in all regions, and advance mutually beneficial relations with the world.

After being classified as a middle-income country by the World Bank, China then gained access to borrowing from the International Bank for Reconstruction and Development (IBRD). From 1999 until 2011, China borrowed near $40 billion from the IBRD. Up until December 2019, there is a total of 97 ongoing projects in China by World Bank, with $12 billion committed amount of funding. Among them are primarily projects regarding to transportation, public administration, water sanitation&waste, agriculture, industry&trade, and energy&extractives.

Project in China
After being classified as a middle-income country by the World Bank, China then gained access to borrowing from the International Bank for Reconstruction and Development (IBRD). From 1999 until 2011, China borrowed near $40 billion from the IBRD. Up until December 2019, there is a total of 97 ongoing projects in China by World Bank, with $12 billion committed amount of funding. Among them are primarily projects regarding to transportation, public administration, water sanitation&waste, agriculture, industry&trade, and energy&extractives.

IFC (International Finance Corporation)
Since its first investment in 1985, the International Finance Corporation (IFC) has invested and activated over $13.4 billion to support over 390 projects across 30 provinces, in which as of July 2017, IFC has committed $3.6 billion in China's portfolio. IFC invest and mobilize capital for private sector projects which supports sustainable economic development in China, particularly those that help mitigate climate change, promotes balanced rural-urban development, and promote sustainable investments in emerging markets.

MIGA (Multilateral Investment Guarantee Agency)
Created in 1988, MIGA encourages foreign direct investment in developing nations by providing political risk insurance to foreign investors and lenders, while also provides strategies for countries to attract and retain foreign direct investments. Since 2000s, MIGA has been providing guarantees for investments into China, particularly for projects that involve sub-sovereign risk, such as water and waste. Meanwhile, MIGA also supports its Chinese partners with their outward investments abroad, including both private lenders and governmental administration.