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By Gene Tidrick

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Extra info for China: An Evaluation of World Bank Assistance (Operations Evaluation Study)

Sample text

The structural changes also show the importance of looking at agricultural production as only one element in rural development and poverty reduction. The Bank’s assistance strategy for agriculture in China has increasingly done that, gradually shifting its emphasis from increasing agricultural production to improving rural incomes in poorer areas and improving natural resource management for a more sustainable rural economy in ecologically fragile areas. Most agriculture sector projects have emphasized diversification of production, including non-farm very successful.

Steady progress has also been made in key areas of system reform, but intermittent and incomplete reform of the intergovernment fiscal system, SOEs, and the financial sector pose risks for continued growth and stability. The Bank made a significant contribution to China’s macroeconomic management following the resumption of reform in the early 1990s, helping to persuade the top leadership that continued reform was not only consistent with, but essential for, high growth with low inflation. With respect to system reform more generally, the Bank helped identify the critical nexus of enterprise/financial sector/fiscal reforms needed to underpin high growth with stability, but it was less successful in promoting implementation of some of the components.

8 percent of the population would have been below the dollar-per-day poverty line in 1999. Moreover, the PPP comparison is based on average consumption, whereas to compare poverty levels across countries, it ought to be based on the consumption basket of low-income households. The main conclusion to be drawn is not that poverty is relatively high or low, but that a large proportion of the population is close to the poverty line, however defined. 0 Source: World Development Indicators 2002. resettlement of people from ecologically disadvantaged areas.

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