The World Bank is widely involved in numerous developmental projects all around the globe and China is no exception. Despite China’s position as one of the fastest growing and most powerful economies in the world, its large populations create challenges in ensuring every Chinese citizen has access to sufficient infrastructure. Also, the problem is compounded by the recently stalling Chinese economy. As such, the World through the cooperation of the Chinese government has started projects to improve the country’s infrastructure, especially in the interior rural areas. This paper will analyze such activities and how they are improving China’s infrastructure.
One of the ways the World is influencing China’s infrastructure growth is through the provision of loans. As early recently as 2016, the World Bank loaned China $100 million for the development of Hubei province. According to the World Bank’s Senior Transport Specialist, Reda Hamedoun, the money is to be used in the growth and development of the Xiaogan Logistics Park. According to the World Bank, although China is the sources of an enormous logistics market in the globe, the infrastructure is still in dire need of a revamp. In addition to catering for the transport problems in the province, the money is also meant to develop the associated social utilities. The Association of China and the World Bank will subsequently increase the country’s development according to Reda Hamedoun. (World Bank helps China Improve Logistics Infrastructure, 2016)
In addition to providing financial aid to China, the World Bank provides direction on how the infrastructure in China can be developed catering for every individual in the country. According to statistics while 51% of all infrastructure development relied on the central government’s provisions, currently only about 6% of the finance catering for China’s infrastructure is derived from the Chinese central government. The World Bank has written numerous reports that are meant to illustrate how the dynamics of China’s infrastructure can change for the better. A prime example of such a report was carried out by Researchers under the supervision of the World Bank on how the current infrastructure design in China is increasing environmental degradation in the country. According to the report, China should adjust how it builds its cities and other infrastructures to cater for its burgling population and the increasing environmental pandemic. Accordingly, China should concentrate on building denser rather than larger cities. Building denser cities will assist China to deal easily with environmental issues and also reduce the cost that the Chinese government will incur in maintaining the infrastructure. According to the World Bank, reverting to denser cities will save the country $1.4 billion and will also significantly preserve the country’s agricultural land which in line with the increasing population is close to degradation. (World Bank, 2014)
The contribution of the World Bank to China’s infrastructure growth is not limited to finances or direct contribution. Some activities undertaken by the World Bank are concerned with China’s financial planning and management. In 2016, the World Bank aided China with $22 million for the purpose of creating and implementing a modern fiscal system that will aid the country in developing anddesigning a modern public financial management system. Through the help of the World Bank, the Chinese government is aiming to restructure the spending system, the tax system, and budget allocation. Such activities are aiding the Chinese governments in developing platforms and foundations that will sufficiently develop the country’s infrastructure. Concerning China, the World Bank, although facing competition from the AIIB (Asia Infrastructure Investment Bank) has installed financial systems in China that will propel the countries development. In addition to improving the country’s infrastructure system, the World Bank aids China to deal with its environmental problems which affect the country significantly. The environmental challenges also affect the state’s infrastructure system.(World Bank, 2016)
Reforms in Land Use and Local Finances will Help Make China’s Urbanization More Efficient. (2014, March 25). Retrieved from The World Bank:
World Bank Assisting China to build a modern Fiscal System. (2016, April 29). Retrieved from The World Bank:
World Bank helps China Improve Logistics Infrastructure. (2016, April 29). Retrieved from The World Bank: