CDT Money: World Bank Report Outlines Reform Path

The World Bank published a nearly 500 page report Monday, co-authored with a government think-tank, which prescribes a roadmap of reform for the Chinese economy as it enters the next phase of its expansion. From the foreword of the report, penned by World Bank chief Robert Zoellick and Development Research Centre of the State Council president Li Wei: The idea behind this study was developed in 2010, at the celebrations for the 30th anniversary of the China–World Bank partnership. To commemorate that milestone, President Zoellick proposed to Chinese leaders to work jointly on identifying and analyzing China’s medium-term development challenges looking forward to 2030. Together, China and the World Bank would conduct research drawing on lessons from international experience as well as China’s own successful development record, and prepare a strategic framework for reforms that could assist China’s policy making as well as guide future China–World Bank relations. China’s state leaders welcomed and supported the proposal. … The report is based on the strong conviction that China has the potential to become a modern, harmonious, and creative highincome society by 2030. In order to reach that objective, however, China must change its policy and institutional framework. China’s next phase of development will need to build on its considerable strengths—high savings, plentiful and increasingly skilled labor, and the potential for further urbanization—and capitalize on external opportunities that include continued globalization, the rapid growth of other emerging economies, and promising new technologies. At the same time, China will need to address a number of significant challenges and risks, such as an aging society, rising inequality, a large and growing environmental deficit, and stubborn external imbalances. The report touches on a number of avenues for reform, including a reduction in the influence of state-owned enterprises, an emphasis on green development, and the improvement ...
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