Posts tagged ‘World Bank’

31/12/2014

China Adds the Equivalent of Malaysia’s Economy to its Output – Businessweek

China’s economy officially just got bigger. More important, it also became more balanced, a longtime priority of Chinese leaders and good news for the world.

China's Revised GDP Shows Rebalancing Success With Bigger Service Sector

China’s GDP revision, announced by the national bureau of statistics on its website today, shows the economy in 2013 was 1.92 trillion yuan ($303.8 billion) larger than previously thought. That’s 3.4 percent more and equivalent to adding the Malaysian economy to Chinese output, as Bloomberg News and others have noted. That puts last year’s GDP at about $9.61 trillion.

The 2014 figure will also be revised upward, although by not much, the statistics bureau says, probably early next year. And planned changes to how Beijing counts research and development costs and housing, will likely boost the size of the economy.

The revision follows the release earlier this week of data from China’s last economic census. Almost 3 million census takers polled more than 10 million companies and 60 million individual-owned private enterprises across the country for a three-month period last spring. The two previous censuses saw GDP revised up by 16.8 percent in 2004 and 4.4 percent in 2008.

“The relatively small upwards adjustment [this time], compared with previous [census] revisions, won’t make a huge difference to how the economy is viewed or to key metrics, such as China’s debt to GDP ratio,” writes Julian Evans-Pritchard, China economist at London’s Capital Economics, in a research note today. “Nonetheless, it does provide some positive news on rebalancing.”

The census revealed a bigger service sector, which in 2013 made up 46.9 percent of GDP, up from 46.1 percent before. Meanwhile, China’s often resource-wasting, pollution-generating industrial sector takes up a slightly smaller share of the economy, falling to 43.7 percent from 43.9 percent before the census.

via China Adds the Equivalent of Malaysia’s Economy to its Output – Businessweek.

02/12/2014

India’s Farming Women Use Cameras to Share Lessons – Businessweek

Kavita Devi has spent 50 years farming the way her elders taught her. Until recently, that meant working other people’s land in the northeastern Indian village of Gosaibigha in exchange for 10 pounds of rice once a season. But since July, twice a month she’s been joining about 30 women neighbors in saris who file into a makeshift movie theater in a buffalo shed, where they watch videos from a battery-powered, handheld projector shown on a fuzzy brown blanket hung on a wall. In the videos, which run for 8 to 10 minutes, women from nearby villages demonstrate ways to boost rice yield by spacing the seedlings farther apart and using compost instead of fertilizer. “They look very successful,” Devi says later. “I would like to be one of them.” Since July she’s been leasing a small patch to plant her own crops.

A videographer watches as farmers demonstrate techniques in Uttar Pradesh

Technology is transforming the way women like Devi farm. In rural India, impoverished women do most of the labor using methods passed down for millennia. About 100,000 (mostly male) government and private agricultural experts roam the country to teach farmers modern techniques. But fewer than 6 percent of farmers have ever seen one, according to the World Bank, and women are often excluded from those training sessions because they lack legal rights to their husbands’ land.

Digital Green, a nonprofit founded by Microsoft (MSFT) researchers, is trying to change that. The group distributes pocket cameras and tripods to local women and trains them to storyboard, act in, shoot, edit, and screen videos demonstrating farming innovations. Because the villages where the women work often lack reliable electricity, it’s all done via battery-powered projectors. Women who screen the videos keep track of attendee questions and monitor adoption of the practices to help directors improve later versions. Using the audience’s peers as actors is particularly important, says Rikin Gandhi, Digital Green’s co-founder and chief executive officer. “Viewers identify with those featured in videos based on dialect and appearance, etc., to determine whether it is someone they can trust,” he says. Villagers will tune out if they see items that aren’t common in their communities, such as a plastic bucket or a watch.

via India’s Farming Women Use Cameras to Share Lessons – Businessweek.

09/11/2014

China to establish $40 billion Silk Road infrastructure fund | Reuters

China will contribute $40 billion to set up a Silk Road infrastructure fund to boost connectivity across Asia, President Xi Jinping announced on Saturday, the latest Chinese project to spread the largesse of its own economic growth.

A map indicating trading routes used around th...

A map indicating trading routes used around the 1st century CE centred on the Silk Road. (Photo credit: Wikipedia)

China has dangled financial and trade incentives before, mostly to Central Asia but also to countries in South Asia, backing efforts to resurrect the old Silk Road trading route that once carried treasures between China and the Mediterranean.

The fund will be for investing in infrastructure, resources and industrial and financial cooperation, among other projects, Xi said, according to Xinhua.

via China to establish $40 billion Silk Road infrastructure fund | Reuters.

26/10/2014

Three major nations absent as China launches World Bank rival in Asia | Reuters

Australia, Indonesia and South Korea skipped the launch of a China-backed Asian infrastructure bank on Friday as the United States said it had concerns about the new rival to Western-dominated multilateral lenders.

China's President Xi Jinping (R) meets with the guests at the Asian Infrastructure Investment Bank launch ceremony at the Great Hall of the People in Beijing October 24, 2014.  REUTERS/Takaki Yajima/Pool

China’s $50 billion Asian Infrastructure Investment Bank(AIIB) is seen as a challenge to the World Bank and Asian Development Bank, both of which count Washington and its allies as their biggest financial backers.

China, which is keen to extend its influence and soft power in the region, has limited voting rights in these existing banks despite being the world’s second-largest economy.

The AIIB, launched in Beijing at a ceremony attended by Chinese finance minister Lou Jiwei and delegates from 21 countries including India, Thailand and Malaysia, aims to give project loans to developing nations. China is set to be its largest shareholder with a stake of up to 50 percent.

Indonesia was not present and neither were South Korea and Australia, according to a pool report.

Japan, China’s main rival in Asia and which dominates the $175 billion Asian Development Bank along with the United States, was also not present, but it was not expected to be.

Media reports said U.S. Secretary of State John Kerry put pressure on Australia to stay out of the AIIB.

However, State Department spokeswoman Jen Psaki said: “Secretary Kerry has made clear directly to the Chinese as well as to other partners that we ‎welcome the idea of an infrastructure bank for Asia but we strongly urge that it meet international standards of governance and transparency.

“We have concerns about the ambiguous nature of the AIIB proposal as it currently stands, that we have also expressed publicly.”

In a speech to delegates after the inauguration, Chinese President Xi Jinping said the new bank would use the best practices of the World Bank and the Asian Development Bank.

“For the AIIB, its operation needs to follow multilateral rules and procedures,” Xi said. “We have also to learn from the World Bank and the Asian Development Bank and other existing multilateral development institutions in their good practices and useful experiences.”

via Three major nations absent as China launches World Bank rival in Asia | Reuters.

19/10/2014

How Poor Is China? – Businessweek

By one measure, China is set to surpass the U.S. this year in gross domestic product as the world’s largest economy—in terms of purchasing power parity (rather than nominal GDP), says the International Monetary Fund. China also has the world’s second-largest population of ultra-wealthy, with some 7,600 people possessing at least $50 million, according to a report released on Tuesday by Credit Suisse. (The U.S. remains No. 1 in its number of super-rich).

Sifting through trash near Hefei, China

Still, that wealth contrasts with impoverishment. About 82 million Chinese still live in poverty, an official announced at a press conference in Beijing on Tuesday, reported the China Daily.

That figure is according to the Chinese poverty standard of about 2,300 yuan a year, or about $1 a day. Using the international standard of $1.25 a day, set by the World Bank, raises the figure to 200 million, said Zheng Wenkai, vice-minister of the State Council Leading Group Office of Poverty Alleviation and Development. This means that 15 percent of China’s population is impoverished, according to the broader measure.

All told, China has 120,000 villages plagued by poverty. Residents lack electricity, running water, schools, and proper health care, the English-language paper reported. Dire conditions are exacerbated by the fact that most are in remote, often mountainous parts of the country that have inadequate roads.

Poor populations are concentrated in extremely poor contiguous regions with poor living conditions, inadequate infrastructure as well as being afflicted with natural disasters,” the Global Times reported. Last year, China lifted 40 million residents out of poverty, and it plans to bring an additional 10 million out in 2014. China will send resident-assistance teams to the worst hit regions, the official said.

via How Poor Is China? – Businessweek.

30/09/2014

Water consumption: A canal too far | The Economist

THREE years ago the residents of Hualiba village in central China’s Henan province were moved 10km (six miles) from their homes into squat, yellow houses far from any source of work or their newly allocated fields. These days only the very young and very old live there. Close to their old farms, a giant concrete canal now cuts a swathe. From October 31st the channel will gush with water flowing from China’s lush south to the parched north.

The new waterway is part of the biggest water-diversion scheme in the world: the second arm of what is known as the South-North Water Diversion Project. This is designed to solve an age-old imbalance. The north of China has only a fifth of the country’s naturally available fresh water but two-thirds of the farmland. The problem has grown in recent decades because of rapid urban growth and heavy pollution of scarce water supplies.

The result is a chronic shortage. The World Bank defines water scarcity as less than 1,000 cubic metres (35,300 cubic feet) of fresh water per person per year. Eleven of China’s 31 provinces are dryer than this. Each Beijing resident has only 145 cubic metres a year of available fresh water. In 2009 the government said that nearly half the water in seven main rivers in China was unfit for human consumption. All this has encouraged ever greater use of groundwater. Much of this is now polluted too.

In 1952 Mao Zedong suggested the north could “borrow” water from the south. After his death China’s economic boom boosted demand for such a scheme and provided the cash to enable it. In 2002 the diversion project got under way. An initial phase was completed last year. This involved deepening and broadening the existing Grand Canal, which was built some 1,400 years ago, to take 14.8 billion cubic metres of water a year more than 1,100km northward from the Yangzi river basin towards the port city of Tianjin.

In late October the second, far more ambitious and costly route is due to open. This new watercourse, over a decade in the making, will push 13 billion cubic metres of water more than 1,200km from the Danjiangkou dam in the central province of Hubei to the capital, Beijing. The aim is to allow industry and agriculture to keep functioning; already in 2008 Beijing started pumping in emergency supplies from its neighbouring province, Hebei. The new canal will help avert an imminent crisis. But the gap between water supply and demand will remain large and keep growing.

The transfer will supply about a third of Beijing’s annual demand. A spur of the canal will provide an even greater proportion of Tianjin’s. But these shares will shrink over time. Even if people use less water, population growth, the expansion of cities and industrialisation will increase China’s overall demand. By lubricating further water-intensive growth the current project may even end up exacerbating water stress in the north.

Shifting billions of cubic metres across the country has caused huge disruption. The government says it has moved 330,000 people to make way for the central route. Laixiang Sun of the University of Maryland in America reckons the number uprooted is at least half a million. There will also be health and environmental costs. Diverting river-water northward could promote the spread of diseases common in the south, particularly schistosomiasis, a debilitating snail-borne disease. Reduced flow in the Yangzi may make coastal water supplies vulnerable to intrusion by seawater and increase the potential for drought.

The financial cost is also high. Mr Sun puts the cost of the project at more than $62 billion—far higher than the original $15 billion price tag. His estimate does not include the running of the project or the building of 13 new water-treatment plants to clean the water.

By increasing supply, the government is failing to confront the real source of the problem: high demand for water and inefficient use of it. Chinese industry uses ten times more water per unit of production than the average in industrialised countries, according to a report by the World Bank in 2009. A big reason for this is that water in China is far too cheap. In May 2014 Beijing introduced a new system that makes tap water more expensive the more people use. But prices are still far from market levels. Officials turn a blind eye to widespread extraction of un-tariffed groundwater by city dwellers and farmers, despite plummeting groundwater levels.

Raising the price would cut demand and encourage more efficient use. It should also help lure industry away from water-scarce areas where prices would be set at higher rates. Arid areas that are forced by the government to pipe water into desiccated cities like Beijing could offset their losses by charging higher tariffs.

via Water consumption: A canal too far | The Economist.

28/07/2014

Improving health care: Congratulations! Inoculations! | The Economist

FANS of the China model frequently say that, for all the disadvantages of a one-party state, there are also benefits. Enforcing basic health care is one—and by no means a small one. Last year China’s mortality rate for children under five years old was just one-fifth the rate it was in 1991, down from 61 deaths per 1,000 live births to 12. The maternal mortality rate has also dropped substantially—by 71%—since 1991. In 1992, one in ten Chinese children under five contracted hepatitis B. Today fewer than one in 100 of them carry the disease.

China’s advances have not gone unnoticed. Last month a group of four international bodies, including the World Health Organisation (WHO) and the World Bank, said China was one of ten countries to have made exceptional progress in reducing infant and maternal mortality (see chart). Not all of the ten—which included Egypt, Peru, Bangladesh and Vietnam—are one-party states.

China’s improvement lies in two basic, connected areas: better care at birth and countrywide immunisation. Since 2000 the government has offered subsidies to mothers who give birth in hospitals, thereby reducing health dangers from complications—especially the risk of neonatal tetanus. The scheme also brought hard-to-reach people and groups into contact with the health-care system.

From 2001 to 2007, the share of births that took place in hospitals rose by 46%, making it easier to give a hepatitis B vaccine immediately. China now has one of the highest usage rates of the birth dose of the vaccine in the world: 96% of Chinese babies receive it on their first day of life. In 2012 the WHO commended China for a “remarkable” public-health achievement. That year it declared China free of maternal and neonatal tetanus.

Margaret Chan, the WHO’s director-general, this month said that China’s regulatory system for vaccines had passed the WHO’s evaluation with outstanding results. Dr Chan says she has “full confidence” in the safety of vaccines made in China. Last year the WHO approved one for the first time for use by UNICEF. (That has not dispelled suspicions within China itself, however, about the safety of Chinese vaccines.) China and the WHO claim that about 95% of children are vaccinated for measles, rubella and polio. In 2008 the government added eight new vaccines, including hepatitis A and meningitis, to its national programme. All are administered to children free of charge. Just as important has been the mobilisation of a network of health-care workers, at provincial, county and township levels.

via Improving health care: Congratulations! Inoculations! | The Economist.

22/07/2014

BRICS Summit: A Show of Economic Might Is Nothing to Fear – Businessweek

As Brazilians were recovering last week from the World Cup, the country held another global event: the BRICS summit, a gathering of leaders from Brazil, Russia, India, China, and South Africa. The outcome was no doubt more pleasing to Brazil’s President Dilma Rousseff than her country’s soccer performance. The countries agreed to set up a $50 billion “BRICS bank” to invest in development projects in the developing world, alongside a $100 billion pool of reserve currencies earmarked as “a kind of mini-IMF,” according to Russian Finance Minister Anton Siluanov. It was a strong statement of the grouping’s growing global economic heft and a challenge to the order established by the International Monetary Fund and the World Bank.

China President Xi Jinping being welcomed by President Rousseff at Planalto Palace in Brasilia

Some in the West have perceived that challenge as a threat. The U.S. has veto power over major decisions at the International Monetary Fund. Without European or American backing, it is almost impossible to get a loan through the World Bank. The North Atlantic powers will have no such say in the operations of the BRICS bank, another sign that the global balance of economic and financial power is shifting.

The BRICS do pose a threat, but their own development bank isn’t it. The more worrisome risk is that the BRICS won’t grow as quickly as they have in the past, that the grand plans hatched in Brazil will dwindle along with the economies supporting them. If pessimistic forecasts of Asian and Latin American economic performance turn out to be justified, that’s no reason for cheer in Washington or Brussels—collapsing growth in the developing world would be terrible news for the West.

via BRICS Summit: A Show of Economic Might Is Nothing to Fear – Businessweek.

15/07/2014

Shanghai most likely headquarters for BRICS development bank | Reuters

Shanghai looks set to become the headquarters of a development bank being launched by the BRICS emerging market nations, despite fears by some members of the group that China could hijack the bank to serve its interests.

A man walks past a signage decoration for the BRICS summit outside Sheraton Hotel, the venue for the third BRICS summit in Sanya, Hainan province April 14, 2011. REUTERS/Jason Lee/Files

Brazil, China, India, Russia and South Africa are due to sign off on the new institution on Tuesday, along with an emergency reserves fund, after two years of negotiations, a major step for the diverse group known more for its anti-Western rhetoric than coordinated action.

Russian presidential adviser Yuri Ushakov told Kremlin reporters late last week that bank would be based in Shanghai, mainland China’s financial capital, citing discussion papers prepared by the member countries.

Earlier, Russia’s finance minister said India was vying with China to host the new infrastructure lender.

“The bank’s headquarters will be located in Shanghai. This is fixed in the documents,” Ushakov said.

In a further sign that an agreement had been reached on the headquarters, an Indian government official on Monday played down the debate and said India’s top priority was to make sure members of the institutions all had equal voting rights, unlike Western-run multilaterals they seek to challenge, such as the World Bank.

“Equitable shareholding is the principal goal for India,” the official said. Second on India’s list of concerns was giving the bank a name that would allow non-BRICS nations to join in future, the official said.

The Chinese Finance Ministry did not immediately respond to a request for comment.

via Shanghai most likely headquarters for BRICS development bank | Reuters.

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