Statement by Mr. Carlos Marulanda at the Board meeting of March 18, 1997

CONFIDENTIAL International Bank for Reconstruction and Development International Development Association 87604 International Finance Corporation Multilateral Investment Guarantee Agency FOR OFFICIAL USE ONLY EDS97-71 March 17, 1997 Board Meeting of March 18, 1997 Statement by Mr. Carlos Marulanda CHINA: CAS We see China's CAS from two different angles: China's performance and the World Bank's approach. A. China's Performance Taking into account the magnitude of the challenge; we can only admire the way China is moving toward its objective of sustaine'd rapid growth with stability: ..'/ - China has long-term plans with the right priorities, and has vigorously pursued them; - It has been flexible in its approach to similar problems under different environments; - It has gradually improved its structures and systems towards full integration in a market- oriented world; - It has learned methodically and put into place pilot projects and reproduced them with the necessary adjustments throughout the country; - China is ready to change fronts when necessary, as we are seeing with the new emphasis of investment in the interior regions and the promised revision of the way plans and programs are affecting women. - It has worked hard and collaborates and cooperates with external sources. Thus, we believe these are some of the reasons why China is obtaining astonishing results. B. World Bank Approach The World Bank is also doing its best in their approach to China. - It has a large and committed presence with both capital and human resources, especially with a strong field presence; - Staff that works with China has had the right attitude, listens and perceives the borrower's wants and needs; - It has been giving attention to projects with best chance of success that are effective, without taking unnecessary risks; This document has a restricted distribution and may be used by recipients only in the performance of their official duties. It should not be distributed without the consent of the Executive Director concerned. -A close and ample collaboration with China's authorities and all of the Bank's entities, along with a broad range of external institutions~ -A full commitment in playing a catalytic role in getting the participation of the private sector and foreign direct investment ~ -A portfolio with programs and projects of excellent quality, as a result of good diagnosis, design, implementation, control, monitoring and evaluation. This has been obtained mainly due to previous work done in pilot projects and with the Bank's expertise and knowledge. Therefore, we support the sectoral composition of the Bank Group lending and the strategies proposed in the CAS.