Opening speech at the Western China international economic and trade fair by James D. Wolfensohn, President

 101489 Opening Speech at the Western China International Economic & Trade Fair by James D. Wolfensohn President The World Bank Group Chengdu, China, May 25, 2002 Governor Zhang, distinguished guests, ladies and gentlemen: I am delighted to be here this morning to open the Western China International Economy and Trade Fair. I would like to thank the People's Government of Sichuan for inviting us to attend this important event where government leaders from Beijing and twelve other provinces meeting to discuss strategies for developing China's Western Region. This event reflects the strong commitment of the Government and the people of China to develop its Western Regions. I am very impressed with the enthusiasm and determination demonstrated not only by the public sector, but also by the increasing level of private sector interest in supporting the Western development goals set forth by the government. Although opening to the rest of the world is vital, China's future is chiefly determined by the growth of its domestic market. The Government's push to accelerate the development of the western provinces is vital to the success of achieving a sustained growth for China in the long-run. To the extent the growth rate of western provinces lags, it will retard the growth rate of the whole economy. Given the significant incidence of poverty in the western provinces, growth is essential to create the jobs needed to reduce poverty and the prevailing inequalities. The mission of the World Bank Group is closely aligned with development priorities associated with the nexus of issues surrounding growth, poverty, and inequality. Over the past two decades, we have provided about 8 billion Dollars to support about 100 projects in China's western provinces. The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has been very active in supporting private sector investments in the Western Region. IFC has invested over one billion Dollars in more than 40 projects in China. Close to 20% of these investments are in China's West. These investment activities have been instrumental in supporting the growth of the domestic private sector and to mobilize FDI The World Bank and IFC will continue to support the Government and the private sector in their efforts to accelerate the western development. It is encouraging to see, therefore, that all of the important agents of change are coming together to develop the private sector as the new engine for growth in China's lagging areas. The purpose of my current visit to China is to assess recent economic developments in China, and discuss with senior leaders of the Government the World Bank Group's assistance strategy for China after its accession to the WTO. I started my visit two days ago in the western province of Yunnan and have now come to Sichuan. I have seen good examples of how the World Bank Group can offer assistance to the Government and the private sector to develop China's West. There are also formidable challenges, however, that cannot be overlooked.These include, but are not limited to, continued efforts to create and improve the enabling business environment, and managing growth in a socially equitable and environmentally sustainable manner. But I am confident that these challenges will be managed. In closing, I would like to thank the Government of Sichuan for its support to World Bank and IFC operations in Sichuan. We look forward to working with all of you to contribute to the development of China's West and to improve people's lives in this important part of the country. Thank you!