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The World Bank and Its Effort on Environmental Protection in China

The World Bank was established in 1944, as the International Bank for Reconstruction and Development. It is one of the world's largest sources of funding and knowledge to support governments of member countries in their efforts to invest in schools and health centers, provide water and electricity, fight disease and protect the environment. Since the first loan in 1981 supporting development of Chinese universities, the World Bank's cumulative lending to ChinabyJune 30, 2006was US$40.534 billionfor a total of 274 development projects.  Seventy-five of these projects are under implementation, making China's portfolio one of the largest in the Bank.

The magnitude and costs of pollution in China are still large, although Chinese government had done sustained efforts during these years. Biodiversity was reduced, less than 30percent of the sections of seven major river basins meet minimum water quality standards, air quality in about two-third of Chinese cities failed to meet the standard of State Environmental Protection Agency (SEPA). China’s recent rates of economic growth have now widened environmental impacts and accelerated many adverse trends. The urbanization and industrialization in China have produced rising material standards of living but have ever more costly environmental consequences. Plausible estimates of environmental costs vary from 3 percent to 15 percent of China’s GDP (2). Accuracy is constrained both by methodology and limited accurate data. This is not simply a matter of lack of transparency. Come out environmental laws in particular provinces is extremely urgent.
 The Bank takes notice of environmental production in the year 1992 and then, culminates in 2001 with the Bank Environmental Strategy. For the evaluation period there were four policies adapted to judge environmental performance and defend the negative affections in China:
(1) Mainstreaming the environment modifying and adding to the design of projects and conventional sector activities to mitigate environmental “bads” and generate “goods.”
(2) Enforcing Environmental Safeguards. Safeguards define the operational directives to implement environmental policy and manage the Bank’s reputation risk.
(3) Implementing a Global Agenda. International cooperation on issues such as biodiversity, climate friendly renewable energy international waterways, coastal environment and ozone depleting substances.
(4) Environmental Stewardship. This includes “policy dialogue”, “advocacy and policy analysis through ESW/AAA” and “technical support”.

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