The China-World Bank Group Partnership Facility (CWPPF) (2024)

FAQs

Does China get money from the World Bank? ›

Currently China is categorized as an upper-middle-income country, and work with the World Bank mainly for funding small-scale projects.

The China-World Bank Group Partnership Facility (CWPF) is a partnership between the People's Republic of China's Ministry of Finance and the World Bank Group that seeks to assist developing countries in achieving inclusive and sustainable economic growth.

As of 2017, China has become the largest official creditor to developing and emerging countries, with outstanding claims surpassing those of the World Bank or those of all Paris Club Governments combined. At the same time, we find that the lending terms differ from those of most OECD governments.

With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions (IBRD, IDA, IFC, MIGA, and ICSID) working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.

[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).

The World Bank-China ranking controversy refers to the alleged manipulation of China's ranking in the World Bank's annual Doing Business report by World Bank officials while they were negotiating a multibillion-dollar capital increase from China.

The data used to make this graphic can be found in the table below. This dataset highlights Pakistan and Angola as having the largest debts to China by a wide margin. Both countries have taken billions in loans from China for various infrastructure and energy projects.

Industrial and Commercial Bank of China remains the world's largest bank, with assets of $6.3trn. Agricultural Bank of China surpasses China Construction Bank to claim second place, with 14.5% loan growth in 2023.

India takes the top spot. The world's most populous country owed $38.3bn to the WB at the end of 2022, down by almost $1.5bn from a year earlier. India's outstanding balance is almost double that of the next biggest debtor, Indonesia, with $20.6bn.

The organizations that make up the World Bank Group are owned by the governments of member nations, which have the ultimate decision-making power within the organizations on all matters, including policy, financial or membership issues.

Is the World Bank affiliated with the United Nations? ›

World Bank Group Timeline

The agreement with the United Nations is initially approved by the World Bank's Board of Governors in September 1947 and then by the United Nations General Assembly on November 15, 1947. The agreement identifies the Bank as a specialized agency as defined by the Charter of the United Nations.

Participating donors are Australia, Austria, Belgium, Cote d'Ivoire, Denmark, Finland, France, Germany (including GIZ), Hungary, Iceland, Israel, Italy, Japan, Korea, Norway, Sweden, Switzerland, and the United Kingdom. The program allows donors and the Bank to leverage their development agendas more strategically.

China's economy has grown to one of the largest and most powerful in the world over the past few decades. Driven by industrial production and manufacturing exports, China's GDP is actually now the largest in terms of purchasing power parity (PPP) equivalence.

China remains heavily dependent on the U.S. dollar for pricing and settling commodities contracts, which means Chinese businesses face higher transaction costs, and its economy is more vulnerable to global volatility and geopolitical tensions.

Together, IBRD and IDA form the World Bank, which provides financing, policy advice, and technical assistance to governments of developing countries. IDA focuses on the world's poorest countries, while IBRD assists middle-income and creditworthy poorer countries.