Washington, March 31, 2022 -- The World Bank's Executive Board today approved a $320 million loan to China to help green agriculture and rural development in southwest China. The project will contribute to global public goods, including reducing agricultural plastic pollution and agricultural greenhouse gas emissions, promoting biodiversity conservation and restoration, and enhancing the capacity of local government institutions to integrate environmental objectives into government rural revitalization programs and investment projects. The World Bank loan will be combined with more than $4.69 billion in government funding.
Guangxi Zhuang Autonomous Region and Guizhou Province are among the four poorest regions among the 31 administrative regions on the Chinese mainland. Agriculture still accounts for a considerable proportion of their economy, and the rural population in both provinces is higher than the national average. Despite rapid progress in poverty reduction in recent years, two-thirds of the rural population still earn less than $5.50 a day, the poverty line for upper-middle-income countries. Unsustainable agricultural practices, degradation of natural resources and increasing greenhouse gas emissions have affected sustainable agriculture and rural growth in these regions.
The World Bank loan program will support the Chinese government's ambitious National Rural Revitalization Plan (2018-2035), which is being implemented through a series of five-year rural revitalization strategic plans. The first phase of the current strategic plan focuses on maintaining and consolidating recent poverty reduction gains through green agricultural development and modernization, rural infrastructure and public service provision, and improved rural governance. Bank projects will help achieve these goals.
"China's remarkable achievements in rural poverty reduction will be at risk unless more environmentally sustainable agricultural practices are introduced," said Rui Ze, World Bank country Director for China, Mongolia and South Korea. The project will introduce green agriculture development targets, help Guangxi and Guizhou improve the effectiveness and impact of government rural revitalization programs, and summarize development experiences that can be applied across the country."
It is expected that 94% of the total project investment will be provided by the government, mainly at the provincial level, to support the achievement of the target results. Project activities include capacity building of county and village level institutions; Farm and cooperative training and agricultural extension services; Provide financial incentives to farmers and food processors to promote climate-smart and green farming technologies and practices; And investment in rural sewage and waste treatment services. The project will also include investments in monitoring, evaluation and verification of environmental outcomes, and will support program-based budgeting to help local governments better link the use of funds to outcomes.
