By Jikun Huang, Syed Arif Husain, Scott Rozelle, Aaron Zazueta
Even if the involvement of the area financial institution within the wooded area region has a comparatively brief historical past, beginning in 1988, the effect of financial institution initiatives dates again a lot additional. The Bank's 1991 wooded area approach under pressure a multi-sectoral technique. therefore, this evaluation checked out the Bank's tasks within the wooded area region, initiatives with wooded area quarter parts, and initiatives with power affects on forests, in addition to the Bank's non-lending prone. those reviews search to pass judgement on even if the financial institution has 'done the proper issues' and 'done issues right'.
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Imports could increase sharply. This is happening at a time when the complexity of projects is increasing and the focus in the forest sector is shifting from production to conservation and biodiversity. As an added burden, the Bank's lending terms are hardening. As China shifts from IDA lending to IBRD, the lending program in the forest sector is coming under pressure at the same time that China's economy has been slowing, and the ability of poor households to borrow for long-term forest investments at commercial interest rates is in question.
The government has emphasized the importance of the Bank staying engaged in the China program during its transition to a more environmentally sensitive and market-oriented policy. It is particularly important, they say, that the Bank assist in the reform of state enterprises and provide concessional funds for the forest sector owing to the global benefits and long-term, risky nature of the program and the fact that costs are being borne by the poor provinces and poor households within them. China will need to continue to increase its supply of timber in the future and large tracts of land still await reforestation.
Uma Lele Page xi ACKNOWLEDGMENTS This report is a collaborative effort between two country authors, Scott Rozelle and Jikun Huang, and the Operations Evaluation Department (OED) review team under the general direction of Uma Lele. Messrs. Rozelle and Huang conducted desk and field work and wrote the first and second drafts of the report, Arif Husain contributed analysis of the Bank's lending and performance, Aaron Zazueta assessed the forest projects and projects with potential impacts on forests, and William Hurlbut provided editorial input.