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BEIJING, Oct 18 (AFP): China must develop its civil society and rule of law if it wants to continue its current impressive economic growth and cut poverty to narrow its wealth gap, World Bank president Paul Wolfowitz said Tuesday.
Speaking at the end of a week-long visit, Wolfowitz said while he was impressed by China's economic growth in the past two decades, he was also struck by the country's yawning wealth gap between its cities and poor provinces.
He pointed out that China has about 150 million people who are still living in poverty.
To reduce poverty and achieve sustainable growth, China must allow a vibrant civil society, he said.
During his trip, Wolfowitz visited China's poorer regions including the northwestern province of Gansu.
He said village elections in China were a good example of grassroots participation in civil society and conducive to a country's development.
China has strict rules on the operation of non-government organisations (NGOs) and most are subject to government interference. They normally have to be affiliated to a government unit and many are liable to pay tax.
Bert Hofman, chief economist at the World Bank's office in Beijing, said the international financial institution is already working with the government on regulatory changes to facilitate the works of NGOs and giving small grants to these groups.
Reuters adds: China could accelerate its shift to a market-based economy by giving foreign firms a freer hand in its financial services sector, US Treasury Secretary John Snow said yesterday.
Speaking to the Securities Industry Association at the close of a week-long visit to China, the US Treasury chief said China now was committed to a more flexible currency. But it also need more access to financial services and a more robust capital market to keep its economy expanding.
Snow said China could benefit by gaining quick knowledge of products like asset-backed securities, credit and currency derivatives, options and hedging devices, all of which could be used to reduce uncertainty and to let capital markets develop.
London report says: China will remain an important recipient of World Bank assistance despite the country's economic boom in recent years, the bank's president, Paul Wolfowitz, said in comments published today.
In an interview with the Financial Times, he said the Washington-based development bank still had a role to play in helping the state lift more people out of poverty.
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