BEIJING, CHINA, July 13, 1999 ---
The International Finance Corporation, the Australian Government's international development agency (AusAID), and China's Ministry of Foreign Trade and Economic Cooperation (MOFTEC) recently began a major study of the status of China's domestic private sector. The first of its kind in China, the study will be conducted jointly by IFC and the State Economic and Trade Commission (SETC) with technical assistance provided by experts from the Australian National University and Beijing University.
The objective of the study is to identify opportunities for and constraints to the development of the domestic private sector with a view to making practical, immediately applicable recommendations to the Government of China. The study will identify issues in the domestic private sector by listening to what business entrepreneurs have to say about the current climate for private business and how this climate can be improved. The researchers plan to interview business people in Beijing, Chendu, Shunde, and Wenzhou this month. The results of the study will be announced early next year.
Mr. Wei Dong, Director General, Small and Medium Enterprise Department of SETC said that the Chinese Government attaches great importance to this study. He added that changes in attitudes as well as policy and regulatory frameworks were essential for the growth of the domestic private economy, and that first-hand information obtained from the study would be an important input in the decision-making process.
Ms. Donelle Wheeler, Counselor of Development Cooperation, AusAID, Australian Embassy, Beijing felt that the study would provide the Chinese Government with an informed basis to formulate policies and regulations to enhance the development of a robust private sector.
Mr. Neil Gregory, IFC's Senior Corporate Planning Officer remarked that the study would help IFC increase its support for China's domestic private enterprises.
The study is being financed through the China Technical Assistance Trust Fund, established with IFC by AusAID. The Australian dollar 1.5 million trust fund supports activities that enhance the Chinese government's capacity to improve the environment for private sector development and is part of the Australia-China bilateral program of development cooperation in which AusAID and MOFTEC are partners.
AusAID is the Australian agency responsible for the delivery and management of Australia's overseas aid program. Its goal is to assist developing countries reduce poverty and achieve sustainable development.
The mission of IFC, part of the World Bank Group, is to promote private sector investment in developing countries, which will reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
