Beijing, June 22, 2005
—China’s Ministry of Finance and the International Finance Corporation, the private sector arm of the World Bank Group, announced plans to sponsor the second Public-Private Partnership Forum in Beijing on November 1, 2005. The event will bring national, provincial, and municipal government officials together with international and domestic leaders in education. They will consider partnership models that can encourage increased investment in the areas of lifelong learning, vocational training, and higher education projects. Projects from around the country will be exhibited to highlight investment opportunities in the interior regions of China and match projects with potential sponsors.
Numerous trends are creating enormous pressure on China to increase investment in education. China’s workforce is increasingly moving from the rural areas engaged in agricultural activities into cities, where workers are engaged in industrial and service jobs. China’s entry into the World Trade Organization increases pressure on the economy to keep pace with other countries. The World Bank estimates that in China some 90 million new urban jobs will have to be created within the next ten years to absorb labor shed by the rural areas, compensate for job losses related to the economic restructuring, and provide the additional jobs induced by the projected increase in the labor force.
The ability to create, access and use knowledge will be critical to China’s ability to respond to new economic challenges. China needs more investment in education and skills, yet the public sector alone cannot provide all the funding needed. Private investors can provide critical educational services that help young people learn trade skills and help those in the workforce continually upgrade their skills. Higher education and professional training are other areas where private educational institutions can contribute to China’s needs.
"In order to achieve the ambitious objective of becoming a wealthy society, we must pursue a strategy of invigorating the economy through science, education and nurturing intellectuals. In 2004, MOF increased its support to higher education by launching the "985 Program" and arranging funding of RMB3.4 billion. MOF also allocated RMB120 million to a special fund for establishing a vocational training institute and training base", said Deputy Director General Ju Kuilin, of the Ministry of Finance International Department Mr. Ju said, "We are at the initial stages of promoting vocational training and lifelong education. There is a large market potential in China. The central government is putting much financial support in this sector while also encouraging the development of non-government channels to guide and improve the participation of private investments."
“There is a strong need to make investors aware of the opportunities in education and training while encouraging dialogue with policymakers to encourage an improved investment environment for education projects,” said IFC Associate Director Karin Finkelston. “This conference will allow educators and government officials alike to consider a wider range of options for public-private partnerships that can lead to more investment in lifelong learning, vocational training, and higher education projects.”
The conference is being sponsored jointly by MOF and IFC.
China’s Ministry of Finance is a key economic policy setting ministry within the Chinese government. Its International Department is responsible for a wide range of activities promoting international links, including research and analysis of the international financial and economic issues, providing policy advice and implementing projects. As the China’s focal point of international financial institutions, such as World Bank Group and Asian Development Bank, it has been successfully attracted RMB 417.5 billion for over 500 projects since the early of 1980s.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
