The World Bank and the European Union’s Cooperation on China

The World Bank and the European Union’s Cooperation on China

Published By Ergul Haliscelik, Globalization and its Implications, The Heinz School Review (The Heinz Journal) Volume 3, Issue 1, Pittsburgh USA, March 15, 2006

Neither isolationism nor unilateralism is a credible response to globalization. In order to strengthen the world’s economic, political, and social stability, the World Bank and the European Union must work together to promote common values such as democracy, freedom, respect for human rights and the rule of law. I think that cooperation regarding China between the World Bank (WB) and the European Union (EU) will be very useful in this regard.

Background

During the last two decades, China has experienced tremendous changes. These changes affect nearly all aspects of Chinese society, as well as China’s relations with the outside world.[1]  Since starting to open up and reform its economy in 1978, China has averaged 9.4 percent annual GDP growth, one of the highest growth rates in the world. China has also attracted hundreds of billions of dollars of foreign investment and more than a trillion dollars of domestic non-public investment. Foreign direct investment (FDI) in China has also increased dramatically, turning China into the second-most important recipient of FDI, after the United States. [2]  

Despite China’s economic success, the EU supports the argument that the Chinese government still has problems regarding the issues of human and political rights of many of its citizens.