China-DAC Study Group

Participant Manual

 

PROGRAMME
19 September 2010 (Day 1)

 9:00-9:40 Opening Ceremony

Chair: Huang Chengwei, Deputy Director General, International Poverty Reduction Centre in China (IPRCC)


9:05- 9:15 Welcoming remarks
Zheng Wenkai,(CN-paper) & (EN-paper) Deputy Director, State Council Leading Group Office of Poverty Alleviation and Development, China


9:15- 9:25 Development co operation in infrastructure and implications for growth and poverty reduction in Africa
Fantu Cheru, (CN-paper)& (EN-paper) Research Director, The Nordic African Institute


9:25- 9:35 Main lessons from the China DAC Study Group’s events on Development Partnerships and on Agriculture, Food Security and Rural Development
Richard Carey, (CN-paper) Co Chair, China DAC Study Group


9:40-10:00 Coffee break


Session 1: The Contribution of infrastructure to China's economic growth and poverty reduction

Master of Ceremonies for Day 1:
Peter Craig McQuade, Head of Unit, European Commission, Brussels

Investment in infrastructure, using both domestic and international resources, has been crucially important for China’s recent development. Thirty years ago, throughout the country, unreliable, inefficient and poorly maintained infrastructure – especially for transport, energy, water and sanitation and irrigation was a major bottleneck. Since then, there has been substantial support for infrastructure development in rural areas, for example for irrigation systems and transport. This has made it possible to improve agricultural production, despite extremely scarce arable land per capita. It has also made a substantial contribution to reaping the comparative advantages from linking domestic regions as well as facilitated China’s entry into global markets. The pertinence of the expression “if you want to be rich, first build a road” has been demonstrated numerous times across all parts of China.


During Day 1 of this event, discussions will examine how infrastructure has been built up in China and how this has made a contribution to China's economic growth and poverty reduction, focussing on three key dimensions of infrastructure development: i) ensuring sustainability, ii) achieving efficiency, and iii) increasing impact on growth and poverty reduction. Particular attention will be paid to identifying relevant experiences and lessons for African countries, where infrastructure needs remain great. The session will:


• Clarify China’s strategies and policies, at both national and provincial levels, in achieving infrastructure development for the country’s economic growth and poverty reduction.
• Provide an overview of the economic and social conditions that underpinned infrastructure development over the last 30 years in China, drawing special attention to highlighting the major elements that have contributed to this achievement, identifying the contribution of international assistance and drawing out lessons from these processes.
• Examine the relevance and implications of this progress to other developing countries, particularly in Africa. This will include an analysis of China’s approach in the infrastructure area and the role played by pilot projects (whether or not involving outside donors) in China's overall reform process.

10:00-12:15 Plenary presentations

10:00 10:20 Introduction to Session 1
Li Xiaoyun, (CN-paper) Dean, China Agricultural University and Director, China DAC Study Group

10:20-10:35 The role of donors in China in the field of infrastructure
Wang Haimin, (EN-paper) & (EN-ppt) & (CN-ppt)  Associate Professor, China Agricultural University to present the study

10:35-10:50 Are China’s experiences in the field of infrastructure useful to Africa?
Joseph Onjala, (EN-ppt) Institute for Development Studies, University of Nairobi

10:50-12:15 Comments and discussions


12:15 – 13:30 Lunch


13:30-13:40 Introduction to the Parallel Workshops
Robert Haas, Head of East Asia Division, BMZ, Bonn

13:45-15:45  Parallel Workshops

Workshop 1:
How China has ensured sustainability in infrastructure development (including financing, maintenance and environmental impact)
Chair: Simon Sharpe, First Secretary, EU Delegation in Beijing
Rapporteur: Jennifer Adams, Development Counsellor, USAID


13:45 14:15 Presentations
1. Su Ming, Research Institute for Fiscal Science, Ministry of Finance –Public Finance and Infrastructure Finance
2. Lin Jiabin, (EN-ppt) & (CN-ppt) Senior Research Fellow, Development Research Center, State Council
3. Naohiro Kitano, (EN-ppt) & (CN-ppt) Director General, JICA

14:15 15:45 Comments and discussion

Workshop 2:
How China has achieved efficiency in the delivery of infrastructure (including planning, resource allocation and public private partnerships)
Chair: Wang Xiaolin, Division Director, Research, IPRCC
Rapporteur: Michael Stirnweiss, BMZ


13:45 14:15 Presentations
1.Tang Min, (CN-paper) CDRF- The contribution of State owned enterprises
2.Li Zhigang– (EN-ppt) & (CN-ppt) Hong Kong University –Efficiency of transport infrastructure investment in China
3.Liu Zhi, (EN-ppt) Lead Infrastructure Specialist, World Bank, Infrastructure Development and growth and the World Bank

14:15 15:45 Comments and discussion


Workshop 3:
How China has increased the impact on economic growth and poverty reduction of infrastructure development (including procurement approaches, linkages into the local economy and involving poor people in decision making processes)
Chair: Jean Raphael Chaponniere, AfD
Rapporteur: Adrian Davis, Head of China and Asia, DFID


13:45 14:15 Presentations
1. David Sobel, (CN-ppt) & (EN-ppt) Asian Development Bank- ADB’s approaches for pro-poor infrastructure projects
2. Zhang Linxiu, (EN-ppt)  & (CN-ppt) Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences- Infrastructure and poverty

14:15 15:45 Comments and discussion 90minutes

15:45-16:00 Coffee

Plenary session and open discussion
16:00-17:40
16:00-16:30


Reports from the parallel workshops:
Ensuring sustainability: Jennifer Adams, USAID
Achieving efficiency: Michael Stirnweiss, BMZ
Increasing impact: Adrian Davis, DFID


16:30-17:40 Open discussion

Summary of first day’s discussions
17:40-18:00
17:40 17:50 Richard Carey, Co Chair, China DAC Study Group 10 minutes
17:50-18:00 Li Xiaoyun, Dean, China Agricultural University and Director, China DAC Study Group 10 minutes


19:00 – Reception hosted by Alexander McLachlan, Political Counsellor, the European Union
Venue: Galileo Room of the EU Delegation in Sanlitun, Beijing
(Invitations will be distributed at the registration desk)


20 September 2010 (Day 2)

Session 2: Supporting infrastructure in Africa and increasing its impact on economic growth and poverty reduction

Master of Ceremonies for Day 2: He Wenping, Director, African Studies, Chinese Academy of Social Sciences (CASS)

Sub Saharan Africa suffers from a huge infrastructure backlog, at both the national and regional levels. By depressing firm productivity and retarding per capita growth rates, consumers in Africa pay exceptionally high prices for infrastructure services; between twice and ten times more than in developing countries in other regions. Annual infrastructure needs in Africa have been costed at USD 93 billion (of which one third for maintenance). Annual spending (domestic and foreign, public and private) is now about USD 45 billion and efficiency gains worth USD 17 billion are available. This leaves an annual funding gap of USD 31 billion (or 5% of GDP), mainly in the power sector.


China is helping to fill this gap. While there are no official data available on China’s economic co operation with Africa, China's total support for African infrastructure both concessional and non concessional has been estimated to have oscillated at around USD 500 million a year in the early 2000s, rising to USD 5 billion in 2007 and in 2008 (according to the Infrastructure Consortium for Africa). Chinese infrastructure investments have been recorded in 35 countries across sub Saharan Africa. Loans from the China ExIm Bank account for the vast majority of China's infrastructure finance for Africa.


The Tanzania Zambia Railway, completed in 1976, is one of the earliest and largest projects that China has completed in Africa. Recognising that "underdeveloped infrastructure is an obstacle to Africa's development and integration" (Sharm El Sheikh Action Plan 2010 2012), more recently China’s support for infrastructure has gone mainly into power (especially hydropower), transport (especially railways) and telecommunications (mainly equipment supply). Water projects attract the least support. China is thus following its own experience by focusing on areas that contribute to expanding the productive potential of the economy. At the same time, cross border infrastructure may have a higher priority for African countries than for China.


OECD DAC members and other development agencies also have a long history of supporting Africa’s infrastructure. In 2007 and in 2008, bilateral and multilateral donors disbursed a total of approximately USD 4 billion of official development assistance (ODA) to support economic infrastructure development in Africa (according to OECD figures). Africa’s infrastructure and its research and development capacity have also been influenced by the donor community. Given that China is now the largest external source of infrastructure investment in Africa, it is natural to ask what lessons China can draw from this international experience, especially to accelerate economic growth and poverty reduction in Africa, and how co operation can be strengthened.


Many difficult issues surround foreign involvement in infrastructure in Africa, whether from China or OECD countries. These issues include: i) ensuring sustainability, ii) achieving efficiency, and iii) increasing impact on economic growth and poverty reduction. Transparency is another difficult issue but has been receiving increasing attention recently (such as in the G 20 Toronto Summit Declaration). Day 2 of this event will facilitate a discussion about how China and other development agencies can address these issues to support Africa’s development. The session will:
• Review the policies and strategies China has developed to support Africa’s development in the field of infrastructure.
• Review the impact of development assistance policies of other development agencies on Africa’s development in the field of infrastructure.
• Highlight the impacts of those interventions on economic growth and poverty reduction in Africa.
• Explore the modalities and expected benefits of strengthening trilateral co operation between China, DAC members and African countries in the field of infrastructure.

 

9:00-11:00 Plenary presentations

9:00-9:20 Keynote presentation – Addressing Africa’s infrastructure needs: Key challenges, key contributions
Callixte KAMBANDA, (EN-ppt) & (CN-ppt) Principal Infrastructure Specialist, Secretariat of the Infrastructure Consortium for Africa, African Development Bank


9:20-9:40 Keynote presentation: China’s support for infrastructure development in Africa: Ensuring sustainability, achieving efficiency and increasing impact
Wang Jianye, (CN-paper)  & (EN-paper) Chief Economist, China ExIm Bank


9:40-9:50 The evolution of China’s support for infrastructure development: Policies, approaches and instruments
Deborah Brautigam, (EN-paper) & (EN-ppt) & (CN-ppt) American University


9:50-10:00 The evolution of DAC Members’ support for infrastructure development: Policies, approaches and instruments
Juergen Kettner, (EN-ppt)  Infrastructure Policy Advisor, DG Development, , European Commission

10:00 – 11:00 Comments and discussions 60 minutes


11:00-11:15 Coffee break


11:15 – 12:00 Debriefings and comments and discussions continued


11:15 -11:25 Feedback from the Global Development Learning Network Consultation
Edward Brown, (EN-paper) Director, African Center for Economic Transformation, Ghana


11:25 -11:35 Feedback from field visit to D.R. Congo and Zambia
Sanne Mars and Hans Petersen (EN-ppt) & (CH-ppt) & (EN-paper) Project Manager/Consultant, European Commission.
 

11:35 -12:00 Comments and discussions

12:00 – 13:00 Lunch
 

13:00-13:10 Introduction to the Parallel Workshops Li Anshan, Director, Institute of Afro Asian Studies, Peking University
 

13:15-15:15 Parallel Workshops


Workshop 1:
Ensuring sustainability (including financing, maintenance and environmental impact)
Chair: Naohiro Kitano, Director General, JICA
Rapporteur: Nick Costello, EU

 
13:15 13:45 Presentations
1. Helmut Asche,(EN-ppt) Director, Institute for African Studies, Leipzig University- Building up “soft” infrastructure
2. Chen Chuan, (EN-PPT) & (CN-ppt) University of Melbourne
3. Wang Luo,  (EN-ppt) & (CN-ppt) & (CN-paper) CAITEC, MOFCOM- Infrastructure as an integrate part of China-Africa Development Cooperation and the newly established China-Africa Research Center

13:45 15:15 Comments and discussion

Workshop 2:
Achieving efficiency (including planning, resource allocations and public private partnerships)
Chair: Tadashi Suzuki, JICA
Rapporteur: Tori Tveit, Confederation of Norwegian Enterprise

 
13:15 13:45 Presentations
1.Xue Hong, (CH-ppt) & (CH-paper) & (EN-ppt) Director, CAITEC, MOFCOM
The features of China’s infrastructure investments in Africa
2. Martyn Davies, Director, China-Africa Network, Gordon Institute of Business Science, University of Pretoria, South Africa - Chinese foreign investment in African infrastructure
3. Okey L. Onyejekwe, (EN-paper) & (CN-paper) Managing Director, Center for Sustainable Governance :Governance issues and infrastructure development in Africa –(tbc)

13:45 15:15 Comments and discussion 9 0minutes

Workshop 3:
Increasing impact on economic growth and poverty reduction (including procurement approaches, linkages into the local economy and involving poor people in decision making processes)
Chair: Mao Xiaojing, CAITEC
Rapporteur: Bill Nicol, OECD


13:15 13:45 Presentations
1. Hitoshi Shoji, (EN-ppt) JICA, Former Vice Chair of POVNET  Guilding Principles for using Infrastructure to reduce poverty
2. Sanne Mars, China’s engagement and its impact on Africa’s growth and poverty reduction
3. Jean Claude Maswana, (EN-ppt) Research Institute of JICA   Anecdotal Evidence Pertaining to Infrastructure Mishaps in Africa: How the war against poverty via infrastructures is often threatened


13:45 15:15 Comments and discussion


15:15-15:30 Coffee

15:30-17:00 Plenary Session and open discussion

15:30-16:00 Reports from the parallel workshops:
Ensuring sustainability: Nick Costello, EU
Achieving efficiency: Tori Tveit, Confederation of Norwegian Enterprise
Increasing impact: Bill Nicol, OECD

16:00-17:00 Open discussion

17:00-17:20 Summary of the event

17:00 17:10 Richard Carey, Co Chair, China DAC Study Group 10 minutes
17:10-17:20 Li Xiaoyun (EN-ppt) , Dean, China Agricultural University and Director, China DAC Study Group 10 minutes

17:30-18:00 Closing Ceremony

Chair: Peter Craig McQuade, Head of Unit, European Commission, Brussels

17:30 18:00 Closing remarks
Zhang Lei, Director General of International Affairs, LGOP
Jon Lomoy, Director for Development Co operation, OECD