Economic reforms that began in the People’s Republic of China (PRC) in 1978 have resulted in rapid development, but they have also resulted in widening regional disparities. The 9% annual gross domestic product (GDP) growth is unprecedented, but growth has been spread unevenly with some segments of the population left behind in relative and even absolute terms and with coastal provinces achieving growth rates far higher than those in the central and western provinces.

The lack of adequate infrastructure, particularly in year-round transport links with the central and western regions, is the most important reason for this disparity. A key feature of the Government’s Eleventh Five-Year Plan is therefore railway development because rail transport is energy efficient, environmentally friendly, affordable, reliable, and comfortable. Given technological advances, railway construction is no longer difficult in remote and inaccessible areas. It is cheaper and uses less land than roads.

In recognition of the role of railway development in promoting economic growth and reducing poverty, the Asian Development Bank (ADB) has provided 14 loans in the sector since 1989 covering 15 provinces for a total of about $3.0 billion. Of these projects, eight are complete, two are operating commercially and four are under construction. These projects have had positive impacts in terms of increasing personal incomes, creating jobs, industrializing rural areas, generating local government revenue, developing tourism, improving housing, protecting the environment, and increasing the participation of women and ethnic minorities in economic activities.

In addition, railway construction units provide local communities with access roads, electrification, water supply systems, and basic infrastructure. Railways support development of economic growth corridors and microurbanization; provide greater mobility and better access to markets; and have enabled local governments to set up industrial zones and product bases to develop their secondary and tertiary industrial sectors. Increased revenues are used to provide better primary education, health services, agricultural development, and physical infrastructure.

ADB has developed a number of key initiatives for managing railway development including setting up effective institutional structures, consulting and involving stakeholders and local government agencies, and developing an effective project performance management system that closely monitors indicators. These measures have been developed over time and refined based on experience with other railway projects.

Visit Building Railways in the People's Republic of China: Changing Lives Download Page

You can download full publication in PDF format.

Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org
Publication Stock No. 120207
ISBN No. 978-971-561-645-4

Building Railways in the People’s Republic of China: Changing Lives
Asian Development Bank (ADB) is assisting the development of railway sector in the People’s Republic of China (PRC) since 1989 by providing lending and non-lending support.

ADB has provided 14 loans in the sector covering 15 provinces of the PRC for a total of about $3.0 billion, mostly in the poorer provinces of central and western regions. These projects have had positive impacts on the people and the local economy. Based on a review of the completed and ongoing ADB-financed railway projects, this report documents the positive impacts of railway development in promoting economic growth and reducing poverty in the regions that it serves.

The report also highlights the key initiatives developed by ADB for managing railway development. The report concludes with an overview of how railway development has helped change the lives of the ordinary people in the PRC.

About the Asian Development Bank
ADB aims to improve the welfare of the people in the Asia and Pacific region, particularly the nearly 1.9 billion who live on less than $2 a day. Despite many success stories, the region remains home to two thirds of the world’s poor.

ADB is a multilateral development finance institution owned by 67 members, 48 from the region and 19 from other parts of the globe. ADB’s vision is a region free of poverty. Its mission is to help its developing member countries reduce poverty and improve their quality of life.

ADB’s main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ADB’s headquarters is in Manila. It has 26 offices around the world and more than 2,000 employees from over 50 countries.

Comments (0)

Name

Email

Comment

smaller | bigger

Add Comment