1. Why does the World Bank not mind the competition from China's aid program? Why might the aid recipients prefer to deal with China?

The official position of the World Bank is that it is not concerned about competition from China's because it is aimed more at infrastructure that will also improve the life of the people living in the recipient countries. According to Investopedia.com the World Bank also funds infrastructure projects, but it encourages all of its clients, which number more than 100, to implement programs that promote Western goals. World Bank clients must seek projects that promote sustainable growth, health, education, social development programs focusing on governance and poverty reduction mechanisms, the environment, private business and macroeconomic reform. So, with its emphasis on human welfare, the World Bank seems to be saying that the Chinese programs are more complementary than competitive.

2. What can China expect to gain from aid to its poorer neighbors?

It seems rather obvious that the Chinese stand to gain substantially from the new roads, ports and bridges. They will be able to use these facilities to their own benefit by moving exports out of their county and bringing needed resources into their county. The new transportation systems will open new markets to Chinese exports and further the current expansion of the Chinese economy.

Multiple Choice/True False Questions