Why and How the People’s Republic of China Entered the World Bank in 1980 and Afterthoughts

Abstract

Abstract China’s re-entry into the World Bank (WB) in 1980 was a joint endeavor by WB and Chinese reform-minded leaders. This article gives a chronicle of major events which paved the way for the People’s Republic of China to take over China’s seat in the WB. It describes in some detail the role played by Robert McNamara, Shahid Husain, Edwin Lim and Javed Burki on the WB’s side, and Deng Xiaoping, Gu Mu and the Bank of China on the Chinese side in engineering Beijing’s re-entry and in establishing a relationship with the WB based on mutual trust. It uncovers how the issue of Taiwan’s debt to the WB at the time, a potentially serious obstacle to the PRC’s WB membership, was successfully resolved. The article ends with reflections on China’s engagement with the Bretton Woods System.