|
As China's economy has grown, so has its influence in the world. China matters to aid donors such as the UK's Department for International Development (DFID) because its growing global reach—especially within Africa—and its own record on poverty reduction have considerable influence on the achievement of the internationally agreed Millennium Development Goals (MDGs).
China presents a conundrum for DFID. It is now classed as a middle-income country and, despite real achievements in reducing poverty in China, the Department has announced its intention to withdraw bilateral aid in 2011. Yet around 16% of its population—equivalent to nearly one-third of the population of sub-Saharan Africa—still live in poverty. Just under half of the population have no access to basic sanitation, and a quarter lack clean drinking water. Affordable healthcare is beyond the reach of many and, amongst vulnerable groups, HIV/AIDS is spreading fast.
DFID has built one of the most successful aid programmes of all donors to China. Its highly cost-effective approach has relied on demonstrating small-scale, innovative projects in health, education, sanitation and water which have then been expanded by the Chinese Government. In the process, DFID has built influential relationships with policymakers in China.
These relationships are too important to lose. Nor is DFID's work in China yet complete. Withdrawing just four years before the 2015 MDG deadline may contribute to several targets being missed. The global financial crisis and the May 2008 earthquake have pushed people back into poverty.
We recognise that the UK's aid relationship with China should end. Nevertheless, we strongly believe that DFID's development partnership with China should continue. This will require not only the presence of DFID staff in Beijing but also a small funding element so that DFID can continue to demonstrate innovative approaches to poverty reduction in China through pilot projects. However, the small investment needed—probably between £5 million and £10 million annually between 2012 and 2015—would bring substantial returns, giving DFID influence on China's approach to development not just at home but overseas, including in relation to China's engagement with African countries.
Crucially, continued DFID support to China would also help China develop sustainably. The path that China chooses, in terms of carbon emissions, energy use and its sourcing of natural resources, will strongly affect the international community's efforts to address climate change. DFID currently leads UK Government support to adaptation to climate change in China and is a major international partner to China on climate change. It is also the lead Department for the UK-China Sustainable Development Dialogue. DFID has thus built influence and expertise on the development aspects of climate change that other UK Government Departments would struggle to replace.
DFID's relationship with China provides a mutual learning experience. The Department can help transfer lessons from China's own development to other developing countries, particularly in global priority areas such as food security. It can also draw on its own innovative work in China to inform its programmes elsewhere.
The costs of not helping China to continue to develop, and to develop sustainably, are likely to be higher to the UK taxpayer than providing limited funding for an ongoing development partnership. The continuation of support in the run-up to 2015—with the amount of funding secondary to the exchange of ideas and expertise—would re-direct the UK's relationship away from a traditional donor-recipient model to a co-operative partnership based on mutual learning in a process that would be of enormous mutual benefit.
| 
