James W. Adams is the new World Bank Vice President for East Asia and Pacific region. Before coming to this position he served overseas three times for the Bank, always in Africa. On December 1 Adams visited China, the first country he visited after he took this new job. Yong Tang, People's Daily Washington-based correspondent, did a face to face interview with Adams in his office on the eve of his China tour.

Yong Tang and James W. Adams (L)

Yong Tang: How long have you been on this position?

Adams: I have literally just arrived. Over the past four years I have been working in a policy area of the World Bank so I am going to enjoy moving back to working directly with countries on their development programs, trying - to the best of my ability - to make sure the World Bank is responsive to the needs of individual countries.

Yong Tang: East Asia and Pacific Region (EAP) is the fastest growing region in the world. How do you think of the role and impact of China in the EAP region?

Adams: It is accurate to say that the growth rate of this region is the most rapid in the world. This reflects the economic policy that has been pursued generally but specifically, it represents the ambitious and successful transformation of the Chinese economy. If we look back over 20 years of the reform process, this probably has to be the most successful and sustainable economic reform in human history.

Yong Tang: Can you tell me your strategy and plan for the region in your new capacity as World Bank Vice President for EAP affairs?

Adams: A couple of things are important. First of all, the Region is doing very well so I see the challenge for the countries we work with in the region to be how to sustain that overall growth rate. The second major thing is poverty reduction �C to make sure the benefits of growth are widely dispersed with good delivery of social services and dealing with the distribution issue aggressively.

Finally, one of my special interests �C I have worked for a substantial portion of my career in the Africa region -- and one of the most challenging questions is China's role in the world. China has a chance to play a dynamic and constructive role in the international economy. At a recent meeting I attended running up to the G20, I was very impressed by the leadership role China took as a spokesperson for the developing countries and an advocate of sensible international policies.

Yong Tang: How do you think of the role of the World Bank in continuing to support development and poverty reduction in the EAP region?

Adams: In the Region you face a range of challenges. The Philippines has been doing much better in respect to economic growth. Indonesia is now growing rapidly and so is Vietnam. But we still have a number of countries in the Pacific that have not been growing rapidly and do not have the same dynamic economic policy. We should help those countries build up stronger economic policies to facilitate reform, to get the type of growth that China and Indonesia have seen recently.

A further group of countries in Southeast Asia, like Laos and Cambodia, are growing very rapidly. The challenge is to manage that transformation to middle income status.

I think China is a separate issue. The Bank's role in China is modest. The role is not small with lending over 1.5 billion dollars a year but relative to its total resources, this is modest for China. World Bank funds can go into two types of projects, one of which can provide direct impact on the levels of poverty and the other type which can support the Government in a key policy area. For instance, we worked on a low-pollution coal fire plant which resulted in the introduction of improved technology to China which is more environmentally friendly. So in China we work in both ways.

Yong Tang: What is your view of China's growing global impact?

Adams: China plays an enormously important role in the international economy today. Of course its growth is an important source of demand. China is the largest importer of goods and raw materials from other Asian countries. It plays an important role in the regional economy. Everyone is watching China in terms of its strategy. Historian friend often reminds me that 200 years ago China represented the largest economy in the world. That changed in the nineteenth century. But I think China and Asia together have become an economic colossus again today.

If you look at the reality of what is happening, financing has moved to China because it is proven to be a dynamic supplier of low cost consumer goods. It is increasingly becoming a supplier of sophisticated industrial goods. I see this transformation as largely constructive. Any country can have certain roles which present challenges to the world economy but I think what has been good for the Chinese economy is largely good for the world economy. Of course, China has to manage its urban transformation - that is a challenge that most large developing countries have to face at some time �C and China has gone from an oil importer to an oil exporter. Seeing these transitions and managing them is an important part of international economic management. My observation is that China has done that broadly responsibly and consistently over the last 20 years.

Yong Tang: How do you think of values of China's successful growth and poverty reduction experience for other developing countries?

Adams: I think it is hard to take any country and simply replicate what they have done. But I think the Chinese have done a couple of things that do have broad applications - certainly in terms of its focus on education and health. China has also done some very interesting things overseas with agricultural technology.

What makes it harder in terms of lessons is that there is no other example of a country in the world that has such a large internal base. The other thing that has happened to China, which is unique, is that China has plenty of foreign investment and natural resources. But outside Southeast Asia, the interests in manufacturing and particularly the technology is not the same. Some of China's experiences cannot be simply replicated.

Yong Tang: So when you visit some countries in EAP region, you will not persuade those countries to learn from China?

Adams: The role of China is changing quickly. It is not just about giving advice in terms of Chinese experiences. The other thing is that China is preparing to finance development projects. China has brought two very different things to Africa. One is that it is coming from the perspective of a recent developing country. That is a fundamentally different perspective from the traditional approach in Africa. The other thing China puts on the table is a very strong message about not trying to provide instructions to the countries of Africa. Africa is probably the most over-advised continent in the world. China is working in a much more neutral and constructive way.

Yong Tang: What is your view of the role of the World Bank in China, given China's success in growth and poverty reduction? Is it going to change or will remain the same in the future?

Adams: The role of World Bank in China has been changing since the early 1980s when our relationship first began. A couple of aspects have changed. The financial side is becoming less and less important. When we started the relationship with China, we were the major source of funding for China. But now the Chinese government has all sorts of options for financing. But we will continue to finance the high priority projects.

We still have a very important role to play in analytical work, doing economic work on what is happening in China, being prepared to work with the Chinese government on economic analysis �C all of which can contribute to policy development in China.

The third thing we bring is the willingness to engage on key development issues. The Chinese Government is going to decide most of what we do in China. The Chinese Government is very supportive of our work.

Yong Tang: Do you have any vision for the global poverty reduction?

Adams: This remains the central objective of the World Bank. Between 2001 and 2004, China reduced poverty from 16% of its population to 10% --a major achievement.

Yong Tang: When will the global poverty be wiped out completely according to that tempo?

Adams: This is a different challenge. One thing you have to remember: we have not eliminated poverty even in the United States or Europe. Two challenges are central to the East Asia Pacific region in terms of numbers of people: China and Indonesia. China's problem is the transformation of its rural areas and the development of a modern economy. Indonesia is very heavily populated like China and it has gone through the transformation to become a more diversified economy. In Indonesia, it is important that it puts in place a framework to improve its business climate.

Yong Tang: Since you live in Washington, DC, how can you have the sense of urgency to wipe out poverty in the world? After all, your work is not closely related with your daily life.

Adams: I feel very lucky in moving to this region. We have six country directors and hundreds of staff located in the region so this is the most decentralized region in the World Bank. The second thing is that I do a lot of traveling to the region. I don't just stay in Washington, DC all the time. When I arrive in China, I will meet with some Chinese officials. I will meet with some poor people in Guizhou, Southwest China. I look forward to that. I have sympathy with the argument that development doesn't start in Washington. In my career I served overseas three times for the Bank, always in Africa. So I am a big believer in empowering the local field offices to do most of the work in interacting with government on developing projects.

Yong Tang: Do the local offices have the authority to make decisions?

Adams: Absolutely. We are going to increase the authority in the field. We want to make sure the country directors are empowered to make decisions and solve problems.

Bio of James W. Adams

Mr. Adams is Vice President of the East Asia and Pacific Region, at the World Bank. In this capacity, he has overall responsibility for World Bank operations in the one of the world's most dynamic regions, covering than a dozen states ranging from the world's most populous country to the smallest and most remote Pacific Islands states. Last year alone, the World Bank provided US$2.9 billion in loans and grants to governments in the region for development projects designed to increase economic growth, reduce poverty, enhance social stability, increase intraregional integration, and improve governance.

Previously, Mr. Adams was Vice President and Head of Network, Operations Policy and Country Services, at the World Bank. In this capacity, he was responsible for operational policy development, procurement and financial management activities, relations with United Nations and nongovernmental organizations, and support to Regional staff working in all these areas.

Since joining the Bank in 1974, he has held a variety of operational positions in East Asia, Latin America, and Sub-Saharan Africa, including as Country Director for Tanzania and Uganda, as Director for Operations Policy, and as a Division Chief of several departments.

Before joining the Bank, Mr. Adams worked as a loan officer for Merchants Bank, in Syracuse, NY, and with the General Agreement on Tariffs and Trade, in Geneva, Switzerland.

Mr. Adams studied at Colgate University, and holds an MPA from Princeton University.