By Timothy King, Jiping Zhang

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Reform in China has been associated with a willingness to accept selected foreign investment and to borrow abroad. The Red Soil Development Project case describes a project financed by the International Development Association (IDA), the soft loan arm of the World Bank, in a relatively poor area of China, and its effects after a little more than one year of implementation. Although this is a relatively specialized case, designed for use in the training of government auditors, it also provides the reader with a sense of the complexity inherent in converting a multimillion dollar loan to the central government into very large numbers of individual loans to small farmers, and with a snapshot of the way in which local government has been organized in the project areas.

EDI's main activity is to design and implement policy seminars and training courses, where Bank staff, academics and government officials discuss development policies and learn from each other. But if EDI was to rely only on its capacity to organize courses itself, its contribution to development would inevitably be very small. EDI therefore works with a number of partner institutions in developing countries and hopes to strengthen their training to reach a much larger number of people than we could possibly do ourselves.

Students learn how to criticize each other and their teacher and how to offer criticism in a constructive way, and how to accept criticism without feeling insulted. To those who have not yet had the opportunity to develop their interest in teaching with cases, I offer sincere and enthusiastic encouragement based on experience. It is a method of instruction that could prepare Chinese students to lead and manage their country's enterprises, bureaus, and service organizations with skill and competence.

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