The CPDF will be managed by the IFC and funded by the IFC as well as the governments of Australia, Switzerland and the United Kingdom (UK). Its key objective is to fight poverty by creating jobs in private sectors and fostering small businesses.

During his stay in Chengdu, Wolfensohn held discussions with Chinese officials and Chengdu-based small and medium-sized enterprise (SME) owners in light manufacturing, pharmaceuticals and consulting services.

The CPDF is planning several projects to support SMEs in Sichuan where incomes lag behind those in the more prosperous coastal provinces. While they are crucial to the local economy, Sichuan's SMEs are characterized by a high degree of informality, opaque financial reporting, inappropriate ownership and management structures and weak corporate governances, which have limited their ability to woo outside investment for further development.

CPDF will focus on three broad areas, Wolfensohn said.

Access to finance: Technical assistance and capacity building for Sichuan's banks; preparation of SME risk-sharing finance initiative; direct assistance to domestic SMEs to strengthen and restructure their operations; and providing access to new capital.

Capacity building and sustainable development initiatives: Strengthening local consulting companies through innovative and technical support projects.

Business enabling environment: Collaborative programs with WB, UK Department for International Development, and government agencies; providing support to implement reforms in regulation, legislation, and other key policy areas.

(China Daily May 27, 2002)