Prosperity Fund China Skills Programme Background

The UK Government Prosperity Fund is a £1.2 billion cross government fund focusing on supporting poverty alleviation and inclusive economic growth in middle income countries. The Fund also looks to create opportunities for international business, including UK companies, as a result of this economic growth, as a secondary benefit.

Prosperity Fund work in China consists of a portfolio of seven thematic programme areas. The seven programmes are directly complementary and are aligned with China’s key economic priorities. They are designed to address market failures and weaknesses that impede China’s inclusive economic growth and will help China’s ongoing transition to an inclusive, sustainable and productive economy.  As a secondary benefit, the programmes will also create commercial benefits for international companies, including UK ones, through an improved business environment in China for firms and investors, and through additional trade and investment opportunities in these sectors, where the UK has competitive advantages.

The China Skills Programme will match China’s specific reform needs with UK Skills sector strengths, to support China develop a better-equipped and skilled work force ready for productive employment.  As China seeks to transition to a new economic growth model, one of the main challenges it faces is the size and scale of the skills gap. China’s 13th Five Year Plan, published in 2016, clearly sets out the need for investing in high-end skills to raise productivity and support China’s economic transition. The programme will draw on UK expertise in TVET and will align with Prosperity Fund work elsewhere in this sector. In 2018/19, the Programme is running a series of scoping activities to inform and steer the design of a larger scale, multi-year programme.

For more information about the Prosperity Fund, please visit this website.