China's environmentaldegradation has developed over centuries, but record recentrates of economic growth have now widened environmentalimpacts and accelerated many adverse trends. China'surbanization and industrialization have produced risingmaterial standards of living but have ever more costlyenvironmental consequences. The period 1992-2001 coincidedwith a renewed Bank commitment to the environment,culminating in a new 2001 Bank environmental strategy. Forthe evaluation period there were four policies against whichenvironmental performance can be judged: mainstreaming theenvironment; enforcing environmental safeguards;implementing a global agenda; and environmental stewardship.The environment and social sector development sectormanagement unit (SMU) has a small professional staff andmanages the few Bank-funded specialized environmentprojects. The Bank provided intellectual leadership and wheneconomic sector work (ESW) was critical, the stakes were sohigh that the overall cost-effectiveness of ESW was assured.Rightly the Bank participated enthusiastically and sharedknowledge with a pluralistic group of donors allied toChinese research institutes and non-government organizations (NGOs).