The Economic Growth of China and the Environment

1. The Economic Growth of China and the Environment

2. Are the environmental problems in China the result of its population? • China is considered to have the worst environmental problems in the world. • With a population that exceeds 1 billion people it is easy blame these problems on the massive population. • Is this too simple?

3. The distribution of environmental degradation is the result of a long history economic development programs and political repression Distribution of Acid Rain 2002 Geographic distribution of environmental degradation

4. China’s Command Economy • China’s communist party came to power in 1949 under the leadership of Mao Zedong. • Intention was to build an egalitarian state. Focus was on job creation, not innovation and growth. • Began with land reforms: Taking land from the landlords and giving it to the landless. • Land reforms led to the creation of millions of small family farm plots which could not produce enough food for China’s urban population. • Failure of small plots led to the creation of village communes. Communes became the basis of rural political organization, health care, education and eventually small rural enterprises. • Central government set production quotas on communes. Failure to meet these resulted in severe penalties.

5. Communes and Famine • Central government dictated commune activities. Farmers were forced to dedicate more time to infrastructure projects than to food production. • Local officials overstated grain production to central government to gain political favors. Central government raised demands on communes. • The result was that between 1958 and 1961 30 million people starved to death because of misappropriation of food and farmers’ time.

6. Regional Self-Sufficiency • Fear of foreign invasion led central government to pursue a policy of regional self-sufficiency. • Each region of China was required to develop balanced industrial and agricultural sectors. • This led to the development of industries and farms in regions that were not appropriate and were far from markets. • Clearing forests for wheat.

7. Market Reforms of the late 1970’s • Market reforms in China were initiated by Deng Xiaoping. • Reforms decentralized economic planning down to the local level • Farmers and business people allowed to exchange in an open market • Local officials developed regional industrial and agricultural specializations • Opened China to foreign direct investment.

8. Market reforms and rural industries • Focus on regional specialization led to the growth rural industries. • Fertilizer factories, paper mills, iron smelting. • Many of the factories were centered around rural communes • Created massive economic growth in rural regions. • These industries have led to high levels of environmental degradation. • Government fears regulating these industries because of possible job loss in rural regions.

9. Urban economic growth and SEZ’s • Per capita GDP in China: $US 300 in mid 1980’s- $US 4020 in 2001 • Fear of rapid liberalization and Special Economic Zones. • Originally located in 5 coastal cities, have now expanded into the interior. • Job possibilities attract rural migrants: housing and environmental concerns. • High acid rain levels correspond with locations of SEZ.

10. China and WTO • China became member of WTO in 2001 • Critics argue that China should not be a member because of its human rights and environmental abuses. • Proponents argue that with greater integration into the global system China can be pressured to reform

11. Political Dissent in China • China has a long history of brutally suppressing political dissent. • Tiananmen Square 1989. • Fears of government reprisals may prevent people from demanding environmental reform from the central government. • Growth of highly literate population, the internet, and a more free media may be signs of change

12. Coal in China • China has one of the largest coal reserves in the world • Coal provides 75% of China’s energy needs. Coal consumption doubled between 1977 and 1999 • Coal releases Sulfur dioxide and Particulates. • In many Chinese cities levels exceed WHO guidelines by 10 times. • Distribution of coal pollution correlates with state directed industrial planning. • Fears of stifling economic growth prevents central government from taking action to regulate environmental degradation. • Economic losses from environmental damage may undo the gains China has made in economic development.

13. Three Gorges Dam • Largest engineering project in history: 600 feet high and 1.4 miles wide. • Designed to provide 10 tenth of China’s electricity demands: would lessen its dependence on coal with a “clean source”.