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    Greater China
     Aug 8, 2007
Page 3 of 3
Beijing dips its toes in troubled waters
By Pallavi Aiyar

or recycle it. For industry, China's water-consumption efficiency is one-tenth that of developed countries.

Both Liu and Liebenthal thus agree that the government could help the situation by introducing market mechanisms that would create incentives for consumers to use water more efficiently.

But raising the price of water, particularly for farmers - given food-



security concerns - is politically difficult for the government. Moreover, Ma says that even were the government able to increase the cost of water without suffering a negative political fallout, the measure would leave untackled the real culprit behind the crisis: pollution.

He has similar criticisms against what is currently Beijing's most ambitious solution to the water problems: the South-North Water Diversion Project.

The project, the largest ever of its kind, is expected to cost $62 billion by the time of completion in 2050. Involving the construction of three 1,280km channels connecting the water-rich south to the arid north, the project is eventually expected to divert 44.8 billion cubic meters of water annually to the population centers of the north. Large parts of the construction of the eastern and middle routes are scheduled for completion by 2010.

"The South-North Water Diversion can only function as an emergency-relief project," said Ma. "Even when it's complete it will only make up a part of the water shortfall in the north and, given its expense, I doubt whether it is an economical solution to the problem."

Liu agrees that the grandiose project will not fix any of the fundamental issues underlying China's water woes and may even create further environmental problems of its own, in addition to necessitating the relocation of 250,000 people.

The planned diversion of water from southern rivers also has some foreign governments worried, given that several rivers that originate in China eventually cross borders and flow into neighboring nations. Dams along the Mekong River have thus caused concerns in Cambodia, Laos and Vietnam. India and Bangladesh are also known to be keeping a close eye on reports that China may be planning to divert the waters of the Brahmaputra River.

China has a long history of linking development and "progress" with large-scale engineering projects, such as the Three Gorges Dam. The country thus boasts about 46% of the total dams in the world, including 20,000 dams that are classified as "big".

"But although there are still some within the Chinese government who believe you can fix everything through engineering, overall there is a realization that this is simply untrue," said Liu.

Ma agrees. "For the current administration, the priorities are sustainable development and a more harmonious approach between man and nature rather than the traditional dominant notion that nature is simply there for man to harness," he said.

The reasons for this change, according to Ma, are in the central government having realized the linkages among the water crisis, public health and social stability. "They cannot afford economically or politically to ignore the issue anymore."

In March 2006, China's 11th Five-Year Plan thus set a target of reducing pollution discharges by 10% in 10 years' time. Although the pollution-control goals for 2006 were not met, Premier Wen Jiabao announced this year that he would lead a new task force to ensure better compliance with targets. Greater recycling of water and more aggressive treatment of wastewater is also being promoted. A wastewater levy was introduced in 2002, followed by a 2003 regulation that raised fines for polluters.

Beijing is also threatening to cut central government funding to localities that fail to meet pollution-control targets. Some provinces have even announced financial incentives of up to 1 million yuan for city officials who prove effective in combating pollution.

The central government's efforts have so far met with mixed results. Asserting Beijing's will on largely fiscally independent and powerful local governments is more of a formidable challenge than often imagined.

But Ma points out that despite the imperfect way in which the writ of Beijing is implemented countrywide, the very fact that Beijing itself is taking serious cognizance of the water crisis holds out hope.

"I am optimistic," he said, "because China is still a very top-down country, and you need support from the top to achieve anything. That's the first step, and we now have that."

However, despite his optimism, Ma cautions that the next step will be both more difficult and crucial: increasing transparency and public participation.

While some critics hold that making this change is impossible without first doing away with China's one-party political system, Ma believes that a stronger civil society can emerge even within the current political context.

"What we really need is to develop the rule of law, to ensure that the government's own rules regarding social and environmental impact assessments are followed before granting permission to factories or infrastructure projects," he said. He pointed to NGOs like his own as well as to a growing domestic media engagement with environmental issues as proof that a nascent civil society has already taken root in China.

While there is room for debating Ma's position, what is clear is that unless fundamental policy changes are both made and implemented, China's aspirations to superpower status may be thwarted by something as "commonplace" as water. For the country's leadership, the management of its water resources is thus a litmus test, and the manner in which Beijing tackles this test will determine whether the country's future will be great, or simply thirsty.

Pallavi Aiyar is the China correspondent for The Hindu.

(Copyright 2007 Pallavi Aiyar.)

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