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    China Business
     Aug 1, 2007
Beijing blocks pollution cost report
By Antoaneta Bezlova

BEIJING - The pollution cost tally is becoming a potentially explosive political issue in China.

In a throwback to the early 1990s when the authorities suppressed publication of pollution indices for fear of inciting public unrest, the government is now concerned that the release of a study adding up the cost of the nation's environmental damage could provoke social backlash.

The calculation of China's "green GDP" (gross domestic product) - a project that attempts to compute the environmental cost of the



country's economic success - has been put on hold indefinitely, with one of its chief designers admitting he worries that the project will be scrapped altogether.

"In the current sensitive climate when everybody is talking about 'green change', some provinces fear publicizing their revised [green] GDP figures," Wang Jinnan, one of the heads of the project at the Chinese Academy for Environmental Planning, said this week. "Some local governments have lobbied us and tried to put pressure on us not to make the green GDP report public."

Last year, the combined efforts of China's environmental watchdog and the National Bureau of Statistics (NBS) produced a study estimating the cost of environmental degradation in relation to the country's GDP. According to the report, environmental degradation in 2004 cost China some US$64 billion, or 3.05% of its GDP.

The new report for 2005, which was completed at the end of last year but was never made public, reveals "losses from pollution and reduction in the GDP indicator even higher than the 2004 report", the Beijing News said this week, citing interviews with experts involved in the report.

What is more, the study would have presented a detailed picture for pollution and GDP losses for each province, thus assigning responsibility for environmental degradation to individual localities.

The report's public release, however, has now been "postponed indefinitely", according to Wang, after a six-month battle between the State Environmental Protection Administration and the NBS.

"There exist major differences between the environmental-protection agency and the statistical bureau regarding the content of the report and its distribution," Wang told the Beijing News. "Without the support of the statistics bureau, though, I fear for the future of our project."

What the statisticians worry about, said Wang, is unfavorable reaction from provincial governments. Despite the onset of new "green thinking" in the country, local officials in China are still officially judged by their abilities to deliver fast economic growth, and fear that the pollution data would hurt their performance assessments.

Defending the decision to withhold the report, NBS chief Xie Fuzhan said in July that there was no internationally accepted standard for putting a price on pollution cost. He told a press conference that China was pioneering an effort never attempted officially by another government.

"Come back to me only if you can find any other country in the world that accepts the 'green GDP' concept," Xie told reporters.

But Chinese environmental experts are fighting back. They argue that most developed nations already have legal restraints and electoral checks and balances that make the "green GDP" concept unnecessary. In China's bureaucracy, though, the only way to ensure environmental preservation would be to include pollution control in the provincial-level performance assessments.

"Calculating the country's 'green GDP' is the cheapest and probably most feasible way for China to reform the current dominant thinking about officials' performance," said independent environmental scholar Ma Jun.

The current bureaucratic battle illustrates the rising social stakes in China's steady emergence as an economic powerhouse. It may soon surpass Germany as the world's third-biggest national economy, but both domestic and international environmental experts are warning of the rising environmental toll of this success.

The nation's smog-choked cities and filthy waterways are making many people ill and fueling a cycle of unrest in China that is putting the world's fastest-growing economy in peril, said the Organization for Economic Cooperation and Development in a July review requested by the Chinese government.

The OECD study was supported by an earlier World Bank report, which said that by 2020, China is looking at 60,000 premature deaths per year in its cities. Apart from that, it predicted that another 20 million people will suffer pollution-related respiratory illnesses. Those figures add up to 13% of the GDP in the total cost to public health, according to the OECD.

(Inter Press Service)


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