Download The Economic Growth of China and the Environment

The Economic Growth of
China and the Environment
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?
Geographic distribution of
environmental degradation
• The distribution of
environmental
degradation is the
result of a long history
economic
development
programs and political
repression
• Distribution of Acid
Rain 2002
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.
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.
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.
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.
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.
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.
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
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
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.
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”.