China’s water challenge

The Chinese deserve great respect for what they have achieved in the past few decades. The most populous country on this planet is changing rapidly and at the same time, is considerably stable. The economic boom that set in after Deng Xiaoping introduced the socialist market economy in 1978 has lifted hundreds of millions of people out of poverty and made China a global economic power with steadily growing influence.

As the world economy is contracting, China is also feeling the impact because of its dependence on exports, but growth rates are still robust. In the short term, the economic crisis will definitely be the biggest challenge for the Chinese leadership. It won’t be easy to provide the millions entering the labor market every year with opportunities and jobs. Maintaining social stability is on top of Hu Jintao’s agenda.

The problems China is facing are wide-ranging and complex. The wealth gap between the industrialized urban centers along the coastline and the rural hinterland is a potential trigger of unrest. China’s immense population is aging too quickly while a pension system is virtually non-existent. However, the most pressing issue is the out-of-hand pollution. The environmental crisis is threatening future growth and stability. It is estimated that pollution costs around 10% of China’s GDPannually. The air quality in almost all Chinese cities is terrible, resulting in acid rain and negative implications for the health of people living there. Critics say that China has sacrificed its environment for the sake of economic growth. With coal being the country’s primary source of energy, CO2 emissions are high. Since there’s no powerful alternative at the moment and coal is abundant in China, it’s important to use the energy as efficiently as possible. In this regard, China’s performance is anything but impressive. The energy use per GDP unit in China is very high compared to other countries’.

Unlike hazardous air pollution, water shortages cannot be ignored for long. Being home to about 20% of the world’s population, water deficits are merely inevitable considering that China only has 7% of global water resources. The water crisis is critical because most of China’s water reservoirs and rivers are too poluted to be used for drinking water. 45% of surface water is completely unusable. Consequently, groundwater used for drinking is contaminated in many parts of the country. Waterborne diseases, productivity losses in agriculture and conflicts are the consequences. To avoid a long-lasting, devastating drought, water prices should be forced up to encourage people and businesses to save water wherever possible.

The first step is to fight wasteful use of electricity and water. The second step should be to stop the pollution of China’s liquid resources.