Journey to west: Green edition
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One after another, factories are moving from China's coastal cities to its western regions seeking lower costs. Following them are heavy road traffic and large urban crowds. Some overseas observers call it the "flying geese paradigm", first used to describe Asian economies taking off one after another after Japan. In China, cities in inland areas are busy turning themselves into copies of coastal manufacturing towns.
But wait a minute, says Ma Zhong, an expert in environmental economics with Renmin University of China in Beijing: "Let's think whether the coastal towns' model is the best example for the western regions to follow, because it may not suit quite a number of places there."
There is no denying that the western regions need development, and need it badly. And given the central government's determination and financial power, they will turn out stronger GDP results. But in some places, the ecology is "so fragile" and public services "so inadequate" that the coastal towns' manufacturing-led model cannot be applied without creating costly wastes and disasters, the economist-turned-environmentalist warns.
"It's a mistake to think a model suited to a city in the Pearl or Yangtze river delta in eastern and southeastern China could be applied to the vast but different environment of West China."
The government has to adopt a different model, if not models, to balance economic growth and environmental protection in those areas, Ma says, after delivering a speech at a recent seminar of journalists, who specialize in environmental reporting, in a hotel tucked in Hangzhou's scenic lakeside.
"It's not just a regional issue. It's a national issue. For, West China is where the Yellow and Yangtze rivers originate. Once the rivers' precious sources are polluted - if development is not handled with due care - they will pollute most of China's waters and harm these trees and bamboos," he says, pointing to the lush green environs outside the window.
Moreover, "considering the Tibetan-Qinghai highlands are the source of many of the major rivers of Asia, protecting China's western regions is one of our international responsibilities, too". China will have to be more innovative in developing the proper leadership and coordination for western regions rather than just spreading manufacturing operations there indiscriminately.
All large investment projects in China are now subject to environmental review. The government's western development strategy has made it clear that high-polluting industries moving to West China would not get any incentives, and energy producing regions should improve their energy efficiency standards.
It is important, too, for local officials to understand that manufacturing industries do not necessarily hold the key to affluence in the sparsely populated regions, Ma says. "It is not the only model of development That's only an illusion, which in the end will only create more trouble."
In contrast, the relatively high degree of biodiversity that still exists in West China can be put to more efficient use. With certain centrally coordinated incentives, plants-related businesses, based on special local crops, could help small farms and processing mills transform themselves more in harmony with nature. Such farms and mills can be easily run on renewable energy - solar, wind, and bio-energy - which happens to be in abundant supply in the region. "There is more than ample room to work on these things and make them competitive and economical both." Ma himself is building an experimental bio-farm in Anhui province.
The key to successful economic development of West China is the awareness that the "Shanghai model" may not work there. This should be clear to investors, as well as government officials. There is a marked difference between West China and the rest of the country in terms of ecology, demography and economic geography. The country's coast may be home to some of the world's largest megacities but the dearth of water and farmland across vast stretches of West China makes it impossible to build even small cities there.
The fact is that the coastal industrialization process is a ready-made model copied from Western Europe and North America, as well as Japan, and manufacturing industries do usually bring about fast growth in employment and government revenue.
So the toughest challenge, he says, is to remain far-sighted. At times, industrial growth should make way for projects that make better environmental sense such as green farms, plants making healthy and organic products and their ancillary sector.
China's farming tradition goes back more than 5,000 years. The country used to boast a high level of biodiversity - which is still evident in many western regions, Ma says. The Ministry of Agriculture has a list of 15,000 outstanding strains of domestic crops, with only dates accounting for more than 100.
Now that organic food products are becoming part of the middle class's lifestyle in large cities even though they cost more than "normal" products, people in West China have a better chance of selling their agricultural products there. This way they can put local resources to optimal use and make money, without compromising on local biodiversity.
"Isn't it a better way than paying a high cost after a few years of industrialization, as many eastern cities are doing today to repair the damage caused to the environment?
That does not necessarily mean the country has to eschew its market-oriented reform, as some Chinese critics have suggested. "People have learned how to match market mechanisms with government guidance. The only difference is that they have to do it in a new game."
Besides, local communities should be encouraged to compete, not just for speed but for being economical and energy efficient.
"We must see where we stand now. We've already reached a period of rising environmental risks. The old industrial and urban model is posing scary threats, battering us is one environmental disaster after another. It is about time we started looking seriously for a way out - that is, seeking low-carbon development," Ma says. "This is the best possible help we can give to West China."
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