Title: Fwd: [riverlink] Water crisis is taking China towards 'Dry
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Subject: [riverlink] Water crisis is taking China towards 'Dry Age'
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Moderator's Note: All governments which, promote the fallacy of Big
is Beautiful put their countries in a situation where China finds
itself.

China with the fifth-largest water resources in the world and a
population of 1.3 billion is moving towards a situation which the
World Bank calls the 'danger level'. Water sources in China are
running drying up. In response China has launched its yet another mega
public works projects to transfer water from the Yangtze River in the
south, to the drying Hwang Ho, Huai and Hai rivers in the north every
year. The project entails ploughing three separate channels about 800
miles long between China's flood-prone south and the arid north. It
would join China's Three Gorges Dam and 3000-mile Qinghai-Tibet
Railway as one of the world's largest, and most controversial, public
works projects.

Environmentalists say the project will displace millions people to be
relocated and damage delicate eco-systems. Yangtze itself is in danger
of running dry. Chinese Environmental Protection Agency warns the
government "most countries no longer undertake large-scale
cross-watershed transfer projects because they are very expensive and
have severe environmental consequences".

Moderator


WATER CRISIS

The drying up of China

China's water crisis has serious economic and ecological implications
for itself - and the world.

It's easy to mistake the long but otherwise incongruous looking bridge
just outside Luoyang city in Henan province as a monument to China's
endemic corruption. At first sight, it appears to be built over
nothing but an expanse of dry field which could easily have been
crossed with a normal road.

It's only after one travels a bit down its 3-km length that one
realises that it is in fact a monument marking China's decaying
environment. For a kilometre along the bridge, one suddenly sees the
Hwang Ho, or Yellow River, running below, and one realises it was to
span this river that the bridge was originally built. It's just that
the river has shrunk to about one-third its original size, leaving
wide, dry embankments on either side as it ebbs apologetically down
the narrow centre of its original river bed like some anonymous
provincial tributary.

"Once, if it rained a lot, the water would even touch the bridge,"
says Wang Tong, a local taxi driver. "But the water's disappearing".
Wang speaks softly, almost in disbelief, and says it still seems
unimaginable that the mighty Hwang Ho "which we always used to see
drawn on all maps" could disappear.

Indeed, the 4,700 km-long Hwang Ho, and the 6,300 km-long Yangtze
River further south, have been the cradles of Chinese civilisation for
over three thousand years. Even today, the Hwang Ho, which rises in
China's far west, is the major source of water for northwest and north
China. It provides water to over 12 per cent of China's population
across 50 large and medium-sized cities before emptying into the Bohai
Sea in the east. Well, almost emptying. For three years straight,
starting in 1995, the river did not reach the coast. In 1997, it
reached up to Kaifeng City in Henan Province, about 800 km from its
mouth. Decent monsoons in 2002 and 2003 helped the Hwang Ho reach its
delta once again. Today, from the bridge, we can see little boats
bobbing along the river and the sailors smile and wave at us. But the
river's volume has shrunken by a third, and its speed has slowed by
half, down to less than 50 cubic metres per second.

That's the story across much of China, where numerous water sources
are running dry. Apart from shrinking rivers, a recent survey revealed
that the water table beneath the North China plain, where 40 per cent
of China's grain is produced, has fallen five feet in the last five
years. After five years of drought, Chinese officials have become so
desperate that they are using airplanes, rocket shells and
anti-aircraft guns to shoot cloud-seeding chemicals into the air. From
1995 to 2003, the nation spent $266 million on rainmaking technology.


The World Bank and the Washington DC-based Worldwatch Institute say
the problem is burgeoning water consumption in China's towns coupled
with reckless industrial and agricultural use. This perfect storm of
economic and environmental factors, they warn, could exhaust China's
strained water resources, and trap the country in a new 'Dry Age'.

Giant Problem

>From a staid but functional office at the headquarters of the China
Institute of Water Resources and Hydropower in Beijing, Wang Hao, the
institute's director, says "water shortage is one of the most serious
challenges" looming over China's swelling prosperity and population.
"I think about it night and day," he says to no one in particular as
he paces around the bulky conference table in the room. The series of
numbers he reels off to amplify the problem are so stark that they
almost make an idle sipping of the bottled water at the table feel
like a guilty pleasure.

Though China currently has the fifth-largest water resources in the
world, given its population of 1.3 billion, the country's per capita
water supply is only 2,200 cubic metres - 25 per cent of the global
average. By the Chinese government's own admission, water supply is
expected to fall to 1700 cubic metres per person, which the World Bank
calls the 'danger level', by 2030. During the same period, the demand
for water is expected to jump from 120 billion tonnes a year to 400
billion tonnes.

Using uncharacteristically strong language, the World Bank has warned
that the situation "will soon become unmanageable with catastrophic
consequences for future generations."

Four hundred of China's 668 cities are suffering from water shortage,
according to government reports. Predictably, the quantitative fall in
China's water resources has also been accompanied by a fall in the
country's water quality. The World Bank says three-fourths of China's
rivers are polluted, and over 700 million of China's 1.3 billion
people drink contaminated water.

Though China's western provinces such as Gansu and Shaanxi have always
been parched (in the worst regions, some people say they have
literally not bathed for a decade), even northern regions are now
facing shortages.

Hubei Province in central China was poetically called the 'Province of
a Thousand Lakes'. But today, leaping industrial demand for water in
this economically supercharged region has turned 815 of these once
pristine lakes into sandpits. Seen from the air, the once fecund
ground looks arid and angry, and this change is spreading across the
area. In many indigent villages across China's northern regions and
Mongolia, locals who rear sheep and other animals for a living say the
encroaching desert has eaten into traditional grazing grounds, forcing
them to move several times. Scientists estimate that within 20 years,
such desertification could spread across a region the size of France.

In many rural provinces, the circumventing of traditional occupations
and livelihoods because of water shortages is causing riots, raising
the spectre China's leaders fear most - political instability. The
current regime in Beijing has little in common with the peasants' and
workers' revolution, in whose name it still rules. But the fact is
that it still uses old rhetoric to cling to power, and the bulk of the
People Liberation Army is primarily recruited from rural areas.

In 2002, thousands of farmers in the Yellow River basin of China
clashed with police over a government plan to divert water to cities
and industry. Numerous clashes like this have been reported across the
country.

Not far from the Yellow River Bridge, residents near the Xiao Langdi
dam, China's largest water-management project on the Hwang Ho, say
they forced authorities to stop the dam from generating electricity to
increase the irrigation water supply when the area was plagued by
drought in 2001. Still, with the river having shrunk by half, there
just isn't enough water. "I think we could grow two, maybe three
rounds of crops here every year (but) we only get water for one," says
Lu Zheng, a local farmer.

As peasants unable to make a living off the land are migrating to
cities and shrinking the local tax base, local authorities are often
raising taxes on those who remain. This then drives them to leave, or
protest violently. With concerned Central government authorities in
Beijing warning village councils against indiscriminately taxing
farmers, thousands of villages are sinking into decay and destitution.

Further, denying water to industry has also had its share of
consequences, and not just economic ones. Numerous Chinese industries,
particularly heavily water-dependent ones such as power generation,
say they are concerned with maintaining their global competitiveness
and growth in the face of falling water supply, rising water prices
and increased release of water to farming areas. Analysts warn that
with job-generating economic growth being one of the primary handles
China's Communist Party leverages to stay in power, the prospect of
urban recession combined with rural unrest could be very frightening.

Giant Solution

Beijing's response has been to launch another of its mega public works
projects, one that will transfer 50 billion cubic metres of water from
the Yangtze River in the south, to the drying Hwang Ho, Huai and Hai
rivers in the north every year.

"Eighty per cent of China's water lies south of the Yangtze but this
region has only 53 per cent of the population and 36 per cent of the
farmland," says Hao, at the China Institute of Water Resources and
Hydropower, whose institute will be closely involved in executing the
project. "Hence transferring water from the south to north makes
perfect sense."

The project, first conceived by Chairman Mao in the 1950s, entails
ploughing three separate channels about 800 miles long between China's
flood-prone south and the arid north. It would join China's Three
Gorges Dam and 3000-mile Qinghai-Tibet Railway as one of the world's
largest, and most controversial, public works projects.

Environmentalists say the $25-billion project, which is scheduled for
completion in 2009, will force over 250,000 people to be relocated and
damage delicate eco-systems. Some even fear it will cause the Yangtze
itself to run dry. Even the official State Environmental Protection
Agency has warned the government that "most countries no longer
undertake large-scale cross-watershed transfer projects because they
are very expensive and have severe environmental consequences".

While the World Bank says that the environmental issues facing the
project can be addressed, and that in some places the project could
actually mitigate river pollution, it warns that the project could
prove futile unless China fundamentally changes the way it consumes
and manages its water.

Indeed, China does not act like a nation in the midst of a water
shortage. Taps run freely everywhere because the government subsidises
water supplies, especially to farmers.

Industrially, China's water consumption efficiency is one-tenth that
of developed countries. And only 25 per cent of China's
industrially-used water is recycled, mostly because local governments
are loathe to burden local firms with costly recycling rules.

The vice-minister of water resources, Zhai Haohui, admits that China
loses more than 30 billion cubic metres of water every year, causing a
$28 billion loss in industrial output. Poor irrigation facilities have
also meant that China exploits just 25 per cent of its irrigation
potential. Zhai, one of the reformers within government, says he is
committed to making the tough decisions needed to correct the situation.

One of the ministry's more innovative moves has been to encourage
government-funded organisations, such as the China Women's Development
Fund (CWDF), to take on grassroots level water management projects.
Qin Guoying, CWDF's deputy director, says her organisation has spent
over $11 million to help almost a million families build water
collection wells in western China.

Zhai says his ministry has also introduced water conservation and
recycling programmes, and will raise the price of water supplied to
farmers and industry through the water transfer project.

This is essential as some 1,000 cubic metres of water from the Hwang
Ho river costs the same as a 1.5-litre bottle of mineral water.

The Asian Development Bank has been working with the government on
water pricing, and a pilot project in Zhangjiakou, a northern Chinese
city, found that raising the price of water by 40 per cent and
employing a progressive pricing plan rate for individual and corporate
users allowed water consumption in the city to fall by nearly 14 per
cent over two years. Majority of the reduction came from factories,
which instituted water recycling programmes.

Steps are also being taken to arrest the rapid deforestation and soil
erosion taking place across the country. Hydropower, which creates
large evaporating reservoirs, is increasingly being complemented with
wind power.

Meng Xian Gan, director of the China Solar Energy Institute in
Beijing, says: "China is on track to generate 10 per cent of its power
from wind and solar energy by 2010." Innovative programmes to
desalinate sea water using solar energy are also in place in numerous
cities, says Meng.

Lingering Concerns

But none of this is likely to be enough, and the consequences of
China's massive water problems are expected to spill over borders,
creating regional, even global consequences.

Despite Beijing's attempts to keep water flowing to its farmers in the
middle and long run, the imperatives against doing this are just too
strong. Today, agriculture uses 70 per cent of China's water,
producing relatively little in return. For example, in China, a
thousand tonnes of water produces one ton of wheat, worth perhaps
$200. If the same amount of water is used in industry, it could
generate up to $14,000 in additional output, according to experts.
With China desperate for economic growth and jobs, and flush with over
$600 billion in foreign exchange with which to buy food in the global
market, it makes perfect sense for the country to divert its water
away from food production and buy grain from the world market.

Worldwatch's Lester Brown calculates that water shortages could cut
China's annual agricultural output by 9 million tonnes. Though China
can afford to make up for this shortfall by buying grain in the world
market, Brown warns that such purchases would push up world food
prices, something he describes as 'life threatening' for the world's
1.3 billion poor who live on less than $1 a day. In short, falling
water supply in China could mean rising food prices for the entire
world, including India.

Some security experts also say that China's thirst for war could lead
it to divert regional rivers, and bring it into conflict with several
of its neighbours, including India. Diplomatic sources in Beijing say
they are already worried by China's damming of the Mekong River, which
it shares with Cambodia, Laos, Thailand and Vietnam, and its diverting
of water away from those countries.

Indian security experts fear a similar run-in with China because many
of them say Beijing is toying with the idea of damming and diverting
rivers such as the Brahmaputra, Indus and Sutlej, which are critical
to India, Pakistan, and Burma, but which originate in
Chinese-controlled Tibet.

Tensions over what exactly China is doing to Tibetan water sources
crested in July 2000 when satellite imaging from the Indian Space and
Research Agency (Isro) confirmed that a flash flood which killed over
130 people and destroyed property worth $20 million in Arunachal
Pradesh had been caused by a breached dam in Tibet.

A similar tragedy occurred in Kinnaur district of Himachal Pradesh in
August 2000 when more than 100 people died and 120 kilometres of a
strategic highway in the Chini sector and about 100 other bridges were
washed away by another flash flood caused by what Beijing called
another 'natural' dam collapsing. The multi-crore Nathpa-Jhakri 1,500
MW hydroelectric project on the Sutlej River was also severely
damaged. Satellite imaging from Isro also confirmed the cause of the
flood to be a breached lake in Tibet.

With China not allowing Indian scientists to visit the Tibetan lakes,
there have been murmurings in security think-tanks that Beijing might
be experimenting with water-diversion projects in the area. Recently,
Chinese engineers further unnerved India and much of the world when a
group of them at the Chinese Academy of Engineering Physics in Beijing
proposed using nuclear explosives to carve a canal that would divert
the Brahmaputra's waters into northern China. Though the government
was quick to publicly distance itself from the idea, experts say it
revealed the thinking in Chinese circles.

The possibility of all this triggering 'water wars' may seem
far-fetched, but it has not stopped the US National Intelligence
Council, the umbrella over all US intelligence agencies, to begin
monitoring China's water situation closely. "In China," says Meng,
"water could end up being more important than oil."

Jehangir S. Pocha

http://www.businessworldindia.com/feb2805/indepth01.asp





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