China

The Rise of China

The World Bank raised China’s growth forecast from 6.5% to 7.2% in 2009. This figure was better than expected by analysts. A £356 Billion stimulus package has helped the economy in this growth, but exports are still down as the world accommodates the cut backs of the financial crisis.

The rest of the world, excluding China, is expected to shrink its aggregate GDP by 3%. Chinese growth is expected to remain respectable this year and next.

 

The Problems with China’s Growth

China’s economic growth in the last 30 years comes to huge environmental cost. Damage occurs to both the people in China, and the country’s reputation.

Recently, China overtook the USA as the biggest carbon dioxide emitter in the world. It is also the world’s biggest consumer of coal – the cheapest yet most polluting form of energy. ¼ of global coal reserves are found here, and the nation depends on it to provide more than 2/3 of its energy needs.

How Pollution affects China:

  • 2/3 of the world’s most polluted cities are found in China
  • 400000 people die of pollution related diseases each year
  • 1/3 of China is affected by Acid rain.

Environmental damage costs the country approximately 5% of its economic output each year.

 

Impact on the rest of the world

China’s growth within the BRIC’s and the rest of the world has lead to it having a range of influence in different areas.

The Shanghai Cooperation Organisation is a group made up of China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan. The organisation, created in 2001, was set up to curb extremism in the region.

China submitted a £6Billion loan to the organisation in 2009, in an attempt to assist the other nations with their economic growth. In addition to this, President Hu also offered to send delegations to SCO nations to assist with trade and investment. As the second largest economy in the world, Chinese expertise could be very useful in these nations.

Since the creation of the SCO, its objectives have changed. It is now being used as a base for economic co-operation and advances, rather than to tackle problems. The idea of a single energy market is being discussed, with some analysts believing China is trying to increase its influence in these highly strategic ex-Soviet nations of Central Asia. In recent months, China has increased lending to Russian companies. China is Russia’s second largest trade partner after Europe, with total trade between the two nations being over $80Billion. These increased links are being seen as an attempt to increase influence, regarding energy and China’s energy security.

IGO Profile: G20

Global 20 (G20)

  • Donate money to the International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD)
  • Set rules for financial institutions such as Banks
  • Stimulated the largest macroeconomic injection in history.
    • $5 Trillion US Dollars

Members Include:

UK, Australia, Italy, Germany, France, Japan

IGO Profile: G8

Global 8 (G8)

Aims:

  • Boost co-operation over trade and finance
  • Strengthen global economy
  • Promote peace and democracy
  • Prevent and resolve conflicts

It’s an informal but exclusive group, where policies and targets are made but compliance is voluntary.

Members:

France, Germany, Italy, Japan, UK, US, Russia and Canada

Presidency alternates each year between member states.

China (National Water Transfer Scheme)

–   North to South

–   380,000 people moved

–   Water clean upstream, polluting factories only allowed downstream

–   Water shortages in Chinese cities such as Chongqing and Shijiazhuang

–   Rapid urbanisation and industrialisation has meant increased demand for water

–   Northern China receives far less precipitation than the south

–   In 2008, 300 Chinese cities faced water shortages and groundwater in the north was drying up

–   Alarmingly high rates of economic growth suggested problems ahead with water supply

–   The same amount of water needed to generate $200 from farming could generate $14,000 if used for industry

–   Many of China’s rivers drying up, but many have also become so polluted

  • 80% of Chinas river no longer support fish
  • The Yellow River contains so much toxic waste and heavy metal that these poisons are entering the human food chain through the contaminated water
  • Arsenic, lead, cadmium and chromium have all been found in rice and vegetables grown using contaminated river and groundwater. They have been linked to developmental diseases, mental retarding and stunted growth in children

Water Conflict: Israel and Syria

  • Complex geopolitical relationship between neighbouring countries.
  • Israel is unofficially backed by the US
  • In the 1950’s the US Special Envoy dictated regional water sharing
  • Syrian attempts to divert the Jordan River caused the Six Day War, resulting in Israel gaining greater control over the river
  • In 1974 Syria built the al-Thawra Dam upsetting Iraq, reducing the flow of Euphrates by 25%
  • In 1994 the Jordan peace treaty with Israel initiated regional cooperation over the sustainable use of the Yarmouk River
  • 2000 saw a summit in the USA, where Israel offered to give up land to the Palestinians but not water

Colorado River Basin

Within the USA, the Colorado River Basin is the most heavily used source of irrigation water. The area is used by a variety of players, creating the potential for water conflict.

Farmers

Agriculture has always done well out of the river, receiving 80% of the water allocation. However, much of this water is wasted in flood irrigation and inappropriate choices of crop.

City Dwellers

Increasing urbanisation in Southwest states has increased demand for water. California has been accused of using supplies other states may need in the future. Farmers are being squeezed out to supply the cities.

Environmentalists and Recreationalists

Conflict between the two groups is arising as recreationalists want to increase the recreational development of lakes, whereas the environmentalist would prefer to see lower levels of recreational activity in wilderness and wetland areas. The heavy use of Lake Powell by tourists is threatening the lakeshore areas.

Indigenous groups

Native Americans have claims over water rights based on treaties made in the 1880’s, on-going legal battles regarding the issue are taking place.

Mexican People

90% of the water is extracted before it reaches Mexico

Arsenic Poisoning in Bangladesh

  • Arsenic contamination in Bangladesh is a serious problem, with the country having one of the highest infant mortality rates in the world prior to the 1970’s
  • The problems were enhanced by ineffective water purification and sewage systems, as well as period monsoons and flooding.
  • UNICEF and the World Bank advocated the use of wells to tap into deeper groundwater as a solution.
  • Infant mortality and diarrhoeal illness were reduced by 50% as a result
  • Unfortunately, 20% of wells constructed to solve the problem are now contaminated

Global Water Imbalance

Water is a finite resource, and therefore falls into the basic economic problem of allocating finite resources to limitless needs and wants. Freshwater makes up only 2.5% of the water on the Earth’s surface, and only half of that is available for human consumption.

Taking the world as a whole, there is no global water deficit. The planet has enough water to meet the entire global demand; however the distribution of water causes problems. Rapid population growth in areas with limited supply means that more and more people are facing severe water shortages. A world water gap now exists between the ‘haves’ and ‘have-nots’. 12% of the world’s population consumes 85% of its available water.

Water stress and water scarcity rise as the world’s population grows. Water stress is defined as when a country’s water consumption is more than 10% of its renewable freshwater supply. When the amount falls below 1000m3per person per year, the country experiences water scarcity. This threatens food supplies, restricts economic development and causes environmental externalities.