I.　 INTRODUCTION

China seeks a transformative approach to environment and development that will provide lasting social, economic and environmental benefits for its own society and, ultimately, for the world. It seeks an Ecological Civilization where conservation, in the broadest sense of the word, is a strong driving force influencing all elements of society. China wishes to accomplish these goals through fundamental shifts in the complex relationships between environment   and economy, including the use of an expanded range of market and regulatory instruments, specific implementation targets and timetables, and action consistent with scientific development and innovation. A successful transformative approach to environment and development will depend upon broad-based public support and participation, and on international cooperation. The need is great for international leadership and action from a number of large countries, including China.

 

Harmonious Society

 

At the October 2007 17^th CPC Congress[1], people-centred scientific development was adopted as a constitutional amendment of the Communist Party, along with an amendment to pursue a “socialist harmonious society.” These amendments focus attention on the role of values and reason in addressing developmental issues, including the protection of the environment. China’s new approach has global relevance, with the potential for contributing to a “harmonious world” based on a path of “peaceful development.” Premier Wen Jiabao has stated that:

 

“As China’s development has shown and will continue to show, a prosperous, democratic, harmonious, civilized and modernized China will make even greater contribution to maintaining world peace and promoting human progress.” [2]

 

These lofty ideals and welcome directions raise the issue of how Environment and Development action by China, other nations and the international community can contribute to a Harmonious Society within China and globally. This is the subject of the 2008 CCICED Issues Paper.[3]

 

Global Threats

 

The 2008 AGM comes at a time of unprecedented global financial market turmoil and the threat of severe global recession. Yet a large and growing ecological debt also threatens humanity. This coming year will test the commitment and capacity of all governments towards effective environmental action. It is vital that promising pathways towards sustainable development in China and globally not fall victim to tough economic times. It is via these pathways that future prosperity and stability will be secured. The paper examines key challenges and options.

 

Innovation

 

This year’s AGM theme builds on discussions and recommendations concerning innovation from last year’s AGM and also a CCICED Round Table Meeting held in April 2008[4], as well as task forces providing interim or final reports at the 2008 AGM[5]. CCICED believes that major commitments to innovation via science and technology and through institutional and behavioral change are essential to meet China’s commitment to create an environmentally-friendly society. Therefore we will continue to focus on innovation as an organizing approach in our Issues Papers.

 

The link between a harmonious society and innovation is an interesting and potentially quite difficult one. On the one hand, both concepts share characteristics such as promoting creativity, public information access and participation in decisions. On the other hand, a fundamental issue is how to reconcile the inherent interest in creating stability within a society while still providing great room for the inherent instabilities associated with new ways of doing things—innovation. This may require a sophisticated recognition that “a society in real harmony does not appear to be stable or calm or harmonious at all. It is a real society in which all voices can be heard and discussed. It is in an equal society that all groups have the same access to the government and the media. It is a strong society in which that no dissenting ideas or different political orientation can harm or destroy.”[6] We might add that rapid economic development and innovation will create this same appearance of turbulence, but ultimately can lead to stability—if conditions such as reasonably equal access to benefits and awareness raising accompanies change.

 

2008

 

2008 has been a very eventful year for China: holding the very successful Beijing Olympics; coping with major disasters including unprecedented snowstorms and the Sichuan earthquake; staying the course of economic development despite high oil prices, rapid increases in food and other commodity prices, seeking stabilization and reform to the global financial sector; and addressing several crises of product contamination, including melamine in milk.

 

And it is an important anniversary—30 years after the Reform and Opening Up of China to modernization and globalization as a consequence of Deng Xiaoping’s transformative policy shift This Opening Up has led to profound social change and poverty reduction, massive economic growth, initial action to correct severe pollution and other environmental problems, and international relations based around goals of trade, peace and regional stability.

 

It is also almost 20 years since China formulated its National Environmental Protection Law.[7]  In March 2008 China formed the new Ministry of Environmental Protection (MEP), with Mr. Zhou Shengxian serving as the first minister having full cabinet status. China is now completing the third year of the 11^th Five Year Plan. There has been better progress this year towards achieving the Plan’s environment and development objectives,[8] but not enough. Without further transformative changes in approach, it is likely that environmental improvements in China will continue along a linear pathway while factors creating environmental degradation occur in an exponential fashion. That is also the worry about climate change.

 

Internationally, there has been considerable introspection about the limited progress of sustainable development implementation during this year marking 20 years since the world began to respond to recommendations in the Brundtland Commission’s report, Our Common Future. [9]

 

 

II.　　  HARMONIOUS SOCIETY EXPLAINED

 

Harmonious Society is not a phrase widely used in western industrial countries, even though all the OECD countries, among others, strive to build a functional level of social cohesion and agreement on pathways that will lead to good quality of life and to happiness. There is some concern abroad that the term could be used simply as a slogan, or that its meaning could be a warning towards those with views that do not fit well with those of the government, or of the majority of people.[10] Therefore part of China’s challenge in communicating with the rest of the world is to provide a persuasive view that its vision of Harmonious Society is one that is truly beneficial and in line with democratization and efforts for improving social equity.

 

Definition

 

Harmonious Society, as described in Chinese society from ancient times to today’s approach, is holistic and balanced in approach. President Hu Jintao provides the following description[11]:

 

“The harmonious socialist society that we are trying to build features democracy, rule of law, fairness, justice, honesty, fraternity, dynamism, stability, orderliness and harmony between man and nature. Democracy and rule of law means that socialist democracy is brought into full play, the basic policy of rule of law is implemented, and the positive elements of various sides are fully mobilized. Fairness and justice means that the interests of various social sectors are appropriately coordinated, civil conflicts and other social conflicts are correctly handled, and social fairness and justice is defended and realized. Honesty and fraternity means that everyone helps one another, honesty prevails in the society, and the people live next to each other in harmony with equality and fraternity. Dynamism means that every creative wish that is conducive to social development will be respected, creative activities will be supported, creative talents will be given free rein, and creative accomplishments will be acknowledged.  Stability and orderliness means sound social organization mechanism, social management, and social order; people live and work in peace and contentment; social stability and unity are maintained. Harmony between man and nature means that economic development, wealthy life and balanced ecology.”

 

A researcher for the China Foundation for International and Strategic Studies[12] provided the following description: “A harmonious society, in essence, is one that respects the rights of people, sticks to the principles of human civilization, and abides by the laws of nature.”

 

Five Harmonization Elements

 

The following harmonization elements are emphasized in current government policy: (1) in the development of urban and rural areas (greater priority for rural development); (2) in regional development (assistance to poorer areas); (3) between economic and social development (health, education, employment opportunities); (4) between economic development and environment (resource use and environmental protection); (5) between domestic development and opening-up policy (domestic market growth and international trade). Since these elements are linked, it is necessary to address environment and development with respect to all five.

 

Measuring Progress

 

Measurement of progress on achieving a harmonious society will be difficult. In China as elsewhere, there is recognition that various standard measures of progress such as GDP increase are inadequate.[13] Indeed, China’s efforts to construct a Green GDP index reveal that a substantial portion of China’s phenomenal economic growth is offset by environmental damage. China’s policies are intended to take “People as a First Priority”. The emphasis on people’s well-being can be translated into a substantial number of concerns related to environment, including: poverty reduction, pollution reduction, ecosystem stability and services, health and environment, disaster management and improved welfare and quality of life. The UN Human Development Index is a helpful measure for some of these. Progress on achieving the Millennium Development Goals within China is a remarkable achievement.[14] Yet all of the measures cited are still insufficient to cover the range of aspirations set out by China. The implications for monitoring environment and development in the context of a harmonious society need further research.

 

Ecological Civilization

 

The broadest Harmonious Society thinking has been statements concerning transformations within China and globally towards an Ecological Civilization.[15] An article in the China Daily[16] just after the 17^th CPC reflected on the need for changed perspectives:

 

“This concept reflects an important change in the Party's understanding of development. Rather than emphasizing economic construction as the core of development as it did in the past, the Party authorities have come to realize that development, if sustainable, must entail a list of elements including the right relationship between man and nature.

This concept is proposed at a time when 62 percent of the country's major rivers have been seriously polluted, 90 percent of waterways flowing through urban areas are contaminated, more than 300 million residents are yet to have clean water to drink, and quite a number of localities fail to fulfill the required quotas for pollutant emission reduction and energy saving.

Facing such a reality, the construction of ecological civilization was absolutely not rhetoric for chest thumping by officials in their speeches. It needs to be transformed into tangible measures that will change the way our economy develops.

But it is never enough for the concept to be understood as environmental protection only and neither is it adequate for it to be comprehended as a supporting tool only for balanced economic development. With its definition containing a much broader meaning, the concept emphasizes the cultural dimension of development.

In this dimension, we need to put our relationship with nature in a new perspective: consider nature as part of our life rather than something we can exploit without restraint.

Also in this dimension, social justice and fairness must be of great concern in development. We cannot expect to maintain ecological balance in a political sense unless we can make sure that disadvantaged social groups can fairly enjoy the benefits of development.

From the Outlook on Scientific Development to harmonious development and ecological civilization, we can see where the Party is trying to orientate the country's economic development and social progress.”

 

This notion of an Ecological Civilization is in line with China’s domestic efforts to build a resource-efficient, environmentally-friendly society, a Circular Economy[17], a Low Carbon Economy, and to become a Xiaokang Society. These approaches reflect the reality of China’s situation and needs. It is impossible for China to achieve its development along the wasteful lines followed over the last few hundred years by western societies. The planet will not bear the environmental burden, and it is a pattern of development inconsistent with Chinese cultural ways.[18] The USA and China are believed to be the two nations with the largest ecological footprints, although the USA population is less than a quarter the size of China’s.[19]

 

Leading by Doing

 

The path taken by 1.3 billion people cannot fail to have an impact on the world. This is a key point of China’s potential importance in persuading other countries to follow a path towards an Ecological Civilization. Perhaps this concept proposed by China—and the actions that follow from it—could become the embodiment of Our Common Future for today’s and tomorrow’s generations worldwide.

 

Internationally, China has taken a relatively low profile over these past decades as it began its ascent towards its full position of influence in global society. It has participated in many multilateral arrangements for environment and development, and has engaged in scientific, business and developmental relations with countries and people throughout the world. Now perhaps, it is impossible for China not to be in a leadership role. The country’s actions are simply too important for it to be seen as a secondary participant or as an observer. China has demonstrated that it is an innovator on economic development, and it will be an innovator on environment and development.

 

 

III. 　　  INTERNATIONAL EXPERIENCE

 

Some scientists argue that we have entered the Anthropocene, a period where human intervention has become a dominant factor affecting the Earth’s ecology and natural cycles. This underscores China’s concern for widespread action to create an Ecological Civilization. At the October 2008 IUCN World Congress, members of this global voice for environment and development debated their vision for a new global transition for sustainability.[20] In the words of IUCN’s Director General, Julia Marton-Lefevre “We need a new era of conservation that creates a social movement for change and relates to the nature of everyday living – one that embraces sustainable lifestyles and livelihoods as well as endangered species and spaces.” The IUCN document provides at least a partial roadmap towards the vision of an Ecological Civilization. China’s efforts could help realize of this vision for 1/5 of the world’s population, and influence others.

 

The desire for a conservation philosophy has been with humanity for many thousands of years. Yet it has been exceptionally difficult to implement in modern affluent societies, and in situations of significant poverty. It is apparent that the impacts of high consumption affect ecological conditions globally and that gross over-consumption can set off unintended financial consequences such as the current credit and economic crisis now affecting the entire world. Furthermore, although the global environmental agreements contribute to harmony among nations and across boundaries of culture, religion, etc., they are progressing far too slowly in their implementation at national levels. Despite this gloomy picture there are lessons to be learned from various positive experiences in both rich nations and poor. Here we have space to cover only a very limited number of examples.

 

Positive National Experiences

 

Nations that lead in the UNDP Human Development Index, the Yale-Davos Environmental Sustainability Index, and other indices of well being, are of special interest also from the perspective of how they seek harmony in their development.[21] All those listed among the top 10 to 20 nations emphasize  environmental quality within a broader quest for high quality of life.  

 

In Europe, the efforts to create harmonious societies appear to be particularly successful in some smaller countries, such as the Scandinavian countries and Switzerland. Given its position at a cultural and linguistic crossroads, Switzerland is particularly interesting. It has developed a democratic governance system that operates at the local level (canton) upwards. There is genuine “Unity in Diversity”, including urban and rural views, at least four major cultural groups, and a strong, diversified economic base. A good environment, especially rural landscapes, is considered a key national and local asset, which needs to be well protected for millennia.

 

Norway is a nation that appears to have developed a harmonious society through a combination of factors that includes: (1) respect for stable land ownership, including systems that discourage consolidation or excessive subdivision of family farms; (2) co-management and planning locally for sustainable natural resource use; (3) maintaining equity between rural and urban lifestyles and among different occupations; (4) proactive environmental planning and incentive-setting to address environmental concerns before they get out of hand; (5) concern for future generations through creation of sovereign wealth funds; and (6) investment in technology innovation for sustainable development. Norway (and other Nordic nations) have played important roles in seeking global harmonious development as well, through their high profile on international environment and development matters, and through the attention and funding they bring to international development cooperation.

 

Canada is quite a relevant example, given its geographic size and range of ecosystems, administrative complexity, and emphasis on multicultural harmony. Box 1 identifies several examples of institutions, management approaches and mechanisms intended to build cooperation around environment and development. A substantial amount of Canada’s efforts are directed towards federal-provincial harmonization and also to addressing Canada-US issues in a cooperative fashion. Canada has tried comprehensive approaches such as the Projet de Société, initiated in 1992 to develop a broad societal consensus around environment and development, but these have not thrived.

 

Japan, especially in its post-war efforts to build a resource-efficient society, protection of its forests, and construction of environmentally-friendly cities and towns, has created models for a harmonious society. These strengths include unique government-industrial relationships that sometimes foster remarkable progress on environmental innovation, for example, Toyota’s leadership in automobile innovation, and Keidanren corporate social responsibility[22]. Yet in past decades Japan’s progress was sometimes at the expense of a complex ecological footprint such as the damage created through tropical forest supply chains. And despite the perception of being a relatively homogenous and harmonious society, the people of Japan hold strong and differentiated views. An example is the prolonged land use and environmental disputes that surrounded the

construction of Narita Airport. Japan’s harmonious relationship with nature stems, in part from religious belief, especially Shintō where “nature was whole; it was clean, and inherently good.”

 

Several developing countries have developed relevant experience. One of the most dramatic examples in recent decades has been the efforts of Costa Rica to build an economy focused on ecological restoration of its forest lands and on the value of its biological diversity for ecotourism and other direct benefits.[23] The effort has been successful because of the country’s social investments, especially for health and education. Also, Costa Rica has developed a participatory governance system, and invested in science and technology for sustainable use of its ecosystems.

 

 

An example of regional effort is in the Amazon Basin of South America. There is a need to protect the rights and economic needs of indigenous tribes, provide some opportunities for poor farmers and others, and to adequately protect the biodiversity and ecological integrity of this vast region. The Republics of Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname and Venezuela must cooperate on the Amazon. They signed a 1978 Treaty for “harmonious development” of the Amazon. And in 1995 ACTO, the Amazon Cooperation Treaty Organization, was established to conduct work in support of biodiversity conservation and other needs. This body is an adjunct to the national efforts of countries such as Brazil.

 

Community-based Initiatives

 

Harmony within societies at local levels depends upon relationships involving environmental impacts, social justice issues such as exposure to pollution or lack of basic needs such as clean drinking water, and economic factors such as employment opportunities associated with local resource development. Problems often are traced to situations of gender inequality, discrimination against minorities or poorer people who live and/or work in more dangerous and unhealthy situations. Both the World Conservation Organization (IUCN) through its Conservation for Poverty Reduction Initiative[24] and the UNDP though its Equator Initiative Prize[25], have documented hundreds of situations where environmental objectives are being met by communities fostering harmonious relations locally and with national governments.

 

Throughout the world there has been a move towards decentralization of environmental and natural resource management. Sometimes, such as the case of Indonesia, this has been to move stewardship responsibilities directly from national to local (kabupaten/county) level. In some countries, negotiated arrangements have been made with specific groups for co-management or community-based management of environmental resources, including habitat, fisheries, and forests, for example. In some cases land and resource ownership is ceded to local interests. Such mechanisms have the potential for improving stewardship of the environment, but also lead to greater harmony and innovative institutions for managing biodiversity, water resources, etc.

 

Corporate Policies

 

Some of the most interesting and significant environmental efforts for societal harmony happen through the interplay of government, industry and civil society, either at the level of individual enterprises, but also at a sectoral level through industry associations, or sometimes via cooperative efforts involving government, non-governmental or community organizations. Government’s role is to set standards and to create an enabling situation where industry can meet challenges in an efficient fashion. Industry efforts are driven by various motives, including the desire to avoid excessive regulation, the right to operate in communities, corporate social responsibility (CSR)[26], access to financing and insurance, risk reduction, etc. The Responsible Care Program of the chemical industry (and now many other sectors); many gas and oil initiatives and mining, and the move towards socially and environmentally responsible forestry throughout the world.  There are many local, national and international organizations that help to make these cooperative sectoral efforts credible and effective. They include CSR advocates and monitoring bodies[27], standard-setting and certification organizations such as the Forest Stewardship Council (FSC), ethical banking for project financing.[28]  Major environmental organizations such as the WWF, the World Resources Institute, and international bodies such as UNEP play important roles through their convening power, research and ability to provide credible, independent views.

 

Gender and Environment

 

In recent times greater attention is being given to gender and environment relationships, especially in rural areas, where women (and children) may be severely affected by poor indoor air quality, or by issues such as pesticide use that may affect reproductive health,  or from natural resource and other development projects that fail to provide sufficient benefits oriented towards women. The UN Millennium Development Goals highlight the need for gender sensitivity; and this theme is important for all international development agencies. Access to social benefits, including good health care and equality in education opportunities, are essential if all citizens are to be informed and capable of contributing to environmental improvement.  Gender mainstreaming is becoming an essential part of environmental management and sustainable development. This is a means of improving power sharing and therefore increasing the potential for greater harmony in social relationships.

 

The UN Fourth World Conference on Women was held in Beijing in 1995 and set the basis for many of today’s considerations on the role of women in sustainable development. China’s equality provisions in its constitution and laws, and its adhesion to the  International Convention for the Elimination of Discrimination Against Women (CEDAW) provide a good basis for further action on gender and environment. China is well-positioned to promote this element in seeking a harmonious society.[29]

 

Three Key Issues Facing the Global Community

 

Addressing Imbalances in Globalization Benefits and Costs

 

At the March 2008 China Development Forum, Angel Gurria, OECD Secretary-General[30] noted that while globalization has reduced poverty, especially within China, some 40% of global assets are now in the hands of only 1% of the world’s adults. Even within many of the world’s richest nations, child poverty has increased during the past decade (17 of 24 OECD nations). His conclusion is that “Globalization is inevitable, but it is intrinsically neither good nor bad. It is our policy responses that make the difference.”

 

Mr. Gurria focused on several important matters where the response of both developed and developing countries needs to be well-coordinated if we are to have a more harmonious form of globalization: stabilizing and improving the factors of economic growth worldwide; tackling climate change with a viable cost-sharing formula between the richer and poorer nations; restoring the ethical dimension of economics so that poverty can be firmly addressed in the context of producing more harmonious societies; breaking the deadlock of the Doha Development Agenda (DDA) of trade reform[31]; and addressing internal migration in the context of aging populations and other factors.

 

The imbalances of globalization created within a country such as China are seen as interlocked challenges that now urgently need to be addressed [32] including: income inequality and regional disparities, the right balance between rural and urban development, high consumption of natural resources and great need for cleaner energy, and improved environmental quality. Certainly other developing countries face similar challenges. Gurria notes that the list is in fact similar to the challenges faced by OECD nations. Therefore it is desirable to find solutions that reinforce the overall strength of global society. He indicates that the concept of “harmonious development” of China is very close to the “core mandate” of OECD itself.

 

Renewed Attention to Regulation

 

Over the past 25 years the power of markets has been celebrated—not only for unleashing creativity leading to high economic growth, but also as an opportunity for improving competitiveness and for decreasing the need for command and control regulation. In particular, if macroeconomic conditions can be properly set, and if macropolicies are in place to meet some of the concerns related to social and environmental externalities, then market-based instruments should be successful supplements to slimmed-down regulatory frameworks. Over time market-based approaches have produced dazzling results in the rapid growth of economies. They have led to concepts such as “smart regulation” that rely upon self-regulation and limited governmental checks and balances; and on the opening of markets to new influences and purposes beyond their originally intended purpose, for example, commodity markets as a place for speculative trading beyond the purpose of spreading risk for producers.

 

The powerful message arising from the financial meltdown that has occurred this fall is that self-interest of even the richest and most powerful financial institutions can be misdirected. Recent years have demonstrated other important flaws in some fundamental decisions related to market-based approaches. Specifically, on environmental externalities, market failure is common and not easy to overcome. Second, as the recent turmoil in world markets has demonstrated, when fundamental safeguards on the financial sector are ignored or removed, the systemic effects will be widespread to the point where these effects are a threat to both development and environment worldwide. The havoc wreaked by high oil prices compromised the ability of governments to move towards a systemic approach towards pricing carbon, for example. And, third, when regulatory breakdown occurs either at the producing or distribution end, consumers pay a price in terms of environmental health, with backlash felt on trade. This has been demonstrated repeatedly over this past year as China faced problems with heavy metal contaminants in toys, and melamine, first in pet foods, and then in the milk scandal. These contamination  problems are viewed as not only inadequacies within the Chinese regulatory systems[33], but also those of the countries and companies that are inadequately regulating and monitoring quality of products before they reach consumers.

 

We can expect a renewed focus on regulation of all types. This focus will not reject market-based regulation, hopefully, but it will emphasize the need for much stronger and more effective regulatory frameworks in which markets should function better. The implication is that monitoring needs to be a more prominent component so that improper behaviour can be caught and dealt with at an earlier stage. Ultimately there must be sanctions that operate at a level sufficient to deter such behavior.　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 

 

An important question is whether environment and sustainable development considerations can lead the way in developing a new balance for regulatory systems. It is attractive to consider this possibility for several reasons. First, a great deal of theoretical effort, and some good practical experience exists on how a balance can be found between market-based and other regulatory approaches. Much of the work relates to pricing and incentives, where necessary standards and understanding of potential environmental benefits are already available. 

 

The second reason is the urgency of addressing environmental matters in the context of the new economic realities facing the world. Past economic downturns have led to increased environmental disruptions (e.g., effects on forest land-use and small-scale mining impacts in the aftermath of the Asian Meltdown of 1997). Climate change mitigation and adaptation should be incorporated into the priorities associated with national and international financial restructuring. These will be among the world’s largest financing needs over the coming decades. Climate change will require continued building of new markets such as the sale of carbon credits.

 

A third reason is the comprehensive nature of sustainable development. From its start, sustainable development has focused on the interlocked nature of economy and environment concerns, and on how treating the environment responsibly will provide substantial social benefits, including greater equity. As regulatory regimes get reviewed, it is important that they be based on sustainable development principles and support integrative objectives, for example, those supporting environment and public health, and that they promote preventive action on pollution and excessive resource consumption. 

 

China is in a relatively strong position for this renewed attention to regulation. It has made a point of developing a “socialist market economy” with opportunities to adjust raw market forces. China also is still in the design of its approach to “rule of law” and to the opening up of its financial sector. China has the buffer of substantial financial reserves, and a population oriented towards savings rather than excessive consumption. Hopefully these attributes can be used not only to minimize some of the damage being created elsewhere by the current turmoil, but also to ensure that China’s own financial commitment both to environment and to the innovation required for implementation of scientific development can be sustained. China likely will be of great help to other nations and the world community in the critical months and year ahead.

 

Effective Action on Global Agreements for Environment, Economy and Development

 

Achieving agreement on steps to be taken and actual progress under several global accords—particularly those on climate change and on biodiversity, on the Millennium Development Goals, and on full acceptance of the Doha Development Agenda—has been on the most important “to do”  list for environment and development of the world community for several years. The limited success has been disappointing, especially since many countries have passed through a period of great prosperity when action was quite possible. Now, during this period of economic recovery and greater hardship for many, there is a serious need to increase momentum, and use these goals as building blocks for more sustainable approaches to development.

 

The key selling point certainly can start with the contribution each accord could make towards improved investment results. Should rich countries reduce high level of agricultural subsidies, including those new, and generally ill-conceived subsidies for biofuels from corn and grain?[34] How can reducing trade barriers and international development assistance be targeted even more directly towards meeting the MDG goals, including transfer of experience from the most successful country of all, China? And how can innovative financing for climate change action be increased in a way that contributes to renewed economic growth? Such questions are not really new to any of us, but they take on new meaning in a time of severe global downturn.

 

If we need to be reminded about how serious the overall environment and development situation is, or could become, it is only necessary to see how quickly the gathering storm of climate change effects has become apparent, and how missing the 2015 targets of the MDGs will expose the world to further disharmony and human misery arising from poverty.

 

Addressing Convergent Crises

 

A significant international debate has emerged concerning the potential for the collapse of societies and even civilizations from environmental crises.[35] This debate covers the far end of the spectrum of disharmony associated with environmental change and impacts. There are other possibilities seriously discussed, for example, concern expressed by senior EU officials about climate change refugees flooding Europe[36], or Japan’s plan to repatriate all its citizens living abroad in the event of a global pandemic[37]. And, of a more immediate nature are the major short-term dislocations of millions of people that now routinely happen in the USA, China and elsewhere as a consequence of severe weather events such as hurricanes, typhoons and cyclones. Such efforts to protect populations at risk promote social harmony. China should be applauded for its efforts to improve weather monitoring, early warning systems and planning that can achieve rapid evacuation when weather or other natural threats occur. The two environmental monitoring satellites launched in September 2008 will help.[38]

 

Societies no longer can deal with individual crises in isolation. There is a tendency for convergent crises to develop. Effects of an international financial crisis may affect food supply, at a time of serious drought within a country or region, which may lead to social unrest. Environmental degradation is sometimes the serious consequence of prolonged crisis cycles, for example those associated with civil strife and war in many developing nations, or of gradual loss in ecosystem productivity and services arising from repeated droughts, or systemic pollution such as acid rain.

 

Over the past decade China appears to have developed a considerable level of resilience in addressing convergent crises. It was able to avoid the worst consequences of the “Asian Financial Meltdown” in the late 1990s and at the same time turned the major crisis of severe flooding arising from El Niño into an opportunity for ecological restoration of damaged uplands. In 2008 China has once again been put to the severe test of several major natural disasters while at the same time having to deal with serious inflation and international energy, food and financial market crises. It is clear that China has strengthened its capacity to respond quickly and definitively, although problems remain (see Box 2).

 

 

The way forward should include a clearer approach for turning crisis situations towards sustainable development. This will become more urgent as climate change effects become more prevalent throughout China. Climate change adaptation needs to be directed not only towards crisis avoidance, but also to creating sustainable development strategies in key sectors based on the presumption of serious “surprises” that are characteristic of complex interactions among crises. Many of the effects of severe natural disasters are really the effects of poor planning, corruption, management, and supervision decisions—together making populations vulnerable.

 

 

　　　 IV.　 CHINA’S CHALLENGES

Economic Growth Model, Volatile Markets and Recession

Others have pointed out China’s difficulties associated with the current economic growth model. There is growing inequality as measured by the internationally-recognized Gini Coefficient, which has grown from 0.29 to 0.41.[39] Joseph Stiglitz calls for distributive impacts being a part of every policy decision, and focusing on a good balance between the market and government regulatory system, an improved property rights legal framework, and a broader tax system that places less emphasis on value-added tax. He points out that based on the experience of the US and elsewhere, weakening social protections goes counter to a Harmonious Society, and may interfere with future productivity. Specifically, Prof. Stiglitz cites the low investment in education and schooling (e.g., in the period 2002-2005, China spent about 1.9% of GDP on education and about 5% on health; Brazil, by comparison spent 4.4% and 8.8%); and the lack of access to health insurance for many families. He calls for a new economic model where innovation can help to provide a focus on saving resources, not saving labour. Such a model, in the opinion of Stiglitz will lead to a more harmonious society, while providing for long-term, robust growth that will give China a competitive edge internationally.

China’s Vice Minister of Finance believes financing sustainable economic development will provide the “material foundation for a harmonious society.” The Government in its budgets will give top priority to key factors contributing to this objective including: “sufficient supplies of qualified workers and capital, technological innovation, and the capability of resources and environment to sustain rapid economic development.”[40]

China appears to be uniquely positioned among all nations during the current world financial crisis and recession. While not immune to negative impacts, it also has buffers including its large and growing domestic market, budget surplus and huge financial reserves. Premier Wen has suggested recently that “If a large country of 1.3 billion people can keep up stable and relatively fast economic growth, that's a big contribution to the world.” (Xinhua)

The environment and development challenge is to avoid responding to economic downturn by sacrificing existing environmental gains, or by cutting back on future sustainable development. There are three specific matters for consideration: (1) how to accelerate employment and revenue opportunities associated with environmental protection initiatives and innovation, especially in water and air pollution, solid waste, and on energy and climate change problems; (2) how to flow increased funding to China’s rural countryside through environmental protection initiatives of direct benefit to local people, and/or to protect ecological services for the nation; and (3) how to increase the contribution and efficiency of private sector efforts and therefore relieve some of the burden on government?

At this time of very tight credit abroad, which will affect start-up environmental technology companies around the world, and therefore the rate at which environmental innovations will become commercially viable, Chinese financing and access to Chinese markets might prove valuable. Joint ventures could be encouraged, perhaps under highly favourable conditions for China. It may also be a good time for China to invest in well-established environmental companies abroad, in anticipation of future opportunities in fields such as water sanitation, renewable energy, etc.

This is also a time when China might work with other nations to ensure that banks and other elements of the financial sector further develop environmental safeguards in their lending practices, insurance policies, and in “green investing.” This is a new topic for China, but an exceedingly important one. It also relates to Corporate Social Responsibility implementation for companies operating within China and Chinese firms operating abroad.

Olympic Games “Green Experience”

The 2008 Beijing Olympics and Paralympics have left a lasting impression domestically and internationally of China’s efforts to come to grips with its environmental protection needs. Beijing’s air quality rose to the highest levels seen in a decade, among other environmental achievements?[41] In the aftermath of the Games, Mr. Ban Ki Moon, the UN Secretary General said that “The Beijing Games is a…success of the practice of "a green Olympics, a High-tech Olympics and the People's Olympics…The Games was also an important chance for the international community to promote world peace and harmony through enhancing dialogue and mutual trust.”[42]

The challenge is to maximize the lasting benefits to come from these Games, including the experience gained in the advanced measures for environmental protection, including vehicle controls, advanced building design, and Circular Economy applications. People throughout China and throughout the world now have a better appreciation of the magnitude of China’s environment and development situation and the efforts and the large expenditures involved in environmental cleanup. The challenge remains about how Beijing can continue to experience the cleaner air exhibited in August 2008—and better, and how the environmental benefits seen in Beijing can spread to other locations throughout China, given the great financial effort required for one major city? How can other nations learn from these undertakings?

The Olympics were really a celebration of the 30 years of Opening Up and Reform that made China a candidate to host the Olympic Games and other forthcoming events such as the 2010 Shanghai Expo, which has a theme of “Better City, Better Life” and a focus on how to create an eco-friendly society and maintain sustainable development.[43] Through these events China has created a tremendous “green marketing effort” that may have more influence with citizens than other more technical approaches towards sustainable development.

Environmental Supervision and Enforcement

 

This past year has seen an unprecedented effort to strengthen environmental supervision and enforcement, especially via the new MEP.[44] Even so, the efforts are still not enough to turn the tide of environmental degradation and illegal activities. Some existing laws and regulations provide for stiffer penalties than in the past. But this does not necessarily deter polluters and others who damage the environment. Local governments often do not strictly enforce environmental protection measures. This problem continues to be a key challenge for the central government. There also is a major problem of the quality and continuity of environmental monitoring. These and other issues have been addressed in detail by past CCICED task forces[45] and in OECD’s China Environmental Performance Review.[46]

 

Rural Environment and Development Reform

 

Rural people still comprise 56% of China’s 1.3 billion population, with income levels of only about 30% of city-dwellers. In 2007 the income gap was the largest ever. This inequality, and other disparities, especially in access to education and health are matters of great concern. At the October 2008 meeting of the CPC Central Committee major decisions were taken to address this persistent and deeply troubling disparity.[47] These decisions included: a commitment to double disposable income of rural residents by 2020 (based on 2008 levels); to eliminate absolute poverty (now at 15 million according to official estimates); “establish a mechanism to integrate rural and urban areas in terms of economic growth and social development”; protect farmers rights; positioning agriculture as the foundation of the national economy and putting food security as the top priority, with agricultural modernization, supervision of product quality; and developing public utilities in rural regions.

 

This approach is meant to promote greater equity and social harmony. The list does not explicitly address environment and development matters, but there are several. Already China is the world’s largest consumer of fertilizers, which often are over-applied. With a renewed focus on food security, there is a need to work out improved means to address severe agricultural pollution of China’s waterways and groundwater. Treatment of manure and utilization of agricultural residues for biofuels, biogas and chemicals are important topics where many more environmental advances can be expected through eco-innovation efforts. The call for increased public utilities in rural areas should open new employment and wealth creation in the countryside through investment in water supply and sewage, and through more efforts on rural sustainable energy such as wind farms and solar electrical generation sites. Product quality concerns will demand much more attention to pollutants entering into food chains, and issues such as organic certification.　　　　　  　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 

 

Stability

 

China values stability in its political system, in its economic growth pattern, and as an important prerequisite for its development. China has been able to absorb the impacts of many internal and external perturbations over this past decade, and undoubtedly will have to deal with more in the future. The challenge is how to keep a steady course in a world with many destabilizing influences. Environmental degradation is one of the major such influences, locally, and now with climate change, also regionally and globally. Another part of the stability challenge is the country’s ability to turn serious crisis situations into opportunities to foster sustainable development, This already appears to be a significant element of China’s efforts to build a harmonious society.

 

Environment and security provides a framework for examining relationships between environmental degradation and societal stability.[48] Another approach is to examine how environmental justice concepts are applied to reduce social friction and to redress harm done to particular groups or members of society.

 

In particular, achieving the necessary level of ecological services will require substantially more investment in eco-compensation programs and effective ecological construction efforts, with a better guarantee of long-term results. This is especially important for insidious environmental change with the potential to affect large areas and major populations. The prime example in the past has been desertification, especially in the Loess Plateau. In the future water supply and quality problems are likely to become major environmental justice issues.

 

The poor suffer the most serious consequences of natural disasters and the effects of long-term environmental degradation. In China this raises important questions about environmental justice and equity issues related to pollution, health and environment.  A prime example is indoor air pollution, associated with substandard housing in rural households. Badly ventilated stoves, often burning coal, contribute to respiratory diseases and death among the poorest people and particularly affect women, who must spend long periods of time cooking and other indoor tasks.

 

The substantial number of protests each year concerning pollution incidents provides evidence of discontent and crisis on the part of some people directly affected by these problems. But many others suffer silently because they have little choice, for example those living and working in many of China’s coal mining communities. In some other parts of the world, their situation of pervasive, health-threatening air, water and soil pollution would be unacceptable from a social or environmental justice perspective. As part of China’s drive towards a harmonious society, that will also become the case within China, likely in the coming decade. Environmental justice has major reform implications for the justice system and rule of law.

 

International Cooperation  　　　　　　 

China has made it quite clear over the past several years that it wishes to contribute substantively to global environment and development but not through overt leadership. On the other hand, there is a growing international view that China is a vital player on almost all environmental matters. China can demonstrate by its domestic actions how to achieve a more harmonious society globally, including environmental aspects. China also can directly assist other countries by sharing its environment experience And China can be an important contributor by its enhanced participation through international cooperation and agreements. A major challenge for China is to seek what it considers “fair and just” international rules, whether for environment, climate change, trade, transfer of technology, or other objectives.  

World Trade and a Harmonious Society

China owes much of its rise in economic prominence to its careful entry into the World Trade Organization, and its skillful use of comparative advantages to build markets abroad. It also has benefited other countries through its demand for raw materials, which come from a growing number of sources, including developing nations in Latin America, Africa and Asia. Yet there are voices abroad that worry about China’s growing impact on resource and environmental sustainability in other countries, and on job losses through outsourcing of employment to China and other Asian countries. These are matters related to globalization trends more generally, but China is seen as the key country.

 

Market supply chains for food, energy, and other commodities and goods imported into or exported from China are central to the debate. The environmental costs and benefits are just beginning to be understood through careful research. There are two key aspects: how to maintain access to resources while contributing to international good relations and prosperity elsewhere; and how to avoid being caught in international squeezes such as food availability and price rises that will reduce domestic Chinese security and harmony.

The volatility of pricing in commodities such as metals, oil and gas, etc., has meant windfall profits for some companies and countries, and great hardship for others. There are strong suspicions of market manipulation that exacerbate the situation. It is certainly not the path towards a globally harmonious society. It is also foreclosing governmental capacity to make shifts such as the introduction of carbon taxes and alterations in resource pricing that would promote proper cost internalization of environmental externalities.

China is in a difficult position, since it depends so much on imported raw materials, and also is deeply concerned with higher rates of inflation that can influence not only social stability but also its economic growth rate. The substantial government support provided to maintain gasoline and diesel fuel prices below world levels is an example of the serious situation.

The World Trade Organization has argued from the start of its existence that trade agreements are a route for enhancing global harmony and sustainable development. There is a danger, however, that the current impasse/breakdown of World Trade negotiations, especially on the issue of agricultural market access, will lead to further bilateral and regional trading arrangements, and to a movement away from globalized trade. There could be serious implications for China, and indeed for many of its key trading partners.

 

Furthermore, there is still much to be done before the world’s trading system, environment and sustainable development are made compatible. Whether by the widespread adoption of international standards for the environmentally sound production of goods, and further development and acceptance of meaningful environmental certification, or through binding rules negotiated as part of trade agreements, the existing situation needs to change dramatically if it is to be compatible with the concept of an “Ecological Civilization.” What should China’s position be on the strengthening of environment in trade agreements? So far, China has been engaged but not really in a leadership role.

 

Fair and Just International Environmental Rules

 

The international community should set up fair and just international environmental rules, abide by the principle of “common but differentiated responsibility”, shoulder global environmental obligations together, step up international environmental treatment, establish smooth and efficient implementation mechanisms for international environmental conventions and treaties, and eventually leading to a more harmonious world.

 

These ideals tend to become stumbling blocks once they are translated into specific agreements and implementation strategies. They may lead to disappointment and frustration on the part of China and others in the quest for real progress on matters such as climate change[49], movement of hazardous wastes, and agreement on the inclusion of environmental matters in trade agreements.

 

How can this situation be improved for the mutual benefit not only of large developing countries such as China, Brazil and India, but also smaller and poorer nations, and the OECD nations? Certainly one part of the solution is related to the role of the USA under a new President. The announced positions on climate change of both parties is stronger than those of the current administration, and with a greater chance for multilateral solutions.

 

But the USA is not the only player with a major role in proposing and agreeing to environmental rules. If China is to satisfy its own needs for improved international environmental frameworks, it will have to build coalitions that cut across many interests. And it will need to build its image of both responsible international cooperation, and of a nation genuinely committed to environmental improvement domestically and globally.

Millennium Development Goals (MDGs)

The MDGs are an essential part of the global move towards sustainable development, but in many countries progress on meeting 2015 targets has been limited.[50] China has been an important exception. In the words of UNDP’s China representative, Mr. Khalid Malik, “ China is leading the way.” It will achieve its MDGs by 2015. Yet key challenges remain.  In his view they are environment, equity and gender equality.[51]

At his speech at the UN session on MDGs held in New York in September 2008, Premier Wen focused attention on the need for greater cooperation with other nations in order to meet the global MDG objectives.[52] He also noted China’s direct efforts with poorer developing nations, including debt forgiveness, direct financial assistance, capacity building and technology sharing. Included is a new five-year commitment to 100 small-scale clean energy projects for developing countries, including small hydropower, solar power and bio-gas initiatives.

China should be able to deploy more of its domestic environmental protection experience in support of developing countries in the years ahead. The commitment it has made for innovative technology development in water use, renewable energy, and for pollution treatment will produce an array of new tools. Very likely the Chinese technologies will be cheaper and perhaps more effective for the needs of poor populations. Also, China is building a substantial body of experience on how to protect environmental services, including ecological reconstruction, and on financial systems for eco-compensation. This experience will be of value for many other countries that face similar problems concerning water basin, forest, agricultural and coastal sustainability. China’s disease control experience and growing efforts to address environment and health issues link well to MDG needs abroad as well as in China.

 

V.　　  ENVIRONMENTAL PROTECTION AND HARMONIOUS SOCIETY

 

The fundamental premise of this Issues Paper is that environmental protection is an intrinsic part of, and contributor to a Harmonious Society in China. In this section we will examine several breakthroughs needed for this premise to be fully realized over time.[53]

 

Roles and Principles

 

The role of environmental protection in building a harmonious society/world is illustrated below, focusing on five elements (Figure 1).

 

 

Figure 1.  Roles of Environmental Protection in Building a Harmonious Society

 

 

Several principles, consistent with statements of current Chinese leaders, are noted below:

·　　　　 Concept of Ecological Civilization is a basic tenet for a harmonious society.

·　　　　 Putting People First is key to a sound environment and harmonious society relationship.

·　　　　 Harmony of humans and nature requires integration of environment and economy for optimizing development.

·　　　　 Seek social equity and justice through environmental protection.

·　　　　 Promote international environmental equity and contribute to building  a Harmonious World.

 

Approaches to Sound Environment and a Harmonious Society

 

In order to materialize a “socialist harmonious society”, the scientific outlook of development should be adopted, where the harmonious development between people and nature is an important idea. The immediate priorities should be to (1) solve environmental problems that threaten people’s health and sustainable development, (2) safeguard ecosystems, and (3) reform environmental management systems. Much attention already has been given to these priorities, including within the 11^th Five Year Plan, and in various Chinese and international reviews, including CCICED reports and past recommendations. Therefore detailed accounts are not given here. Instead, we focus on the breakthroughs needed during the coming five years if China is to achieve its long-term vision of an environmentally friendly society domestically, and contribute to an Ecological Civilization globally.

 

We believe eight breakthroughs are essential.

 

(1) Radical adjustment of the relationship between the environment and economy.

 

This fundamental shift has been called for in Premier Wen’s Three Transformations, and in the efforts of the 11^th FYP to meet pollution reduction and energy efficient targets. But the adjustments will have to be much more radical in the years ahead. These adjustments should include reaching efficiency levels in resource utilization that the world has not yet achieved; and campaigns with Chinese consumers, municipalities, businesses and government bodies to ensure that “awareness of conservation will be firmly established in the whole of society”.

 

The necessary adjustments will require relentless attention to achieving more stringent environmental protection targets, greater investment in the means to do so, and monitoring of the benefits. It will require more attention to environmental protection and standards over the full life cycle of goods produced distributed and consumed in China.  The result for China should be a high level of competitiveness in the sunrise economy of sustainable development globally and nationally. It will mean a very discerning type of consumerism, especially in demand for high quality products and services. And it will be fostered by Circular Economy development.

 

(2) Make trade, investment and financial sector reform consistent with sustainable development.

 

While China has benefited tremendously from its membership in the World Trade Organization (WTO) and from the immense inward flow of foreign capital, by no means has this been without major problems. These problems include environmental degradation associated with manufacturing for export, impacts associated with market supply chains (domestically and internationally), and difficulty in accessing the best technology for environmental protection. By supplying cheap goods to world markets and buying raw materials, China has provided benefits to some developing countries, but most of the produced goods have gone to richer countries, exacerbating overconsumption in these markets.

 

China has only limited capability to address trade and investment issues on its own. But it is very clear that bodies such as the WTO, national regulatory bodies and central banks, and the financial markets that operate internationally, have failed to create a system that respects the dictates of either environmental protection or sustainable development. The realization of failure is quite apparent, and in particular the political talk and action accompanying current bailouts of the financial sector suggests a re-making of the system. It would be a shame if this did not include greater attention to sustainable development. This is also true with respect to the current efforts to breath life into WTO negotiations.

 

China will have considerable credibility in global negotiations over the coming years and could help to move the international agenda of trade and investment, and financial sector reform towards consideration of environment and sustainable development. This would also require additional attention to these aspects domestically, within Chinese banks, insurance companies, stock markets, trade and investment regulatory bodies.

 

(3) Long-term transition for China to become a Low Carbon Economy.

 

China’s energy and environment relationship is currently heading into difficult territory, with significant increases in imported oil and gas and high projections for the use of coal. Conventional energy efficiency solutions are needed in many sectors, including major industries, transportation, agriculture, municipal infrastructure, etc., but will not be enough. Energy conservation in daily living of people is also essential. But a Low Carbon Economy solution will go much further. It will be comprehensive in the sense that it will account for capture and reduction of greenhouse gases; and it will provide for economic valuation of carbon, including carbon storage in nature. A Low Carbon Economy will be opportunity-driven, making it attractive to innovators and entrepreneurs in Chinese society. It will be based in part on the substantial financial opportunities associated with international and domestic carbon trading, and special funds such as the Clean Development Mechanism (CDM).While the transition may be long-term, the directions need to be set soon, ideally during the planning for the 12^th FYP.

 

(4) Environment and health action consistent with the alarming range and level of toxic impacts, potential for pandemic disease, and other environmental risks.

 

It is laudable that China now has an Action Plan on Environment and Health.[54] However, as will be reported by the CCICED Task Force on Environment and Health, this is only the start of what will need to be a very significant effort to reduce the mortality and ill health associated with chronic pollution, workplace and home health hazards, casualties related to disasters, and the threat of pandemics. Environmental health in China also includes the substantial number of deaths and injuries associated with transportation now that private autos are so prevalent, and lifestyle matters such as the rise in the number of smokers, and factors that will lead to increased cancer, heart disease, diabetes and other health problems associated with affluence. Many of these problems are interactive so that solutions are not straight-forward.

 

(5) New ecosystem protection approaches that provide substantial and lasting economic, environmental and social benefits to rural people.

 

The investment by China in forest and grassland restoration, protection of water supply, and ecological services associated with wetlands, nature reserves, degraded agricultural areas, watersheds and coastal deltas is already substantial. But it is not optimal, since national systems for eco-compensation are not fully worked out, nor is the effectiveness of existing approaches very great. There is a need to act on the reality that most of these efforts should become permanent, and provide a greater level of benefits to rural residents. Also, to recognize that pollution remediation is now an important part of ecological restoration, including industrial, agricultural, mining and energy, municipal clean-ups and preventative action. Integrative solutions must combine economic, fiscal, ecological, technological and institutional innovation.

 

(6) Greatly accelerate the pace of development and commercialization of technological innovation for environment and sustainable development.

 

China should become the leading nation in the world in applying innovative environmental technologies. This may not happen until the next decade, but the groundwork is being laid through the tremendous S&T research investment, and through the emerging demand that will guarantee large domestic markets. China also offers huge advantages for low cost production, and to bring production on line quickly. Wind energy is an excellent example.

 

The range of environment and sustainability products and their associated services will define the 21^st Century economy to a considerable extent, including advanced transportation modes, smart power grids, lighting, renewable energy sources, advanced water use including capture of value of waste products such as heat from urban sewage, biorefineries and other advanced approaches associated with biotechnology and information technology.

 

At present there is no well defined national innovation system for environmental protection, even though there are many initiatives and some important platforms.

 

(7) Re-orient and strengthen the existing environmental management system to take full advantage of public participation and to respect public environmental rights.

 

The increased information transparency[55] and steps taken to provide for public inputs to environmental decision-making, and the handling of environmental complaints from the public have been successful. In the years ahead the public needs to have a more substantive role in decision-making and also to have the awareness and capacity to do so effectively. In some settings it should be possible for people and community-based organizations to become co-managers with government in addressing resource and environmental concerns. This should be the case in areas surrounding major nature reserves, for example.

 

Public environmental rights can be expanded to include the right of environmental supervision, the right of being informed, the right of environmental compensation, and right to participate in development of environmental policies and decisions affecting projects. All citizens, rich and poor, rural and urban, male and female, should enjoy equal access to these environmental rights.

 

Clearly the existing environmental management system still suffers from the limited quality of information available to detect problems in a timely and definitive way, and also to verify progress. There is a need for a much stronger monitoring system—a system that should operate with due consideration of public input and information sharing.

 

(8) Shift international environmental cooperation towards integrated sustainable development solutions.

 

International environmental cooperation should expand from pure environmental considerations to sustainable development. We should combine environmental cooperation with development cooperation, and resolve many, if not most environmental problems through development. While we have witnessed progress for some global environment and development problems, the majority of problems continued to worsen. We have noted the growing prominence of regional environmental problems and trans-boundary environmental conflicts, and these problems have had more impact on political, economic and social development. In addition, there are always new environmental problems emerging and becoming international in scope. These challenges make strengthened international cooperation a must. Sustainable development is a consensus of the international community. We should overcome cultural and ideological differences by taking coordinated action to establish smooth and efficient implementation mechanisms for international environmental conventions and treaties.

 

The benefits from successfully addressing these breakthroughs will directly contribute to a more harmonious society within China:

·　　　　 New economic opportunities and livelihoods with less negative impacts.

·　　　　 Better access by businesses and communities to cost-effective environmental solutions.

·　　　　 Improved corporate social responsibility on the part of Chinese companies.

·　　　　 Opportunities for people to be heard and to contribute to decisions affecting local development and national development.

·　　　　 Safer environmental conditions, including reduced risk of injury or losses arising from natural disasters and also from pollutants.

·　　　　 Improved quality of life and health, with other benefits such as improved transportation.

·　　　　 Improved trust on the part of people towards decision-makers.

 

 

VI. CONCLUSION

 

Environment and development is a key component in China’s efforts to build a harmonious society. The existing efforts at improving environmental management within China should pay good future dividends in terms of social and economic well-being for the people of China through improvement in the quality of life and satisfaction. But much more progress is needed. In fact, the entire foundation for building a harmonious society in China requires considerable strengthening.

 

Experience elsewhere in the world has shown that environmental improvement is a shared concern within societies, around which conciliation and consensus for action can occur. Environmental matters also can lead to measurable progress that can be communicated and provide a good entry point for public awareness-raising and responsible civic action.

 

China is taking a robust overall approach to environmental problem solving through scientific development, transformative rather than simply incremental change on environment and development, and attention to application of a broader range of instruments to bring about desirable environmental improvements. However, the challenges are still massive, as noted in the eight breakthroughs described in the previous section. Implementation challenges continue to hinder progress on building a new relationship between environment and development, and therefore, the progress on creating a harmonious society.

 

China faces the prospect of additional crises, given the presence of natural hazards such as earthquakes, floods and droughts; the effects of existing environmental degradation and unsustainable patterns of development; and global factors such as climate change. The tendency in the world today is for crises to converge into “Perfect Storms” involving environmental, food, energy, financial or other crises. Globally, we are likely in such a situation at present. Fortunately, China in recent times has demonstrated both resilience and responsiveness to such circumstances. And, importantly, it has recognized that with crises, no matter how complex, comes opportunity to innovate and seek new sustainable development pathways. As the severe tests of Wenchuan and other disasters this year have shown, there is still considerable room for improvement.

 

Environment and health is a pressing issue that is likely to become a source of greater social disharmony within China unless it is addressed more vigorously and quickly. It is an issue for citizen in all parts of the country, and in both cities and the countryside. Transparency of information remains a concern, along with full definition of the extent of specific problems and equitable solutions. Increasingly, failure to deal effectively with environment and health makes China vulnerable in its external relationships—trade, environment and public health.

 

China’s commitment to becoming an innovation society is, of course, tied to its efforts to build a harmonious society. It will be helpful to consider environment and development as an important bridge in this process. China’s efforts to build a new economy around a better balance of domestic and international consumer demand, based on products and services requiring less energy and material, will open many new opportunities for the country to increase its competitiveness. We believe this shift should be taken even further in certain sectors, such as renewable energy, where China can demonstrate world leadership and make full use of its comparative advantages. A shift towards being a country known for its commitment to a Low Carbon Economy and also firmly embracing advanced approaches to becoming a Circular Economy are practical ways this can be done.

 

China’s great goal of promoting an Ecological Civilization needs to be introduced to the world in a highly skillful way, backed by significant action both domestically and internationally. The former is well underway with the 11^th Five Year Plan environmental goals. But China’s reputation as a nation committed to building international cooperation on the basis of peaceful development and improving the global environment still needs to be strengthened. China’s commitment to achieving the Millennium Development Goals domestically and to use this experience with others internationally is a good example where progress is clear.

 

The global community is seeking clear signals of leadership from China on a number of matters including environmental concerns. The present global financial crisis has highlighted how China has positioned itself to reduce the impacts faced by others. Yet it should also be apparent that no country is immune from the longer-term impacts. Thus an important element of seek a harmonious society will be innovative polices to keep the global and national goals for environment and development alive, with demonstrated progress, no matter how difficult the economic environment becomes during the coming year. It is a crucial time for climate change matters in particular, and on this topic, China can demonstrate considerable resolve, hopefully in concert with the new political regime in the USA and others in Europe, and elsewhere.

The worst situation would be to revert to the old economic model of “pollute first, clean up later.”