Comparative Analysis of Water Sector Reforms
Tracking Progress in Asia and the Pacific
Phase 1- Assessing Water Sector Policies and Reforms - Country Briefs
People's Republic of China
The PRC faces severe water scarcity, as well as being vulnerable to hydrological extremes (floods and droughts). The importance of water has been recognised for many decades, leading to massive construction of reservoirs, dikes etc., as well as increasing emphasis on the policy and management tools needed. Major changes in governance and the economy, such as a shift from a centrally planned to a market economy and devolution of functions to provincial and district levels, have major implications for the water sector.
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NATIONAL POLICIES AND REFORMS
The water sector recently was reviewed; there is an extensive body of law, although coordination and enforcement present challenges. Policies are set in various ways and a comprehensive set of water-related policies is in place for sub-sectors and for such matters as cost recovery. Several national and provincial agencies are responsible for water management and service delivery, and 7 basin/lake commissions are administered by the Ministry of Water Resources.
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WATER RESOURCES MANAGEMENT
Current WRM practice has many good features, including an extensive information base, legally established allocation mechanisms, and the existence of river basin organizations in 7 major-interprovincial basins. In the past, lack of reference to environmental and social impacts has led to severe degradation of aquatic resources, but this now is being dealt with more effectively, at least for large-scale projects. Water quality and ecosystem aspects of WRM have been neglected, but major efforts now are being made to regulate wastewater discharges and to clean up water bodies. Flood control has been a major concern of Chinese governments, predominantly using structural measures until relatively recently. Beneficial effects of flood control are often counter-balanced by sometimes unavoidable adverse social impacts due to large scale relocation.
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IMPROVING WATER SERVICES
Access to safe water is high, 95%, in urban areas but 57% in rural areas, and inadequate management of wastewaters and nonpoint source contamination has contributed to low achievement of river quality standards. Water service provision traditionally has been a state responsibility, though more than half of irrigation systems are owned and operated by the beneficiaries. Government policies are encouraging private sector investment (though it is slow to materialise), requiring water utilities to operate on a commercial basis (though with tariffs set to be affordable rather than to meet costs), and extending user participation to public irrigation systems.
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CONSERVING WATER
The water sector is comprehensively regulated to implement national/ provincial laws on water and environmental management. Financial instruments (tariffs etc.) are used to recover O&M costs rather than to encourage efficient water use, and are set to be "affordable". However, levels of state subsidy for water services are declining rapidly. Willingness to pay for services still is limited, but efforts to educate users (including e.g. demonstration farms to promote water-efficient technology) are increasing in scope.
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PROMOTING REGIONAL COOPERATION
The PRC is very ready to draw on the experience of others through international interchange. In regard to management of shared waters, the PRC has a formal treaty with other riparians for only one, although it is a dialogue partner in the Mekong River Commission. Other riparians tend to feel that the PRC does not give sufficient consideration to their interests in shared waters.
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FOSTERING PARTICIPATION; CAPACITY BUILDING; NETWORKING
Participation of civil society in water projects increasingly is enabled; management of I&D is highly participatory. The PRC has an extensive R&D and education/training infrastructure, although capacity building for water users and communities is much less extensive. There is active engagement with other countries through programs of IOs such as UNESCO, as well as through overseas study and acceptance of TA from bilateral and multilateral partners.
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