15.4 Key Sectoral Reforms
333
irrigation zones, using both surface water and groundwater in well and canal combination systems, strictly controlling groundwater development in well-irrigation zones,
and using water cellars, pools, and ponds to harvest rainwater to provide water for
planting and seedlings in zones without irrigation.
In terms of usage, certain aspects of production such as cropping patterns and
water-use structures can be adjusted according to available water resources, as well
as natural and socio-economic conditions. In arid regions, water-intensive crops can
be limited and the planting of less water-consumptive and high-value cash crops
can be encouraged instead. When planning whether to plant grain, cotton, oil, or
vegetable crops, the strain on water resources needs to be fully considered to avoid
deteriorating water supply and demand conflict.
Additionally, a compensation system has been developed for the government
sequestering of water resources. In 1995, the MWR, the Ministry of Financing, and
the National Planning Commission issued “Compensation Methods of Occupying
Agricultural Irrigation Water Sources and Irrigation and Drainage Facilities.” This
sets out the basis for compensating users for taking over agricultural irrigation water
sources, irrigation and drainage facilities, or for causing a reduction in agricultural
irrigation water supplies, or for the partial or full loss of facilities. The compensation
system is a way of balancing agricultural demand for water sources and water supply
facilities with fast economic development, which demands more water for industry
and domestic use.
In summary, these internal factors are closely linked, and closely related to
economic development after 1990 in China. In the early 1990s, under less developed
conditions and with fewer public resources, the water infrastructure management
agency had to increase and collect water tariffs to partially recover costs and sustain
its operations. Even then it was impossible to reform them as a public-interest agency,
which was mostly supported by public resources. Due to inadequate public input,
small-scale or field-level infrastructure had to be left to individual farmers.
In the late 1990s and early 2000s, under rapid economic development and with
greater government investment, it became possible to reform institutions, provide
public support and cancel farmer labor input. In the late 2000s, with the aim of
guaranteeing food security, more investments were required to stabilize agricultural
production. At the same time, farmers were subsidized in all aspects of agricultural
production, including water.
While reforming water pricing and reducing the burden on farmers, regulating
water tariffs must be accompanied by a reduction in water use and increasing management efficiency. In order to reduce water use, entitling water rights and valuing those
rights are essential; in order to improve management efficiency, institutional reform is
required. Therefore, reforms to water pricing, water rights, and management institution are always performed at the same time. Otherwise, without the support provided
by other reforms, one single change to agricultural water resources management is
difficult to implement successfully. So these individual changes can be seen together
to form a map of agricultural water resources management reform and policy changes
in China after 1990, accompanying the broad social and economic reform during this
period.
333
irrigation zones, using both surface water and groundwater in well and canal combination systems, strictly controlling groundwater development in well-irrigation zones,
and using water cellars, pools, and ponds to harvest rainwater to provide water for
planting and seedlings in zones without irrigation.
In terms of usage, certain aspects of production such as cropping patterns and
water-use structures can be adjusted according to available water resources, as well
as natural and socio-economic conditions. In arid regions, water-intensive crops can
be limited and the planting of less water-consumptive and high-value cash crops
can be encouraged instead. When planning whether to plant grain, cotton, oil, or
vegetable crops, the strain on water resources needs to be fully considered to avoid
deteriorating water supply and demand conflict.
Additionally, a compensation system has been developed for the government
sequestering of water resources. In 1995, the MWR, the Ministry of Financing, and
the National Planning Commission issued “Compensation Methods of Occupying
Agricultural Irrigation Water Sources and Irrigation and Drainage Facilities.” This
sets out the basis for compensating users for taking over agricultural irrigation water
sources, irrigation and drainage facilities, or for causing a reduction in agricultural
irrigation water supplies, or for the partial or full loss of facilities. The compensation
system is a way of balancing agricultural demand for water sources and water supply
facilities with fast economic development, which demands more water for industry
and domestic use.
In summary, these internal factors are closely linked, and closely related to
economic development after 1990 in China. In the early 1990s, under less developed
conditions and with fewer public resources, the water infrastructure management
agency had to increase and collect water tariffs to partially recover costs and sustain
its operations. Even then it was impossible to reform them as a public-interest agency,
which was mostly supported by public resources. Due to inadequate public input,
small-scale or field-level infrastructure had to be left to individual farmers.
In the late 1990s and early 2000s, under rapid economic development and with
greater government investment, it became possible to reform institutions, provide
public support and cancel farmer labor input. In the late 2000s, with the aim of
guaranteeing food security, more investments were required to stabilize agricultural
production. At the same time, farmers were subsidized in all aspects of agricultural
production, including water.
While reforming water pricing and reducing the burden on farmers, regulating
water tariffs must be accompanied by a reduction in water use and increasing management efficiency. In order to reduce water use, entitling water rights and valuing those
rights are essential; in order to improve management efficiency, institutional reform is
required. Therefore, reforms to water pricing, water rights, and management institution are always performed at the same time. Otherwise, without the support provided
by other reforms, one single change to agricultural water resources management is
difficult to implement successfully. So these individual changes can be seen together
to form a map of agricultural water resources management reform and policy changes
in China after 1990, accompanying the broad social and economic reform during this
period.