19.3 Water Resources Policy After 1980
437
including the following: “combining water resources development and protection”; “water resources development and water disaster presentation shall be overall
planned, comprehensively coordinated, comprehensively used, cost-effective, and
multi-objectively developed”; and “the state implements planned water use and
water saving” (Sun 1988). The law also prescribed a range of water resources
management systems, including water resources planning, water project protection,
water abstraction permits, water resources fee collection, water-saving measures,
river-channel management, and flood control and drought-resistance mechanisms.
However, the most controversial provision in the law was related to the institutional arrangements. The law stipulated that “the state implements a water resources
system combining integrated management and hierarchical, sectoral management”, a
provision which was criticized for splitting responsibilities across different agencies,
commonly referred to as the “nine dragons manage water”.
The establishment of water resources management agencies started in the 1980s.
In 1984, the State Council decided that the MWP, as the national water resources
comprehensive management agency, was responsible for integrated planning, legislation, research, and allocation and regulation of national water resources and for
coordinating water conflicts (China water resources 1984). In 1985, a National Water
Resources Coordination Group, with its office at the MWP, was formed (China water
resources 1985). The river basin water resources protection institutions had been
established in 1975. These agencies were renamed in 1985 as river basin water
resources protection bureaus (Dept. of Water Resources, MWR 2008).
Another activity in the 1980s with long-term significance was the formulation of
the Yellow River Water Resources Allocation Plan. In the early 1980s, to deal with
increasing provincial water demand, the National Planning Commission organized
to formulate a water resources allocation plan to coordinate water use in the Yellow
River Basin. Approved by the State Council in 1987, the plan did not have a real
impact on water use in the basin before 1999 but was the key to deal with serious
continuous dry-up of the main channel after 1999.
In summary, the 1980s was not a good time for water sector development in
China. Criticized for low output to input, water sector investment was significantly
decreased. Impacted by agricultural reform and land occupation, the area under
irrigation decreased in many provinces (Qian 1987, 1999). In the meantime, facing
new challenges such as rapid industrial and urban development and economic reform,
the water sector had to change and adapt. The influences of these unfavorable factors
were reflected in water use at the time: the water supply increase was slight, from
443.7 billion m
3 in 1980 to 470 billion m
3 in 1988 (Yang 1989).
19.3.2 1990–1998: Repositioning Role
The 1990s was the time of setting up the institutions to support a socialist market
economy, including allowing the market to play a fundamental role in resource allocation while maintaining a form of macro-regulation by government. The establishment
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