438
19 Review and Outlook
of market-based institutions helped China to hasten its economic reforms by transforming the way state-owned enterprises operated, fostering markets, and reforming
governmental functions (Jiang 1992, 1997). Economic reform in the 1990s positively
promoted sectoral reforms.
The 1990s was a period with frequent water disasters and water pollution,
reflecting worsening water issues and delays in water sector development when
compared to broader economic development. The annual agricultural water shortage
was around 30 billion m
3 , and the urban water shortage was 6 billion m
3 . Serious
major floods happened in 1991, 1994, 1995, 1996, and 1998. Daily wastewater
discharge was more than 100 million tons, of which more than 80% discharged
without treatment directly into water bodies (Niu 1996).
Water resources development faced a dilemma at the end of the 1980s and the
beginning of the 1990s. Flooding was still a serious problem; irrigation facilities
could not meet agricultural requirements, particularly those for grain production;
hydropower development could not meet power demands; urban and industrial development resulted in a deteriorating water supply and increased conflicts over demand,
particularly in northern China; and water pollution and water and soil erosion were
becoming more severe. At the same time, water and the resources available remained
limited (Qian 1989).
Therefore, in the early 1990s, the water sector found it necessary to redefine its
role in the national economy, to formulate strategies and policies to realize that new
role (Qian 1990), and to increase investment (Yang 1991b).
In 1990, two key documents—the Proposals to Formulate National Economy
and Social Development Ten-Year Plan and the 8th Five-Year Plan (13th Central
Committee of CPC 1990)—included policy statements that water resources development is the lifeline of agriculture and basic industry in the national economy and
social development. In 1991, the Outlines for National Economy and Social Development Ten-Year Plan and the 8th Five-Year Plan issued by the 4th Plenary Session
of the 7th NPC stated that “water resources development shall be regarded as the
basic industry, and put in an important strategic position”. In 1995, the Proposals to
Formulate National Economy and Social Development 9th Five-Year Plan and the
2010 Long-Term Objectives at the 5th Plenary Session of the 14th Central Committee
of CPC placed water resources development as the first priority in infrastructure
construction and saving water as the first priority in resource savings, and they
required the strengthening of water resources development to be consistent with
economic development.
These plans and policies required that the basic industry role must be developed
and strengthened by concept change, by reflecting in regional social and economic
development plans, by formulating water sector industry policy, and by developing
a water sector entity (Yang 1991a). In 1993, the MWR issued the Outlines of
Water Sector Reform and Development for1990s (Zhang 2009), which defined the
objective and pathway for water sector development for the 1990s. The document
focused on increasing economic benefits and emphasized strengthening operations
and management to develop the water sector and establish new sectoral institutions
and operational mechanisms compatible with a market economy.
19 Review and Outlook
of market-based institutions helped China to hasten its economic reforms by transforming the way state-owned enterprises operated, fostering markets, and reforming
governmental functions (Jiang 1992, 1997). Economic reform in the 1990s positively
promoted sectoral reforms.
The 1990s was a period with frequent water disasters and water pollution,
reflecting worsening water issues and delays in water sector development when
compared to broader economic development. The annual agricultural water shortage
was around 30 billion m
3 , and the urban water shortage was 6 billion m
3 . Serious
major floods happened in 1991, 1994, 1995, 1996, and 1998. Daily wastewater
discharge was more than 100 million tons, of which more than 80% discharged
without treatment directly into water bodies (Niu 1996).
Water resources development faced a dilemma at the end of the 1980s and the
beginning of the 1990s. Flooding was still a serious problem; irrigation facilities
could not meet agricultural requirements, particularly those for grain production;
hydropower development could not meet power demands; urban and industrial development resulted in a deteriorating water supply and increased conflicts over demand,
particularly in northern China; and water pollution and water and soil erosion were
becoming more severe. At the same time, water and the resources available remained
limited (Qian 1989).
Therefore, in the early 1990s, the water sector found it necessary to redefine its
role in the national economy, to formulate strategies and policies to realize that new
role (Qian 1990), and to increase investment (Yang 1991b).
In 1990, two key documents—the Proposals to Formulate National Economy
and Social Development Ten-Year Plan and the 8th Five-Year Plan (13th Central
Committee of CPC 1990)—included policy statements that water resources development is the lifeline of agriculture and basic industry in the national economy and
social development. In 1991, the Outlines for National Economy and Social Development Ten-Year Plan and the 8th Five-Year Plan issued by the 4th Plenary Session
of the 7th NPC stated that “water resources development shall be regarded as the
basic industry, and put in an important strategic position”. In 1995, the Proposals to
Formulate National Economy and Social Development 9th Five-Year Plan and the
2010 Long-Term Objectives at the 5th Plenary Session of the 14th Central Committee
of CPC placed water resources development as the first priority in infrastructure
construction and saving water as the first priority in resource savings, and they
required the strengthening of water resources development to be consistent with
economic development.
These plans and policies required that the basic industry role must be developed
and strengthened by concept change, by reflecting in regional social and economic
development plans, by formulating water sector industry policy, and by developing
a water sector entity (Yang 1991a). In 1993, the MWR issued the Outlines of
Water Sector Reform and Development for1990s (Zhang 2009), which defined the
objective and pathway for water sector development for the 1990s. The document
focused on increasing economic benefits and emphasized strengthening operations
and management to develop the water sector and establish new sectoral institutions
and operational mechanisms compatible with a market economy.