Good news on China
Up-and-coming economic superpower China continues its evolution into a market-based economy and away from the stagnation of communism. The above article details two good pieces of news. First, China's move to a market economy is further along than we thought it was. Market reforms are also spreading from the eastern coastal areas inland and to the west.
Second, China's environmental conditions are improving, not degrading, with their increased market capitalism. Furthermore, the best environmental conditions are to be found in the areas with the most private enterprise.
This latter point is not all that surprising to those of us who know a thing or two about economics & environmentalism. It's been well-established for some time now, that the more capitalist a country is, the better its record on environmental issues like pollution. Conversely, the worst environmental degradation can be found in areas with the highest levels of state-owned enterprises.
This is true in the U.S.; the federal gov't creates about three times more pollution than all private industry combined. As the above article points out, it is also true in China; treated waste-water is highest in those areas with the most private industry, lowest in areas with the most state-owned industry. And it's true pretty much everywhere else in the world. The worst environments can be found in places like the former East Germany and former Soviet republics, while the cleanest can be found in the U.S., Japan, Canada, & western Europe.
The reasons for this are twofold. First, being environmentally clean is expensive, and non-capitalist societies often simply can't afford to run cleanly. For-profit, market-based economies have much more (albeit still limited) of a monetary cushion to absorb those extra costs. Second and perhaps more importantly is the issue of personal accountability. While private industries' pollution is constrained both by market forces and by environmental laws, state industries have neither of these constraints. As a function of the gov't they exercise sovereign immunity, meaning that any enviro laws passed simply do not apply to them. Also, as they are usually monopolies, they have no accountability to their customer base. Their customers have no ability to demand green products & manufacturing methods, since the state industry is the only supplier.
But, getting back to China, the above article is good news for all of us. A more economically developed China will be a boon to the world economy as a whole, as they will be demanding more and more products and services from abroad. Increased trade relations have always been good for peace as well; with both sides benefitting greatly from trade, neither will feel inclined to "kill the goose that lays the golden eggs" by starting some silly war.
While China still could use more improvement on the state of their environment, and their communist leaders are still trying to run the country with an iron fist in the civil liberties and human rights areas, overall they have progressed stupendously in the past few years. It was only about 3 decades ago that millions were starving to death under dictator Mao's retarded economic and agricultural fantasies. I think China's progression toward more economic freedom will continue; their current leaders know a good thing when they see it. This, in turn, will be a boon both to the U.S. and the rest of the world.
Second, China's environmental conditions are improving, not degrading, with their increased market capitalism. Furthermore, the best environmental conditions are to be found in the areas with the most private enterprise.
This latter point is not all that surprising to those of us who know a thing or two about economics & environmentalism. It's been well-established for some time now, that the more capitalist a country is, the better its record on environmental issues like pollution. Conversely, the worst environmental degradation can be found in areas with the highest levels of state-owned enterprises.
This is true in the U.S.; the federal gov't creates about three times more pollution than all private industry combined. As the above article points out, it is also true in China; treated waste-water is highest in those areas with the most private industry, lowest in areas with the most state-owned industry. And it's true pretty much everywhere else in the world. The worst environments can be found in places like the former East Germany and former Soviet republics, while the cleanest can be found in the U.S., Japan, Canada, & western Europe.
The reasons for this are twofold. First, being environmentally clean is expensive, and non-capitalist societies often simply can't afford to run cleanly. For-profit, market-based economies have much more (albeit still limited) of a monetary cushion to absorb those extra costs. Second and perhaps more importantly is the issue of personal accountability. While private industries' pollution is constrained both by market forces and by environmental laws, state industries have neither of these constraints. As a function of the gov't they exercise sovereign immunity, meaning that any enviro laws passed simply do not apply to them. Also, as they are usually monopolies, they have no accountability to their customer base. Their customers have no ability to demand green products & manufacturing methods, since the state industry is the only supplier.
But, getting back to China, the above article is good news for all of us. A more economically developed China will be a boon to the world economy as a whole, as they will be demanding more and more products and services from abroad. Increased trade relations have always been good for peace as well; with both sides benefitting greatly from trade, neither will feel inclined to "kill the goose that lays the golden eggs" by starting some silly war.
While China still could use more improvement on the state of their environment, and their communist leaders are still trying to run the country with an iron fist in the civil liberties and human rights areas, overall they have progressed stupendously in the past few years. It was only about 3 decades ago that millions were starving to death under dictator Mao's retarded economic and agricultural fantasies. I think China's progression toward more economic freedom will continue; their current leaders know a good thing when they see it. This, in turn, will be a boon both to the U.S. and the rest of the world.
posted by Unknown at
7/07/2006 12:47:00 PM
0 Comments:
Post a Comment
<< Home