How do China and Brazil deal with water pollution challenges? A comparative perspective of two emerging countries’ approach to water pollution problems docx

China’s and Brazil’s rapid economic growth, industrialisation, dense population and massive urbanisation, in addition to the ineffective implementation of water management and pollution

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How do China and Brazil deal with water pollution challenges?

A comparative perspective of two emerging countries’ approach to water pollution

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Abstract

With 70 percent of the earth's surface covered by water and the human body consisting of 60 percent

of it, it is undoubtedly evident that water is one of the most important elements responsible for life on earth China’s and Brazil’s rapid economic growth, industrialisation, dense population and massive urbanisation, in addition to the ineffective implementation of water management and pollution controls, have resulted in widespread water pollution This dissertation provides a comparative analysis of how China and Brazil deal with water pollution challenges This dissertation first explores the role of industrialisation in polluting freshwater in China and Brazil and predicts its future growing

control following the predictions of the environmental Kuznets curve Second, looking at the massive

internal migration in China and Brazil this paper suggests that cities in China and Brazil are not capable to sustain the population size and accommodate the population growth, which is threatening the water security in urban areas Third, the same causes that have boosted agricultural and rural development will be assessed in relation to their impact on environmental degradation and the

possibility to implement the precautionary principle to avoid the emergence of new environmental accidents Finally, fragmented coordination and bureaucratic competition within Brazil’s and China’s

institutional organisation will be evaluated as a major reason for the lack of environmental pollution

supervision Informal rules such as the Chinese guanxi and the Brazilian clientelism will serve to

explain the factors affecting policy implementation and compliance China and Brazil have a very promising economic future; however, both must address their environmental problems in order to achieve their full potential Time is necessary to implement change, yet both countries need to work against time if they wish to continue to enjoy their miraculous growth Clean water is a crucial element for economic growth, healthy life and development but, it is also running out, which threatens long-term expectations for sustainable development

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Table of Contents

Page

Abstract……… … ………… … 1

Table of Contents……… …… ……… …… 3

Chapter I: Introduction Background and Motivation 4

Methodology 7

Chapter II: Overview Water Pollution Situation in China and Brazil 10

Chapter III: Comparative Analysis Industrialisation 13

Urbanisation 17

Rural and Agricultural Development 19

Environmental Policy Enforcement 22

Chapter IV: Conclusion Conclusion……… ……….……… ………….….29

Bibliography……… ……….31

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CHAPTER I: Introduction

Background and Motivation

Agua, eau, su, lehçe, shui, water Pronunciation may vary across languages, though its significance for human beings remains equally important Water represents up to 60 percent of the human body and cover over 70 percent of the Earth’s surface (U.S Geological Survey, 2010) Ancient civilisations, from Egyptians to Chinese to Mesopotamians, had their beginnings along great rivers for agricultural, transportation, and safety reasons China, a hydraulic civilisation, was mainly defined by the water of

its rivers, floods, and rains, especially the Yellow River (Huang He), also known as the “dragon river”

(Murray& Cook, 2002) The Amazon River is the backbone of Brazil and, it is the largest river in the world with a total flow larger than the next ten largest rivers The numerous rivers that cross Brazil have provided tremendous natural resources and prosperity, which has been crucial in becoming Latin America’s largest and the world’s eighth largest economy Rapid industrialisation and extreme focus

on economic growth are, however, polluting waters in countries with enormous water resources like Brazil and China, despite that without clean, healthy waters, human development is not possible

China’s rapid economic growth is often considered the most fascinating economic miracle in contemporary world history In fact, China has already become the second largest economy in the world and unprecedentedly lifted about 500 million people out of poverty over a generation (Malik, 2009) Such an extraordinary accomplishment has, nonetheless, caused tremendous pollution problems, especially on rivers, lakes, and streams China’s rapid socioeconomic growth has brought new challenges to deal with, such as international competition, heavy industrialisation, environmental pollution, and pollution-related health problems Furthermore, it has increased dramatically energy demand for resources and sacrificed the cleanness of natural resources like water Elisabeth Economy argues, “the same dynamic that produced such success in the economic sphere, however, has also wreaked havoc on China’s natural environment” (Economy, 2004) China’s economic growth and industrialisation have been like a dual-edged sword to the world, as it already stands as one of the world’s largest CO2 emitters (Horii, 2001)

The Chinese model of excessive focus on rapid economic growth will be unendurable without a real change in the country’s position against water pollution According to the non-profit group Pacific Environment, it is estimated that around 320 million people in China lack access to clean drinking water, and around 70 percent of all water sources are polluted to some extent (Pacific Environment,

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2009) In fact, this has drastically increased the cases of cancers, leading to the cancer villages

phenomenon near water polluted sources This is particularly serious in a country that contains some

of the largest fresh water reserves in the world, and the largest population to be supplied

China’s model of rapid economic growth, however, will not be sustainable without a real change in its pollution prevention and control mechanisms The top two most polluted cities in the world are actually located in China Excessive industrialisation and reliance on polluting energy resources have severely damaged the Chinese environment Pollution causes approximately 400,000 premature deaths

a year and acid rain has increasingly become a serious concern which damage is estimated to total

$5-13 billion (Lew, 1999) Finding a way to ensure water pollution prevention and control is urgent to China in order to maintain its miraculous story

On the other side of the globe, Brazil has deserved to be called the Latin American miracle due to its astonishingly rapid socioeconomic growth as one of the world’s fastest growing economies This has contributed to consolidate it among the emerging BRIC countries (Brazil, Russia, India, and China) Similar to China, Brazil contains large water resources from lakes and rivers, like the Amazons Water resources management is undeniably a key element to achieve sustainable growth, as well as a more equitable and inclusive society Nonetheless, rapid economic and industrial growth endangers Brazil’s urban water access Cities like Sao Paulo are among the largest urban centres in the globe with over 20 million people Major cities, however, suffer from polluted water due to residential and industrial sewage Furthermore, it is believed that only 35 percent of collected wastewater received any treatment Uncontrolled urban growth is becoming a growing threat to the environment

Both China and Brazil are often regarded by many developing countries as models to follow As they achieve astonishing economic results, water pollution has become an extremely serious threat to their sustainable development This research project will study and compare the approach of each country

to freshwater pollution I will also evaluate the effectiveness of their policy enforcement efforts to prevent and control water pollution Although there is some literature on water pollution that analyses individually China and Brazil, there are nearly almost no studies that compare both countries together, despite their growing importance in the world This dissertation will contribute to the existing literature by providing a comparison of how two emerging countries that belong to a similar category

of development deal with one of the most serious contemporary problems China and Brazil are often criticized when compared to the great achievements on water pollution treatment made by developed

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countries, such some European nations However, in order to best understand and evaluate their approach to water pollution issues they should be compared to countries with common socio-economic characteristics and a similar development stage This will facilitate drawing clearer conclusions and identify more appropriate lessons that can be applied to China and Brazil

Preventing, reducing, and controlling water pollution is critical, thus, to maintain China’s and Brazil’s miraculous socioeconomic growth and provide an example to all those developing countries that follow their steps My research question is, thus, not only important but vital due to the urgency of China and Brazil to address the problem of water pollution in order to ensure access to health and higher living standards to their respective populations Much of the available literature focuses solely

on either China or Brazil This dissertation will, nonetheless, analyse and compare how both emerging countries deal with freshwater pollution issues While previous comparative analysis has been usually done among developed economies or between emerging and industrialised countries, there are extremely few works that study pollution issues within emerging countries Given the importance that emerging economies have for the world and in particular for their own regions, it is thus vital to further research issues like water pollution within an intercontinental comparative analysis framework

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Methodology

How do China and Brazil deal with water pollution challenges? Emerging countries’ rapid

socioeconomic growth is indeed a great example to follow for many developing countries around the world Among them, both China and Brazil have proven in their respective regions that development

is possible for all economies and have drawn a new path towards growth and prosperity Nevertheless, water pollution is one of the most severe consequences of such phenomenon, as governments have

advocated for an economic growth first, environmental protection later approach In the past few

decades, ruling institutions have attempted to tackle the water pollution problem due to the essential role that water plays in human lives This dissertation will analyse and compare these two emerging countries’ approaches to freshwater pollution prevention and control

In order to analyse and compare the ways China and Brazil deal with water pollution challenges and assess their effectiveness, I will be looking at the impact on freshwater pollution of: industrialisation and economic growth, urbanisation, rural and agricultural development, and environmental policy enforcement First, studying how water pollution has worsened in China by massive industrialisation,

as factories often fail to meet environmental standards and discharge untreated wastewaters to local rivers, will provide an important assessment of the Chinese industrial impact on water pollution The water consequences of Brazil’s export orientated industrialisation approach, that marked its economic policy, will be also analysed Such comparison is crucial to understand how industrialisation in two different emerging countries has negatively impacted water pollution in diverse ways Second, examining the phenomenon of massive urbanisation in China will demonstrate that excessive population density has an uncontrollable impact on water pollution, to the extent that des-urbanisation

is currently encouraged China’s socialist roots will be contrasted to the Brazilian system that has led

to severe inequality and illegal settlements’ problems Differences between both will be highlighted in order to assess how they have affected water pollution Third, studying Brazilian agricultural fertilizers’ and agrochemicals’ discharge to rivers and streams will show the gravity of uncontrolled rural development China’s rural industrial development drivers, Township and Village Industrial Enterprises (TVIEs) polluting practices will be analysed in order to deeper understand some of the main reasons for water contamination in China Comparing both countries’ rural and agricultural sources of water pollution will help to demystify ideas of rural pureness that overlook the countryside’s role in contaminating water Finally, policy enforcement problems of both China and Brazil will be studied in order to compare how informal rules affect water pollution control policies’ compliance in these two emerging countries, given their different socio-cultural background

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The research methodology for this dissertation is primarily based on a review of books and journal articles that examine environmental, economic, social and political topics related to Chinese and Brazilian environmental and, more specifically, water degradation; economic growth and industrial pollution in emerging countries; the impact of urbanisation and social inequality impact on water pollution in China and Brazil; the institutional framework that regulates water pollution control in both countries; and Chinese and Brazilian informal rules that stop policy compliance For the purpose of this dissertation, only pollution on freshwater in both China and Brazil will be studied

Academic research books may provide useful theoretical and analytical frameworks, though some information and data may be outdated due to the rapid changing environmental and political issues in emerging economies like China and Brazil Scholarly journal articles offer more in-depth interpretation and take innovative intellectual approaches to the issue All these materials were accessed through the London School of Economics’ library, online journal databases, as well as other articles and reports available online Data from books, journals, articles, and reports are accordingly cited and quoted All the material has been selected according to content and relevance to the topic, and analysed carefully to understand the main arguments of authors Nevertheless, my research encountered some language limitations, since some data and journals were only written in either Portuguese or Chinese Moreover, finding general information about Brazil was limited, as most data was only found per regions due to Brazil’s federal structure

This dissertation, thus, explores economic, political, social, and environmental aspects to compare how two rapidly emerging countries like China and Brazil deal with water pollution In Chapter II, an overview of the importance of water for a country’s development will be followed by an introduction

of China’s and Brazil’s water resources and pollution problems Chapter III will use a comparative

analysis to explore different areas related to water pollution in China and Brazil that will help us to

deeper understand how these two emerging countries deal with the issue First, the role of industrialisation in polluting freshwater of China and Brazil will be studied and compared In order to

assess how China and Brazil deal with the problem of water pollution, the pollution intensity of GDP and the environmental Kuznets curve will be applied Second, an analysis of the impact of urbanisation

on water pollution in the Chinese and Brazilian contexts will contribute to the understanding of how water pollution is caused and controlled Third, rural development will be compared by evaluating polluting elements of agriculture in both countries such TVIEs, fertilisers, and agrochemicals This

will be analysed through the precautionary principle in order to assess the risk of rural policies to

cause harm to the rural environment Fourth, environmental policy and water pollution control

enforcement in China and Brazil will be studied through the fragmented coordination and

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bureaucratic competition approaches, as the role of governmental institutions will be considered in

dealing with this problem Informal rules of behaviour, such as guanxi and clientelism, will serve to

the purpose of analysing how social factors affect policy compliance and water pollution treatment efforts Chapter IV will conclude the dissertation with an evaluation of the main arguments raised

throughout the dissertation by using a comparative analysis to provide a more complete study and

offer alternatives and suggestions for each country to improve water pollution prevention and control The applicability of some aspects, however, might be challenged by China’s and Brazil’s unique socio-economic conditions

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CHAPTER II: Overview

Water Pollution Overview

Water is probably the most indispensable element for life on Earth Water not only covers 70 percent

of the planet’s surface, but also represents up to 60 percent of the human body and 83 percent of our blood (U.S Geological Survey, 2010) Most great empires and civilisations were born at the meadows

of rivers like the Tigris, Nile, and Huang He Despite its status as the backbone of life, human beings have mistreated water and sacrifice its pureness at the expenses of development and economic growth Pollution of freshwater is an increasing problem, as there are about 250 million cases of water-related diseases annually, with up to 10 million deaths (Grinning Planet, 2005) Ingestion of contaminated water can cause mortal diseases like cholera, typhoid, and dysentery It is not a coincidence that Asian rivers are the most polluted in the world and have twenty times more lead than industrialised countries’ rivers, as Asian economies have performed an impressive but destructive miracle Chinese rivers’ waters are mostly undrinkable However, Asia is not the only continent with water pollution issues Latin America’s leading country, Brazil, has become one of the fastest growing economies in the world Excessive focus on industrialisation and growth has increased, like in China, water pollution despite the abundance of its water resources No development, however, is sustainable without balanced actions that maintains a clean environment and promotes social wellbeing

Over the last three decades, China has climbed from a poor developing Communist country to the world’s third largest economy lifting about 500 million people out of poverty in a generation (Malik, 2009) What is considered by many as one of the world’s greatest social achievements has created tremendous expectations given that one fifth of the planet’s population lives in China Its rapid industrialisation and growth has been carried out without considering environmental degradation and contamination, which has contributed to reaching some of the world’s highest rates of water pollution (Economy, 2006) China’s industrial output increased by more than 15 percent annually throughout the 1990’s, thus becoming the country’s largest productive sector, accounting for 47 percent of its gross domestic product (GDP) and employing 17 percent of the labour force (Wang, 2007)

Although China has the sixth largest stock of freshwater in the world, which represents about 5.8 percent of the world’s water on 2,812.4 billion cubic metres, its massive population has led the country to rank on the 88th place out of 153 countries in terms of access of water (Qingshan, 2008) China’s urban population grew by more than 160 million between 1990 and 1995, thus more people

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Source: Wu, 1999

are exposed to unsafe water (Ma, 2000) Urban dwellers increased per capita from less than 100 litres

in 1980 to 244 litres in 2000, and demand for water is expected to triple during 1995-2030 from 120 to

400 billion tons (Economy, 2006) The combination of skyrocketing demand, population pressures, inefficiencies, overuse, and unequal distribution has led to a situation of which two-thirds of China’s

600 cities suffer from water shortages (Economy, 2006) As a result of rapid industrialisation and urbanisation, in China over 700 million people consume contaminated water that exceeds maximum permissible levels by as much as 86 percent in rural areas and 28 percent in urban areas (Wu, et Al 1999) By the end of 1990s, only 5 percent of municipal wastewater and 17 percent of industrial

discharge received any sort of treatment before being discharged back into coastal waters, rivers, and lakes (Wu, et Al 1999) The river quality map unveils the seriousness of water quality problems as Grade V and

IV areas are very numerous throughout the country China urgently needs to address water pollution in order to restore the wellbeing of its people and ensure the continuity of its socioeconomic miracle Sadly, it is not the only emerging country that faces this difficult challenge

Before the first Europeans arrived in most of what today is known as Brazil, that land was like a gigantic Eden with clean natural resources and a balanced harmony between men and nature Since the discovery of the Americas, Brazilian rivers and forests have been severely damaged for the sake of large agricultural production and mining, especially due to Brazil’s rich gold resources As South America’s largest gold producer, Brazil has released into the Amazon about 2,000 to 3,000 tonnes of mercury since the 1980’s (Malm, 1998) Moreover, rapid industrialisation and urbanisation has cost severe water resources contamination, as it happened to China Just in Brazil’s two largest metropolitan areas, Sao Paulo and Rio de Janeiro, over 30 million people are affected by water pollution (Osava, 2007)

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Water resources in Brazil account for 53 percent of the total in South America with 251,000 cubic metres/ second (Ferrao Boroi, & Alencar Torres, 1997) Brazil has about 14 percent of the world’s freshwater resources, but 68 percent are located in the northern regions, which only has 7 percent of the country’s population (Bernardo, 2008) Although Brazil is a large country with abundant water resources, these are not homogeneously distributed (Clevelario Junior., 2005) The northern areas are the least populated but rich in water, while the north-eastern regions have scarcity of water resources due to a semi-arid climate and large population (Clevelario Junior., 2005) Southern Brazil’s water scarcity is due to overexploitation and heavy pollution In addition, there are two opposing groups involving water distribution: one is made of governmental authorities that want water to serve power-production and urban consumption purposes; whereas the other group is formed by rural inhabitants that want water for irrigation and farming (Bernardo, 2008) If Brazilians are to enjoy clean water, more needs to be done to ensure clean water accessibility and water pollution control

as to improve the rural economies and prevent migration to the main urban centres (Ward & Liang, 1995)

Rapid industrialisation has had a profound impact on China’s environmental degradation and water pollution Environmental quality has declined sharply since 1978 (Swanson, 2001) In Zhejiang province alone, more than 65 percent of the total precipitation is now acidic and the total annual industrial wastewater discharge has been above 20 million tons since 1986 (Swanson, 2001) Industrial pollution occurs due to mismanagement caused by a variety of reasons Every year, rivers, lakes and coastal water receive some 36 billion tons of untreated industrial wastewater and raw sewage discharged by factories (Murray & Cook, 2002) According to China’s former State Environment Protection Administration (SEPA) minister “about 28,000 enterprises still failed to meet the state environmental standards Another 7,280 had failed to take action to reduce their discharge of toxic waste despite repeated warnings to do so” (Murray& Cook, 2002) Poor regulation and enforcement allow many small enterprises to operate without wastewater treatment, thus exacerbating the water pollution problem

Furthermore, water pollution also has an economic burden for China According to the 1997 World

Bank Clear Skies Blue Water report, the annual cost of environmental pollution and degradation in

China was equivalent to 8-12 percent of the Chinese GDP (Economy, 2006) Water availability is crucial for economic growth and human wellbeing; however, mismanaged economic activities have a profound negative impact on water availability and quality When water is scarce or polluted, or where

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economic activity is unrestrained and without regulation, social problems emerge Water pollution problems have reached to the point of threatening the pace of economic growth and weakening political stability (Gleick, 2008) International enterprises have started to cancel business ventures because of water concerns, thus creating public concern and raising political pressure on central and regional governments to adopt more effectively measures to deal with water problems (Gleick, 2008)

In addition, water pollution has become a nationwide concern, as seen in Chinese media articles: “The pursuit of economic growth has been the priority overshadowing the vital issues of water resources and ecological balance” (Gleick, 2008) In 2005, the Chinese government recognized the occurrence

of 50,000 protests related to environmental concerns, many of which were related to water decay (Turner & Lü, 2006) In the efforts to address water-related issues, local authorities have found themselves in an uncomfortable position where balance is needed among different aspects, like protect local industries and jobs, safeguard own personal interests, the desire to sustain rapid economic growth, and address the environmental crisis (Gleick, 2008) Industrialisation has, thus, not only provided China with many socioeconomic opportunities but also challenges that threaten its rapid economic growth and social stability Promoting sustainable development that prevents and control water pollution is crucial to ensure China’s long term growth goals

Although no country in the world has managed to sustain China’s growth figures, the Brazilian economy has experienced an exponential growth in the last three decades, totally unprecedented in its region The Brazilian miracle began with the many incentives created to increase exports as a way to alleviated the pressure caused by the payments of the external debt crisis that Brazil had by the early 1980’s (Frickman, 2010) As a consequence of the rapid export oriented policies, water pollution problems have increased in Brazil Therefore, pollution from industrial activity is positively correlated since the 1980s: the higher the growth, the higher the pollution threat In other words, industrial growth has been shifted towards potentially polluting industries (Frickman, 2010 Brazilian water quality has been seriously impacted by industrial and agricultural chemicals

Massive industrialisation derived from rapid economic growth has increased water pollution to alarming levels in emerging countries like China and Brazil However, this could merely be part of the normal transition from a traditional to a developed economy Countries with traditional economies lack of a solid industrial foundation that boosts socioeconomic development They are usually based

on rural activities for economic growth, such as farming and livestock raising, which generally suffer from low-productivity Some scholars argue that historically “during the transition from a traditional

economy to a developed economy, the pollution intensity of GDP has first intensified and then eased”

manufacturing is specially emphasized, whereas service activities gain importance as the economy later develops Transition length varies from five generations in average to merely two generations that has taken in East Asia (Auty, 1997) This argument can be explained by using aggregate pollution patterns that mark the midpoint in the transition process in which

manufacturing reaches a peak Pollution intensity of GDP can be understood with the inverted shape of the environmental Kuznets curve (EKC): pollution rates and environmental degradation first

U-increase as manufacturing takes more importance and per capita income U-increases After reaching the turning point, the curve goes down as environment begins to improve due to economic development, technological changes, and growing preference for a cleaner environment (Lee, 2009)

This is also partly due to the fact that

traditional economies first focus on

heavy industrialisation, often at the price

of polluting, outdated machinery and

factories As people’s per capita income

increases, their concern for quality of

living begins to increase; thus health and

environmental quality becomes more

important Once the industrial transition

from a traditional to a developed

economy nears its end, hazardous waste

becomes a serious pollution problem that

is often discharged to waterways, thus

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producing severe adverse health effects (Auty, 1997) As their governments often claim, China and Brazil are currently at that transitional stage and just need more time to reduce pollution as their economies develop Victorian Britain was not only the most industrialised place at the time, but also the most polluted and dark; therefore, China and Brazil will also reduce water pollution as per capita income increases and their economies develop However, it is important to consider whether the serious effects on water pollution today are irreversible ever in the future

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Urbanisation

Emerging countries compromise about half of the planet’s population (Global Edge, 2009) Alongside

to their economic growth, Chinese and Brazilian cities are developing and urbanising at a remarkably fast rate Though it is economically beneficial, this rapid urbanisation has an adverse impact on the environment because the city infrastructure is unable to adapt to the growing population in the same pace than the migration wave Urbanisation brings environmental issues including water pollution and waste dumping The Chinese urbanisation rate has increased from 18 percent in 1978 to 31 percent in

1999, a growth rate three times higher than the world average during the same time period (Zhang & Song, 2003) In addition, the percentage of China’s population that live in cities is estimated to increase from the present 47 percent to 75 percent within the following thirty years (Land, 2010) As the Brazilian economy has shifted from a highly agriculture oriented economy to one more focused around the service industry, 66 percent of Brazil’s labour force is now dedicated to services related activities; while only 20 percent remains doing agricultural based chores (The World Factbook, 2009) Brazilians are seeking to work in urban settings, cramming in poor living conditions and causing a deeper environmental degradation

One out of five people in the world live in China, which population is 1,345,750,973 This is larger than all Western countries together (IBGE, 2010) Although China’s population density is high (145 people/km2), most of its provinces exceed this figure as the population is mainly concentrated on the eastern part of the country Guangdong’s population density, for instance, is about four times the national average: 536 /km2 (IBGE, 2010) Although Brazil is the world’s fifth most populous country

in the world, its population density is merely 23/Km2 due to the country’s uneven population distribution Half of all Brazilian states are above that figure, mostly located on the eastern part, like China, including the Federal District (410.9/Km2), Rio de Janeiro (356.1/Km2) and Sao Paulo (165/Km2) (IBGE, 2010)

China’s population pressure, growing agriculture, industrialisation and increasing high living standards have all intensify the demand for water, while overuse and pollution have decreased supplies According to a 2003 United Nations report, “Across the globe, groundwater is being depleted

by the demands of megacities and agriculture, while fertilizer runoff and pollution are threatening water quality and public health” (Hays, 2010) A combination of factors, such as insufficient legislation, poorly designed control mechanisms, and a discouraging work environment for