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Further developing China's west
January-26-2010

This month marks the tenth anniversary of the development of west China. As a grand strategy to open and develop the west, it serves to improve the life quality of 30 percent of China's population living in over 70 percent of Chinese territory, many of them being the poorest in the country. It is a shame that so many of our compatriots still live in a miserable situation simply because they were been born in a remote area.

According to official statistics, 40 million Chinese people have a daily spending of merely US$1, and 100 million live off under US$1.5 per day. These people could be classified as living in absolute poverty. Unfortunately, this country still has as many as 100 million like them, accounting for over 7 percent of total population, more than the entire populace of Germany or Iran.

Most of China's poor live in the western part of the country. If China maintains uneven development its internal divide will expand, possibly leading to various social instability and political turmoil. Therefore, "developing the west" serves a core interest for the nation: by assuring equal rights of development – a crucial part of human rights – the government addresses political stability and regime security.

To fix China's imbalance between east and the west, the central authority gave a mandate to boost the western area with a three-phase strategy: from 2000-2010 improving the infrastructure, environment and education. Also, adjusting the strategic structure and bringing about market mechanism, matching the pace of regional economy to that of the entire nation. The 2010-2030 phase will involve industrializing and marketing the region's economy; improving existing sub-regional specialties will take place between 2031 and 2050.

The above offers a reasonable but conservative program to improve the economy of China's west. The plan is achievable – it only entails a small amount of official spending compared with the vast overall budget of the central government. From January 2000 to September 2009, the Chinese government spent just 1.74 trillion yuan on major projects, compared with over 31 trillion of GDP in 2008. During the global financial crisis, the central authorities ordered additional public spending at 4 trillion for two years. The "developing-the-west" strategy entailed just 40 percent of that figure for a ten year plan.

Clearly the central government doesn't feel equal importance of developing the west as with the east. The population of vast western China is just 30 percent of the nation, so it won't receive the same importance in budgeting. Also, the east is more sensitive to the international environment, so it is critical to maintain stability in the east before attention could be given to the west. Furthermore, the east is more open to international cooperation because of its accessibility, it is therefore more important to improve the infrastructure in the east to facilitate overseas investment.

This explains the government's conservatism regarding developing the west. In fact, the authority has made it clear that the "grand strategy" of western development doesn't aspire to bring the west's economy to that of the east, rather, despite the grand strategy, it is foreseen that the gap between the east and the west will increase. Statistically, from 2000-2008, China's GDP quadrupled; but during the same period, the minority regions in the west had its GDP merely doubled. As the comparison with the east in 2000 was already sharp, one can see that at the end of the decade how the west has been further behind the east, despite the success compared with its own past.

The Chinese government is realistic in admitting that it cannot level the nation's inequality by 2050. However, it shoulders the responsibility of developing the west and improving lives there, narrowing the gap which would otherwise widen. While it is not the most encouraging message, one has to accept this realism, for many historical as well as geographical reasons.

As the west has been weak in economy, it persistently lacks a human resources pool. The west has lacked creative indigenous leadership, as the local leaders have been long isolated from a market economy environment. Second, its own young talents tend to be attempted by the east and even the exotic foreign world, and brain drain is phenomenal.

China's west is less accessible than the east. The Himalayan area is too high for people to survive let alone to flourish. China's western frontier such as Xinjiang and Tibet is completely blocked by the Eurasian continent: it meets India, Pakistan and Central Asian countries and doesn't have direct access to sea. Yunnan is connected to Indo-China before it has any chance to see the Indian Ocean. Though the Silk Road could be revived at modern time, such a transportation mode is inferior to China's eastern coast which borders directly the Pacific.

Prior to globalization, such natural geography offered national security to China. Central China and Tibet plateau prevented the country from being occupied by Japan completely in the past, and the Himalaya became a natural divide between China and India. During the "Cultural Revolution" (1966-76), China's strategic forces and modern industries were concentrated in Sichuan and Qinghai provinces for fear of Soviet aggression.

But at a peace time, especially during globalization, China's west is more a natural liability because of its inconvenient locality. The feature of globalization – flow of people, information and materials – is rendered less possible due to the geography. China's west still doesn't have as widespread highways or railway networks as in the east. Trade with the neighboring countries to the west of China is difficult as they are mostly in competition with the area. And as smart as China is, some of them don't feel the development of China's west could serve their national interests, as they wouldn't feel comfortable to see a strong China. So India would not encourage cross-border trade with China, but rather expect to expand trade tie with China through Shanghai. In a similar vein, the North Korea has lately refused to cooperate in Tumenjiang Development Project, which could extend China access to the sea, possibly for seeing no much overall gain from this collaboration.

The lack of human resources and inconvenient geography pose long-term challenge to China's western development strategy. Plus with the need to enhance education and preserve the environment, the challenges are daunting. The west may also feel perplexed for sharing its natural resources with the rest of the country without market mechanism. Local people see their oil and other minerals shipped out without proper compensation or a mechanism of value-added, often without the creation of jobs for the locals.

But it is impossible to balance everything at one time. One shall see the length of development and the depth of the associated problems. Also it is important to foresee the significance of not developing everywhere. It is not just necessary to industrialize the west. It is also important to bring basic security and welfare to the west through clean development and natural preservation. As long as the west keeps some of its original landscape, it offers China rich biodiversity and strategic reserve, in terms of resources and territory. We need to preserve the west against over-development, for the future generations of Chinese.

The author is a columnist with China.org.cn. For more information please visit:

http://www.china.org.cn/opinion/node_7082361.htm