Admittedly, Chinese policymakers are taking the water problem seriously. But water is still isolated from the country's energy and growth policies. China aims to reduce its water intensity by 30 percent during the 12th Five-Year Plan (2011-15) period. It has also set new pollution-reduction targets, particularly for the agriculture sector.
The country must adopt a coordinated approach to water, which will gradually price in the external costs of shale gas or coal. Yet there is no sign of China recognizing that water has to be managed cross-sectorally. Its latest plans do say that "water is the source of life, production and ecology", but it does not have a coordinated policy approach to manage water, energy and economic development holistically, without which it will not be able to fuel its economic growth indefinitely because it will run out of water.
Asit Biswas is distinguished visiting professor at Lee Kuan Yew School of Public Policy, Singapore, and founder of Third World Centre for Water Management. Julian Kirchherr is a graduate student on public policy and management at the London School of Economics (LSE) and National University of Singapore.
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