The Chinese connection
Launched in 1958, town and village industrial enterprises (TVIEs) play an important role in Chinese economy and in the development of rural areas. The number of TVIEs increased from 4.93 million in 1985 to 6.62 million in 1998 and number of employees increased from 41.37 million to 73.34 million. The per capita income in rural China increased by nearly four times between 1980 and 1995. In 1994, TVIEs accounted for 42 per cent of the national industrial output and 55.4 per cent of rural GDP.
But their contribution to pollution is also very high. According to a conservative estimate, TVIEs were discharging about half of the total industrial wastewater monitored, or more than 10 billion tonnes in 2000. Taking note of their pollution, the Chinese government followed a policy of closure of very small and inefficient TVIEs.
Earlier, 'fifteen smalls', that is 15 categories of smaller industry among the TVIEs (for example pulp and paper units with an annual production of less than 5,000 tonnes) were identified to be shut down. However, this led to a massive surge in production, where all enterprises tried to increase their production above the ceiling to avoid closure. The rapid, unmonitored production that followed further increased the pollution. The reluctance of local officials to close productive TVIEs contributing to the local economy proved a major barrier in curbing TVIE pollution.
But this didn't stop the Chinese from acting tough. At a recent international conference, a Chinese official said that more than 200,000 TVIEs had been shut down. "We simply don't know how else to deal with them," the exasperated official observed. Now China is investing in clean technologies in a big way.
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