China Goes Thirsty

The May 21st issue of The Economist features a sobering article on page 46 regarding the dire problem China is facing in regards to water.

Never blessed with huge reserves of water to begin with, China's problems are becoming more and more outfront as the country's economy continues to grow at breakneck speed. While that is good for the country, it is bad for those in the country who yearn for things like drinking water.

China posseses less than a third of water, per capita, than the world average. Part of the problem is supply but the other is market issues. Up until 1985 water was free to the masses and today it is sold at well under market rate. The voracious thirst in the cities has left the countryside in the dust (1 out of 3 lack sufficient drinking water). So far China has paid only lip service to this problem. It is the elephant in the pagoda that is not being discussed.

But it better be discussed. Lack of water leads to big problems. It's not like there is a burgeoning global water market (like oil) that the Chinese can tap into to. Action is needed immediately.

Hawk's View: China is a country blessed with natural entrepreneurs who have shown they can do anything. Now it is time to put that ingenuity to good use and fast. China has things countries want, so they have bargaining chips to improve their water issues. However, if they don't look for a huge problem to arise. First from the countryside acting up toward the urban center's and then the country as a whole taking drastic measures to give itself a drink.