Economic Conditions and Approaches to Development in Mountain in South Central Author(s): Chen Guojie Source: Mountain Research and Development, 20(4):300-305. Published By: International Mountain Society DOI: http://dx.doi.org/10.1659/0276-4741(2000)020[0300:ECAATD]2.0.CO;2 URL: http://www.bioone.org/doi/full/10.1659/0276-4741%282000%29020%5B0300%3AECAATD %5D2.0.CO%3B2

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Chen Guojie Economic Conditions and Approaches to Development in Mountain 300 Regions in South

The poverty-stricken mountain areas in South There is also a need to raise awareness of Central China face many challenges on the the requirements for sustainable develop- road to sustainable development in the 21st ment strategies in mountain areas. This will century. Great progress has been made in involve industrialization of agriculture, alleviating poverty in the past decade: while increasing the quality of products in the pri- 15 million people in these areas suffered mary and secondary sectors, developing the from extreme poverty in 1989, this number service sector, improving infrastructure for decreased to about 6 million by 1996. Cereal transport and trade, and letting the market production during the same period increased determine resource use rather than vice ver- from 50 to 397 kg per capita. But to break sa. The following introduction to the away from poverty and raise the standard of and its problems is complemented by recom- living, the region must now enter a new stage mendations for enhancement of economic of development. It needs to benefit from the strategies in the mountain areas shared by transition taking place from a planned econo- Chongqing Municipality and the provinces of my to a market economy, especially with , , and Guizhou and linked by the respect to new domestic market conditions. Yangtze and its tributaries.

phologically, the area is divided into four parts: the East Sichuan hills stretching into the west of Chongqing, the moun- tains ranging from the northeast of Sichuan to the west of Hubei, the Yunnan and Guizhou Plateau, and the hills in the west of Hunan. Mountains—some of them prone to erosion (Figure 1) and natural hazards—cover over 75% of the total area. The Yangtze and its numerous tributaries cut through the area, which features the Three Gorges of the Yangtze, the Lesser Three Gorges of the Daning, the Gorges of the Wujiang, and the Gorges of the Qingjiang (see Figure 2). Abundant rains (with an annual aver- age above 1000 mm and peaks of 1500– 2000 mm on some mountains), wide alti- tudinal and topographical differences, and generally warm temperatures (annual average 16–18°C) generate a variety of cli- matic zones from temperate to hot humid. Most valleys have somewhat south- ern subtropical climatic features, with an ° FIGURE 1 Yingyang County in average temperature of 18 C, where sub- Chongqing Municipality: The South Central tropical and tropical fruits such as litchis, cultivation on steep hills bananas, and longans grow. Although pre- causes erosion. (Photo by Chinese mountain regions author) cipitation is abundant in the area and A varied, warm, and rain-induced floods and debris flows humid mountain environment often occur, the region frequently suffers The region discussed here covers from drought in autumn. This constitutes 170,000 km2 and nine district-level a great threat to agricultural productivity administrative regions in three provinces and the drinking water supply for humans and one municipality: Fuling, Wanxian, and animals. Qianjiang, , Enshi, Zhangjiajie, The original zonal vegetation in settled Xiangxi, Tongren, and Zhunyi. Geomor- areas was subtropical evergreen broad- Development

FIGURE 2 Map of the area discussed in this article. The South Central Chinese mountains are characterized by 301 variety and poverty. (Map by Andreas Brodbeck) leaved forest. At present, nearly all the pri- mary vegetation has disappeared, giving way to secondary forests and agricultural land- scapes. With increasing altitude, the vegeta- tion changes to mixed broad-leaved and coniferous forests, followed by coniferous forests and grassy marshland.

Rich agricultural, mineral, water, and tourist resources The South Central Chinese mountain area has abundant natural and cultural resources used for tourism, crops, mining, and energy. Historical sites related to the Ba, Chu, and Three Kingdom cultures have a good potential for tourism development. The region’s varied geomorphology and subtropical humid monsoon climate have favored the development of spectacular natural landscapes (which have become important tourist attractions, see Figure 3) as well as rich biodiversity (Table 1) and agrobiodiversity. In the area of the Three Gorges, for instance, 2021 of nearly 3000 plant species are cash crops, while in Zhun- yi Prefecture, 784 kinds of crops are grown, of which 655 are grain crops. Other impor- tant cash crops include fiber, starch, oil, sugar, medicinal plants, fruit, and flowers. Sixty-five minerals have been explored and partly exploited in the Yangtze basin. The phosphorus reserve is one of the most plentiful in China, and the world’s largest Current economic activities and challenges salt basin can be found near Wanzhou and Although recent years have seen rapid Fuling. There are rich aluminum reserves economic progress in this area (Table 2), near Zhunyi and Mt. Jinfu. Manganese is it is still considered poor and backward, so plentiful in the area shared by with a low level of development. The pop- Chongqing Municipality and Hunan and ulation in 1995 totaled about 36.5 million. Guizhou Provinces that these mountains Although this constitutes 3.06% of the are known as the “Golden Triangle of total population of China, the gross Manganese.” The only significant Chinese Number of TABLE 1 witherite mine is located near Chengkou. Examples of rich biodiversity in Lead, zinc, rock salt, and mercury are also Area families Genera Species the mountain areas of South more abundant here than in other parts Central China. Three 182 885 2859 of China, and so is natural gas. Gorges Water resources are bountiful as well, with a per capita average of 5120 m3 (2.2 Enshi 215 ca. 900 ca. 3000 times the average in China) and a per Prefecture capita average production of hydroelectric power more than three times the national Gross domestic Per capita TABLE 2 Development of total and per average. The potential for hydropower in product (in gross domestic capita GDP from 1985 to the area is huge (3.823 ϫ 107 kilowatts, ie, Year billions of Yuan) product (in Yuan) 1998, showing more than an 10.2 % of the total national potential); eight-fold increase in 13 years 1985 15,066 478.3 (US$ 1.00 was about 8.2 RMB nine large and industrial-scale power sta- yuan in 2000). tions are under construction. 1998 121,591 4185.7 Chen Guojie

Transition from a planned economy to a market economy: Ten years ago, development in this region was still dominated by the planned economy and governmental con- trol. The mountain prefectures’ main task was to fulfill economic assignments defined at a higher governmental level. Budgets were allocated accordingly, and poverty alleviation simply meant waiting for relief from the central government. Today, although governmental power still plays a significant role in the policymak- ing process, the concept of a market econ- omy is taking root. The market is the main force influencing the development of the regional economy, entailing new strate- gies. This constitutes a major challenge to traditional values and backward economic FIGURE 3 The famous Three Gorges of the Yangtze River are domestic product (GDP) in 1998 was only and social structures in mountain areas a well-known tourist attraction. 1.53% of the overall Chinese GDP. (Figure 5). (Photo by author) Although the ratio between the pri- mary, secondary and service sectors in The need for sustainable development strategies: 1998 was 35.53:37.20:27.27 (an improve- Sustainable development, which has now ment on the ratio of 43.20:33.80:23.00 in become a generally acknowledged aim, 1992), the area is still typically agricultur- will be particularly challenging at a time al. Rice, rape, tea, tobacco (Figure 4), and of economic change. A number of local, mulberry have become the main agricul- specialized, small enterprises are so tural products and cattle, goats, chicken, dependent on local natural resources that geese, and ducks the main livestock. Sec- they are a cause of environmental degra- ondary industries include cigarette pro- dation and a source of pollution (Fig- duction, breweries, metallurgy, textiles, ure 6). As these small enterprises play a chemical and pharmaceutical production, dominant role in the mountain economy, construction materials, mining, and ener- they need to adapt to the national market gy production. The service sector consists as well as develop more environmentally mainly of tourism, transportation, recre- friendly modes of production. Sustainabil- ation, and education. Financial services, ity must also be integrated as a principle trade, consulting, and information servic- in rethinking how township enterprises es are poorly developed. can be transformed. At present, they are Increased yields and the development facing severe challenges because their low- of food processing plants as well as an quality products cannot meet the chang- increase in disaster-free farmland (from ing demand in the domestic market. 0.2 ha per capita in 1989 to 0.34 ha in 1996) permitted major progress in the Major changes in the domestic market: The struggle against poverty. Infrastructure has domestic market has undergone great also improved significantly: over 90% of change, shifting from one determined by towns and villages now have access to elec- sellers to one determined by buyers. In tricity, telephone services, and roads. But the mountains, this has posed great diffi- poverty has not been eradicated, and culties for many products, especially tim- FIGURE 4 Tobacco is a major many new demands and problems have ber. In order to adapt, industries now cash crop in Dejiang County, arisen in the past 10 years. Raising the need to conduct market analyses while Guizhou Province. (Photo by author) standard of living has become an impor- simultaneously reassessing the benefits of tant new objective, but it is questionable local production processes. New intensi- whether the path taken in other parts of fied and specialized mass production China to reach this goal is the right one plants could make a beneficial contribu- for this mountain region. tion to industrialization in mountain

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303 areas, provided they are established with a view to marketing prospects. Products will not generate economic benefits if they are not demand-driven commodities.

Specific needs in mountain areas: Food secu- rity was the goal of development in the 1980s and 1990s, meaning that cereal pro- duction became the main focus of devel- opment efforts. Today, objectives include improving income levels and promoting social progress. This implies a shift in focus from agriculture to development of the secondary and service sectors. Major preparations are needed for further devel- FIGURE 5 A rural market that opment of the service sector in the South labor force to allow more efficient produc- is adapting to the new market Central mountain region. Poor traffic and tion and favorable conditions for a economy (Fuling District, Chongqing Municipality). (Photo transport conditions, insufficient energy smooth transition from traditional agricul- by author) supply, inadequate financial resources and ture to nonagricultural industries; export- technology, and a shortage of profession- oriented production of cash crops; inte- als are the greatest bottlenecks. Ten years grating purchase, storage, processing, of development have brought improve- transport, distribution, finance, and infor- ment but much remains to be done. mation in the agricultural system; a com- plete system for processing agricultural New principles and the products to increase their added value; outlook for development and cultivation of famous-brand products. Backbone industries must be defined The following recommendations are according to new principles: the focus based on the brief foregoing analysis of should be transferred from previous the poverty-stricken mountain areas of departments of industry and trade to South Central China. industrial groups and products that are profitable and competitive. For example, Opening up to international competition making the food industry a backbone of Globalization calls for large-scale, special- the economy should no longer be a goal. ized production and highly efficient busi- Support should be given to internationally FIGURE 6 Polluted river in Wanzhou District, Chongqing ness strategies. There is not much point in competitive enterprises such as the Maotai Municipality. (Photo by author) establishing self-sufficient economic zones since the market is now the primary influ- ence on economic development. Enter- prises and products must be competitive in the global economy. Today, the area under discussion is no longer an inde- pendent, self-enclosed economic zone. It must adapt to the international market by focusing on key products and developing specialized, profitable, and environmen- tally sound industries guided by influen- tial industrial groups.

Industrialization Industrial development is currently at a preliminary stage. Future goals should include intensification of agriculture, with large-scale agricultural production of cash crops and livestock; flexibility in the rural Chen Guojie

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Group and the Xiangquan Group, whose The industrial sector should focus on businesses involve not only food but also enhanced management of advantageous other products such as medicine. products. The machinery industry should be given priority, with a focus on automo- Resource allocation biles, tractors, motorcycles and motorcycle according to the market parts, engines, and inland river ships. The People in undeveloped areas, especially food industry, high-performance cement mountain areas, used to believe that devel- for building dikes and roads, and decorat- opment strategies could be based on their ing and ceramic materials are also impor- rich endowment of natural resources. It tant. Paper slurry could be developed using was assumed that natural resources con- local raw materials. Industrial development ferred advantages over other areas in the must focus on variety, high quality, and competition for economic development. mass production as well as on the market.

FIGURE 7 Orange plantation This idea is no longer compatible with near Jishou in the Tujia current conditions in mountain regions. Creating and improving Nationality’s Prefecture in In a modern economy, resources do not competitive famous brands Hunan Province. Focusing exclusively on oranges in the determine market share; the market deter- A further aspect of the market-oriented area has led to overproduction mines the allocation of resources and thus approach is to develop famous-brand and a waste of resources. Market analysis is needed to the direction, scale, and variety of indus- products and enhance their competitive- adapt to new economic tries in mountain regions. ness. This strategy has been widely adopt- conditions. (Photo by author) At present, however, the entire indus- ed in industry. Famous-brand products trial structure in the mountains of South can be developed on the basis of existing Central China is still based on the exploita- products that already have a good reputa- tion of resources. Though this situation tion for quality, such as Maotai (wine), Fu- cannot be changed radically within a short ling hot pickled mustard tuber, Jiuquanjiu period of time, action is urgently needed. (wine), Zhunyi Duzhong (Chinese herb), In 1997 and 1998, for example, oranges Shizhu Huanglian (Chinese medicine), were overplanted in relation to their mar- and Fengjie qicheng (oranges). ketability (Figure 7). As a result, superflu- Famous-brand “green products,” such ous production rotted away, causing great as mushrooms, bamboo shoots, beef, lamb, losses for farmers. Currently, there are pork, tea, and vegetables, could be devel- good supplies of beef, lamb, pork, chick- oped by taking advantage of mountain envi- en, goose, duck, manganese, aluminum, ronments that are pollution-free or less pol- FIGURE 8 Local arts and crafts phosphorus, tobacco, tea, wine, silk, flax, luted than other areas. Famous-brand prod- could become the source of and other products, but demand for these ucts can also be developed through support new income in the tourist sector. Production of bamboo products is insufficient. If there is no mar- for existing industrial enterprises that have articles in Yanhe County, ket, a resource should not be exploited; established a reputation for product quality. Guizhou Province. (Photo by Yang Dingguo) otherwise, it will be wasted. Examples include Qianjiang’s tobacco, Youyang’s qinggaosu (Chinese herb), Fuling Taiji Group’s Chinese herbs, and Xiushan’s electrolytic manganese. In addition, famous-brand biochemical products could be developed from plants while others could be based on arts and crafts such as baldachin, jewelry, and bracelets (Figure 8).

Developing commerce and transport As already mentioned, economic develop- ment in mountain areas has improved in agriculture and industry. Mountain agri- culture is a regular source of vegetables, meat, and cereal for urban areas. Econom- ically developed mountain areas have also become important bases for supplying minerals, raw materials, and other prod-

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FIGURE 9 Jinfoshan (the Gold Buddha Mountain) in Nanchuan County, Chongqing Municipality, is a spectacular tourist attraction. (Photo by Xu Yun) ucts. Further development will depend on ance (Figure 9). Transportation, arts and market expansion. crafts, the hotel and restaurant sectors, The following steps could be taken to entertainment, and cultural activities could AUTHOR promote commerce: combining efforts be developed through establishment of vari- involving commercial companies and local ous tourism zones. Further development of Chen Guojie Chengdu Institute of Mountain Hazards farmers; establishment of specialized commerce, trade, banking, consulting, and and Environment, Chinese Academy of wholesale marketplaces; organization of insurance would enhance the service sector. Sciences (CAS), Chengdu, PO Box 417, commercial groups specialized in market- Township enterprises are now encoun- Sichuan 610041, People’s Republic of China. ing; cooperative relationships with other tering heavy domestic and international [email protected] areas; use of famous enterprises to organ- competition. They will not survive if they Chen Guojie is a research professor at ize the marketing of products; promotion do not transform themselves to focus on the Chengdu Institute of Mountain Haz- ards and Environment, Chinese Academy of fairs; establishment of free commercial commerce, trade, tourism, banking, con- of Sciences (CAS). He specializes in fluo- zones; and establishment of marketplaces sulting, culture, information, and trans- rine environmental chemistry, human for specialties such as oranges, huanglian, portation, or on local specialties and agri- ecology and health, environmental assess- duzhong, huangbo (Chinese traditional cultural produce. ment, and regional sustainable develop- ment. He is a member of the Advisory herbal medicines). Tourism, natural medicines, hydraulic Body on Science and Technology and an Distribution of mountain products power, and grass husbandry are likely to advisor to the Committee on Environmen- could be promoted through enhancement be areas of growth in the 21st century. tal Protection of the Sichuan Provincial Government as well as a member of the of various distribution channels; cultiva- These sectors are all based on scarcely Expert Group of the Study Center for tion of and support for entrepreneurs exploited renewable resources that can be Regional Sustainable Development, CAS. engaged in commerce who could organize utilized sustainably and have the potential He played a key role in official environ- mental impact assessments of the Three large-scale, integrated transport of com- to bring great economic benefits to the Gorges Dam Project and has received modities; accelerated construction of regional economy. awards from the China Environmental transportation in mountain areas (includ- While mountain regions once aimed Society and the Green Society (China). ing governmental support); better adver- to raise income by increasing cereal FURTHER READING (IN CHINESE) tising and promotion of products to yields—with minimum social, profession- enhance their reputations; and improve- al, and technical inputs—the current goal Chen Guojie. 1997. Some thoughts on the ment in the quality of commercial service. is to attain a comparatively high standard industrial development of Sichuan Province. Territorial Economy (Chengdu) 4:4–6. of living. This will be much more difficult. Chen Guojie. 1998. Strategic thoughts Additional features of development In the present case, it will require compre- on developing poverty-stricken mountain Several other factors are important to sus- hensive development of the entire South areas. Science and Technology (Beijing) 3:57–61. tainable economic development in the Central region—not just economic growth Chen Guojie. 1998. Ecological rehabilita- mountain areas of South Central China. but also social progress and improvement tion and development strategies in the The service sector must be increased from of the environment and development of peripheral mountain region of Western Sichuan Basin. Resources Science (Bei- 27% of GDP to 30% in 2000 and 50% by every sector that can compete in the jing) 20(4):34–40. 2010. Priority should be given to tourism domestic and international markets. Yi Songlin, Xia Yuanshou. 1997. Study of and trade. Advantages for tourism exist in Progress of this nature will constitute County-Level Economic Development in the Autonomous Prefecture of West terms of resources that could be utilized something revolutionary in the history of Hunan Province. : Hunan Peo- without upsetting the environmental bal- China’s rural mountain areas. ple’s Press.