The South Central Chinese mountain regions

A varied, warm, and humid mountain environmentThe region discussed here covers170,000 km2 and nine district-leveladministrative regions in three provincesand one municipality: Fuling, Wanxian,Qianjiang, Yichang, Enshi, Zhangjiajie,Xiangxi, Tongren, and Zhunyi. Geomor-

phologically, the area is divided into fourparts: the East Sichuan hills stretchinginto the west of Chongqing, the moun-tains ranging from the northeast ofSichuan to the west of Hubei, the Yunnanand Guizhou Plateau, and the hills in thewest of Hunan. Mountains—some ofthem prone to erosion (Figure 1) andnatural hazards—cover over 75% of thetotal area. The Yangtze and its numeroustributaries cut through the area, whichfeatures the Three Gorges of the Yangtze,the Lesser Three Gorges of the Daning,the Gorges of the Wujiang, and theGorges 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 (annualaverage 16–18°C) generate a variety of cli-matic zones from temperate to hothumid. Most valleys have somewhat south-ern subtropical climatic features, with anaverage temperature of 18°C, where sub-tropical and tropical fruits such as litchis,bananas, and longans grow. Although pre-cipitation is abundant in the area andrain-induced floods and debris flowsoften occur, the region frequently suffersfrom drought in autumn. This constitutesa great threat to agricultural productivityand the drinking water supply for humansand animals.

The original zonal vegetation in settledareas was subtropical evergreen broad-

300

Economic Conditions and Approaches to Development in MountainRegions in South Central China

Chen Guojie

The poverty-stricken mountain areas in SouthCentral China face many challenges on theroad to sustainable development in the 21stcentury. Great progress has been made inalleviating poverty in the past decade: while15 million people in these areas sufferedfrom extreme poverty in 1989, this numberdecreased to about 6 million by 1996. Cerealproduction during the same period increasedfrom 50 to 397 kg per capita. But to breakaway from poverty and raise the standard ofliving, the region must now enter a new stageof development. It needs to benefit from thetransition taking place from a planned econo-my to a market economy, especially withrespect to new domestic market conditions.

There is also a need to raise awareness ofthe requirements for sustainable develop-ment strategies in mountain areas. This willinvolve industrialization of agriculture,increasing the quality of products in the pri-mary and secondary sectors, developing theservice sector, improving infrastructure fortransport and trade, and letting the marketdetermine resource use rather than vice ver-sa. The following introduction to the regionand its problems is complemented by recom-mendations for enhancement of economicstrategies in the mountain areas shared byChongqing Municipality and the provinces ofHubei, Hunan, and Guizhou and linked by theYangtze and its tributaries.

Mountain Research and Development Vol 20 No 4 Nov 2000: 300–305

FIGURE 1 Yingyang County inChongqing Municipality:cultivation on steep hillscauses erosion. (Photo byauthor)

brought to you by COREView metadata, citation and similar papers at core.ac.uk

provided by Mountain Forum

leaved forest. At present, nearly all the pri-mary vegetation has disappeared, giving wayto secondary forests and agricultural land-scapes. With increasing altitude, the vegeta-tion changes to mixed broad-leaved andconiferous forests, followed by coniferousforests and grassy marshland.

Rich agricultural, mineral,water, and tourist resourcesThe South Central Chinese mountain areahas abundant natural and culturalresources used for tourism, crops, mining,and energy. Historical sites related to theBa, Chu, and Three Kingdom cultures havea good potential for tourism development.The region’s varied geomorphology andsubtropical humid monsoon climate havefavored the development of spectacularnatural landscapes (which have becomeimportant tourist attractions, see Figure 3)as well as rich biodiversity (Table 1) andagrobiodiversity. In the area of the ThreeGorges, for instance, 2021 of nearly 3000plant 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 exploredand partly exploited in the Yangtze basin.The phosphorus reserve is one of the mostplentiful in China, and the world’s largestsalt basin can be found near Wanzhou andFuling. There are rich aluminum reservesnear Zhunyi and Mt. Jinfu. Manganese isso plentiful in the area shared byChongqing Municipality and Hunan andGuizhou Provinces that these mountainsare known as the “Golden Triangle ofManganese.” The only significant Chinesewitherite mine is located near Chengkou.Lead, zinc, rock salt, and mercury are alsomore abundant here than in other partsof China, and so is natural gas.

Water resources are bountiful as well,with a per capita average of 5120 m3 (2.2times the average in China) and a percapita average production of hydroelectricpower more than three times the nationalaverage. The potential for hydropower inthe area is huge (3.823 3 107 kilowatts, ie,10.2 % of the total national potential);nine large and industrial-scale power sta-tions are under construction.

Current economic activities and challengesAlthough recent years have seen rapideconomic progress in this area (Table 2),it is still considered poor and backward,with a low level of development. The pop-ulation in 1995 totaled about 36.5 million.Although this constitutes 3.06% of thetotal population of China, the gross

301

Development

FIGURE 2 Map of the areadiscussed in this article. TheSouth Central Chinesemountains are characterized byvariety and poverty. (Map byAndreas Brodbeck)

Number of Area families Genera Species

Three 182 885 2859Gorges

Enshi 215 ca. 900 ca. 3000Prefecture

TABLE 1Examples of rich biodiversity inthe mountain areas of SouthCentral China.

Gross domestic Per capita product (in gross domestic

Year billions of Yuan) product (in Yuan)

1985 15,066 478.3

1998 121,591 4185.7

TABLE 2Development of total and percapita GDP from 1985 to1998, showing more than aneight-fold increase in 13 years(US$ 1.00 was about 8.2 RMByuan in 2000).

domestic product (GDP) in 1998 was only1.53% of the overall Chinese GDP.

Although the ratio between the pri-mary, secondary and service sectors in1998 was 35.53:37.20:27.27 (an improve-ment on the ratio of 43.20:33.80:23.00 in1992), the area is still typically agricultur-al. Rice, rape, tea, tobacco (Figure 4), andmulberry have become the main agricul-tural products and cattle, goats, chicken,geese, and ducks the main livestock. Sec-ondary industries include cigarette pro-duction, breweries, metallurgy, textiles,chemical and pharmaceutical production,construction materials, mining, and ener-gy production. The service sector consistsmainly of tourism, transportation, recre-ation, and education. Financial services,trade, consulting, and information servic-es are poorly developed.

Increased yields and the developmentof food processing plants as well as anincrease in disaster-free farmland (from0.2 ha per capita in 1989 to 0.34 ha in1996) permitted major progress in thestruggle against poverty. Infrastructure hasalso improved significantly: over 90% oftowns and villages now have access to elec-tricity, telephone services, and roads. Butpoverty has not been eradicated, andmany new demands and problems havearisen in the past 10 years. Raising thestandard of living has become an impor-tant new objective, but it is questionablewhether the path taken in other parts ofChina to reach this goal is the right onefor this mountain region.

Transition from a planned economy to a marketeconomy: Ten years ago, development inthis region was still dominated by theplanned economy and governmental con-trol. The mountain prefectures’ main taskwas to fulfill economic assignmentsdefined at a higher governmental level.Budgets were allocated accordingly, andpoverty alleviation simply meant waitingfor relief from the central government.Today, although governmental power stillplays a significant role in the policymak-ing process, the concept of a market econ-omy is taking root. The market is the mainforce influencing the development of theregional economy, entailing new strate-gies. This constitutes a major challenge totraditional values and backward economicand social structures in mountain areas(Figure 5).

The need for sustainable development strategies:Sustainable development, which has nowbecome a generally acknowledged aim,will be particularly challenging at a timeof economic change. A number of local,specialized, small enterprises are sodependent on local natural resources thatthey are a cause of environmental degra-dation and a source of pollution (Fig-ure 6). As these small enterprises play adominant role in the mountain economy,they need to adapt to the national marketas well as develop more environmentallyfriendly modes of production. Sustainabil-ity must also be integrated as a principlein rethinking how township enterprisescan be transformed. At present, they arefacing severe challenges because their low-quality products cannot meet the chang-ing demand in the domestic market.

Major changes in the domestic market: Thedomestic market has undergone greatchange, shifting from one determined bysellers to one determined by buyers. Inthe mountains, this has posed great diffi-culties for many products, especially tim-ber. In order to adapt, industries nowneed to conduct market analyses whilesimultaneously reassessing the benefits oflocal production processes. New intensi-fied and specialized mass productionplants could make a beneficial contribu-tion to industrialization in mountain

Chen Guojie

Mountain Research and Development Vol 20 No 4 Nov 2000

FIGURE 3 The famous ThreeGorges of the Yangtze River area well-known tourist attraction.(Photo by author)

FIGURE 4 Tobacco is a majorcash crop in Dejiang County,Guizhou Province. (Photo byauthor)

areas, provided they are established with aview to marketing prospects. Products willnot generate economic benefits if they arenot demand-driven commodities.

Specific needs in mountain areas: Food secu-rity was the goal of development in the1980s and 1990s, meaning that cereal pro-duction became the main focus of devel-opment efforts. Today, objectives includeimproving income levels and promotingsocial progress. This implies a shift infocus from agriculture to development ofthe secondary and service sectors. Majorpreparations are needed for further devel-opment of the service sector in the SouthCentral mountain region. Poor traffic andtransport conditions, insufficient energysupply, inadequate financial resources andtechnology, and a shortage of profession-als are the greatest bottlenecks. Ten yearsof development have brought improve-ment but much remains to be done.

New principles and the outlook for developmentThe following recommendations arebased on the brief foregoing analysis ofthe poverty-stricken mountain areas ofSouth Central China.

Opening up to international competitionGlobalization calls for large-scale, special-ized production and highly efficient busi-ness strategies. There is not much point inestablishing self-sufficient economic zonessince the market is now the primary influ-ence on economic development. Enter-prises and products must be competitivein the global economy. Today, the areaunder discussion is no longer an inde-pendent, self-enclosed economic zone. Itmust adapt to the international market byfocusing on key products and developingspecialized, profitable, and environmen-tally sound industries guided by influen-tial industrial groups.

IndustrializationIndustrial development is currently at apreliminary stage. Future goals shouldinclude intensification of agriculture, withlarge-scale agricultural production of cashcrops and livestock; flexibility in the rural

labor force to allow more efficient produc-tion and favorable conditions for asmooth transition from traditional agricul-ture to nonagricultural industries; export-oriented production of cash crops; inte-grating purchase, storage, processing,transport, distribution, finance, and infor-mation in the agricultural system; a com-plete system for processing agriculturalproducts to increase their added value;and cultivation of famous-brand products.

Backbone industries must be definedaccording to new principles: the focusshould be transferred from previousdepartments of industry and trade toindustrial groups and products that areprofitable and competitive. For example,making the food industry a backbone ofthe economy should no longer be a goal.Support should be given to internationallycompetitive enterprises such as the Maotai

303

Development

FIGURE 5 A rural market thatis adapting to the new marketeconomy (Fuling District,Chongqing Municipality). (Photoby author)

FIGURE 6 Polluted river inWanzhou District, ChongqingMunicipality. (Photo by author)

Group and the Xiangquan Group, whosebusinesses involve not only food but alsoother products such as medicine.

Resource allocation according to the marketPeople in undeveloped areas, especiallymountain areas, used to believe that devel-opment strategies could be based on theirrich endowment of natural resources. Itwas assumed that natural resources con-ferred advantages over other areas in thecompetition for economic development.This idea is no longer compatible withcurrent conditions in mountain regions.In a modern economy, resources do notdetermine market share; the market deter-mines the allocation of resources and thusthe direction, scale, and variety of indus-tries in mountain regions.

At present, however, the entire indus-trial structure in the mountains of SouthCentral China is still based on the exploita-tion of resources. Though this situationcannot be changed radically within a shortperiod of time, action is urgently needed.In 1997 and 1998, for example, orangeswere overplanted in relation to their mar-ketability (Figure 7). As a result, superflu-ous production rotted away, causing greatlosses for farmers. Currently, there aregood supplies of beef, lamb, pork, chick-en, goose, duck, manganese, aluminum,phosphorus, tobacco, tea, wine, silk, flax,and other products, but demand for theseproducts is insufficient. If there is no mar-ket, a resource should not be exploited;otherwise, it will be wasted.

The industrial sector should focus onenhanced management of advantageousproducts. The machinery industry shouldbe given priority, with a focus on automo-biles, tractors, motorcycles and motorcycleparts, engines, and inland river ships. Thefood industry, high-performance cementfor building dikes and roads, and decorat-ing and ceramic materials are also impor-tant. Paper slurry could be developed usinglocal raw materials. Industrial developmentmust focus on variety, high quality, andmass production as well as on the market.

Creating and improving competitive famous brandsA further aspect of the market-orientedapproach is to develop famous-brandproducts and enhance their competitive-ness. This strategy has been widely adopt-ed in industry. Famous-brand productscan be developed on the basis of existingproducts that already have a good reputa-tion for quality, such as Maotai (wine), Fu-ling hot pickled mustard tuber, Jiuquanjiu(wine), Zhunyi Duzhong (Chinese herb),Shizhu Huanglian (Chinese medicine),and Fengjie qicheng (oranges).

Famous-brand “green products,” suchas mushrooms, bamboo shoots, beef, lamb,pork, tea, and vegetables, could be devel-oped by taking advantage of mountain envi-ronments that are pollution-free or less pol-luted than other areas. Famous-brand prod-ucts can also be developed through supportfor existing industrial enterprises that haveestablished a reputation for product quality.Examples include Qianjiang’s tobacco,Youyang’s qinggaosu (Chinese herb), FulingTaiji Group’s Chinese herbs, and Xiushan’selectrolytic manganese. In addition,famous-brand biochemical products couldbe developed from plants while otherscould be based on arts and crafts such asbaldachin, jewelry, and bracelets (Figure 8).

Developing commerce and transportAs already mentioned, economic develop-ment in mountain areas has improved inagriculture and industry. Mountain agri-culture is a regular source of vegetables,meat, and cereal for urban areas. Econom-ically developed mountain areas have alsobecome important bases for supplyingminerals, raw materials, and other prod-

304

Chen Guojie

Mountain Research and Development Vol 20 No 4 Nov 2000

FIGURE 7 Orange plantationnear Jishou in the TujiaNationality’s Prefecture inHunan Province. Focusingexclusively on oranges in thearea has led to overproductionand a waste of resources.Market analysis is needed toadapt to new economicconditions. (Photo by author)

FIGURE 8 Local arts and craftscould become the source ofnew income in the touristsector. Production of bambooarticles in Yanhe County,Guizhou Province. (Photo byYang Dingguo)

ucts. Further development will depend onmarket expansion.

The following steps could be taken topromote commerce: combining effortsinvolving commercial companies and localfarmers; establishment of specializedwholesale marketplaces; organization ofcommercial groups specialized in market-ing; cooperative relationships with otherareas; use of famous enterprises to organ-ize the marketing of products; promotionof fairs; establishment of free commercialzones; and establishment of marketplacesfor specialties such as oranges, huanglian,duzhong, huangbo (Chinese traditionalherbal medicines).

Distribution of mountain productscould be promoted through enhancementof various distribution channels; cultiva-tion of and support for entrepreneursengaged in commerce who could organizelarge-scale, integrated transport of com-modities; accelerated construction oftransportation in mountain areas (includ-ing governmental support); better adver-tising and promotion of products toenhance their reputations; and improve-ment in the quality of commercial service.

Additional features of development Several other factors are important to sus-tainable economic development in themountain areas of South Central China.The service sector must be increased from27% of GDP to 30% in 2000 and 50% by2010. Priority should be given to tourismand trade. Advantages for tourism exist interms of resources that could be utilizedwithout upsetting the environmental bal-

ance (Figure 9). Transportation, arts andcrafts, the hotel and restaurant sectors,entertainment, and cultural activities couldbe developed through establishment of vari-ous tourism zones. Further development ofcommerce, trade, banking, consulting, andinsurance would enhance the service sector.

Township enterprises are now encoun-tering heavy domestic and internationalcompetition. They will not survive if theydo not transform themselves to focus oncommerce, trade, tourism, banking, con-sulting, culture, information, and trans-portation, or on local specialties and agri-cultural produce.

Tourism, natural medicines, hydraulicpower, and grass husbandry are likely tobe areas of growth in the 21st century.These sectors are all based on scarcelyexploited renewable resources that can beutilized sustainably and have the potentialto bring great economic benefits to theregional economy.

While mountain regions once aimedto raise income by increasing cerealyields—with minimum social, profession-al, and technical inputs—the current goalis to attain a comparatively high standardof living. This will be much more difficult.In the present case, it will require compre-hensive development of the entire SouthCentral region—not just economic growthbut also social progress and improvementof the environment and development ofevery sector that can compete in thedomestic and international markets.Progress of this nature will constitutesomething revolutionary in the history ofChina’s rural mountain areas.

305

Development

AUTHOR

Chen GuojieChengdu Institute of Mountain Hazardsand Environment, Chinese Academy ofSciences (CAS), Chengdu, PO Box 417,Sichuan 610041, People’s Republic ofChina.rchen@imde.ac.cn

Chen Guojie is a research professor atthe Chengdu Institute of Mountain Haz-ards and Environment, Chinese Academyof Sciences (CAS). He specializes in fluo-rine environmental chemistry, humanecology and health, environmental assess-ment, and regional sustainable develop-ment. He is a member of the AdvisoryBody on Science and Technology and anadvisor to the Committee on Environmen-tal Protection of the Sichuan ProvincialGovernment as well as a member of theExpert Group of the Study Center forRegional Sustainable Development, CAS.He played a key role in official environ-mental impact assessments of the ThreeGorges Dam Project and has receivedawards from the China EnvironmentalSociety and the Green Society (China).

FURTHER READING ( IN CHINESE)

Chen Guojie. 1997. Some thoughts on theindustrial development of Sichuan Province.Territorial Economy (Chengdu) 4:4–6.Chen Guojie. 1998. Strategic thoughtson developing poverty-stricken mountainareas. Science and Technology (Beijing)3:57–61.Chen Guojie. 1998. Ecological rehabilita-tion and development strategies in theperipheral mountain region of WesternSichuan Basin. Resources Science (Bei-jing) 20(4):34–40.Yi Songlin, Xia Yuanshou. 1997. Study ofCounty-Level Economic Development inthe Autonomous Prefecture of WestHunan Province. Changsha: Hunan Peo-ple’s Press.

FIGURE 9 Jinfoshan (the GoldBuddha Mountain) in NanchuanCounty, Chongqing Municipality,is a spectacular touristattraction. (Photo by Xu Yun)