Sun Xiaoyu

Building a resource-efficient society and realizing a sustainable development have become the goal all countries are trying to achieve as the world economy reaches a certain stage. In consideration of the enormous driving role of resources in the process of economic development and the non-renewable feature of some resources, all countries would have to, based on their respective national conditions, improve the utilization efficiency of resources and reduce the waste of resources so as to realize the goal of sustainable development.

Along with the progress of China’s industrialization, urbanization and modernization, the supply-demand conflict in terms of resources is growing, and the pressure on the environment is growing. The issue of building a resource-efficient society in China is, compared with other countries, more complicated, and the task is more arduous. Building a resource-efficient society and developing a circular economy have become a long-term strategy and principle of the Chinese government. We should, based on the scenario of China’s economic development and specific national conditions, absorb and borrow the advanced experiences of foreign countries, and blaze a new resource-efficient development road that best suits China’s conditions with Chinese characteristics.

In the process of constructing a comprehensive well-off society and achieving the goal of modernization, the constraint of resources will be a grave challenge that China must face in the long run. The only way out will be to establish a scientific concept of development, to transform the mode of economic growth, to take a new road of industrialization, and to construct a resource-efficient society. We should know the major problems existing now, formulate clear-cut strategies, policies and development goals, take practical and effective measures, give priority to solving the critical problems related to the system and mechanism, and try to achieve substantial results. Only when all social sectors work concertedly and take action immediately could the building of a resource-efficient society mean more than a call. Only then could the growing constraint of resources shortage in China be alleviated, could a long-term mechanism in promoting conservation of resources be established, and could China’s driving power for sustainable growth be increased.

The fundamental root for the extensive growth mode of China’s economy, low efficiency in resources utilization and serious environmental pollution is the imperfect economic structure, and the crucial cause is that the relationship among the government, enterprises and the market is not properly handled. In the course of building a resource-efficient society, how should the roles of enterprises, government and the market be defined? In what way should they play their respective roles? How should their inter-relationship be handled? These questions must be answered and clearly defined. On the issue of building a resource-efficient society, I believe, "the government plays the key role, enterprises are the main players, and the market is the foundation, and the common participation by all social sectors is the guarantee."

I. Government Plays the Key Role in Building a Resource-Efficient Society

Reducing waste of resources, protecting the environment and achieving a sustainable development are issues with a direct bearing on the country’s future and the long-term interests of the public. They fall into the category of public services that the government should provide, and the government should inevitably be accountable for that. At present, many problems related to resources in economic development all have a direct connection with the absence of a government activity in the issues. To build a resource-efficient society, priority should be given to addressing the problem of the absence of government action.

First, it is necessary to clearly define the role of resources conservation in the country’s long-term development strategy, and to make the resources conservation the basic national policy. The conservation of resources should become part of the long-term national policy and should be implemented in the entire process of the national economic development. Resources conservation should always be emphasized, not to stress resources conservation when the constraint of resources shortage is serious, and to neglect it when the constraint of resources shortage is eased. Resources conservation should be an issue that both the central and local governments must pay high attention to, not an issue that the central government pays high attention to but the local governments pay little attention to. Resources conservation should be a strategy implemented nationwide, not a strategy that is implemented in regions where resources are scarce and is neglected in regions where resources are relatively rich. The governments at all levels should incorporate resources conservation into their social and economic development plans, should embody their concept and awareness of resource conservation in their specific actions and the implementation of the strategy, and should take measures and actions that could bear substantial results.

Second, the government should make systematic design and arrangements of resources conservation in terms of law, standards, policy and government controls, should establish a legal and policy framework that is consistent with the goal of building a resources-efficient society, and should give priority to the applicability and clear policy orientation in the course of implementation. The government should know and solve the major problems existing now and aim at establishing a long-term mechanism for promoting resources conservation; have compulsory standards and pay attention to establishing an effective incentive mechanism; and provide incentives for resources conservation behaviors and punish behaviors of resources waste. The government should, in particular, establish an economic reward and penalty system consistent with market economy principles with the tools of taxation and price control, so as to reasonably guide the investment behaviors of producers and consumption behaviors of the public, and to guide them towards the orientation of resources conservation and a circular economy. In the course of formulating and implementing relevant policies, the governments should try to avoid the phenomenon of stressing principles of the policy, but neglecting the applicability of the policies, stressing the formulation of the policies, but neglecting policy implementation.

Third, the government should take the lead in conserving resources. The government is the advocate for resources conservation, and more important, should also serve as an example of resources conservation. Governments at various levels should have a strong awareness for resources conservation, and should vigorously encourage and advocate behaviors of energy conservation and resources conservation. Governments could make governmental purchases of energy-conserving and resource-conserving products and services, encourage the innovative awareness of resource conservation and improve their own efficiency in resources utilization.

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*This is the speech made by the author at the international seminar entitled "China Development Forum 2005: Building a Resource-Efficient Society" which was held from June 24-26, 2005 in Beijing and jointly sponsored by the National Development and Reform Commission of the State Council and the Development Research Center of the State Council and organized by China Development Research Foundation.