A Question of Origin

Among the many questions surrounding China's economic development and the associated environmental problems, there is rarely any question of responsibility. As the Chinese Communist Party maintains a firm control over all policy measures, it's easy to point the finger and say that they bear all responsibility. However, a couple of recent articles, one from the New York Times and the other from the Wall Street Journal, might lead one to slightly more nuanced conclusions.

The article from the New York Times, describes how Germany, suddenly left without coal to power its industrial juggernaut, sold off the pieces of industry to parties in China. German politicians were able to point at a blue sky and the profit off of the sales and benefit politically, while the factories were set up in China to keep producing the black soot that nearly destroyed the Black Forest.

The article from the Wall Street Journal illustrates Canada's role in the Three Gorges Dam project. In a similar vein, then-Prime Minister Jean Chretien leveraged deals to provide turbines to the project to keep his native province of Quebec from seceding from the confederation.

These stories, if nothing else, should provide anecdotal evidence that policy makers need to consider the ethical implications of international trade. These facilities are still polluting at the same rate, if not more, than they were for their previous owners, and yet they were sold anyway, instead of cleaner alternatives. Are ethical obligations limited to boundaries and citizenship?

If nothing else, these cases provide further evidence that one can make money through immoral business practices. Moral hazard theorists be damned!

In other environmental news from the Middle Kingdom, Beijing recorded its 256th "blue sky day" of the year. Pollution is squarely on the agenda for the next five years, with a new Politburo getting settled into office. Also making news is a website (English, 中文） from the Institute of Public & Environmental Affairs detailing air pollution.