Chinese cities fail to achieve growth/sustainability balance

Eighty per cent of Chinese cities are failing to achieve a balance between economic growth, resource efficiency and sustainable development, according to a study by Accenture and the Chinese Academy of Sciences.

The joint research, covering 73 cities, also shows that China’s mid-sized cities are in the best position to achieve that balance in the future.

The study, published in a report entitled Creating Prosperous and Livable Chinese Cities, was conducted to help city authorities benchmark their progress in sustainable development in the context of China’s urbanization policy agenda.

It includes the New Resources Economy Index, designed by Accenture, which scores cities’ capacity for future sustainable growth by measuring their level of infrastructure, technology innovation, and investment on environmental protection, as well as their institutional and policy capabilities.

The Index categorizes Chinese cities into four groups. Twenty five ‘Conventional’ cities face the greatest danger, given their underdeveloped but resource-based economies, high emissions, reliance on heavy industry and a tendency to ‘grow first, clean up later.’

Beijing and Tianjin are the two mega cities classified as ‘Wealthy,’ along with cities in the Bohai Rim and Yangtze River Delta regions. These enjoy leading rates of economic growth, but face deteriorating environments, characterized by rising levels of congestion, smog and waste, coupled with shortages of water and other resources.

The ‘Balanced’ group of cities achieves strong economic performance, environmental quality and managed emissions. Smaller cities dominate this group, but are joined by Shanghai, Guangzhou and Shenzhen, three megacities in southern China.

Accenture and CAS regard cities in the ‘Potential’ category as having the greatest chance of becoming champions of the New Resource Economy, thanks to the opportunity for strong growth combined with a lack of existing environmental degradation. They are dominated by medium-sized cities with populations of 1 to 3 million or per capita GDP of between 50,000 and 70,000 RMB yuan (US$7,738 and US$10,833).

Read the full story in the October issue of Ethical Performance.

Picture credit: © Andrea La Corte | Dreamstime.com