What do Switzerland and China Have in Common?
Did you know the Chinese province of Guizhou in southwest China bears some striking resemblance to Switzerland? I confess I didn't, until I was invited to Guizhou last month to speak at Eco-Forum Global. Since 2009, this annual conference gathers participants from around the world to share knowledge about policies regarding green economic transformation and ecological security. This year I spoke on a finance panel led by the chief economist of Bank of China, Ma Jun, and a panel organized by the Sino-Swiss Dialogue.
Just like Switzerland, Guizhou is landlocked and boasts a mountainous landscape. It is one of two provinces in China that President Xi Jinping declared to be testing grounds for China’s new focus on "eco-civilization" and the "China dream."
Hoping to learn more from Switzerland to build that dream, Chinese officials announced the Guizhou-Switzerland Agreement on Establishing Mountainous Economy and Eco-Civilization at Eco-Forum Global this year. With its rich landscape, including spectacular lakes and waterfalls, Guizhou is believed to be an ideal location to apply the innovative cleantech, eco-tourism and sustainable development strategies that have enabled Switzerland to preserve its stunning natural environment.
The Guizhou-Switzerland agreement builds on a larger bilateral free trade agreement between China and Switzerland that was signed last year and just took effect in July.
My Sino-Swiss Dialogue keynote talk at Eco-Forum Global delved into the similarities between China and Switzerland, where Global Footprint has worked with four ministries to analyze the country’s resource dependence and make Footprint and biocapacity part of the Swiss statistical information data published annually.
Like many countries, both China and Switzerland are ecological debtor countries using more biocapacity than their own ecosystems can provide. They make up the difference through trade with trading partners who are also in ecological deficit.
Switzerland's Ecological Footprint is four times larger than what ecosystems within Switzerland can renew. Its biocapacity deficit per person hasn’t changed over the last half century, and its financial resources have allowed it to easily access resources from abroad. However, because the world as a whole is becoming more constrained, Switzerland's biocapacity deficit will become economically more significant in the future.Switzerland: Stable Biocapacity Deficit
China's Ecological Footprint is two times larger than its ecosystems can renew. Its biocapacity deficit has grown substantially amid the country's rapid development of the past decade.China: Rapid Footprint Growth
On the bright side, however, both Switzerland and China have worked to preserve their natural resources, particularly forests. In Switzerland, forests were under severe pressure of overexploitation at the onset of industrialization in the middle of the 19th century. Soil erosion and avalanches prompted reform in forestry management and Swiss forests now cover 30 percent of the country's territory. China's forests were also under pressure until the Natural Forest Protection Project was launched in 1998. By the end of 2003, the Chinese government had injected about 50 billion Yuan (about 6 billion USD) into the program, putting some 95 million hectares of natural forest in conservation nationwide. The government has recently committed an additional 220 billion Yuan (36 billion USD) to the project and aims to add an additional 7,800 hectares of forest area.
China has been acutely aware of resource constraints for decades, as has Switzerland. Many Swiss still remember World War II when the country only had enough domestic food to feed its population (then half the current size) for seven months per year. This sense of resource fragility has been an important factor spurring Switzerland’s focus on energy, material and water efficiency, high-performance buildings, effective public transportation, land protection, urban containment and forest conservation.
However, the global context within which China is developing today is markedly different to that of Switzerland in the past century. Since World War II, the entire planet has gone into ecological overshoot, with humanity now using one and a half times more from nature every year than the planet can renew in the same timeframe. Today we are living in a far more resource-constrained era, making it more important than ever for all countries to track and manage their natural assets.
With China’s Ecological Footprint continuing to grow, Guizhou Province is clearly a region at a crossroads. On the cusp of rapid development, it has enormous opportunities to seize the moment and build new economic momentum. The question is whether it will set policies that enable it to thrive while at the same time avoiding the pollution and congestion that has plagued other regions in China. Gleaning valuable lessons from Switzerland is certainly one important step. Of course, we also believe Guizhou Province will need data-driven decision-making tools like the Ecological Footprint to succeed as well.