7-5 Research for Sustainable Development of the Area along the Euro-Asian Rail Link in China Project Scope and Relationship to China's Agenda 21 This project seeks to utilize opportunities provided by the new railway link between Asia and Europe to conduct studies and planning research for optimally integrating economic and environmental dimensions of development in a sustainable basis in four Chinese target areas. The project furthers several programme areas of China's Agenda 21: Human Resources Development and Capacity Building (6C), Sustainable Development Information Systems (6E), Eradication of Poverty (8A), Improving the Industrial Structure and Distribution (12A), Promoting Transportation (12E), Protection and Utilization of Water Resources (14C). 1. Background Asia and Europe are adjacent continents with a total land area of approximately 50.71 million square kilometres. Seventy five percent of the world's population lives in these two continents. For a long time, friendly cooperation has marked the relationship between the two continents. Owing to their geographical location, the two continents are interrelated in the realms of economy, science and technology. They share common goals and wish to promote inter-regional cooperation. With the rapid regionalization and globalization of the world's economy, many governments and societies pay close attention to the international dimensions of development. After 1990, when the railway between Xinjiang (China) and Alamotu (Kazakhstan) was completed, a new Euro-Asian Continental Bridge from China, to Kazakhstan, Russia, Belarus, Poland, Germany and Holland was established. Stretching between the Pacific and Atlantic oceans, it connects the Pacific Economic Rim in the east with the European Common Market in the west, and places Mid Asia, West Asia, South Asia under its canopy. In China, the new Continental Bridge runs across Jiangsu, Henan, Shaanxi, Gansu, Qinghai Provinces, and Xinjiang autonomous region. Except for the coastal zone, most of the area is underdeveloped. Poverty is especially serious in the mid-west of China, due to the fragile environment and undeveloped transportation and communication infrastructure. Part of the area is on the verge of joining the vicious cycle of impoverishment and environmental degradation. Since 1990, China has carried out a number of related research and planning projects. Systematic investigation of the environment and economy along the rail link has been conducted by the State Planning Commission, the State Science and Technology Commission and the Chinese Academy of Sciences. Considering the natural attributes and environmental conditions, the area is divided into three zones: The desert zone from Xinjiang to Lanzhou. The loess plateau from Lanzhou to Zhengzhou. The Huanghuaihai plain from Zhengzhou to Lianyungang. In the first zone desertification is the main problem, in the second zone soil erosion is serious, and in the third zone environmental pollution predominates. If ranked from higher to lower fragility, the order is the desert zone, the loess plateau and the Huanghuai plain. A comprehensive remote-sensing investigation of an area 4131 km long and two hundred km wide in China was entrusted by the State Planning Commission of China to the concerned remote-sensing institutions. The preliminary assessment of resources and the environment will be finished at the end of 1994. Major plans for city and town development in the Longhai-Lanxing area were finished and submitted to the central government of China in December of 1993 by the State Planning Commission of China, the Ministry of Construction and the Ministry of Civil Administration. As a result of discussions between the State Planning Commission, the State Science and Technology Commission, the Bureau of Foreign Experts, seven provinces and autonomous regions, and the concerned ministries under the State Council. the Society of the Continental Bridge was founded in 1993 with fourteen cities along the rail line as its principal members. Research conducted in anticipation of the new continental bridge has drawn attention from many countries, and much attention has been paid to the railway and rail-related facilities. However, little financial support has been given to strategic planning for sustainable development and elimination of poverty and environmental degradation. Economic development of the area along the bridge is only at its early stages. Although some projects, such as the construction of the Lanxin double railway, have been implemented, the application of general guidelines for economic development are far from satisfactory. The environmental impacts resulting from economic development are not understood. Overall strategies, plans and effective measures for sustainable development have not been worked out. 2. Objectives Long-term Objectives The general objective of this project is to utilize the new railway link between Asia and Europe - the so-called continental bridge - as a basis for conducting strategic studies and planning projects which will optimally integrate international economic and environmental dimension of development in a sustainable basis in four target areas: Lianyungang-Xuzhou, Zhenzhou, Xi'an and Xinjiang. Immediate Objectives Carry out strategic studies on the new transportation opportunities for the four Chinese project areas. Establish a geographic information system and a database for social and economic development in the four areas. Formulate a plan for international cooperation in the field of sustainable development, and other specific plans, in the four areas. Conduct research and generate specific plans for the Lianyungang--Xuzhou heavy industry belt, Zhenzhou international trade zone, Xi'an high-tech industry zone, and Xinjiang agriculture and food processing base. Formulate an urban development plan for Lianyungang city. 3. Activities 3.1 Plan for the area along the new Euro-Asian Continental Bridge in the context of environmentally, socially and economically sustainable development. Plan for the Exploitation of water resources in semi-arid and arid zones. Research export-oriented agriculture and food industry in Xinjiang autonomous region. Study the exploitation and deep processing of non-ferrous metals. Analyze the energy resource bases (coal and petroleum in particular) and assess their impact on the local development and environment. Plan for new technology in energy resource development and environmental protection. Identify applied technology for cleaner production in petro-chemical and coal-chemical industry. Study the feasibility of establishing an international telecommunication network. Conduct a feasibility study of transcontinental rail management. Study the application of ecological engineering to improving the environmental quality. Plan for the generation of laws, regulations and protective arrangements regarding intellectual property rights applicable to both the Asian and European countries. Collect data concerning society, economy, natural resources, energy resources and environment. Conduct a comprehensive analysis and modelling of economic and environmental development. Based on the thorough research of the endowments, information and financial flows, the entire area will be sub-divided according to its economic functions. The duration of this activity will be 3 years. 3.2 Establish an information system for sustainable development of the Chinese area along the continental bridge. Based on analysis of the available data, a resource database, an environment database and a geographic information system will be established to provide a decision support system for regional development. An information network with a vast amount of information and broad applicability for sustainable development will be established to provide updated information for the sustainable development of relevant sectors and organizations. This will facilitate exchanges of information with related countries and international organizations. The duration of this activity will be 3 years. 3.3 Additional major research projects. Studies of water resources utilization. In most of the area along the rail link, water is a scarce resource. It is necessary to investigate the distribution of water resources and seek new approaches to water usage, as well as to develop techniques in and water-saving industrial and agricultural development. Studies of reversing desertification. In the desert area in the western part of China along the new rail link, there are abundant solar, heat and mineral resources, and there is a potential for exploiting water resources. Therefore, industrial technology available for exploiting desert resources along with reducing and preventing desertification have to be created and disseminated. A desert and desertification information system for the area will be established. Complementary schemes and studies of conflict mediation for coordinating activities in the fields of environmental management, economic production, trade, science and technology, both at the national and the international level will be considered. Studies of transnational construction and management of electric wire nets, transportation, communication facilities and other infrastructure along the rail link will be conducted. The duration of this activity will be 3 years. 3.4 Planning schemes for the four Chinese project areas along the rail link must be developed. Planning will be completed for the Lianyungang-Xuzhou heavy industry belt, the Zhengzhou international trade zone, the Xi'an high-tech industry zone, the Xinjiang agricultural products and food industry, Hexi (Gansu) Corridor grain, oil and vegetable production, and for spatial distribution of energy resource exploitation. Strategic planning for the port city Lianyungang, at the eastern end of the bridge, and its related areas, for transforming the present harbour into a large, international harbour will be finished by 1995. The generation of a development plan for the area from Wulumuqi westward to Ala mountain pass and its neighbouring areas will be finished by 1998. The determination of strategic objectives and tasks for sustainable development and complementary schemes among nations along the bridge will be finished by 1998. Establishing a training centre for management of the new Asian-European rail link under the auspices of the State Science and Technology Commission and the Chinese Academy of Sciences. This will be completed by 1996. The duration of this activity will be 3 years. The agencies will be the Local Governments of the provinces, autonomous regions and municipalities along the rail link under the leadership of the State Science and Technology Commission, the State Planning Commission, China's Foreign Experts Bureau and the Chinese Academy of Sciences. 4. Inputs The budget of this project will be US $90.00 million. Budget(in million US dollars) Activity Chinese Inputs External Input GrantLoan Total 3.1 0.500 0.8000.200 1.500 3.2 °° 0.4000.600 1.000 3.3 8.000 2.00010.000 20.000 3.4 23.500 4.80039.200 67.500 Total 32.000 8.00050.000 90.000 Note: Loans will be repaid by the Lianyungang, Xuzhou, Zhenzhou, Xi'an, Lanzhou and Wulumuqi municipalities. 5. Benefits Strategic studies and overall planning will provide a good foundation for environmentally sound and sustainable international development of the Chinese areas along the rail link. Completion of the studies and planning for the establishment of the five experimental bases for sustainable development will accelerate economic development and improve environmental quality and people's living standards. After completion of the research, construction projects will ensue to make Lianyungang City an international harbour, an environmentally sound tourist centre, an international commerce and trade centre, and a transportation and communication hub linking Central Asia with the Pacific countries. Wulumuqi City will become an international economic zone with functions focusing on international tourism, international finance, high-tech industry development, export-oriented product processing and free trade. 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