SOCIAL AND ECONOMIC DEVELOPMENT REPORT

OF YUNNAN PROVINCE

Written by Gan Kaipeng and Xu Jieming

Translated by WangYunshang and Xu Jieming

THE ADVANTAGE OF GEOGRAPHICAL POSITION

OF YUNNAN PROVINCE

Generally, the basic features of its geography and population in Yunnan

Province could be summarized as the following words of ‘frontier, mountainous and

multi-nationality’.

The area of Yunnan Province covers 394,000sq.km with 94% of the

mountainous. From the perspective of its geo-position in China, the east of Yunnan is

connecting with the provinces of Guizhou and Guangxi, the north part is connecting

with Sichuan Province, and the northwest part is connecting with Tibet Autonomous

Prefecture (Region). And from the perspective of its eco-polit-geographic location in

Asia, the west part of Yunnan Province is connecting with Myanmar, and the south

part is connecting with Lao and Vietnam.

The boundary lines between Yunnan Province and these countries are 4060 km,

which consists of the 1/5 of the whole frontier line on the land of China. At present,

there are more than 20 cross-border highways which connecting Yunnan and its

neighboring countries, Myanmar, Lao and Vietnam.

1

Picture 1: The On-building Express-highway from Kunming to Bangkok

From the perspective of its natural geographic location, Yunnan still has its

advantage. Because of being located to the north part of the Peninsula of Southeast

Asia, the subtropical area, as well as connecting with Tibet Plateau, the highest

elevation area of the world, Yunnan is influenced by the monsoons from the

Southeast Asia, and also affected by the high-frigid climate from Tibet Plateau. So,

the natural geography position made Yunnan diversified physical geographies,

species and climates. It has very rich natural resources, and on average, the per capita

occupancy volume of resources of Yunnanese is 2 times of that in other parts of

China. The climate types in Yunnan are vertically distributed, including various

kinds which arranging from that of Hainan Island where is the hottest area in China

to the one of Heilongjiang where is the most cold area in China. The amount of

species of animals and plants in Yunnan cover 1/2 of that of China. Because of its

multi-geomorphology, multi-climate, multi-species of animal and plant, and

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multi-nationality cultures, Yunnan nearly has the largest tourist resources in China.

There are various kinds of tourist resources except the oceanic ones.

The total water resource reserve is 10 40.0 million kilowatts with more than 90

million kilowatts possible be exploited. Its reserve of mineral ranks the third in

Southwest China, and the lead and zinc reserves rank the first in China.

There are 16 prefectures (districts) or municipalities, and 129 counties from the

perspective of the administrative divisions of Yunnan Province. Among them, there

are 8 prefectures and 29 counties belong to the ethnic minority autonomy

administratively, and 25 counties located in the bordering areas between China and

Lao, Vietnam and Myanmar. There are 5 administrative levels in Yunnan Province,

just like all the other areas in China. They are the provincial level, municipal

/prefectural level, county/district level, township level and village level. There are

25 minority nationalities of whose each population exceeding 5000. The total

population of minority nationalities reaches 14 million, occupying 34% of Yunnan

Provincial population. And the resident areas of minority nationalities reach 70% of

Yunnan area.

Among the minority nationalities, Bai, Dai, Hani, Lisu, Wa, Lahu, Nahsi,

Jingpo, Blang, Achang, Nu, Deang, Jino, Pumi, and Dulong are the 15 ones whose

populations only resided in Yunnan Province. In addition, there are 16 nationalities

whose populations inhabited in the across-border areas. They all have their own

distinctive evolution histories, unique customs and life styles. All of these have

formed the plentiful, diversified and fantastical cultures of Yunnan Province.

At the same time, Yunnan is an overlapping point for mixing Chinese culture

and the cultures of Southeast and South Asia, including Indian culture. Yunnan is

also one of the provinces whose populations speaking multi-languages and writing

multi-characters. Among the minority nationalities in Yunnan, except Hui (Islam),

Manchu, and Shui who have already mainly spoke Han (Chinese) language and

written Han (Chinese) characters, the other 22 ones are still mainly using their own

languages and characters as well as Han’s in part also.

Since ancient times, Yunnan has been the important overland passage between

3

China and the Southeast as well as South Asia. That means it was a pivotal position

of the Southwest Skill Road from Asia to Europe. Except for its landed borders with

Lao, Vietnam and Myanmar of ASEAN, Yunnan is linked to Thailand and

Kampuchea by Meigong (Mekongk) River in Southeast Peninsula and Lancang

River in China. At the same time, Yunnan is near to South Asian countries, such as

India and Bangladesh.

Picture 2: The Lancang-Meigong River Basins

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So, in fact, it is located in the junction point of three large world markets: Chinese, ASEAN’s

and the Sub-continent of South Asia. It is also located between the two biggest Oceans, the

Pacific Ocean and the Indian Ocean. Due to its particular geographical position, Yunnan has

been vital region for China’s participating in the Sub-regional Cooperation along

Lancang-Meigong River, and vital for China to open its door towards the Southeast Asia and to

establish China-ASEAN Free Trade Region.

5

Picture 3: The Pan-Asia Railway and the 3 Circles

From the late of 1990s, Yunnan is becoming one of the 9 provinces of China

that are actively building Pan-Pearl River Delta Cooperation together.

Because Yunnan takes an active attitude to multi-lateral coordination, it has

built its new and distinctive pattern for multi-level and external-oriented cooperation

strategy. It is to develop itself simultaneously as a part of the Pan-Pearl River Delta

Co-developmental Area domestically and as a part of the China-ASEAN Free Trade

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Region internationally.

Picture 4: The Pan-Pearl River Delta Co-development Area

The external-oriented regional cooperation of Yunnan is mainly divided into 2

parts as the following: internally, it participates in the regional cooperation of

Pan-Pearl River Delta; externally, it mainly participates in the Sub-regional

Cooperation of Lancang –Meigong Basins. These two regional co-operations both

form the important part of China-ASEAN Free Trade Area.

Because of been located in the extreme or say the fountainhead of the Pan-Pearl

River Delta and the northeast extreme of Lancang-Meigong River Sub-regional

Development Area, Yunnan is in an important position of ‘linking the East Asia and

connecting the South one’ with its important passageways for building

China-ASEAN Free Trade Area and multi-level cooperation internally and

externally. It has very special and strategic functions and excellent geo- advantages

in the developments of China and Southeast Asia both.

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Picture 5: China and the Countries of ASEAN

Picture 6： The Space of Yunnan External-oriented Development and Relevant Co-operation Cycles

A = Economic Development Cycle of Yunnan, Guizhou and Guangxi Provinces

B = The Eco－torism Region of ‘Large-Xianggelila’ which cycles Yunnan, Sichuan and Tibet

C = The Sub-region Cooperation of ‘the Golden Tetragon’ which cycles Yunnan of China, Myanmar,

Laos and Thailand

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D＝ The Regional Cooperation of ‘Pan－Pearl River Delta’

E＝ The Southwest China Economic Coordination which covers 7-lateral of 6

provinces/autonomous-prefectures/autonomous municipality;

F = Sub-regional Cooperation along the Lancang River and Meigong River

G = Bangladesh-China-India Regional Cooperation

H = China－SASEAN Free Trade Region

RECENT ECONOMIC AND SOCIAL DEVELOPMENTS

In general eco-social strategy, Yunnan always focuses on the ‘Three Targets’,

namely “building it into a distinctive province in China which with a powerful green

economy, rich ethnic-cultures, and a great of international land passageways”. In

addition, it is striding forwards following the 4 specific strategic measures, namely

“to pay first attention to its sustainable development; to blooming its society and

economy by educational and scientific developments; to speed its urbanization; and

to enhance its omni-oriented open-door policy”.

For its economy, the 5 pillar industries, tobacco and cigarette; bio-resources

exploitation; tour industry; electric power generation; and mining industry, have

been fostered in order to push Yunnan economic and social developments forwards

and up to a new stage.

Since the Central Governmental policy on “Exploiting the West China Greatly”

has been implemented in the middle of 1990s, the Yunnan has achieved its social

and economic developments, especially during the last 5 years. Its achievements are

as the followings:

1. Economic aggregation continuously increases, and integrated economic strength

obviously enhances

1) The total value of production in the province is keeping very fast growth. The

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GDP increased from 207.471 billion Yuan in 2001 to 347.234 billion Yuan in

2005 (see Table 1). The overall economy shows a tendency of increasing,

although occasionally it is unsteady. The rate of GDP increase was 6.5% in 2001,

and reached to 9.0% in 2005. The per capita GDP increased from 4866 Yuan in

2001 to 7833 Yuan in 2005.

Table 1: GDP/ Growth Rate/Value Added of Yunnan 2001-2005 (unit: 100 million)

6.5 8.2 8.5 11.5 9

2074.71 2233.32 2465.1 2959.48 3472.34

119.62 157.61 232.97494.19 546.52

1

10

100

1000

10000

growth rateGDPvalue added

growth rate 6.5 8.2 8.5 11.5 9

GDP 2074.71 2233.32 2465.1 2959.48 3472.34

value added 119.62 157.61 232.97 494.19 546.52

2001 2002 2003 2004 2005

2) Overall industrial structure has been further adjusted and optimized. The

proportion of value-added of the first (agriculture), second (manufacture) and

third (service) industries to GDP separately was 20.4: 43.4: 36.2 in 2001, and

changed into 18.4: 41.3: 40.3 in 2005. The adjustment tendency was that the

proportion of value-added of first industry to GDP reduced to some extent year

by year, the same as that of the second industry, but that of the third industry

obviously increased.

2. Manufacture (industry) increases fast, agriculture develops steadily, and

communications/ transportation enhances greatly

1) Industrial production is constantly developing, so its pillar position in the

development of Yunnan economy is being obviously strengthened. The industrial

value-added of was 120,007 million Yuan in 2005, with increasing over 7.7%

than 2004. Among them, the value-added from large-scale industrial sectors is

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101,807 million Yuan, increasing by 8.4%. In these large-scale industries, the

value added from light industry was 53,491 million Yuan, increasing by 5.8%,

and the value-added from heavy industry was 48,316 million Yuan, increasing by

11.7% when compared with that of the last year. The outputs of the products in

different industrial sectors have increased to different extents (Table 2).

Table 2: Outputs of Yunnan’s Main Industrial and Agricultural Products of 2005 (unit: 10 thousand Ton)

Products

Products

Main agricultural

products

Growth rate

compared with the

ones of 2004 2005

（%） Main industrial products

2005

Growth rate

compared with the

ones of 2004

（%）

Grain 1514.93 0.4 refined tea 6.04 59.4

Fresh cut flowers 36.0 7.1 Raw coal 6462.14 21.5

Fruits 136.6 18.3 electric energy production 624.2 14.8

Tea 11.6 21.9 Raw steel 513.41 47.0

Rubber 24.0 9.7 Steel product 486.93 38.9

Meats 300.04 8.0 Ten non-ferrous metals 147.44 13.9

Milk 30.9 15.1 Cement 2832.62 22.5

2) The agricultural production develops steadily, so its fundamental position in the

development of Yunnan economy is consolidated and strengthened. The gross

output value of farming, forestry, husbandry and fishing was steadily increasing in

the province. It was 105,000 million Yuan in 2005, increased by 6.3% when

compared with that of the last year. The main outputs of various kinds of

agricultural products have increased to different extents (Table 2).

3) The communications and transportation is effectively improved, so it plays an

advanced role of promoting Yunnan economy and its society. Up to 2005, the

volume of goods transport reached 65,649 million ton/kilometer through the

various kinds of transportation, which was increasing more 4.5% than that of the

last year. The volume of passenger transportation was 33,160 million person/km,

increased by 4.4% compared with that of the last year.

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3. Investment of fixed assets expanded, the financial and monetary system ran

smoothly

It was the faster development period of Yunnan economy from 2001 to 2005.

Also were its social fixed assets investment and general investment increasing

constantly.

1) The scale of social fixed assets investment is expanding constantly in the

province. The total social fixed assets investment reached 174,300 million Yuan in

2005, increased by 31% when compared with that of last year. From 2001 to 2005,

the total aggregated social fixed assets investment was 565,828 million Yuan,

increased by 16.5% annually (Table 3).

Table 3: Total Amount of Yunnan Fixed Assets and Its Growth Rate 2001-2005 (unit: 100 million)

0

5

10

15

20

25

30

35

0200400600800100012001400160018002000

growth rate total amount of investment per year

growth rate 5.3 12.8 23.2 30.3 31

total amount ofinvestment per year

734.81 828.6 1021.18 1330.6 1743

2001 2002 2003 2004 2005

2) Fiscal revenue and expenditure increased steadily, and they guaranteed the needs

from institutes operating and governments’ public expenditure. The gross fiscal

revenue of the province was 76,600 million Yuan in 2005. From 2001 to 2005,

the aggregated fiscal revenue reached 284,092 million Yuan, increased by 12.1%

annually. The general and local budgetary revenue of Yunnan was 30,800 million

Yuan in 2005 (Table 4).

Table 4: Yunnan Budgetary and Fiscal Revenues 2001-2005 (unit: RMB 100 million Yuan)

12

0

200

400

600

800

1000

1200

Yunnan's total fiscal revenue Bugetary revenue of local finance

Bugetary revenue of localfinance

191.28 259.25 299 263.3 308

Yunnan's total fiscal revenue 432.61 466.01 510 666.3 766

2001 2002 2003 2004 2005

3) The saving deposit and the loan of the financial institutions in the province both

increased fast. The saving deposit balance was 509,100 million Yuan in the end of

2005, increased by 14.2% compared with the previous year. From 2001 to 2005, it

increased 15.6% annually. The balance of the loan of all the financial institutions

was 395,500 million Yuan in 2005, increased by 18.6% compared with the

previous year. From 2001 to 2005, it increased 14.8% at an annual average.

4. Market prospered, commodity price stabled, and living standard of urban and

rural residents improved

1) The market was prosperous and stable, and the total volume of the retail sales of

the social consumer goods increased year by year. It was 103,440 million Yuan in

2005, increased by 13% when compared with the previous year. From 2001 to

2005, the total aggregated volume of the retail sales of social consume goods was

408,412 million Yuan, so the average percent of the increase for this five years

was 12.1%. The total index of the social commodities’ retail price in the province

was 100.1 in 2005, increased at an annual average of 0.2% from 2001 to 2005.

The index of resident's consumer price was 101.4 in 2005, increased at an annual

average of 1.5% from 2001 to 2005.

2）Living standard of urban and rural residents improved and life quality upgraded.

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All the per capita annual disposable income, per capita net income of rural

residents, the year-end balance of urban and rural residents’ savings account, and

the annual average cash wage of the employed in urban areas increased steadily

(Table 5), with the increase rates respectively of 4.3%, 6%, 17.5% and 9.6%.

But the problem is still the big difference between the residents in urban areas and rural areas,

for example, in 2004 the per capital disposable income for urban residents was 8871 Yuan, but

that for rural residents only reached 1890 Yuan.

Table5: Indicators of Living Standard of Urban & Rural Residents

in Yunnan 2001- 2005 (unit: Yuan)

1

10

100

1000

10000

100000

2001 2002 2003 2004 2005

per-capital annual income of town residents per-capital annual income of rural residents

amount of saving deposits of urban and rural residents average wage per year of urban employees (YN)

3) The pace of opening to the world was accelerated and foreign trade increased

very fast. From 2001 to 2005, Yunnan Province was actively pushing its trade

cooperation with the surrounding countries. At the same time, it consolidated and

developed its shares in the markets of the Southeast Asia and East Asia, and

continuously improved its positions in the markets of America, Europe, as well

as of the South Asia and Africa. It improved and strengthened bilateral or

multilateral trade cooperation. The gross volume of its import and export, and the

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total volume of export and import separately in Yunnan Province were all lasting

growth (Table 6).

Table 6: Total Export & Import Volume in Yunnan (unit: 100 million Yuan)

19.8922.26

26.68

37.5

47

12.44 14.2916.77

22.426

7.45 7.97 9.91

15.1

21

0

510

1520

25

3035

4045

50

2001 2002 2003 2004 2005

Yunnan's total export & import volume Yunnan's total export volume Yunnan's total import volume

5. The legal corporations and NGOs developed rapidly

1) From the perspective of the number of the corporations, there were 97219 legal

corporations and 161228 units of industry activities，according to the general survey

at the end of 2003 by the Provincial Statistics Bureau . From the perspective of their

distribution geographically in the province, at the end of 2003 the top five municipal

/prefectural areas where with more corporations in proper order were Kunming,

Honghe, Qujing, Yuxi, and Dali, with 59.36% of the whole corporations in the

province. The top five districts with more industry activities units were Kunming,

Qujing, Honghe, Dali and Chuxiong, with the 55.70% of all the units in the province

(Table 7).

Table 7: Location of Legal Corporations and Industrial Activities Units in 2003

Location

Number of

Industry Location

Number of

corporations

Number

–of-Industry

15

Number of

corporations

activity units activity units

Kunming 25573 36109 Simao 5223 8640

Qujing 8315 15521 Xishuangbanna 2642 4240

Yuxi 7896 10690 Dali 7135 12114

Baoshan 3929 7961 Dehong 3652 6041

Zhaotong 4942 9990 Lijiang 2460 3915

Chuxiong 5939 11359 Nujiang 1301 2052

Honghe 8791 14701 Diqing 1080 1599

Wenshan 4231 8233 Lincang 4110 8063

2) Looking from the enterprise ownership structure, at the end of 2003 the state and

collective-owned enterprises still occupied the leading position. At the same time, the

private-ownership enterprises developed very fast, and the foreign-ownership

enterprises increased to some extent. So, the enterprises’ ownership structure

displayed a trend of diversification (Table 8).

Table 8：Number, Output Value and Relevant Percentage

of Enterprises by Ownership Catalogues in 2003

Number Industrial output value

Index Absolute

number

Proportion

(%)

Absolute

number

Proportion

(%)

State-owned enterprise 629 0.40 7457305 34.26

Collective-owned enterprise 2127 1.34 1050425 4.83

Joint shares enterprise 499 0.31 239875 1.10

Coordinated enterprise 56 0.04 107831 0.50

Limited liability company 400 0.25 3113840 14.31

16

Limited joint stock company 116 0.07 1717589 7.89

Private enterprise 8434 5.29 3013914 13.85

Other enterprise 3319 2.08 470574 2.16

Foreign/Taiwan/Hong Kong/Macro

enterprise 209 0.13 964654 4.43

Self-employed enterprise 143581 90.09 3627977 16.67

IN SUM

Rural industrial enterprise 132380 83.06 6961818 31.99

Light industrial enterprise 107690 67.57 10147043 46.12

Heavy industrial enterprise 51680 32.43 11616940 53.38

Total enterprises in Yunnan 159370 100.00 21763983 100.00

3) From the perspective of the scale structure of the enterprises, at the end of 2003,

the total amount of units and the gross output value of legal enterprises have all made

further progress in the province, which made the enterprise scale structure further

rationalized in Yunnan province. But, while viewing the scale structure of the

enterprises from different located areas, the large and middle-sized enterprises still

concentrated on Kunming and its periphery (Table 9). There were 19 large-scale

enterprises in Kunming, Qujing and Yuxi, which were 73.08% of large-scale

enterprises in the whole province.

Table 9: Number, Gross Output Value, Size and Location

of Yunnan Industrial Enterprises in 2003

Medium-sized

enterprises Large-scale enterprises Small enterprises

Location Gross

output

value

Number-of-

enterprises

Number-of-

enterprises

Gross

output

value

Number-of

-enterprises

Gross

output

value

Kunming 12 2792295 110 1566069 561 1450036

17

Qujing 5 811148 47 984942 147 399994

Yuxi 2 1604760 39 498702 198 581953

Baoshan -- -- 13 102457 44 63457

Zhaotong 1 172628 6 167863 55 56982

Chuxiong 2 425249 11 147217 87 144296

Honghe 4 347601 35 1245045 97 234949

Wenshan -- -- 11 149860 67 114789

Simao -- -- 15 129544 82 91997

Xishuangbanaa -- -- 1 21578 35 44750

Dali -- -- 20 476670 71 157722

Dehong -- -- 9 126354 77 66023

Lijiang -- -- 3 21051 37 63493

Nujiang -- -- 3 36981 19 37009

Diqing -- -- 1 6061 18 30118

Lincang -- -- 15 158366 34 41702

Other -- -- -- -- 1 --

In sum 26 6153682 339 5838762 1630 3579268

4) According to the statistics of Yunanan Civil Affairs Bureau, the NGOs of

Yunnan province developed very rapidly. NGOs, such as non-profit social

organizations, foundations, non-governmental and non-commercial units reached

nearly 1000 in 2004. According to the statistics of Yunnan Association for

International and Civil Organizational Cooperation, in present, there are at least

21 international NGOs registered in Yunnan with 45 membership associations.

Only in 2005, these 21 NGOs and the NGOs from Hong Kong and Macao

gathered 86 million Yuan foreign funds for developing education, heath and care,

women improvement, environmental protection and social relief in Yunnan.

There is saying, “as long as the NGO exists in China, it absolutely exists in

Yunnan whatever it is.”

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6. The development of population, employment and social protection

1) There is a great achievement on the control of population growth in Yunnan. In

2005, the birthrate was 14.72‰, death rate was 6.75‰, the natural rate of

population growth was 7.97‰, which drops by 1.03‰ when compared with that

of 2004. The total population in the province was 44.504 million by the end of

2005, increasing 352 thousand when compared with that of 2004. Among the total

population, there are 13.129 million urban residents and 31.375 million rural

residents. The relevant proportion is: 29.50% (urbanite) and 70.49% (rural).

3) Situation of employment is becoming better and the resolution of re-employment

problem has achieved effect. Of the laid-off workers from the state-owned

enterprises in Yunnan Province, 107.1 thousand have been re-employed by the

end of 2005. The new-increased employees are 194.1 thousand, but still there are

129.7 thousand who are registered as the unemployment in fact, and the

unemployment rate is 4.2% in urban area.

As the situation in the other areas in China, the employment of the graduates

from higher education is one of the biggest problems. Because the too fast pace

of the evolution from the “elite higher education” to the “mass higher education”

in Yunnan, much many graduates who entered higher education at the beginning

of the 21th century wish better employment. It is and will be the biggest problem

in recent and recent future.

And, in Yunnan there are still another employment problems, such as the the

employment of the spare population from rural areas or say from agriculture, the

employment of the older population. They are not presented on the official

statistics, but still problems.

4) Social welfare is being developed constantly, and the social security is

strengthened also. There are 20,300 welfare berths for philanthropic

hospitalization in the province, adopting 10,700 person/time in the year of 2005.

There are 723,000 people who gained the allowance for the minimum

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living-standard guarantee. There are 2.5869 million people who participated in

basic aged-pension insurance, among them the number of the employed is 1.7679

million, and the retired is 819,000.

But the biggest problem is that in tradition the social protection only covers

the urban residents to some extent, not including rural residents. For the people

who haven’t been registered in the towns or cities, their benefits from items of

the public social protection offered by governments almost zero. Even there are

some kinds of collective cooperation or mutual aids in rural areas, they are not

enough to cover so large population there. So, the population living in rural areas

still face the risks of lacking medicine and health-care, unemployment allowance,

older pension and so on.

7. Education on different levels developed very fast

1) Both the total amount of educational institutions and the enrolments at different

levels from primary schools to higher education, have increased by a large scale

(see Table 11). Schooling attendance rate of the school-age children is up to 96.3%,

and the relevant rate of the graduated from primary schools is up to 92.2% also.

There are 143,500 illiterates become into the literates in the year of 2005. Even

though these progress above, on average, the population in the province still only

receives education which lasting 6.61-year. That means they haven’t finished the

9-year compulsion education in China. It is due to the big gap of educational

institution and installment or say facility between the rural areas and urban areas.

Table 10: The number of educational institutes and relevant data

of 2005 in Yunnan Province

Number of

education

institutes

Enrollment

(unit:

10,000)

Rate of

increase

(%)

Schooling

attendance

(Unit: 10,000)

Rate of

increase

(%)

20

University and college 44 8.45 12.6 25.47 17.7

Vocational middle

school 386 11.36 16.4 29.49 8.6

Senior middle school 443 19 13.6 48.31 15.1

Junior middle school 1814 63.31 -0.1 19.58 -1.3

Primary school 18747 73.34 0.1 441.23 0.1

Adult's higher education

institute 5 -- -- 13.11 6.4

2) Cultural Industry and health-care are developed further. The coverage rate of

broadcast and television are up to 91.0% and 92.5% separately in 2005. There are

10110 medicine and health care institutions. Among them, there are 648 hospitals

with 74,700 berths totally. The staff of medicine and health-care is 65,200, among

them the number of the doctor is 26,200 and the nurse is 26,300. But the problem

still is that they too concentrated on cities and counties.

Anyway, some problems still exist in the economic and social developments of

Yunnan Province. For example, the agricultural infrastructure is still weaker, and it is not

developed enough to resist natural calamity or famine. The 'bottlenecks' of the energy,

traffic have not been overcome at all. The cost of the running of agricultural production

still keeps higher. The pressures of employment and social protection are much more

enlarged. The contradictions between social development and economic development, as

well as between the overall sustainable development and the resources and environment

problems is still obvious. At the same time, the problems of old-age society, too high

proportion of the family expenditure on the education for the children and teenage, the

gap of social and economic development between developed areas and underdevelopment

ones are springing up.

SUMMARY OF ENVIRONMENTAL PROTECTION

IN YUNNAN PROVINCE

According to the data that Yunnan Provincial Environmental Protection Bureau

21

(YPEPB) website offered, the environmental protection direct investment in 2005 is

4,916 million Yuan, increasing by 33.7% when compared with that of 2004, and it

accounts for 1.4% of GDP of Yunnan Province. Among them, the investment on

improving the environmental protection infrastructure in urban areas is 3,149 million

Yuan, on industrial pollution prevention and management is 1,767 million Yuan. From

2002 to 2005, the accumulative and directive investment on the environmental protection

in Yunnan Province has been reached 17,100 million Yuan. On average it equals 1.27%

of the GDP of Yunnan Province in these 5 years (Table 11).

Table 11: Investment on environmental governance in Yunnan

(2001-2005, unit: A hundred million Yuan)

Direct Year

Investment

Infrastructure

in urban area

Industrial pollutio

control

Proportion of

GDP (%)

2000 15.34 -- -- --

2001 24.80 16.44 8.36 1.19

2002 25.48 17.48 8.0 1.14

2003 34.80 27.15 7.65 1.40

2004 36.76 24.75 12.01 1.20

2005 49.16 31.49 17.67 1.40

Total 171.00 117.31 53.69 --

The development of the environmental protection of Yunnan Province made greater

progresses in the following several aspects:

1. Develop environmental management programmes and international cooperation

For this 5 years, there are 5,713 items of environmental impact reports, forms/tables,

registration records and so on all that are about the environmental impacts of the

construction projects in Yunnan have been approved by the environmental authorities in

different levels of Yunnan Province. They involved in the construction projects with total

investment of 1,222.06 million Yuan. The relevant estimated total investment on

environmental management is up to 7,940 million Yuan and the rate of the

implementations of the environmental assessment on these construction projects reach

22

96.4%. The environmental management authorities have organized 1,136 items of

environmental checks or say evaluations when the construction projects have been

delivered, which completely concerned the total project investment of 18,410 million

Yuan, Out of these project investment, the total investment on actual environmental

protection was 1,090 million Yuan, their qualified rate is 99.3%.

While the Yunnan economy is developing very fast, the disposal and emission of

new-generated pollutants have been effectively controlled to some extent. At the same

time, the YPEPB organized the applications for the Special Fund for the Environmental

Management Projects issued by the National Government. There are 2 projects on the

comprehensive environmental pollution management in Yunnan main basins or say

9-lake areas, 2 demonstration and dissemination projects on pollution-prevention of the

newly metallurgical technique and art, and 4 projects about environmental monitoring

capacity-building have been granted with 26,500,000 Yuan totally from SFEMP of

Central Government.

At the same time, from 2000 to 2005, YPEPB (the Yunnan Provincial Environment

Protection Bureau) has successfully applied for 20 international collaborative projects

with the grant of nearly 121 million Yuan, favorable-loan of over 20 million Yuan, and

hard currency loan of 2,400 million Yuan. Its cooperative partners include Asian

Development Bank (ADB), World Bank (WB), and the relevant institutes from Britain,

Holland, Sweden, as well as the NGOs such as World Nature Fund..

2. The constructions of ecological environment monitoring, environmental

management information system and the environmental legislation have been

enhanced

Yunnan Province takes the lead position in launching the pilot projects in ecological

environmental monitoring in China. There have 4 national-level pilots which respectively

located in Wenham, Dali, Yimen and Binchuan, been built for monitoring nature

reservation zone, mineral exploitation and process zone, rural ecological environment

management zone and so on. Through the researches and practical works in these

monitoring-sites, some new conceptions and methodologies that effectively restricted

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pollution, ecological environment damage, and the illegal anti-environmental actions,

have been formed. From 2001 to 2005, 5 Environmental Information Centers, such as the

Provincial Environmental Information Centre, and those of Kunming Municipality, Yuxi

Municipality, Dali Municipality, Honghe Prefecture, Zhaotong County, have been

established. The official LAN (local area net), satellite news report system, optical cable

transmitting system and the video-conference system of YPEPB have been built also.

They make official routines between YPEPB and the other sectors of Yunnan

Government, between YPEPB and the EPBs in the other provinces of China, and

especially the official routines between YPEPB and the National Environmental

Protection Ministry e-mailed by internets. So does the official document transmitting

between YPEPB and NEPM. The websites of YPEPB, as well as those of 14 prefectures /

municipalities in Yunnan Province also have been built.

From 2001 to 2005, 4 local regulations on environmental protection, such as " The

Environmental Protection Regulation of Dai Autonomous Prefecture of Xishuangbanna”

"The Environmental Pollution Prevention Statute of Lahu Autonomous County of

Lancang", "The Environmental Pollution Prevention Regulation of Hani-Yi Autonomous

County of Pu'er " and " The Protection Regulation of Dumu Reservoir in Qujing” have

been published. Another 2 pieces of local governmental law, "The Regulation of

Environmental Protection Management for Construction Projects in Yunnan Province",

and "The Prohibitive Regulation of Production, Sale, and Usage of the Non-melted

Plastic Bag in Kunming” also have been published.

Through the Special Actions of Environmental Protection from 2003 to 2005, there

have 1,263 illegal emission enterprises been punished, and 1,386 enterprises that

processed zinc and coal by the indigenous anti-environmental protection methods have

been banned.

Only in 2005, the administrative authorities, which are responsible for

environmental protection at different levels, have implemented 2,178 items of

administrative penalty, with punishing fund of 4,163,700 Yuan. At the same time, they

have held 39 hearing meetings for environmental administrative penalty, dealt with 3

cases of relevant administrative reconsideration and 1 case of administrative litigation.

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By these actions, they have effectively investigated, prosecuted and contained the

problems of environmental pollution.

3. The environmental education, the scientific and technological standardization of

environmental protection and management, the cleaner production and

environmental economy have been advocated

In Yunnan Province, there is a special Forum on “Environment Protection and

Sustainable Development", and different propaganda activities have been held on every

World Environment Day. Meanwhile, the actions for establishing " Green Series " in

various ranks of the province have been developed, more than 1,300 “Green Schools” at

different levels, 30 "Green Communities " also have been built.

There 4 scientific research fruits achieved by the environmental protection institutes

been awarded the Progressive Prizes of Sciences and Technologies (provincial/

ministerial level) during the 5 years. There are another 4 results obtained the patent-right

certifications. There 7,907.65 ten thousand Yuan as R/D fund been invested for the

scientific research. Among these scientific research activities, the provincial

environmental management institutes have undertook 144 items with research

expenditure 1,882.6 ten thousand Yuan, and their 2 scientific and technical results

awarded the PPST at provincial/ministerial level only in 2005.

In 2005, after investigation and evaluation, Yunnan Government decided to establish

3 trial sites for developing recycle economy. They are industrial zone in Kaiyuan,

agricultural zone in Eryuan and tourist zone in Puzehei district of Qiubei.

Meanwhile, through online monitoring, out of the 44 enterprises that were evaluated

as the first batch of seriously polluted companies in Yunnan, 16 have finished their

cleaner production reformations under the forced mandatory, and passed the relevant

authorities’ verifications by the end of 2005. In October of 2005, another 50 seriously

polluted enterprises have been listed and published as the second batch of the companies

which will be forced reforming on schedule, and the relevant mandatory requests to force

them changing into cleaner production regularly following the environmental protection

law have been issued. In March of 2005, YPEPB approved 8 Environmental Protection

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Bureaus located in the cities such as Kunming, to establish 9 pilot organizations for

verifying cleaner production in Yunnan.

In sum, the building of the center of the on-line monitoring system for

environmental protection in Yunnan, and the initial test of its relevant soft-ware system

have been finished. 76 enterprises with the emission license issued by Yunnan

Government already installed or are installing 41 sets of instruments for operating

monitoring and controlling, and 140 sets of online monitoring devices.

In 2005, Yunnan Aluminum Industry Limited Company passed through the on-spot

examination by The National Environmental Protection Bureau and become the first one

who winning the title of "THE NATIONAL EXCELLENT ENVIRONMENTAL

ENTERPRISE” out of all the Chinese electrolytic aluminum companies. It also becomes

first one who winning this title in Yunnan Province as well as in west China.

4. The Developments of the environmental industry, the special action of

environment and the environmental safety inspection have been launched

By 2005, in the whole province, there are 513 enterprises with employees of 61,674

have been engaged in the environmental industry. They made 8,497 million Yuan of

annual output value from sale, and earned gross income of 7,795 million Yuan, as well as

created an annual profit of 542 million Yuan.

In the Special Actions of Environmental Protection, there are 20,979 personnel as

inspectors involved in, 8,700 enterprises have been checked and investigated, among

them 800 enterprises have been prosecuted legally, and 391 of the cases have been settled.

Meanwhile, according to requests from Central Government, the environmental safety

inspection launched within the range of the whole province, with 4,748 inspectors

involved and 1,251 enterprises checked, among them 201 accident potential enterprises

have been verified, and 126 of these enterprises have been mandated to be regulated and

reformed on schedule because of being polluted and polluting.

From the perspective of the construction and relevant planning of the environmental

protection organizations and their personnel, the total staff of specific environmental

management institutes in Yunnan is up to 3,642 persons in 2005. There is independent

26

environmental protection agency existed in 97 counties, cities and districts in the

province. Among these agencies,

The Environmental Protection Agency of Dali Prefecture;

The Environmental Protection Agency of Xishuangbanna Prefecture;

The Environmental Protection Agency of Shilin County；

and Yunnan Provincial Environmental Information Centre

are awarded to “THE ADVANCED INSTITUTE” by the National Environmental

Protection Ministry.

At the same time, the Yunnan Provincial Environmental Protection Bureau has

worked out "Yunnan Environmental Management Programme from 2006 to 2010 "; "

The Programme of Proventing and Controlling Water Pollution in Yunnan Basins along

Pearl River ". Meanwhile, "The Programme for Preventing and Controlling Water

Pollution in Reservoir Area of Three Gorges and its Upper (Fountain) Area " has been

continuously written. Some of the local environmental management programs, such as

those in Baoshan, Dali, Zhaotong, Chuxiong have been written and compiled also.

In the aspect of the emission fee collection, 194.153,2 million Yuan have been

collected in 2005 , among them 80.358,1 million Yuan have been handed in Provincial

Treasury，94.447,8 million Yuan in the Treasuries of Prefectures and Counties in Yunnan.

Compared with 2004, the levy of the emission fee increases greatly with 40.64 million

Yuan, the increasing rate is up to 26%. In which, there is 59.822,4 million Yuan directly

levied by the authorities in the province level, increasing by 13.29 million Yuan, and the

increasing rate is up to 29%; The emission fee which handed in the provincial treasury is

80.358,1 million Yuan, increasing by 18.81 million Yuan, and increasing rate is 31%.

Anyway, there are still some problems should be paid attention to and dealt with,

such as how to get more and more Yunnan population to participate in the development of

the environmental protection in Yunnan Province, especially those from the

heavy-polluted industrial enterprises, how to measure the environmental management

system and relevant activities in the private-ownership enterprises, especially those in the

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mining and raw mineral product process because in Yunnan many SEM in this rank exist

and their producing custom and indigenous methods are backward in environmental

management, maybe some ones without any environmental management system.

On one hand, the needs for enhancing the propagandas of environmental protection,

environmental management system, even the environmental management accounting

system in order to make the public strengthen their environmental consciousness, to

support the development of environmental protection actively and to practice the

environmental management and to have specific environmental management skills really

exist.

On the other hand, all enterprises and institutions of Yunnan Province should be

awareness of the environmental management system and relevant specific environmental

management accounting system through step by step environmental education training,

and pay special attention to the comprehensive technological transformation from the

developed or say western countries, especially pay attention to those models from EU, so

as to promote the environmental management capacities of enterprises, to reduce the

discharge of pollution.

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