governments, on the one hand, and with grassroots environmental organiza-
tions on the other. In working with Chinese ENGOs, WWF has also
emphasized capacity building, and it has joined its biodiversity preservation
work with small-scale, pilot, economic development ventures.
A third example is Trade Record Analysis of Flora and Fauna in Commerce
(TRAFFIC), which operates in both Taiwan and China (in a collaborative
relationship with WWF). TRAFFIC conducts survey work on the illegal use
of rare and endangered species listed in the CITES annex. At the conclusion
of each project it publicizes its findings, and attempts to draw international
pressure on the practices of governments in China and Taiwan. In this sense,
it aids governments in monitoring the illegal use of species.
Receptivity to Diffusion of Knowledge and Technology
Both China and Taiwan have been selectively receptive to foreign advice and
recommendations, as well as to new environmental technology. The structure
of environmental regulation (for example, establishment of environmental
protection administrations in both states) and environmental laws bear the
imprint of American, European and Japanese practices. Chapter 6 mentioned
the extent to which environmental practices have been influenced, both
adversely and positively, by transnational corporations. As China has a tighter
reign on multinationals than Taiwan, its experience has been more positive.
Also, its experience is much more recent, at a time when norms of corporate
social responsibility have begun to affect firms’ behavior. One multinational
corporation representative discussed his firm’s successful diffusion of a new
resettlement program: ‘The government is always suspicious that multi-
nationals are trying to take over the government’s role. We just wanted to
demonstrate that we were doing well. Then, they relaxed’.^5
International funding for environmental protection has begun to motivate
many of China’s most powerful government agencies, such as the State
Development Planning Commission and the Ministry of Science and
Technology.^6 Of the loans from the World Bank to China in the period
1992–97, approximately 5–10 percent has been directed toward environmental
protection. (This resulted from environmental criteria being added to China’s
loans by leaders of G7 countries at a Houston summit meeting in mid-1990.)^7
Loan covenants frequently carry environmental guidelines addressing project
technology and environmental impact. For example, multilateral lenders to
China are increasingly reluctant to finance thermal power plants and, when
they do, tend to demand stringent compliance with environmental regulations.
The significance of the World Bank, however, lies in its activity in all aspects
of environmental infrastructure, including water supply, wastewater treatment
and waste management.^8
Conclusions 229