(March 17, 2014) Reporter Lily Kuo takes an in-depth look at China’s South-to-North Water Diversion project — the world’s largest water diversion conceived originally by Mao Zedong as a way to relieve North China’s dwindling water resources by “borrowing” from the south of the country. But not even the project’s leaders are pretending the mammoth, ultra-complex, $80-billion scheme will solve China’s water problem. Moreover, it has already created extra problems. Kuo concludes the project is another example of an engineer-dominated government’s fondness for huge-scale vanity projects with a particular weakness for mega-water works. No wonder. Without the man-made institutions — a robust regulatory regime and the rule of law — the Chinese government is bereft of tools to induce the efficient use (and conservation) of water. And so it builds canals and moves water from one watershed to another, creating havoc and perpetuating the problem of China’s crippling water crisis.