Skip to comments.China: Goodbye, GDP
Posted on 11/10/2013 9:27:05 PM PST by TexGrill
BEIJING, Nov. 11 (Xinhuanet) -- Chinas new leadership is poised to tolerate slower growth as it tries to shake off its long-term GDP mania and put social progress and environmental welfare at the top of the nations agenda.
Under the existing "GDP growth is the king" performance evaluation plan, local government leaders have strong incentives to push investment, without any regard for the quality of peoples' lives or environmental capacity.
An encouraging message from China's leadership was President Xi Jinping's call for putting an end to the performance evaluation system based on GDP growth during a recent field trip to Hunan Province.
His remarks came just before China's leaders attend the Third Plenary Session of the 18th CPC Central Committee from November 9 to 12, a meeting that will address the deepening of China's reforms for the next decade.
On separate occasions, Xi has stressed the urge to shed the nation's seeming obsession with GDP growth. "We should no longer judge leaders solely by GDP growth. Instead, we should look at welfare improvements, social development and environmental indicators to evaluate leaders," Xi told Party leaders in a speech last June.
"President Xi's emphasis on correcting the GDP-oriented' performance evaluation system is an important signal, indicating the central government will be committed to rebalancing and local governments may revise their previous GDP targets," said Tang Jianwei, an analyst with China's Bank of Communications.
China's economy has grown at an astounding rate of around 10 percent over the past three decades, making it to the top ranks of the world's economies, generating wealth and boosting global trade. At the same time, the nation enjoyed relatively low unemployment rates and maintained both social and political stability.
(Excerpt) Read more at news.xinhuanet.com ...
I wonder if they fudged their GDP reporting the way the Soviets once did.
If you go to Hong Kong and see the port with cranes lined up to the horizon, I think you would be inclined to believe them.
They don't need to. The government is communist in name only. It's still a dictatorship, but the economy is one of the freest in East Asia, which is why it's got the fastest growing GDP per capita in the region.
I don’t think they adjust their GDP for inflation, and they keep their currency artificially low, too.
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