Demotion of GDP crucial step for economic restructure

By Yu Ning Source:Global Times Published: 2013-12-11 23:58:02

The burden of using GDP as a means to assess the work of local governments and officials has been increasingly under attack in China. As GDP was closely related to the performance evaluation of officials, GDP figures, ostentatious "image projects" and "administrative achievements" were avidly pursued, which diverted attention from the improvement of people's livelihood. That's why the newly issued evaluation criteria, which promise to cut the importance of GDP, are considered to be laudable across society. 

According to a document issued by the Organization Department of the Communist Party of China Central Committee on Monday, the administrative performance of officials should not simply be judged by the local economic gross and growth rate but be based on scientific and comprehensive development. The significance of shifting away from this GDP-obsessed assessment in fact lies in urging local governments to abandon the development model of "high investment and heavy pollution for a fast growth rate."

The polluted haze that shrouded eastern China in the past few days reminded us of the high price of having developed the economy at the expense of the environment. Moreover, the emphasis on local GDP has also fueled corruption in officials. Guo Youming, vice governor of central China's Hubei Province, was removed and put under investigation for severely violating Party discipline in late November. Some veteran officials reportedly attributed his fall to being bewitched by GDP.

Guo's record as Party secretary of Yichang, near the $59 billion Three Gorges Dam project, was exemplary. He took four years to double the GDP of Yichang from 100 billion yuan ($16.4 billion) to 200 billion yuan. However, he is under suspicion of misconduct in decision-making and luring investments and involvement in corrupt real estate development.

Cutting the millstone of GDP in assessing officials' performance doesn't mean we don't need economic growth. After China's annual Central Economic Work Conference began on Tuesday, economists and media at home and abroad have all kept a close eye on how the central government will set our GDP target for next year.

We have to avoid blindly chasing GDP growth while neglecting the improvement of livelihoods, environmental protection and economic structural adjustments, but meanwhile, we need a stable GDP growth to provide a firm material foundation for the country to tackle many difficult problems.

We need green and sustainable GDP to benefit the country and the people. Abandoning the GDP-obsessed evaluation criteria is just the beginning. More importantly, more efforts are needed to put this into practice.



Posted in: Observer

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