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During his report in the provincial parliamentary sessions in early January, Wang Yang, Party secretary of Guangdong, never mentioned anything about GDP. Instead, his report focused on the economic upgrade and transformation as well as the improvement of people’s livelihood. Such an ignorance of GDP triggered heated discussions among people.
Actually, the gross economic size of China had a drastic increase since the reform and opening up. GDP and GDP per capita, which are two important indices to measure the growth rate, also have an amazing rise. The GDP rose from 200 billion U.S. dollars in 1980 to 6 trillion U.S. dollars in 2010 while the GDP per capita rose from 200 U.S. dollars in 1980 to 1000 U.S. dollars in 2001 and then to 5000 U.S. dollars in 2011. The growth of GDP is even higher in the developed coastal areas such as Guangdong and Shanghai. Along with it is the dramatic increase of the comprehensive power of China and the great improvement of people’s living level.
But the GDP has some defects in describing economic develop- ment. It cannot fully reflect the role of public services in economic development. In addition, it could not reflect the difference of economic development quality of different countries. Moreover, GDP cannot correctly show the increase of wealth, the employment situation, the income distribution or the change of social welfares.
Because of GDP’s important role in showing the national economic development, fixing economic policies and other fields, it became the only goal of many decision-makers in the government for a long while. They ignored the defects of GDP along with the possible results of these defects. So they created the defective GDP.
The defective GDP is not what China wants. That means the economic development should conform to people’s interest and be fully coordinated and sustainable. In other words, scientific development concept should be applied in economic development, requiring putting GDP growth into a scientific scope.
Above all, the economic structure and efficiency should be increasingly upgraded along with the growth of GDP. The self-owned ability of innovation should be im- proved to increase the contribution of technologies to the economic growth. The government should boost the domestic demand, especially the consumption, and change the economic development pattern driven by investment and exportation to the one stimulated by consumption, investment and importation. Modern services, high end technologies, emerging industries and other fields need more stimulus for their development.
Secondly, the cultural construction should be enhanced to improve the civilization quality of Chinese people. Train a lot of high-quality people to contribute to the sustainable development of economy. A complete, competitive and innovative cultural system is a strong support for the GDP growth.
Thirdly, make the GDP growth profitable for the development of social utilities and improvement of people’s livelihood. Local governments should not give priority to the GDP growth but ignore the improvement of employment and the construction of harmonious labor relationship. More GDP should be used in the social insurance system, allowing more civilians to enjoy a better life.
Actually, the gross economic size of China had a drastic increase since the reform and opening up. GDP and GDP per capita, which are two important indices to measure the growth rate, also have an amazing rise. The GDP rose from 200 billion U.S. dollars in 1980 to 6 trillion U.S. dollars in 2010 while the GDP per capita rose from 200 U.S. dollars in 1980 to 1000 U.S. dollars in 2001 and then to 5000 U.S. dollars in 2011. The growth of GDP is even higher in the developed coastal areas such as Guangdong and Shanghai. Along with it is the dramatic increase of the comprehensive power of China and the great improvement of people’s living level.
But the GDP has some defects in describing economic develop- ment. It cannot fully reflect the role of public services in economic development. In addition, it could not reflect the difference of economic development quality of different countries. Moreover, GDP cannot correctly show the increase of wealth, the employment situation, the income distribution or the change of social welfares.
Because of GDP’s important role in showing the national economic development, fixing economic policies and other fields, it became the only goal of many decision-makers in the government for a long while. They ignored the defects of GDP along with the possible results of these defects. So they created the defective GDP.
The defective GDP is not what China wants. That means the economic development should conform to people’s interest and be fully coordinated and sustainable. In other words, scientific development concept should be applied in economic development, requiring putting GDP growth into a scientific scope.
Above all, the economic structure and efficiency should be increasingly upgraded along with the growth of GDP. The self-owned ability of innovation should be im- proved to increase the contribution of technologies to the economic growth. The government should boost the domestic demand, especially the consumption, and change the economic development pattern driven by investment and exportation to the one stimulated by consumption, investment and importation. Modern services, high end technologies, emerging industries and other fields need more stimulus for their development.
Secondly, the cultural construction should be enhanced to improve the civilization quality of Chinese people. Train a lot of high-quality people to contribute to the sustainable development of economy. A complete, competitive and innovative cultural system is a strong support for the GDP growth.
Thirdly, make the GDP growth profitable for the development of social utilities and improvement of people’s livelihood. Local governments should not give priority to the GDP growth but ignore the improvement of employment and the construction of harmonious labor relationship. More GDP should be used in the social insurance system, allowing more civilians to enjoy a better life.