Why GDP is out of the true equation

Economics | Ed Zhang

If, as it were, 2013 is the year of the grand plan, seen in the reform program adopted by the leadership's recent Third Plenum, then 2014 should not be a year of continuous celebration, but of action to implement the program in the economy's daily proceedings.

In early December, a plan was announced from Beijing in which GDP is to be no longer used as the only yardstick to measure officials' performances. The plan also promised there would be no more listing of all local governments according to GDP growth. The GDP factor is to be completely abandoned, it said, when it comes to the evaluation of officials in areas that are either unsuitable or restricted for development.