G.D.P. R.I.P. – NYTimes.com

A very intersting article in the NY Times about the use of Gross Domestic Product (GDP). GDP is not only used in the US, but also in China, where it is one of the main indicators of economic growth – especially in the developing cities in the West.

Bottomline of this article: “When you’re feeling a little chilly in your living room, you don’t hold a match to a thermometer and then claim that the room has gotten warmer. But that’s what we do when we seek to improve economic well-being by prodding G.D.P.”

Read this! Op-Ed Contributor – G.D.P. R.I.P. – NYTimes.com.

Moving to the city

Chinese economist Andy Xie presents his view on how China should become the leading world economy within two decades in a column in China International Business. Like other economists he thinks China should shift from a producer of cheap manufactured goods into a consumption-driven economy. The anchor is urbanisation, he says. China should aim to increase its urbanization to 75% in the next 20 years.

China’s urbanization strategy should focus on building 30 mega-cities of more than 20 million residents each. These cities would have the right to issue bonds to fund their development. Because infrastructure in these cities would benefit from an economy of scale, the environment and job market would benefit, and the cities would have enough tax revenue to pay off their bonds [...] Basically, China should turn its urbanization into a sponge for global capital. Shifting the rural population into big cities is the only way for the nation to modernize.

It’s always hard not to be impressed by numbers in China. Thirty mega-cities of more than 20 million inhabitants. Where will they be located? And how will they be able to function? A lot of questions waiting to be answered.

Zhengzhou, Central Business District

The Central Business District is designed by Japanese architect Kurukowa. This new urban area consists of a circular shopping mall of 2 km which is still under construction. The apartment buildings are finished and mostly sold, but still empty, due to speculations.  

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