Building GDP Growth

28 Feb

“Who wants to be the mayor who reports that he didn’t get 8% GDP growth this year? Nobody wants to come forward with that. So the incentives in the system are to build, and if that the easiest way to achieve that growth, you build.”

And that is exactly what many provinces have been doing. During the recent recession, China’s growth fared relatively well against Western countries at that time. But as gleaming new buildings are being born up from the ground, it is clear that the government’s spending has had a large part to play in China’s recent economic success.

The city of Ordos was built in 5 years and was meant to house around 1 million people, it is now a ghost town. This is an example of China’s willingness to build and build and build. Many properties are being bought and held as investment holdings only. Almost no-one really lives there.

http://content.time.com/time/photogallery/0,29307,1975397_2094492,00.html

http://www.aljazeera.com/news/asia-pacific/2009/11/2009111061722672521.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: