China’s Growth record, though impressive by any measure, is in part because of its artificially low starting base. Combining GDP with with other important indicators reminds us of the distance travelled and the cost of investment and industry focused approach to growth.
A look at the GDP per capita data for China underlines the difficulty of the task faced by China at the start of the opening and reform period. Despite near double digit growth for the better part of three decades China, in terms of GDP per capita languishes around the hundredth position on the global league table, with around USD4200 per year in 2010. And although great strides have been made there is a still a long way to go to reach the heady heights of the US.
From another angle, GDP divided by total energy consumption is a measure of the energy intensity of GDP growth and the less directly the cost to the natural environment.
So while westerners might be wowed by the glittering wealth on display in China’s showcase Eastern cities, China still has a long and rocky road ahead to climb mount prosperity.
