Five ways for a changing China to change the way it looks at cadres
Winston Mok says stiff rivalry among local officials has pushed economic growth, but has also led to over-capacity, pollution and indebtedness, and a different yardstick may be the answer
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China aims to transition to innovation-driven growth, to be shaped by market forces and the rule of law. In order to realign cadres’ behaviour with the new growth strategy, carrots as much as sticks are needed. Discipline without incentives leads to inaction. Beyond tightening party discipline, we need a fundamental review of how cadres’ performance is measured. The following factors should be considered:
● From short-term to long-term orientation. Unlike the long-term orientation of technocrats in Korea and Singapore, China’s local cadres focus on the short term. They are measured on GDP growth from year to year, and are rotated frequently. Such policies make them less accountable. They drive short-term GDP growth relentlessly even at the cost of value destruction and social discontent. Local cadres’ evaluation should be reoriented so that they will pursue long- term sustainable development.
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● From indiscriminate to quality growth. Many local cadres have pursued growth at all costs, resulting in high pollution and high indebtedness. Costs are sometimes externalised to society or the future. When the ends justify the means, cadres can resort to unscrupulous tactics, such as colluding with enterprises on lax pollution control. The measurement of GDP growth should be quality-adjusted. For example, gross domestic product achieved at the expense of pollution should be deflated. Likewise for debt-fuelled growth.