Pollution+Increases+in+First+Half+-+Vivien+Ho

Article: China Decides to Cut Emissions By Lowering Annual Economic Growth Source: The 9 Billion - The guardian - [] Date found: Feb 28, 2011 Date written: April 24, 2011

Summary: This article is praising China on its take on decreasing the “depletion, deterioration and exhaustion of resources and the deterioration of the environment". It talks about China wishing to maintain sustainable development because its energy usage has increased by 220% while other countries have an average of only 20%. They wish to include environmental concerns in their next five year plan and achieve quality and efficiency of economic growth rather than just increasing the output, it is considering the standard of living of the people and of the future. The article recognizes the unfortunate fact that GDP growth means increased pollution rate as well, and that is why GDP growth rate goals are decreased to 8%, so the rate of pollution will decrease as well.

Vocabulary: Macroeconomics -The part of economics concerned with the study of an economy as a whole and economy wide issues such as unemployment, inflation and growth. Sustainable Development: -Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Market -A place where products are traded or exchanged. Gross Domestic Product (G.D.P.) - The total value of all goods and services produced within in an economy of a country in a year. Economic Growth - Steady growth in the productive capacity of the economy. Genuine Process Indicator - The GPI indicator takes everything the GDP uses into account with additional figures that represent the standards of living and the volunteer work. It also adds other figures that represent the cost of the negative effects related to economic activity. The GPI nets the positive and negative results of economic growth to examine whether or not it has benefited people overall.

Graph: We have not learned how to graph GDP growth rates etc. Thus, I have extracted an image from an online source: Description:

(image only viewed using Mozilla Firefox) This is a GDP growth rate chart from 2007-2011. Currently it is around 9.5+-10.0% growth rate but according to this article written on Feb 28, 2011, the GDP will be predicted to decrease down to 7-8%.

Evaluation: I agree with this policy and this goal from the Chinese government to sacrifice economic growth for pollution although how great the environment is not included in the GDP or in economic growth it is a very valuable aspect the government should consider in order to maintain sustainable development and the utility of its citizens. This article proves that the accounting of GDP feeds the notion that conserving resources and protecting the environment is a cost to the GDP - something negative for the country when in fact its part of the nation’s wellbeing to live in a healthy natural fresh environment free from pollution. We also must consider the future wellbeing of the nation and sustainable development yet GDP encourages depleting of resources that compromises the future. GDP does not tell the specifics of the “activity” occurring. It tells very little - it just measures total output (the dollar value of finished goods and services). In terns of pollution, GDP is not a good indicator of utility growth because pollution, a negative aspect in industries is twice as a gain for GDP, one in the chemical factory and the other to clean up the toxic site (which ultimately, will never be reverted to its natural, uninfected state). GDP only measures money transactions while Genuine Process Indicators revises information GDP bases on by adjusting income distribution, adding the value of housework and community work and subtracting pollution costs...etc. Prices in money transactions cannot measure genuine addition to a nation’s well being. Utility should be the true standard of production and wealth. Genuine Process Indicators are arguably better indicators of a country developing and growth for the better. China is recognizing that although their growth rate will be decreased from 9% to 8%, it is better for the future, for sustainable development to continuing a steady growth rate, and to further its economy in terms of utility and the environment its citizens live in.