Nowhere is this ethos more pronounced than in Chongqing, whose leadership has vowed to develop so-called "red GDP". This is a codeword for economic development that is geared toward the needs of the masses - and not dictated by the greed of privileged classes such as the country's estimated 30 million millionaires.

Even the "father of the GDP," Nobel laureate Simon Kuznets, recognized that "the welfare of a nation can scarcely be inferred from a measurement of national income as defined by the GDP."

high growth, low development:
To begin with, the rank of 128 puts us in the bottom 50 of the 177 nations that the UNDP Human Development Report looks at. Treat Adivasis and Dalits as a separate nation and you will find that nation in the bottom 25. Or subtract our per capita GDP ranking from the process and watch India as a whole do a slide. Meanwhile, even nations that are far below us in the rankings - and which have nothing like our growth numbers - do much better than us on many counts. So even if our HDI value took a tiny step up from 0.611 last year to 0.619, it means other nations did much better than us. And hence we went down to rank 128 this year.
(...) Note that some of these nations rank up to 30 slots above us. Others fall within 30 nations below us. Not one of them has had our nine per cent growth. Few of them have been touted an emerging economic superpower. Nor even as a software superpower. Not even as a blossoming nuclear power. Together, they probably do not have as many billionaires as India does. In short, even nations much poorer than us in Asia, Africa and Latin America have done a lot better than we have. India rose in the dollar billionaire rankings, though. From rank 8 in 2006 to number 4 in the Forbes list this year, but we slipped from 126 to 128 in human development.
(...) Cuba has zero standing in the roll call of billionaires. In terms of per capita income, it ranks low in the world. But when it comes to human development, it ranks 51 - that is, 77 places ahead of us. It figures in the HDI's 'High Human Development' group. This is a nation which has faced a huge economic blockade since its birth. U.S. sanctions ensure that almost everything is costlier in Cuba than in many other nations. In per capita terms, it spends four per cent of what the U.S. does on health but achieves better outcomes on most of the vital parameters of that sector. Despite its many disadvantages, it achieves a better HDI rank than Mexico, Russia or China. (All of which have gained more billionaires in recent times.)
(...) Meanwhile, the UNHDR records that almost a third of India's children, or 30 per cent, are below average weight at birth. In Sierra Leone, ranked at 177, rock bottom of the Human Development Index, it is 23 per cent. In Guinea Bissau and Burkina Faso, ranked 175 and 176, children with low birth weight account for 22 and 19 per cent. Even in Ethiopia, ranked 169, the figure is 15 per cent. So we're down there with the bottom five on that count. Amongst children under the age of five, 47 per cent in India are underweight. In Ethiopia, that is 38 per cent. And in Sierra Leone, 27 per cent. We are home to the largest number of malnourished children in the world. When it comes to child nutrition and literacy, we jostle for space with the nations ranked lowest in HDI in the planet. And mostly we even beat them.
(...) They report a World Bank study as saying that the Indian and Chinese economies might be smaller in size than we believe. Maybe almost 40 per cent smaller, says The International Herald Tribune (December 9, 2007). "What happened was a large statistical glitch," says the IHT. But it's a glitch that matters. "Suddenly the number of Chinese who live below the World Bank's poverty line of a dollar a day jumped from about 100 million to 300 million." It turns out the overpaid elite number crunchers have been using obsolete data for a very long time.
(...) The Bank's own survey lists new purchasing power parities for 100 countries benchmarked for the year 2006. Well, India figured in the study for the first time since 1985 and China for the first time ever. And so, India's GDP in PPP terms, the TOI notes, was $3.8 trillion in 2005 before the new study. Going by the new data after the revision, it stands at $2.34 trillion. (In nominal dollar terms, roughly $800 billion.) Boy! These updated data are a nuisance. First it turns out we should have been HDI rank 128 last year, too. Now we learn that our economy is a lot smaller than we imagined. As the IHT says, "This is not a mere technicality." It shrinks the relative size of developing economies by quite a bit. India's GDP per capita (PPP) falls from $3,779 to $2,341 with the new data. Also, as the TOI sadly notes: "We ain't a trillion dollar economy yet."

monthly review notes from the editors:
Real global growth averaged 4.9 percent a year during the Golden Age of national Keynesianism (1950–1973). It was 3.4 percent between 1974 and 1979; 3.3 percent in the 1980s; and only 2.3 percent in the 1990s, the decade with the slowest growth since World War II. The slowing of the real economy led investors to seek higher returns in financial speculation....[I]increased liquidity and lower costs of borrowing encouraged in turn further expansion of finance. The coincident trends of growing inequality and insecurity...and the spreading power of rapid financialization do not suggest a smooth continued expansion path for a society based on increased debt and growing leverage.

two articles on mozambique:
(first, in defense of the economic order:)
Mozambique is one of the world's poorest countries. It's also an African success story. Here, such things are relative. To the immediate west, Zimbabwe's Robert Mugabe misrules his country toward calamity. Nigeria, Ivory Coast and others are beset by civil conflict and corruption. But Mozambique, scarred by 16 years of civil war and Soviet-style economics, turned itself in the right direction on its own. Optimism, however guarded, and Africa do sometimes go together.
(...) But hyperinflation and a stagnant economy forced leaders of the neo-Marxist liberation movement, Frelimo, to shift their approach. Starting in the early 1990s, the ruling party cut subsidies, opened to outside investment, privatized firms nationalized after independence in 1975 and got a grip on borrowing and the budget. An independent central bank brought inflation into single digits. According to the World Economic Forum's competitiveness index, Mozambique has reformed more than any sub-Saharan African country.
(...) The payoff is the highest average growth rate, at 8% over the last decade, among the continent's non-oil exporters. GDP per capita is a still tiny $320, but that's compared with $178 in 1992. Since 1997, poverty rates decreased more in rural areas (from 71% to 55%) than in urban (62% to 52%), according to the World Bank. Child mortality has declined to 152 per 1,000 live births from 235. And primary-school enrollment has risen to 71% from 43%. Once a leading recipient of food aid, Mozambique now exports maize, with 5.6% average yearly growth in farming in the last 15 years. Banks, telecom and tourist firms, many from neighboring South Africa, have come in.
(...) But neighbors in similar straits haven't put in place Mozambique's fixes. Inflation in Zimbabwe is 1,700%; nearby Malawi and Zambia, their economies distorted by subsidies on commodities, are growing haphazardly. "You need political will" to get it right, says Mr. Baxter. "Starting from a low base" or "being a former colony" -- oft-heard excuses for Africa -- has little impact on economic performance. What matters, as regional dynamo Botswana also shows, is governance.
(...) Erratic "Uncle Bob," as his deferential neighbors call Zimbabwe's 83-year-old Robert Mugabe, is a useful reminder that local politicians pose the gravest threat to Africa's future.
(...) In the meantime, having done the so-called first generation of market reforms, the government is dragging its feet on legalizing land ownership, fighting corruption and loosening a restrictive labor code to bring in more investment. "Now they're stuck," says Mr. Lima. "There is a strong socialist background here. If we want to perform, we need to be different."
(second, in response:)
(...) Africa observers often single out a storyline from one country - sometimes it's cheery, sometimes not - in order to apply lessons to the whole continent. But I'm having trouble seeing what Kaminski and others see.
(...) Kaminski's paean to private enterprise leaves me particularly cold. Because Mozambique's development is heavily concentrated in the southern capital, the vast majority of the country sees few of the benefits of growth. And much of the economic improvement over the last 15 years can simply be chalked up to the peace dividend. When hostilities ended - with one million dead - Mozambique had nowhere to go but up. The country currently ranks tenth from the bottom on the UN's Human Development Index (just ahead of Burundi, and well behind Rwanda). It used to rank as the very poorest country in the world. So, yes, I guess things could be worse.
(...) But, most importantly, all this talk about privatization and foreign investment is very much beside the point. As Kaminski concedes, one in six Mozambican adults is infected with HIV. "Appreciating the change for the better takes some imagination," he writes. But you cannot speak of "the change for the better" unless the discussion starts with HIV. It's the only yardstick that matters in Mozambique, and in the rest of southern Africa as well. Some 37,000 Mozambican children contracted HIV in 2006, a jump of 60% over six years before. Nearly four of every 10 adults in Beira, the country's second largest city, are HIV-positive. Those are apocalyptic figures, however creative your thinking.
(...) The luxury building is full of foreigners here on business; the more posh of the country's two shopping malls is on the ground floor. It looks as if the land where the Four Seasons stood will be developed in much the same way, except that Part of the site will be set aside for a new American embassy. I have yet to meet a Mozambican who cares that the hotel is gone or about what will take its place.