Scramble for GDP growth comes at heavy price

Ordinary citizens deserve protection amid pursuit of local development

A recent factory explosion in Kunshan, Jiangsu Province, has taken the lives of 75 people and injured more than 100 others, according to the latest reports. In the aftermath of this horrific accident, many have again drawn connections between China's preoccupation with rapid economic development and its spotty industrial safety record. Sadly though, this is not the first time in recent memory that a catastrophe has led to introspection over what China - and the Chinese people - may be sacrificing in pursuit of GDP growth.

Last November in Qingdao, Shandong Province, the explosion of an oil pipeline operated by Sinopec Corp killed 62 and left 136 injured. Earlier, in June 2013, a blast at a poultry plant in Dehui, Jilin Province, killed 121 and injured another 76. In each case, many accused officials, regulators and powerful State-backed companies of putting their own agendas ahead of public safety. Similarly, these tragic accidents sparked impassioned calls for an end to the growth-at-all-costs mentality which many see as counteracting the beneficial aspects of China's economic transformation.

While we cannot deny that three decades of meteoric GDP growth has led to vast improvements in living standards, all members of Chinese society must recognize the toll such results have had on working conditions and the country's natural environment.

In many ways, Kunshan, a city located between Shanghai and Suzhou, Jiangsu Province, can be seen as a model of Chinese development. According to reports, the city's GDP has grown from 20 billion yuan ($3.24 billion) in 2000 to 292 billion yuan in 2013, a figure on par with the economy of Hainan Province. Today, many consider Kunshan to be among the most developed and prosperous cities of its size in all of China.

But after decades of rapid growth nationwide, China's central government began calling last year for local authorities to prioritize quality over quantity when it comes to development. During the?Third?Plenary Session?of?the?18th?Communist?Party?of?China Central Committee, held last November, top authorities made it clear that simple GDP results will not be the only yard-sticks by which local cadres are judged when it comes to assessing their economic achievements. Instead, higher-ups would be looking at data related to consumption, personal incomes, education, innovation and welfare spending for signs of more balanced growth.

It's heartening to see top authorities championing fairness and a more complete evaluation of local administrators. Recently we have seen some local governments admit to falling short of their GDP targets. This in itself is encouraging, since administrators have been known to lean on land sales or investment in fixed assets when they've needed to juice their growth figures. But, as many are aware, such tactics only worsen the inefficiencies and imbalances which are now endangering the country's economy.

But amid these early signs of progress, the recent tragedy in Kunshan highlights problems which still exist at the local level. It seems that some local governments have, for instance, lowered their industrial scrutiny and oversight standards as part of strategies to attract investors. Indeed, China's wide footprint in the global value chain is still largely a product of its famously low labor costs and relatively lax restrictions on employers, both of which make the country an attractive place for manufacturers to do business. This arrangement plays right into the hands of factory bosses - and the local authorities who rely on them for tax revenue - yet it also encourages corner-cutting and the shirking of regulations meant to protect workers, sometimes with deadly consequences.

Relevant government bodies need to strengthen their supervision over public safety regulations, workplace conditions and the treatment of employees. Doing so may put pressure on certain enterprises, but the continued loss of life due to preventable accidents could have serious consequences not only on the labor market but social stability as a whole. Indeed, everyone has a responsibility when it comes to preventing tragedies like that which rocked Kunshan.