Empty cities of China: Ordos
A forecast of the World Bank indicates an estimated increase of 8.4% for China’s GDP this year. How is this possible, considering that China is an export economy and that their partners ( western countries ) are still suffering from the financial crisis ?
As you may know, the Chinese government launched their own stimulus package to help the economy in November 2008. The numbers look great, but I feel that this fiscal policy does not provide sustainable development, but only fuels other serious problems ( bubble-like ) in the Chinese economy.
Below I will show you an amazing video. It features the newly built city of Ordos. It was built in only 5 years and this was not done with money from the stimulus package. It can become “home” for more than 1 million people. Right now it is abandoned, with almost no inhabitant.
This is just an example of money being spent before the crisis. Imagine what their leaders are doing now, at a regional level, when they have to report an 8%+ increase in economic activity.
