Shanghai: GDP Apostasy

Balancing economic growth alongside environmental sustainability and social inclusion was becoming increasingly important in China. The case describes Shanghai's decision to abandon growth of Gross Domestic Product (GDP) as its primary metric of measuring success. Within this context, the case presents the historical roots of GDP measurement and how the measure is calculated. Moreover, the case discusses the prominence of GDP as a measure of economic success. After a discussion of China's and Shanghai's use of GDP growth targets, the case discusses Shanghai's past successes and failures. Specifically, the case describes the enormous economic growth that Shanghai has experienced alongside significant economic, social, and environmental failures such as the inefficient use of resources, pollution, and growing inequality. The case concludes with the decision to abandon GDP growth as a measure of success and opens questions about what this means for Shanghai and China. Moreover, the case raises the question of what alternative metrics, such as the Social Progress Index or the Better Life Index, measuring success might look like and how a manager could design a balanced scorecard and a strategy map to drive strategy execution.