By Yu Hairong
BEIJING (Caixin Online) The falsification of statistics is not surprising news in China.
In the most recent case of number fudging, statistics officials in Henglan County, Guangdong Province, vastly overstated local gross industrial output to an extent that was unusual even in a country where economic data is routinely massaged.
The National Bureau of Statistics (NBS) said on June 14 that statistics officials in Henglan inflated the industrial output of 71 companies to 8.5 billion yuan ($1.38 billion) USDCNY -0.05% from the actual 2.2 billion yuan. They were also accused of falsifying business data without the companies knowledge.
Officials in the Henglan government have been aware of the falsification for more than a year, but never stopped it, the NBS said.
The incident has again triggered discussion regarding the credibility of Chinas statistics results, which have long been criticized for being inaccurate.
In recent years, the NBS has proposed a range of reforms to methodology and reporting, including revising statistical methods for housing prices, establishing an online system for larger enterprises to directly report data and altering the statistical methods for fixed-asset investment.
The measures strive to combat data distortions in the countrys official statistics. However, they have failed to bring about satisfactory results.
The key reason is that the statistics agencies arent independent institutions and administrative authorities have retained their power to tamper with data.
For example, the state statistician devised a system for direct data filing to minimize human intervention in the process of collecting statistics from enterprises, but in practice the system only exists nominally. Local governments often interfere in the filing process by doctoring or even fabricating numbers.
Local officials prospects for promotions are closely linked to local economic performance especially gross domestic product growth figures and this accounts for both officials obsession with data and strong incentives to falsify numbers.
To combat the prevalent fudging of numbers, statisticians on the national level should see that local statistics bureaus can work independently, a move that would minimize the intervention of local officials.
Moreover, a reform of the GDP-oriented evaluation of officials would fundamentally detach local officials from their obsession with economic data.
How China officials
ABOUT CAIXIN
Caixin is a Beijing-based media group dedicated to providing high-quality and authoritative financial and business news and information through periodicals, online and TV/video programs.
BEIJING (Caixin Online) The falsification of statistics is not surprising news in China.
In the most recent case of number fudging, statistics officials in Henglan County, Guangdong Province, vastly overstated local gross industrial output to an extent that was unusual even in a country where economic data is routinely massaged.
The National Bureau of Statistics (NBS) said on June 14 that statistics officials in Henglan inflated the industrial output of 71 companies to 8.5 billion yuan ($1.38 billion) USDCNY -0.05% from the actual 2.2 billion yuan. They were also accused of falsifying business data without the companies knowledge.
Officials in the Henglan government have been aware of the falsification for more than a year, but never stopped it, the NBS said.
The incident has again triggered discussion regarding the credibility of Chinas statistics results, which have long been criticized for being inaccurate.
In recent years, the NBS has proposed a range of reforms to methodology and reporting, including revising statistical methods for housing prices, establishing an online system for larger enterprises to directly report data and altering the statistical methods for fixed-asset investment.
The measures strive to combat data distortions in the countrys official statistics. However, they have failed to bring about satisfactory results.
The key reason is that the statistics agencies arent independent institutions and administrative authorities have retained their power to tamper with data.
For example, the state statistician devised a system for direct data filing to minimize human intervention in the process of collecting statistics from enterprises, but in practice the system only exists nominally. Local governments often interfere in the filing process by doctoring or even fabricating numbers.
Local officials prospects for promotions are closely linked to local economic performance especially gross domestic product growth figures and this accounts for both officials obsession with data and strong incentives to falsify numbers.
To combat the prevalent fudging of numbers, statisticians on the national level should see that local statistics bureaus can work independently, a move that would minimize the intervention of local officials.
Moreover, a reform of the GDP-oriented evaluation of officials would fundamentally detach local officials from their obsession with economic data.
How China officials
ABOUT CAIXIN
Caixin is a Beijing-based media group dedicated to providing high-quality and authoritative financial and business news and information through periodicals, online and TV/video programs.
