Policies for Economic Development
The leaders of the PRC, in all eras from Mao Zedong, Deng Xiaoping to Jiang Zeming, have been concerned about the economic development of Tibet. From the peaceful liberation of Tibet in 1951 up until now, Tibet has been benefiting from the favorable policies of CPC and the Central Government.
Economic Policies in the Early Years
After the Liberation
For the peaceful liberation of Tibet in 1951, the Central Government ordered the PLA to “March into Tibet without requesting support from local regions” and “Build roads when marching into Tibet” That was a preclude to the modern transportation and new-type agriculture and animal husbandry of Tibet. To implement the policy of “Marching into Tibet without requesting support from local regions”‘ the Tibet Working Committee of the CPC and the leaders of the PLA Tibet Military Area decided to carry out a large-scale campaign of reclaimation in Tibet. From October 1951 to November 1952, the PLA troops stationed in Tibet had reclaimed over 930 hectares of wasteland. According to the incomplete statistics, the output ofthe highland barley reached 380,000 kg, and vegetables 980,000 kg in that period. In 1953, the area of reclaimed wasteland was expanded t0 2,670 hectares with grain output of’ 1.5 million kg and vegetables of3 million kg. The production had contributed to the decrease in the pressure of logistic transportation on the troops heading into Tibet as well as their reliance on the market. Under the adverse ecological environment of Tibet, the officers and soldiers stationed in Tibet had, in the spirit of the Large Scale Production Campaign of the PLA troops stationed in Nanniwan, carried out a large-scale production campaign in Tibet, which had promoted the agricultural reclamation of Tibet. The campaign had partly solved the then severe problem in the provision of grains and vegetables to the troops and the experiences from the reclamation had demonstrated production technologies to the Tibetan masses. Therefore, the campaign had been of- great political and economic importance.
On July l, 1952, the PLA troops stationed in Tibet set up the first state-operated farm-Lhasa Qiyi Farm on the barren sands in the west suburb of Lhasa. On August l, the Bayi Farm was established. In 1953, the first agricultural And scientific research institute of Tibet-Lhasa Agricultural Test Base was organized and established in Qiyi Farm by the Tibet Working Committee. The institute has made great contributions to the cultivation of fine breeds of highland barley, wheat and vegetables and the construction of seedling nurseries in Tibet.
Before1951, the transportation in Tibet lagged far behind without any highway. There were only post roads for mules and horses. It would take seven to eight months from inland to Lhasa and all the materials were transported by animals. In 1950, the PLA troops began to march into Tibet and they had followed the instructions of the Central Government to build roads as they were marching. In December l954, the Qinghai-Tibet and Sichuan-Tibet highways were open to traffic at the same time, which has attracted the attention of the world. The highways link Tibet closely with other parts of the country and exert a positive impact on the supplies of material and economic development. Consequently, the economy along the highways has been developed with several new towns in the plateau emerging such as Gyangda, Zam, Nyingchi, Gongbogyangda, xung, etc. By1958, the highway network of Tibet with Lhasa as the center has been formed gradually with totalmileage of over 7,000 km. With the opening of Xikang-Tibet and Qinghai Tibet Highways to the
traffic, a large quantity of inland productive material and consumer goods have been transported incessantly into the various places of Tibet Gradually some changes occurred in Tibetan markets. The commodities from India were gradually replaced by the tea cloth, silk, medicines, tobacco, general goods, staples and non-staple foods, iron machines for agriculture and animal husbandry from the inland. The increase of commodities made the market price stable with fallback to a certain extent.
Thanks to the support of the Central Government to the economy of Tibet and the necessary economic construction the economy of Tibet has gained unprecedented growth, In the 1950s, a number of unprecedented modern industrial and transportation facilities emerged under the support from the Central Government and the whole nation.
In 1953, Lhasa Carpet Factory, the first Tibetan factory, was established.
In 1954, the Sichuan-Tibet and Qinghai-Tibet highway were opened to traffic.
In 1955, reconstruction the 660kw Tode Gully Power Station was initiated.
In 1956, air traffic from Tibet to Beijing became navigable.
In 1957, the Xinjiang -Tibet Highway became available for traffic.
Thereafter, Turmoin Coal Mine, Borax Mine by Banggo Lake, Gengzham Forest Farm, Namjin Power Station. Gohnud Bricks and Tiles Factory were founded successively. All these constructions have contributed to the solid foundation of the construction of Tibetan modernization.
Industrial Polices for Agriculture and Animal Husbandy
“Centering on agriculture and animal husbandry”, “Equal development of agriculture and animal husbandry” and “Adopting agriculture and animal husbandry as the basis” are the polices for Tibet at all stages of economic development. To implement the policy of the Central Government of “stable development” in the early 1960s, the Tibet Working Committee and Autonomous Region Organizing committee made deep investigation into the actual conditions of agricultural and pasturing areas and formulated Regulations on Specific Polices in Rural Areas, i.e. Twenty-six Articles and Policies for Animal Husbandry, i.e. Thirty Articles.
The main contents of the Twenty-Six Articles are: to stabilize the private ownership of farmers so as to make them feel secure in production; to improve mutual aid groups and not to establish cooperative society within five years; to vigorously develop the patriotic campaign of production and actively support the development of the rural handicraft industry and sidelines so as to activate the rural economy; to calculate and levy grain tax on the basis of average output verified in 1960 and the amount levied would not vary within five years so that the increased output would not lead to the increase of tax and farmers might store grain in case of famine; to protect the rural work forces firmly and strengthen the agricultural production.
The main contents of Thirty Articles are: to stabilize the individual ownership of herdsmen and the ownership of herd owners and not to form pasturing cooperatives within at least five years; to implement the policy of “Being beneficial to both herdsmen and herd owners” and allow the hiring of herdsmen and the lease of livestock so as to have the herdsmen and herd owners to take their initiatives in production: to carry out the patriotic campaign of increasing output and protecting livestock; to develop mutual aid groups to actively promote the production; to conduct free exchange extensively and allow the activities of loans in order to activate the economy of pasturing areas; to implement the policy of low tax and output increase would not mean the increase of tax within four years, This policy was discussed and approved by the Autonomous Region Organizing Committee and officially published for implementation.
Governments at all levels have conducted much work to implement the Twenty-Six Articles for agricultural areas and the Thirty Articles for pasturing areas such as granting loans for supporting the poor, providing tools of production of various kinds and purchasing animal products at good prices, etc. At the same time, the governments also followed the Eight-Words Principle for Agricultural Production and Eight Measures for Animal Husbandry to promote new types of walking ploughs, build water conservancy facilities, upgrade low output farmland and expand the area of cultivated land. Efforts were also made to strengthen the management of animal breeding and actively conduct the prevention and treatment of animal diseases. The pasturing was encouraged to be in groups and types. The hybridization and over-wintering work were properly done. The mass is launched to build open sheds, store grass and food-stuff and prevent disasters and clim11inate pests; meanwhile the Pasture Control Committee was established to protect and direct rational use of the pastures; great importance was attached to protect female and young animals. The herdsman association at all places strengthened the guidance and supervision on animal husbandry. Epizooty prevention and treatment institutes were established and local epizooty prevention staff were trained to conduct group prevention and treatment. Up until 1965, the grain output in Tibet was raised from 182.4 million kg in 1959 to 290.725 million kg. The agricultural output value increased from 45.912 million yuan to 83.04 million yuan, respectively by 58.9 percent and 83 percent. The annual increasing rate was respectively 9.8 percent and 13.8 percent. The animals raised in Tibet increased from 9.55 million head in J 959 t0 17.01 million head in 1965. The pasturing production value increased from 94.788 million yuan to 183.238 million yuan, respectively by 78.1 percent and 93.3 percent. The annual increasing rate was 13 percent and 15.5 percent respectively. The economy in agricultural and pasturing areas have gained rapid development.
The creation of the fairly complete industrial policies in Tibet were outdated in 1981 when the principle was raised to “Economic work in the region shall be in the order of animal husbandry, agriculture, commerce, transportation, industry and others”. Actually the policy was not implemented because the main task of the leaders at all levels then was to emancipate the mind, topple old idols, and make shifts in ideas and the concrete measures were lacking. In 1985, the industrial structure policy for Tibet was put forward as “Adopt the agriculture and animal husbandry as the basis, tourism as the focal point with education, and emphasize transportation and energy. To make a foundation, rationalize the relationships, and promote the development of other industries in an all round way”. This policy generally showed the direction for industrial restructuring of Tibet and manifested the strategic intention of priority in the industrial trial development and thus was of Tibetan characteristics.
In 1990, the government of the Tibet Autonomous Region officially published the Strategy for Economic and Social Development of Tibet (tentative plan) in which it is said that the strategic highlights for Tibetan economy in the future is to stress the strategic position of agriculture and animal husbandry as the basis and to continue to improve energy transportation, postal and telecommunication services; emphasis should be made to develop processing, the mining industry, tourism industry and internal and external economic trade with local specialties. Thus the industrial policies of the Autonomous Region of Tibet have been basically formed and serve as the guide to the economic development of Tibet
Since China adopted the policy of reform and opening up in 1978, a-series of economic policies published for Tibet has been centered on the organization of industries. Their main purpose is to enhance the awareness of competition and the quality of competition and realize the marketization of industrial behaviors and promote the development of agriculture and animal husbandry through the implementation of concrete measures of reform of relationships of production technological upgrade, construction of irrigation and water conservancy, agricultural mechanization, low tax or tax exemption and rehabilitation. Up until 1998, the gross agricultural output value of Tibet reached 4.24 billion yuan, grain output 850000 tons and animal products increased greatly with meat products totaling 129000 tons With the economic development, the living standard of the people has been improved incessantly with the GDP of Tibet reaching 13.87 billion yuan at the end of 2001. From 1994 to 2001, the annual growth rate of the GDP was 12.4 percent 7 higher than the average national growth rate. In 2001, the disposable income per capita for town dwellers was 7090 yuan, an increase of4.3 times compared with 1990; the net income per capita for rural residents was 1404 yuan. Due to the apparent increase in income, the production and living conditions for farmers and herdsmen has obviously been improved and enhanced.
Four National Conferences on Development of Tibet
To make Tibetan farmers and herdsmen become rich as soon as possible and lay a solid foundation for the economic development of agricultural and pasturing areas of Tibet, the first National Conferences on the Development of Tibet was called by the Central Government in Beijing in March 1980. The meeting pointed out that relaxed policies should be adopted to rehabilitate the productions of Tibetan farmers and herdsmen and improve their living conditions. With unified understanding and deep investigations, the Party Committee and people’s government of Tibet Autonomous Region Formed a series concrete policies to develop the local economy, i.e. to relax policies and respect the self-determination right of teams, groups and households; tax exemption and reduction of burdens on farmers and herdsmen; guarantee the necessary provision. The policy of the Central Government brought recovery to the agriculture and animal husbandry and greatly enhanced the initiatives of farmers and herdsmen in production. Compared with the heavy burden on farmers and herdsmen before the 1950s, they felt the relief more than anyone else.
The second National Conference on Work in Tibet was held in Beijing between February and March 1984. In light of the actual conditions of the economic development in Tibet the meeting decided to further implement the special and preferential policy of recovery, i.e. for agricultural areas “land may be used by each household and their independent operation will not change for a long time” while for pasturing: areas “animals may be owned by each household and their independent operation will not change for a long time”. The policies were the results of the summary of Tibetan work since 1980 and in light of the special and actual conditions of the economic development in Tibet. During the second ten days of April of the same year, the Party Committee of Tibet Autonomous Region held the second session of the third expanded conference of standing committee to implement the spirit of the National Conference of the development of Tibet. The meeting discussed how to further free people from entrammeled ideas and keep economic construction as the central task and expedite the economic development of Tibet and formulate Several Policies of the Party Committee of Tibet Autonomous Region on Agricultural and Pasturing Areas. The main contents are: l) The policy of exemption from taxes on agriculture and livestock farming would be extended to 1990. 2) The contracting period of land and livestock would not change for 30 years and that of collective owned forestry, barren hills and wastelands would not change for 50 years. Among them, the operation of nature exploitation may be succeeded. 3) The planned purchase of grain, ghee and meat products was cancelled and the markets for products from agriculture, animal husbandry and sidelines would be open perennially for free buying and selling. 4) Any unit, individual shall not apportion expenses to the mass.The subsidies for cadres in the community or production brigade shall be provided from local financial expenditures and living expenses for households enjoying the “five guarantees shall be solved by public relief. The independence of farmers and herdsmen in production and operation shall be ensured and shall not be subject to any administrative plans. 6) Students in primary or middle schools of the county or district will be offered food, clothes and accommodation free of charge with relevant expenses from public expenditures. 7) Mixed farming should be encouraged and assistance should be given to specialized and key households and employment of helpers and apprentices should be allowed. 
Farmers and herdsmen are allowed to conduct business and other activities outside their own county or district. 9) External individuals, collectives and state enterprises are welcome to setup shops, factories in Tibet or attend commodities exchange fairs, promotional exhibitions. Meanwhile facilities will be given to them and their legitimate rights and interests will be protected. Two Long Term Changeless Policies are popular among the vast number of farmers and herdsmen. By the end of 1984, the two long-term changeless policies have been implemented by 95 percent in Tibetan agricultural and pasturing areas and thus household management has become the basic feature of the management system in agricultural and pasturing areas.
On the basis of public ownership of major means of production such as land, pastures and forestry, the household management under the two long-term changeless items is one form of operation to separate right of operation from that of ownership. Under the household management and on the basis of voluntariness and mutual benefit many mutual aid groups and labor exchange groups were formed and production and sales cooperatives were created in the link of exchange and sales and even some associations were established to develop mixed farming and industries and sidelines. All these efforts contributed to the exploration of various means to integrate the development of household economy, collective economy and various cooperative economies. Since then, specialized and key households developed rapidly and the number of people engaged in mix operation, in particular the industry and commerce increased greatly. In 1991, individual industry and commerce had reached 16250 households in the agricultural and pasturing areas with the employed at 22000 and automotives own at 52 14 and tractors at 5792. The individual economy gain great development and the private sector in the economy occurred. At the same time, the diverse modes of operation of animal husbandry, forestry, and agriculture combined with industry and commerce emerged one after another in the agricultural and pasturing areas. After twenty years of reform in agricultural and pasturing areas, the sole ownership structure has been replaced by the structure of ownership with public ownership in a dominant position and many other sectors of economy and other modes of operation existing in parallel.
The socialist market economy system is being improved gradually with the means of distribution centered on distribution to each according to his or her work. The reform of the economic system in agricultural and pasturing areas has made farmers and herdsmen become relatively independent producers and operators because they have gained independent right to decide production, operation, sales an distribution. The policy is generally suitable to the current productive force of agriculture and animal husbandry in Tibet and consequently conducive to greatly activate the initiative of the vast number of farmers and herdsmen and the the production of agriculture and animal husbandry and theeconomy in agricultural and pasturing areas have gained fu development.
In July 1994, just at the crucial moment in the economic and social development of Tibet, the Party Central Committee timely held the third National Conference on Work in Tibet. In light of the actual conditions of Tibet in the new stage in the construction of socialist market economy system the Party Central Committee once again granted “relaxed preferential and special” policies to the development of Tibet, which serve as the foundation for the supernormal development of Tibet. The third National Conference pointed out that “to accelerate the social and economic development of Tibet on the basis of the actual conditions of Tibet, three points in major aspects shall be ensured: the first is to keep the economic construction as the central task, both development and stability shall be stressed and attained equally.” The second is to accelerate the pace of reform and opening up and to establish a new system gradually so as to provide a vital force for economic development. The third is to give full play to the two initiatives in support from the whole country and in the self-reliance of Tibetan people so as to enhance the potential of development.”
To help establish the socialist market economy system in Tibet, the third National Conference decided to keep the past special and viable policies for Tibet unchanged and replace the past ineffective policies or policies needing change with new favorable and special policies or supporting measures, which would fully reflect the “relaxed, favorable and special” nature of the policy.
The third National Conference has laid down special policies for eight aspects of Tibet, including finance and taxation, banking, investment, price subsidy, foreign trade, social security, agriculture and rural areas, and enterprise reform. The main contents were: the Central Government would follow the policy of “Calculating the regular base, increasing the amount gradually and granting support for specific projects ” in deciding fiscal subsidy for Tibet; the taxation system would be consistent, viable and simple and the taxes shall be light. The types of local taxes, taxable items and tax rates, as well as the right of tax reduction and exemption, shall be determined by the autonomous region and reported to the Ministry of Finance and State Taxation Bureau for record. Except for the customs duties and the consumption tax and value-added taxes withheld by the Customs, all other taxes and duties levied by the Central Government on Tibet shall be returned in full as daily expenditures for Tibet. The taxes on the self-used goods shall be refunded as taxes of small amount or scattered. Taxes on agriculture and animal husbandry shall be exempted continuously. The subsidies shall be increased for free medical treatment, “three free offers (of meals, clothes and accommodations for students in primary and secondary school sponsored by the counties and the districts)” and the increase, of salaries. The Central Government would give priority to the support for transportation, energy, communications and comprehensive development and other large and medium sized projects and social development projects in Tibet. For long-term construction, the Central Government would make dynamic investments. Also the Government would give priority to the funds for fixed-asset investment projects. For small infrastructures and production projects, the Government of Tibet should report the plans to the Central Government for the purpose of obtaining priority in support. To, ensure social stability and improve the living standard of the people, the Central Government would give appropriate subsidies for offsetting the effects of price increase from the price adjustment measures implemented by the Central Government and the present favorable policies would remain unchanged. The Central Government would support Tibet to gradually establish old-aged insurance, unemployment insurance, medical insurance and disability insurance systems. These policies have ensured the implementation of Tibetan Ninth Five-Year Plan and the planning of visions for the new century.
After the third National Conference, the Tibetan economy has realized the growth of seven consecutive years with an annual growth rate at J l.9 percent. In the year 2000, I the GDP of Tibet reached 10.56 billion yuan and the annual growth rate of 12.9 percent has been kept Tor five consecutive years. Thus the grains have been enough for self-supply. The local fiscal income increased by 2.2 times compared with five years ago. Among 480,000 people in poverty, 380,000 have basically been freed from the shortages in food and clothes.
In June 2001, the fourth National Conference on the development of Tibet was held. The Central Government decided to adopt a series of policies more suitable and favorable for Tibet. Four actions have been taken for economic development: 1) To help the Government of Tibet formulate the Tenth Five-Year Plan. The general objective for development is to increase the GDP of Tibet up to the annual average growth rate of 12 percent and the GDP per annum will rank top among the western provinces by the year 2005 and by 2010 reach the middle level of the country. In such a way, it will lay down a sound foundation for its modernization together with other parts of the country. 2) To determine117 projects invested by the Central Government in Tibet, totaling 3 1.2 billion yuan. 3) To determine 70 projects with support for Tibet, totaling l.06 billion yuan. 4) To determine 50 favorable policies to be implemented in Tibet. To implement these policies in Tibet in the period of the ninth Five-Year Plan (2001-2005), the Central Government will provide 37.9 billion yuan as financial support and subsidy.
During that period, the Central Government will also invest 90 billion yuan in Tibet, averaging over 14 billion yuan each year. By the end of2001, among the 70 aid projects, 33 projects have been commenced or have been breaking ground and the paid up investments reached 258 million yuan. By the end of 2002, all the projects with geared support has been commenced with 60 percent to be completed. All the 70 aid projects were completed by June 2003.
The fourth National Conference on the development of Tibet is the guideline for Tibet in the new century and will promote Tibet into another boom in the new century.
Adjustment in Policies for Supporting Tibet
From the 1950s to early in the new century, the Central Government has formulated measures for supporting Tibet at every stage. Since the peaceful liberation of Tibet, the fiscal subsidies and investments of the Central Government for Tibet have accounted for 40 billion yuan, which have effectively secured the basic living conditions of the people of all ethnic groups and greatly supported the construction of Tibet. For over 50 years, Tibet has marched with the time and changed with each passing day. Lhasa, the pearl on this plateau, has become more splendid: with wider roads, more high-rises, brighter cities, and is closer and more open to the, outside world. The development of Tibet is the result of the interlinked development with the motherland. In each stage its development cannot be separated from the support of the, Central Government and the other Chinese ethnic groups.
In the 1950, the Central Government began to give support to Tibet in terms of personnel, finance and material and made Tibet, the roof of the world, full of vitality. From road building to wasteland reclamation, from the reform of traditional agriculture and animal husbandry to the establishment of modern industrial systems, from science and technology culture, education to social life, support has been given to Tibet, which is and will be no longer under the feudal serf system.
In the 1960s, the Central Government transferred many high quality people across the country to work in Tibet. During the 1970s and the 1980s, the transfer has been conducted several times. These actions have contributed to the construction of a strong team of cadres with Tibetan as the major portion in Tibet and enhanced the their qualities Moreover various technological personnel were transferred from each province and city to help cultivate the technological cadres in Tibet.
Since the 1980s, the focus of the whole country turned to the central task of economic construction and correspondingly the policies for supporting Tibet changed. The policies mainly aimed at major problems in the economic construction and social development of Tibet. Meanwhile the construction of social and economic infrastructure of Tibet has been strengthened step by step and in line with the order of priorities. In August 1983, the State Council made the decision of “gearing four provinces (cities) to support Tibet under the general guideline that the whole nation shall support Tibet.” That was an important strategic measure to create a new situation of building socialist modernization and also an important move to realize the prosperity and socialist modernization of Tibet including industrial modernization. The four provinces and cities are Sichuan, Zhejiang, Shanghai and Tianjing. At the same time, the support and cooperation
relationships between Tibet and Sichuan, Zhejiang, Shanghai and Tianjing, Beijing, Jiangsu and Shanxi in various projects have been established. Moreover, new-type cooperation between cities, departments and enterprises has been carried out. The policies mainly aimed at major problems ii
the economic construction and social development of Tibet and the construction of the social and economic infrastructure of Tibet have been strengthened step by step and are in line with the order of priorities.
Especially after the second National Conference in which 43 projects were determined in the constructions for power plants, guesthouses, schools, hospitals, cultural center and middle and small-sized industrial enterprises supported by 14cijing, Shanghai, Guangdong and other provinces and cities These projects were key projects for the social and economic development of Tibet, which have changed the outlook of Tibet, encouraged the people of all ethnic groups in Tibet to build a new socialist Tibet. In 1984 and 1 985, construction teams with high quality and strong technological background from the whole country helped Tibetans to carry out the 43 projects. After two years of arduous efforts, a group of high quality key projects have been completed, and this snow topped plateau presented some rudiments of a modern city
After the 1990s and according to the third National Conference, the measure of “long-term support and voluntary appointment in rotation” has been adopted in the support by cadres for the purpose of establishing a mechanism of long-time support for Tibet by brother provinces and cities. The policy for supporting Tibet is “to divide responsibilities by regions and to gear support and to replace the cadres on a periodic basis”. All the ministries and commissions of the Central Government and the Party Committees and the governments of fifteen provinces and cities attached great importance to the support for the development of Tibet. A large number of outstanding people were selected to support Tibet who have brought advanced management knowledge and experience of reform and opening up and the development of the economy in advanced areas. Since the peaceful liberation of Tibet in 1951, the living standard of people has been improved greatly and great achievements have been made in the social and economic development. Thus the Tibetan economy has attained and sustained, rapid and sound developments, which were attributable to the support and concerns of the Central Government and the people in the whole country: The Central Government has shifted its focus of ‘investments to central and west China, in particular the guideline of continuing to expand the internal demand has given unprecedented opportunities for the construction of infrastructures in Tibet. The elementary role of the market in allocation of resources has been enhanced. The investments in the other sectors of the economy have been on the rise. The geared support has given funds urgently needed in the construction of Tibet. Since 1995, forty departments from 15 provinces, cities and the Central Government and the state organizations have granted support to Tibet in terms of funds, material and technology. Up until 2000, the number of aid projects has reached 2,042 valued at 2.469 billion yuan. Meanwhile, 1,260 technological personnel have been appointed to work in rotation in Tibet. Some provinces and cities have regarded the area of Tibet as a special area of its
own and put it into their Ninth Five-Year Plans (1 996-2000) and the overall arrangement of development planning of 2010.
Some have put forward the objective to get the Tibetan areas having been supported to enter into a well-off life at the same time with their own; some have regarded the Tibetan areas or counties having been supported as a special area of their own in the course of support. All these actions have reflected the brotherhood among members of the Chinese nation. The support for Tibet in the last 50 years are a splendid chapter in Chinese history with the great unity of all Chinese ethnic groups as its main theme; after the fourth National Conference on the development of Tibet, the third group of cadres for supporting the construction of Tibet have entered into Tibet in succession.