Tibet - Economy

Economy

The Tibetan economy is dominated by subsistence agriculture. Due to limited arable land, the primary occupation of the Tibetan Plateau is raising livestock, such as sheep, cattle, goats, camels, yaks, dzo, and horses. The main crops grown are barley, wheat, buckwheat, rye, potatoes, and assorted fruits and vegetables. Tibet is ranked the lowest among China’s 31 provinces on the Human Development Index according to UN Development Programme data. In recent years, due to increased interest in Tibetan Buddhism, tourism has become an increasingly important sector, and is actively promoted by the authorities. Tourism brings in the most income from the sale of handicrafts. These include Tibetan hats, jewelry (silver and gold), wooden items, clothing, quilts, fabrics, Tibetan rugs and carpets. The Central People's Government exempts Tibet from all taxation and provides 90% of Tibet's government expenditures.

The Qingzang railway linking the Tibet Autonomous Region to Qinghai Province was opened in 2006, but not without controversy.

In January 2007, the Chinese government issued a report outlining the discovery of a large mineral deposit under the Tibetan Plateau. The deposit has an estimated value of $128 billion and may double Chinese reserves of zinc, copper, and lead. The Chinese government sees this as a way to alleviate the nation's dependence on foreign mineral imports for its growing economy. However, critics worry that mining these vast resources will harm Tibet's fragile ecosystem and undermine Tibetan culture.

On January 15, 2009, China announced the construction of Tibet’s first expressway, a 37.9-kilometre stretch of controlled-access highway in southwestern Lhasa. The project will cost 1.55 billion yuan (US$227 million).

From January 18–20, 2010 a national conference on Tibet and areas inhabited by Tibetans in Sichuan, Yunnan, Gansu and Qinghai was held in China and a substantial plan to improve development of the areas was announced. The conference was attended by General secretary Hu Jintao, Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang and Zhou Yongkang, all members of CPC Politburo Standing Committee signaling the commitment of senior Chinese leaders to development of Tibet and ethnic Tibetan areas. The plan calls for improvement of rural Tibetan income to national standards by 2020 and free education for all rural Tibetan children. China has invested 310 billion yuan (about 45.6 billion U.S. dollars) in Tibet since 2001. "Tibet's GDP was expected to reach 43.7 billion yuan in 2009, up 170 percent from that in 2000 and posting an annual growth of 12.3 percent over the past nine years."