Tibet’s sustainable development: between opportunity and competitive advantage

　　Adrian Dobre (Romania)

　　Tibet or Xizang is generally associated, especially by those who aren’t familiar with the realities of the area, with backwardness, poverty and exclusion. However, the reality is very different: this "roof of the world" has gained unprecedented vigour and vitality through reforms and opening.

　　After 1990 the reforms have been accelerated. In early July 1992, Tibet has introduced a series of policies and regulations, including those designed to deepen the reforms and increase its openness, to encourage investment from abroad and from within and to accelerate the development of tertiary industry and also regional businesses. In mid-July, the Burang (Tibet) and Gongci (India) harbours started opening and closing at the same time. The Yamarong Border Trade Fair, suspended for 33 years, and other traditional border markets were restored. In August the same year, Tibet has announced 19 projects for attracting an investment of 4 billion Yuan. It also was established an office to attract investment from abroad and from within. After that, in 10 counties and harbours near the border were established economic development and trade oriented areas. In September, in Lhasa, economic and trade talks between Tibet and Nepal were initiated. With an unprecedented high efficiency, a fast tempo and a new attitude, the "roof of the world" made the world see it in a new light.

　　According to the Industry and Trade Bureau in Lhasa, in June-July 1990 over 500 new entrepreneurs were registered, almost 10% of sole and en-gross traders in town. A few shopping streets developed in central cities as Xigaze and Zetang. In Lhasa, the trade barriers imposed by authorities for Linguo Road, Beijing Road and Linzhu Road were cancelled.

　　At the same time, the governments, at all levels of representation, introduced preferential policies in Tibet; they set up special funds; they boosted market development and they moved their focus from previous traditional trade fairs to multi-layered and diverse markets. And this was the manner the real estate, capital and labour services markets appeared. The transactions on wood, grain and fruits markets have become more alert. More encouraging was that peasants and shepherds started entering the market. Even a special market was established in Lhasa for them to come for business.

　　All these things happened in a very short period of time and the growth rates have increased every year. The GDP was 2.535 billion Yuan in 1991, 3.27 billion Yuan in 1992 and 3.65 billion Yuan in 1993. Calculated at comparable prices, these figures were 3.7%, 7.1% and 8.1% respectively, higher than the previous year.

　　After 15 years of fast reform, opening and modernization, Tibet witnessed an intense economic and social development. Together with an improvement of the living standards, they led Tibet in its best period of development.

　　A worldwide desired concept is put in practice in Tibet Autonomous Region: the sustainable development

　　The universally accepted definition of sustainable development is meeting the needs of the present without compromising the needs of future generations.

　　The omnipresent question in Europe and around the world is – from where will growth come? Furthermore, we are aware that this economic growth is conditioned by the existing resources and the manner they are used. The economic development is the result of a macroeconomic dynamics which involves, besides economic growth, a set of quantitative, qualitative structural changes in the economy. The economic development implies economic growth.

　　The sustainable development combines economic growth, natural and human health preservation and improvement, social justice and democratic conditions in social life.

　　Sustainable development can be viewed from several perspectives: environmental, cultural and economic. So, how can be achieved these aspects of sustainable development?

　　Such lessons can be found in Tibet, where the government has put more than 40% of the land area under conservation management, with direct involvement of the local population. This preservation process was initiated in March 1989 by establishing Qomolangma (Everest) Nature Preserve (QNNP). The first major protected area in the world that relies on a local management. QNNP was recognized in 1999 by the United Nations as one of the most successful examples of sustainable development. In 2004 it was included in the UNESCO’s network Man and Biosphere (MAB).

　　The development of this project included objectives such as: increasing the endangered wildlife population; improving health, sanitation and education at the community level for the 318 protected-area villages by training volunteers workers, known as pendebas; developing a family owned hotels network that increases local income opportunities; establishing a well organized system for removing garbage from Everest base camp by using yaks and trucks, partly funded from entrance fees; supporting and restoring Paba and ChuWa temples and Rongbuk monastery.

　　All these were achieved due to a partnership between government agencies, local communities and external actors. The first management plan was developed with the support of all levels of government, the Chinese Academy of Sciences and the Academy of Social Sciences in Tibet.

　　A constant, stable and sustainable growth. How? Through sustained reforms

　　Tibet witnessed a steady development in 2011, the last year of the 11th Five-Year Plan. Tibet region's Gross Domestic Product for 2011 was estimated at 60.5 billion Yuan, an increase of 12.6% from last year.

　　Tibet also reported a GDP increase of 12% in 2013. This marks the 21st consecutive year of double-digit growth for the region, according to the Bureau of Regional Statistics. The Autonomous Region in southwest China has increased more than other regions whose GDP grew by 10.7% on average. Tibet’s growth exceeded also China's average growth of 4.4%.

　　The Qinghai-Tibet railway completed in 2006, linking the Tibetan capital, Lhasa, with the Qinghai Province in northern China, helped the economy. In 2005, 1.8 million tourists visited Tibet, there were almost 13 million in 2013. This sudden increase in the number of visitors after the construction of the railroad led to a nine fold revenue increase generated by tourism in Tibet, and also led to the development of two new railway plans. A railway connecting the two largest cities in Tibet will be completed during 2014 and the construction of a line linking Lhasa to Nyingchi, near the border with India, will begin shortly thereafter. Naturally, the growth in tourism has also led to the development of hotels, guesthouses, restaurants, breweries, of the entire province.

　　The Chinese government issued a White Paper of the Tibet Autonomous Region detailing its comprehensive development and fast progress in the last 60 years. "The development and progress of modern Tibet results from its social and historic created logic and has its roots in China's progress in a wider context," says the book, issued by the Information Office of the State Council, entitled "Development and Progress in Tibet".

　　The preface mentions that Tibet was a feudal serfdom society under theocratic rule, a society characterized by a combination of political and religious power, the general description of the region before 1950. The key steps in Tibet’s evolution were characterized by reforms, the creation of the autonomous region and its opening towards foreigners. Moreover, the Tibetan people have enjoyed the fruits of modern civilization.

　　The figures mentioned in the six chapters of the report shows that the per capita net income of farmers and shepherds in Tibet has maintained a double-digit growth for 10 consecutive years, reaching 5719 Yuan (944 U.S. dollars) in 2012. The revenue available per capita for urban residents in the region was 18028 Yuan.

　　Also, the gross regional product of the area has increased from 129 million Yuan in 1951 to 70.1 billion in 2011, marking an annual increase of 8.5% on average.

　　From 1952 to 2012, the central government has allocated financial grants of 454.34 billion Yuan in Tibet, attracting 96% of tax expenditures collected by local authorities.

　　Besides economic progress, the central government pays special attention to ensuring the protection of the Tibetan language and local religious activities.

　　By the end of 2012, 282 914 students were enrolled in primary school and 177 981 received bilingual education in secondary school -Tibetan as the primary language ¬representing 96.88% and 90.63% of the total.

　　"The profound and unprecedented changes that took place in Tibet in 60 years were therefore carried out by the establishment and evolution of political, economic, social and cultural systems of the nation as a whole", says the White Paper. According to the report, China gave a great importance to ecological construction, environmental protection and sustainable development in Tibet in recent years, planning to make Tibet a "protective screen for regional ecological security" by 2030.

　　The central government will invest nearly 20 billion Yuan ($2.9 billion) to build a protection program during the 11th Five-Year Plan (2006-2010), the report said. A number of environmental regulations were issued for construction projects in order to reduce the environmental damage, to charge fees for industrial waste discharge, to speed up forestation and protection of bio-diversity in the region.

　　As a result, Lhasa’s air quality, the regional capital of Tibet Autonomous Region, was considerably better than in other big cities in China, according to the report. In 2007, more than 98% of the days in Lhasa registered "excellent" or "good" air quality, just seven days registering "little pollution."

　　Wooded area in the region increased from 868 hectares in 1990 to19069 hectares in 2007, including 13 132 hectares of cover forest which plays an important role in ecological protection, the report said. In addition, the biodiversity has been well protected in Tibet, according to it. "Since the peaceful liberation of Tibet in 1951, no species has disappeared." Tibet also boasts itself with 20 natural reservations, including 9 at national and 11 at regional level, with a total area of 41.26 million hectares, or 34.8% of its land area.

　　The report says that Tibet relied on environmentally friendly industries, including tourism and Tibetan medicine and pharmacology, in order to ensure economic growth and sustainable development. Tourism accounted for 5.7 percent of the region's GDP in 2008, compared with 0.2% in 1990, and the medical and pharmaceutical industry output has also recorded a 1.6 times increase in 2000 -2008, the report said.

　　Tibet underlined the importance of hydropower exploitation and use while it explored and introduced other types of green energy. Although rich in mineral resources, the region strictly limited exploitation of mineral resources in order to protect them and the environment. The top priority in the initial period of Qinghai-Tibet railway construction was environmental and ecological security.

　　The report noted that over 90% of Tibet's financial revenue and over 70 percent of the amount of fixed assets came from central government financial transfers, as well as assistance from other provinces and cities. Such aid has alleviated resource consumption and environmental pressure caused by regional development, and plays an irreplaceable role in environmental protection and ecological improvement of Tibet.

　　"While pursuing rapid economic growth, Tibet has obtained remarkable achievements in protecting the environment, in striking contrast with the statement that "the ecological environment in Tibet was destroyed", said the report.

　　Analyzing the figures, achievements and projects we find that Tibet reveals itself as a good example of sustainable development, with a major potential for the future. It basically represents a model of resource, geographical conditions and economic relations efficiency which makes it a special place. Tibet is unique in its extensive process of economic development; its sustainable growth path is an example for other states. Tibet has done all these through fast strides and a natural effort, supported by policy reforms and performance.

　　Tibet has greatly advanced and reached a level of performance through rapid structural changes. The challenge remains between taking full advantage of this opportunity and turning it into a competitive advantage. Signs show this will be the way forward and there are done consistent and sustained efforts.

　　Investing in development – the strategy for the future

　　Currently there are made steps to improve the living environment of Tibetan villages. So in 2012, local authorities in the Tibet Autonomous Region had allocated 1.1 billion Yuan to improve the living environment of the 1000 administrative villages in the area. There will be constructed 18 drinking water supply networks for solving water security for the 300 000 inhabitants in Tibet, the electricity problem will also be solved for 25 000 peasants and shepherds families, new roads with a total length of 4,000 kilometres will be built, the phone users rate will exceed 90% and 90% of Tibetan villages will have access to mail.

　　Another achievement due to development investments are the 1.3 million people brought out of poverty in Tibet, in a period of ten years. Eradicating poverty in Tibet Autonomous Region has good results, thanks to the central government and other cities’ support in recent years. The poor people number with annual incomes below 200 U.S. dollars decreased from 1.48 million in 2001 to 168 000 at the end of 2010.

　　There are also 1.7 billion Yuan investments for protecting the cultural heritage in Tibet. The authorities will invest in this five-year plan 1.7 billion Yuan for preserving Tibet’s cultural heritage. This investment is unprecedented, and the money allocated will be used to repair, preserve and protect important cultural objectives in Tibet.

　　Over two hundred thousand acres of land will be afforested in Tibet so it will have in the current five-year cycle another 270 000 hectares of woodland. The regional Tibetan authorities say forest coverage will reach, by 2015, 12.11%, the annual output of forestry sector exceeding two billion Yuan, and the annual income brought to residents will be one billion Yuan.

　　Further there are assurances from officials that they will work hard to develop an open economy and to promote regional trade and economic cooperation at various levels and by various means, particularly with the countries of South Asia.

　　To achieve sustainable and balanced development of the autonomous region, Tibet must continue to make progress in terms of economic and social development, accelerating infrastructure construction.

　　Globally, the emerging trend is based on a dialogue focused on the convergence of sustainable development and post-2015 development agenda, in one direction, towards a sustainable and inclusive future.

　　We are told we have entered a new phase of history. The world is in a key moment when the challenges of economic development, social inclusion and environmental sustainability must be approached holistically, or else the world will be under a tremendous risk of social instability and natural disasters.

　　A series of policies oriented towards this paradigm were initiated in Tibet. Its growth rate has far exceeded those of other countries, even emerging economies. We also must recognize that the Tibetan area has much recovered, and certainly it has the potential and ability to keep developing a sustainable way that provides economic and social opportunities.

　　Bibliography

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　　Hu Jintao , Report presented at the XVII Congress of the Chinese Communist Party, 15 October 2007.

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　　（Adrian Dobre，secretary general of Social Democratic Institute of Romania）