Published by: World Tibet Network News, Tuesday, July 9th 1996

Source: Tibet TV, Lhasa, in Standard Chinese 1200 gmt 23 Jun 96

Although Tibet has made many economic advances, the disparities between it and "the hinterland" remain wide, according to experts interviewed for a TV programme. The main problems are low quality of goods, poor productivity and being closed off from the world. The regional government's economic projects should remedy this situation. Following are excerpts from a Tibet TV report by Ni Song entitled: " May I ask about the direction? - the gap between Tibet and the hinterland," including interviews with five economic scholars and officials in Tibet; from the "Weekly Report" programme:

[Video opens with programme host Ni Song addressing the viewers in the studio, cuts to show the experts and officials interviewed by Ni Song in a different room and at an unidentified time; video occasionally shows scenes of people working in various localities while the guests continue talking]

[Ni] Tibet has accomplished tremendous achievements in reform, opening up, economic construction and various social undertakings over the past years. The major economic and social development targets set for the Eighth Five-Year Plan have been basically fulfilled or surpassed. The economic growth rate in 1995 reached 10.6 per cent, higher than that of the whole country. In terms of the compound average in 1990, the per capita average net income of peasants and herders was 878 yuan, whereas the average wage of staff and workers stood at 7,382 yuan, and per capita living expenditure income of urban residents reached 4,000 yuan. Throughout Tibet, the situation is stable, the economy is being developed, nationalities have united with each other, frontier areas are stable and people are living and working in peace and contentment. However, we should not ignore that there is still a gap between Tibet and the hinterland.

[Yu Yungui, vice-president of the regional academy of social sciences] The economic development gap between Tibet and the hinterland is mainly seen in the following four aspects: 1. The gap in the level of economic development, including some per capita indices, such as per capita income, is rather wide. 2. The gap in the economic growth rate: Statistics show that Tibet's economic growth rate is behind that of the hinterland by 2-6 percentage points in recent years. 3. The gap in the quality of development: No matter whether it is in agriculture or industry, the quality of our enterprise development is not high. It is a kind of extensive-style development - although the economic indices have increased, the economic returns are not high. 4. The gap in economic structure, particularly in industrial structure: In the hinterland, the primary and tertiary industries have smaller proportions in the economy, whereas the secondary industry has a bigger proportion. In Tibet, however, the proportion of primary industr

y to the economy is too large, and that of the secondary is too small.

[Xiao Chuanjiang, assistant researcher of the regional academy of social sciences] From the economic development perspective, development not only means economic growth, but also rational transformation in economic structure; it is also related to the change in social attitude and practice that obstructs economic progress. From this point of view, we should approach the gap between Tibet and the hinterland in economic development from the gaps in: 1. economic growth; 2. upgrading the economic structure; and, 3. the quality of labourers. I would like to simply talk about the gap in the quantity and quality of economic growth. Tibet's annual gross national product [GNP] growth rates during the Seventh and Eighth Five-Year Plan periods were 5.6 and 3.4 percentage points lower than those of the whole country, respectively. In terms of quantity, the gap has narrowed by 2.1 [as heard] percentage points. If we compare the total factor productivities [Chinese: quan yao su sheng chan lu; probable STCs: 0356 6008 4790

3932 3934 3764], a universal standard for measurement, Tibet's total factor productivity was merely 0.3 per cent during the Seventh Five-Year Plan period, about 1.4 percentage points lower than the national level. During the Eighth Five-Year Plan period, Tibet's total factor productivity dropped to -0.1 per cent, 4.2 percentage points lower than the national level. In terms of economic quality, Tibet's gap with the hinterland has widened. In terms of quantity, the economic gap has narrowed.

[Ni] As one of Tibet's five mainstay industries, the handicraft textile and other light industries are also currently facing a lot of difficulties.

[Luosang Nima, deputy director of the regional bureau of handicraft textile and other light industries] Compared with what we had 30 years ago, handicraft textile and other light industries have indeed developed and been strengthened. Compared with that of the whole country, however, ours is still rather backward. At present, the labour productivity of the Tibet's textile and other light industries is only half the national average, whereas the profit and tax rates for every 100 yuan of output value is 45 per cent. This makes Tibet the No 1 backwater in the country. The main problems are: 1. the scale of enterprises is small; 2. technology and products are outdated in enterprises; 3. enterprises suffer from poor skills, weak foundation and a lack of capital; and, 4. skilled personnel are scarce and quality is poor in enterprises.

[Ni] Reviewing and summarizing the brilliant achievements during the Eighth Five-Year Plan period at the fourth session of the Sixth Tibet Autonomous Regional People's Congress, Gyalcan Norbu, chairman of the autonomous regional people's government, noted: Although we have accomplished certain achievements in the past five years, there are still many difficulties and problems that cannot be ignored and there are shortcomings in the government's work: 1. Some deep-seated contradictions in economic operation are still not solved and the extensive mode of economic growth still restricts the optimization of economic structure and the improvement of economic efficiency. 2. We are weak in overall economic strength and macroeconomic regulation and control. Some necessary systems on capital are still not established and we still need to exert great efforts to control commodity price increases. 3. The weak foundation for agriculture and animal husbandry has not been reversed. Tibet has a unitary economic structure in

agriculture and animal husbandry and the incomes of peasants and herders grow slowly. The antipoverty task is still rather arduous. 4. The overall quality of state-owned enterprises is low and their competitiveness in the market is fairly weak. Some enterprises are in difficulties. 5. The Dalai clique's splittist activities have seriously obstructed the smooth progress of reform, opening up and economic construction. 6. Bureaucratism and formalism exist to different extents in government work; hence the work is not done thoroughly or in a down-to-earth manner. It can be said that we are facing opportunity as well as challenge and there is hope as well as difficulties. [Video shows footage of Gyalcan Norbu addressing the aforementioned session and scenes of people working in various environments]

[Ni] What are the major causes of the gap?

[Yu Yungui] I think there are many causes in various aspects - economic, historical, natural, social and others. To sum up, the main cause lies in the state of being closed off, which also leads to a closing-up in our thinking, concept and even economy. Because of the state of being closed off, we conducted fewer contacts with the outside world and are eventually promoting construction within a closed environment. This has contributed to the widening gap.

[Xiao Chuanjiang] The economic causes include, first of all, our economic growth mode, which is still typically extensive. In other words, our efficiency is very low...

[Ni] How can we narrow the gap between Tibet and the hinterland?

[Wang Qingshan, director of the economy institute under the regional academy of social sciences] To narrow this gap, first of all, we should rely on the hard struggle of all people in Tibet, then the help of the state. Both factors are indispensable.

[Yu Yungui] Generally speaking, I think we should reform, open up to the outside world and implement a correct strategy for economic development. All things unsuitable to the development of productive forces, including some outmoded regulations and irrational practices, production relations and other aspects, must be reformed. In opening up, we should open up our economy and society further and channel technology, personnel and capital into Tibet so as to work our economic development into the general economic cycle of the country and even the world. To implement a correct strategy for economic development, we should have an appropriate growth rate on the one hand, because without such a rate, we cannot narrow the gap; on the other hand, we must pay attention to the quality of economic development. Therefore, the shift of economic growth mode proposed by the central authorities is very important to Tibet. One more thing, I think we should promote unbalanced development. That means some key trades should be d

eveloped into mainstay industries and become the main force for economic growth; in the meantime, areas with the advantage of resources, such as Nyingchi Prefecture and Lhasa city, should be developed prior to other localities. In addition, key industries should have an appropriate scale of operation.

[Ni] To enhance Tibet's economic strength and promote the establishment of a modern enterprise system in Tibet, the autonomous regional people's government released the programme for implementing the Double 100 Plan and 510 Project, respectively proposed by the regional commission for restructuring economy and the regional economy planning commission in 1995 and 1996.

[Dawa Cireng, director of the enterprise management department under the regional commission for restructuring economy] The Double 100 Plan is proceeding smoothly in Tibet. Trades in all localities have reached the document examination stage, and the deadline is 20th June . Some departments have sorted out their materials. This overall survey of enterprises is aimed at establishing a computerized database for giving suitable guidance to enterprises in various trades. In a word, the Double 100 Plan is going well so far.

The launch of the 510 Project is an important move to revitalize economic development in Tibet, as well as an important guarantee for creating a new point for economic growth and speeding up the shift of two fundamental shifts. Therefore, we should rely on available resources, target demand and efficiency, and take market economy as the orientation on the basis of what we have achieved. Of the 30 projects, including 10 key technological transformation projects, development of 10 new products and 10 competitive products, 15 have been approved. This includes nine projects for technological transformation and six for developing new products, with a total investment of 96.74m yuan.

[Ni] On 15th June, `Xizang Ribao' carried a commentator's article that noted: To narrow the gap with the hinterland and march towards a fairly comfortable life along with the whole country, Tibet's growth rate must exceed the country's annual average level. However, this rate should be one that guarantees quality and efficiency.

If we merely pursue speed and follow the operational track of the old system in developing an extensive mode of economy with high investment, even we do achieve the desired rate, our gap with the whole country could only become wider. The key to solving this contradiction lies in emancipating the minds and conscientiously achieving the two fundamental shifts - the shift of the economic system from the traditional planned economy to a socialist market economy and the shift of economic growth mode from extensive to intensive.

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