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DOI: 10.1177/0920203X0101500202
China Information 2001; 15; 20
Barry Sautman and Irene Eng
Tibet: Development for Whom?
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20
TIBET:
DEVELOPMENT FOR WHOM?
BARRY SAUTMAN AND IRENE ENG*
Barry Sautman is a political scientist and lawyer in the Division of Social Science, Hong Kong University of Science & Technology, Kowloon, Hong Kong, China. Irene Eng, formerly associated with the Division, is an economic geographer and writer.The Tibetan 6migr6 administration headquartered in Dharamsala (India) and Chinese leaders have fiercely debated the question of who benefits from development in Tibet. While some officials on both sides may have more nuanced views, the &dquo;govemment-in-exile&dquo; represents Tibetans as exploited colonial subjects,’ while the PRC portrays them as content recipients of modernization.’ The 6migr6 administration and most of its Western supporters find no strengths to offset the weaknesses of the development process in Tibet. They appraise its benefits in terms of a binary of &dquo;the Tibetans&dquo; and &dquo;the Chinese&dquo; and contend that Tibetans are mired in poverty that would not exist in a free Tibet, because development solely serves state interests: roads are built only to facilitate military deployment and extract Tibet’s resources; schools exist only to inculcate loyalty to China. The Tibetan Youth Congress, the main pro-independence emigre organization, has written that &dquo;the main beneficiaries of Tibet’s invigorated economy are Chinese settlers and China’s central government exchequer.&dquo;3 Some 6migr6s also argue, however, that lack of development, such as the scarcity of schools, is a PRC policy to eradicate Tibetan identity.4 Development allegedly
includes population transfer that is causing Tibetans to disappear in a sea of Han Chinese and is displacing them from traditional occupations and &dquo;cultural genocide&dquo; that forces Tibetans to eschew their customs and spirituality for materialistic Chinese lifestyles and mindsets.6 A former US Special Coordinator
1 Tibet Government in Exile (hereafter TGIE), China’s Tibet: The World’s Largest Remaining Colony, http://www.tibet.com/humanrights/Unpo/index. 1998
2Tibet Information Network (hereafter TIN), A Turning Point in Tibet’s History: The 17-Point Agreement (London: TIN Special Report 313, 2001).
3 Tibetan Youth Congress (hereafter TYC), Development for Whom? A Report on the Chinese Development Strategies in Tibet and Their Impacts (Dharamsala: TYC, 1995), 9.
4 "Culture Clash over Teaching Tibet," Christian Science Monitor, 24 September 1999, 8.
5 Tibet Support Group UK (hereafter TSG), New Majority: Chinese Population Transfer
into Tibet (London: Tibet Support Group UK, 1995).
6 Lodi Gyari, "Statement of Lodi Gyari, Special Envoy of His Holiness the Dalai Lama, Washington, D.C.," in U.S. and Chinese Policies toward Occupied Tibet, ed. Senate Foreign Relations Committee (hereafter SFRC) (1992), 102-969, 24-25; Yeshi Choedon, "China’s National Minorities Policy with Special Reference to Tibet," in Ethnicity and Politics in Central Asia, ed. K. Warikoo and Dawa Norbu (New Delhi: South Asian Downloaded from http://cin.sagepub.com at HKUST Library on November 10, 2008
21
for Tibet and the current US Secretary of State have charged that migration and
development threaten traditional Tibetan culture and that only the Han in Tibet
are allowed to participate in development.’ 7
PRC officials concede that in Tibet &dquo;the economy is backward, the
starting point is low, the foundation is weak, and the task of modernization is
extremely heavy,&dquo; but argue that &dquo;historical and geographic reasons&dquo;-a remote
location, difficult terrain and climate, and cultural &dquo;backwardness&dquo; explain most
of Tibet’s problems. They hold that Tibetans in general benefit from state-led
development and attribute Tibet GDP growth rates that now exceed PRC averages
to state subsidization of Tibet’s budget and aid from other localities. Officials
are adamant that most Han are in Tibet temporarily and provide services
that would otherwise not be avallable.8
While there is no consensus on what constitutes development, it is
conventionally defined for developing countries as a process of economic and
social betterment.9 Alternative conceptions do exist, especially for Tibetan
societies,’° but both 6migr6 and PRC leaders understand development conventionally,
as industrialization, increased purchasing power, etc. We argue that
development in Tibet accords with neither the dystopian emigre vision nor the
PRC’s undifferentiating claims of progress. The notion that development in
Tibet overwhelmingly benefits the state or the Han is challenged, but not to
advance the non-testable proposition that Chinese rule has been good for
Tibetans, compared to how well-off Tibetans might be were they not within
China. We instead contend that an extreme form of &dquo;urban bias&dquo; skews development
in Tibet, stratifying society across the ethnic divide and disparately benefiting
the Han population mainly because it is urban. There are no available
Publishers, 1992), 187-203; Dalai Lama, "I Am Optimistic, the Dalai Lama Speaks
(sic)," Tibetan Bulletin 2, No. 1 (January-February 1998): 30-32.
SFRC, Hearing on "Recent Developments in Tibet," 13 June 2000, Federal News
Service; "Senate Foreign Relations Committee Questions Secretary of State Designee
Colin Powell," Cable News Network, 17 January 2001.
8 "Chance of Western Development Not to Be Missed," Renmin ribao (hereafter RMRB),
27 March 2000, British Broadcasting Corporation, Summary of World Broadcasts (hereafter
BBC/SWB) 17 April 2000; "Tibet Officials Assess Regional Three Stresses
Programme," Xizang ribao (hereafter XZRB), 27 July 1999, in BBC/SWB, 3 September
1999; Yang Chuantang, "Tibet’s Today and Tomorrow: Interview with Tibet Autonomous
Region Vice-Chairman Yang Chuantang," Beijing Review (hereafter BR), 27 July
1998, 11-14; Zhong Xuan, "Survey Reveals Better Life in Tibet," BR, 2 September 1996,
12-15.
9 Kofi Hadjor, Dictionary of Third World Terms (London: I. B. Tauris, 1992), 100; Brian
Welsh and Pavel Butorin, Dictionary of Development: Third World Economy, Environment,
Society, Vol. A-1 (New York: Garland Publishing, 1990), 310.
’° Ted Trainer, "What Does Development Mean? A Rejection of the Unidimensional
Conception," International Journal of Sociology & Social Policy 20, nos. 5-6 (2000):
95-113.
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22
statistics on ethnic income disparities in Tibet; indeed, no income questions were
asked for the 2000 census anywhere in China. Based on our own observations in
Tibet and on the pattern of relative degrees of inter-urban and urban-rural disparities
found throughout China, we deem it likely that the differences between
urban Han and urban Tibetans are substantially less than the difference between
urban and rural Tibetans, let alone the difference between the whole urban population
and the whole rural population.
We assess development in Tibet’s agriculture, industry, infrastructure
and services and find that Tibet has moved from quasi-stagnation before 1959 to
a plateau of rapid dependent growth today, while great obstacles to development
remain. State statistics, as well as observations from five research trips to Tibet
from 1995-2000, are used because they are perforce the only statistics available
for Tibet as a region, the unit of analysis of the discourse of Tibet. China’s state
statistical system is problematic, but we note with Rawski the international acceptance
of official Chinese data and that China at the outset of the reform
period had a system of &dquo;reasonably accurate quantitative information.&dquo; &dquo; Tibet’s
economy still resembles that of the China at the outset of the reform: in 1999,
91.1 % of staff and workers in the Tibet Autonomous Region (TAR) were employed
by state-owned enterprises (SOEs) (93.7% in 1978) and 6.2% worked in
urban collective-owned units (6.3% in 1978).’2
We have seen no evidence that official data is more inaccurate with
regard to Tibet than other parts of China or the country as a whole. TAR statistics
can mislead in ways that statistics do elsewhere: for example the claim that
there were 480,000 TAR poor in 1994 and 70,000 in 2001 is otiose because the
standard for poverty-a per capita income of less than Y600 per year among
peasants or Y700 among herders-has been employed since 1990 without adjustment
for inflation.&dquo; A comparable sleight of hand takes place, incidentally,
with the US &dquo;poverty line,&dquo; which is based on a multiplier of a family’s food
budget of less than $4 a person per day and does not take into account the costs
of housing, child care or transportation.’4
The argument that PRC statistics on Tibet are fabrications is however
another matter. It is usually based on the incredibility of a supposed PRC claim
that only 100,000 non-Tibetans live in the TAR. The PRC has in fact stated that
at the 2000 census, non-Tibetans were 7.8% of a TAR population of 2.61
million; of the 205,200 TAR non-Tibetans, 155,300 were Han. Only non-
11 Thomas Rawski, "China by the Numbers: How Reform Has Affected China’s Economic
Statistics," China Perspectives, no. 33 (2001): 25-34.
1 2 Xizang tongji nianjian 2000 (Tibet statistical yearbook 2000; hereafter XZTJNJ) (Beijing
: Zhongguo tongji chubanshe, 2000), 46.
1 3 "Despite Progress, Illiteracy Not Written off," South China Morning Post (hereafter
SCMP), 16 August 2001, 8.
1 4 Laura Russell and Jean Bacon, The Self-Sufficiency Standard: Where Massachusetts
Families Stand (Boston: Women’s Educational & Industrial Union, 2000).
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23
Tibetans who had resided in the TAR for six months or more were counted in
this number. 15 This practice accords with the international de jure approach to
censuses, which requires that people must have a residential minimum in a given
area to be counted as &dquo;belonging&dquo; to it.’6In the Hong Kong 2001 census, for
example, residents were those who had already lived there for the last three
months or more and intended to live there for the next six months or more.
Soldiers in Tibet, as elsewhere in China, were also excluded from provincial
counts, not illogically given the US experience of serious overcounts of military
personnel included in state-level statistics.&dquo;
Many Tibet-related official statistics do not in fact flatter the Chinese
state; e.g. the acknowledgement that rural Tibetans’ income is only half that of
PRC peasants as a whole. The statistics most subject to the &dquo;wind of falsification
and embellishment&dquo; (jiabao fukuafeng) in China proper-industrial output of
township and village enterprises (TVEs) and tax collection-are less relevant to
Tibet than to other areas. Tibet has proportionately fewer such enterprises than
other parts of China&dquo; and, in contrast to China proper, virtually no direct taxes
are collected in rural Tibet.’9 According to Tibetan cadres we have interviewed,
officials in Tibet, as in the rest of China, often report higher production achievements
in order to show their own merit, but an over-reporting of as much as ten
percent would be considered unusual enough to be noted, an inflation of reality
not at all out of the ordinary in China as a whole. 20
We examine the differential impact of growth on ethnic groups and the
urban/rural gap, with a focus on the new urban Tibetan middle class, whose
prosperity journalists have colorfully described2’ and whom one of us has
studied through interviews, surveys and other methods in a related research project.
We find that development has not been as encompassing as the PRC claims.
A rising tide of development has lifted most boats, but unevenly: urban people
benefit much more than the rural majority and peasant opportunities are circumscribed
not only by geography, but also by competition from non-Tibetans for
1 5 Xinhua, 30 March 2001; "Chinese Officials Prepare 2000 Census of World’s Most
Populous Nation," Agence France Presse, 13 October 2000.
1 6 John Week, Population: An Introduction to Concepts and Issues, 6th ed. (Belmont:
Wadsworth Publishing, 1996), 18.
1 7 Mary Kent, "First Glimpses from the 2000 Census," Population Bulletin 56, no. 2
(2001): 3-39.
1 8 "New Party Secretary Orders Cadres to Fight Separatism," XZRB, 18 October 2000, 1,
in BBC/SWB, 27 October 2000; Xinhua, 23 July 2001.
1 9 "Officials Prey on China’s Peasants," Baltimore Sun, 12 February 2001, 1; Xinhua, 5
March 1999; "Tibetan Official on Tax Reform," XZRB, 7 February 1994, 3, in
BBC/SWB, 7 March 1994.
2 0 Interviews with Tibetan cadres, 2001.
2 1 Elisabeth Grinspoon, "Chinese Are Reweaving the Region’s Social Fabric," Los
Angeles Times, 14 June 1994, 6; "High Stakes," Far Eastern Economic Review, 22 June
1995, 76-78; "In Tibet a Struggle for the Soul," Washington Post, 16 July 1999, 1.
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24
urban employment. Development is not however the ethnically exclusive extirpator
of all things Tibetan that elegiac 6migr6 polemics claim. Tibetans have
benefited from industrialization, a steady rise in education levels, and improvements
in health, communications and transportation. We concur with Erickson, a
Tibet independence advocate who nevertheless acknowledges that Tibet’s main
social divide is urban/rural and that its society
is not an apartheid of wealthy Chinese set above the masses of Tibetans.
Nor is it as stratified as the old system. Today it has a large
middle class, and the material lives of most have improved since [the]
market reforms. 22
Development has recast stratification in Tibet and benefits most those who,
regardless of their ethnicity, access state resources transferred to the region,
mainly urban cadres, better-off businesspeople and the intelligentsia. Such
people, directly or indirectly, chi huang liang (eat the Emperor’s grain). In
Tibet’s cities, for example, some three-fourths of the &dquo;permanent&dquo; population,
whether Tibetan or non-Tibetan, are on the state payroll . 21 Other inhabitants of
Tibet, including urban plebeians of all ethnic groups, but especially peasants and
nomads, benefit much less. That development is neither for &dquo;the Chinese&dquo; nor
for &dquo;the Tibetans&dquo; confounds confident predictions that it will ameliorate conflict
in Tibet, as the PRC maintains, or aggravate it, as the emigres expect.
The Urban Bias Thesis in PRC Perspective
Urban bias concepts date back to the classical political economists, Adam Smith,
David Ricardo, and Karl Marx.24 The latter stated in 1867:
The foundation of every division of labor that is well developed and
brought about by the exchange of commodities is the separation
between town and country. It may be said that the whole economic
history of society is summed up in the movement of this antithesis.
The concept enjoyed a recrudescence from the 1960s until structural adjustment
began in developing countries in the mid-1980s. Lipton, theorizing urban bias
from an interest group perspective, described it as unbalanced or distorted development
that creates an opposition of interests between &dquo;urban classes&dquo; and &dquo;rural
2 2 Barbara Erickson, Tibet: Abode of the Gods, Pearl of the Motherland (Berkeley:
Pacific View Press, 1997), 52.
2 3 Interviews with Tibetan cadres, 2001.
2 4 Mick Moore, "Political Economy and the Rural-Urban Divide: 1767-1981," Journal
of Development Studies 20, No. 3 (1984): 5-27.
2 5 Karl Marx, Capital. Vol. 1 (London: Lawrence & Wishart, 1965 (1867)), 352.
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25
classes.&dquo;26 Viewing it as &dquo;defined upon outcomes, not causes or processes&dquo; and
only as to some outcomes and circumstances,27 he nevertheless described a
process and implied causes of urban bias. An urban coalition of employers,
bureaucrats and other elites, as well as formal sector labor, influences policy
against agriculture through protectionism and import substitution that raise the
cost of inputs into rural production above what would prevail at international
prices. Rural elites secure their aims by joining with urban power-groups. Urbanrural
price distortions produce greater increases in the prices of manufactured
goods than of agricultural goods. The coalition also pressures the state to underallocate
infrastructure and social welfare to rural areas in order to invest resources
in urban areas without recovering costs from the beneficiaries. The state
compounds bias by &dquo;augmenting public employment and public directly productive
investment in cities to a degree not justified by any conceivable efficiency
criteria.’,28 This draws migrants to the possibility of stable urban employment.
Rural-to-urban migration produces an urban informal sector whose
members are shut out of most benefits of urban bias garnered by the formal
sector, a dichotomy more rigid in China than elsewhere. 21 In some countries,
including China, the state has used direct price controls to hold down agricultural
prices in order to promote industry and reduce urban costs of living. In China,
the rapid development and maintenance of capital-intensive, loss-making heavy
industry, controlled rural-to-urban migration, coerced grain production, unequal
exchange of agricultural and industrial products at state-imposed prices, excessive
rural taxes and a privileging of urban residents in pensions, food subsidies,
housing, educational and health benefits have all been present. 30 There
was however a period of &dquo;rural bias&dquo; in the Cultural Revolution decade (1966--
2 6 Michael Lipton, Why Poor People Stay Poor: Urban Bias in World Development
(London: Temple Smith, 1977), 13; Michael Lipton, "Urban Bias Revisited," Journal of
Development Studies 20 (1984): 139-66. See also Robert Bates, "Governments and
Agricultural Markets in Africa," in Toward a Political Economy of Development, ed.
Robert Bates (Berkeley: University of California, 1988), 331-58. 2 7 Michael Lipton, "Urban Bias: Of Consequences, Classes and Causality," in Beyond
Urban Bias, ed. Ashutosh Varshney (London: Frank Cass, 1993), 229-57.
2 8 Charles Becker, Beyond Urban Bias in Africa: Urbanization in an Era of Structural
Adjustment (Portsmouth: Heinemann, 1994), 94.
2 9 Dorothy Solinger, Contesting Citizenship in Urban China: Peasant Migrants, the State,
and the Logic of the Market (Berkeley: University of California, 1999). 3 0 Peter Nolan and Gordon White, "Urban Bias, Rural Bias, or State Bias?: Urban-Rural
Relations in Post-Revolutionary China," Journal of Development Studies 20, no. 3
(1984): 52-81; Chang, Kyung-Sup, "The Confucian Family instead of the Welfare State?:
Reform and Peasant Welfare in Post-Mao China," Asian Perspective 17, no. 1 (1993):
169-200; Chang Kyung-Sup, "Chinese Urbanization and Development Before and After
Economic Reform: A Comparative Reappraisal," World Development 22, no. 4 (1994):
601-13.
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26
1976), in the form of a diversion of health and educational resources from town
to countryside.31 The contribution of agriculture to accumulation in non-farm
sectors in the Mao era also ended up being negative because of eventual state
subsidization of agricultural inputs and declining labor productivity.32 Controls
over migration and grain production have eased in the post-Mao era, but excessive
taxation now fuels widespread peasant protest.33
Economists have calculated that urban bias in the whole developing
world has resulted in an implicit tax of 22% on agriculture, a price suppression
effect of 8% and a transfer of resources of 46% from agriculture to other
sectors.34 There has also been a decline since the 1970s in agriculture’s share of
developing country (including PRC) central government expenditures. Lipton
argues that urban bias is inefficient because the investment-to-output ratio is
greater in non-agriculture than in agriculture. He also contends that it is not a requisite
of development, as developing states of the eighteenth and nineteenth
centuries in Europe, North America and Japan showed little of it. Other scholars
aver that urban bias is generic to most industrial revolutions.35 The persistence of
sharp urban bias to the very end of the Soviet Union36 lends weight to the contention
that it is mainly a matter of political choice by state elites, 37 a choice that
reflects the process that determines the distribution of political influence. Policy
decisions reflect the differential power or influence of social groups. The mainly
urban groups that benefit from the development strategy chosen thus must be
strong enough to dominate the mainly rural groups who lose out. 3S
3 1 Nolan and White, "Urban-Rural Relations," 76; Han Dongping, The Unknown Cultural
Revolution: Educational Reforms and Their Impact on China’s Rural Development
(New York: Garland Press, 2000).
3 2 Massoud Karshenas, "Dynamic Economies and the Critique of Urban Bias," Journal
of Peasant Studies 24, no. 4 (1997): 60-102.
3 3 Thomas Bernstein and Lu Xiaobo, "Taxation without Representation: Peasants, the
Central and the Local States in Reform China," China Quarterly, no. 163 (2000): 742-63.
3 4 Maurice Schiff and Alberto Valdes, The Political Economy of Agicultural Pricing
Policy, Vol. 4 (Baltimore: Johns Hopkins University Press/World Bank, 1992); Cedric
Pugh, "’Urban Bias,’ the Political Economy of Development and Urban Policies for
Developing Countries," Urban Studies 33, no. 7 (1996): 1045-60.
3 5 Development Planning Unit, The World Bank, Urban Bias and Structural Adjustment,
Working Paper No. 67, University College, London, 1994, 17.
3 6 Stephen Wegren, "The Social Contract Reconsidered: Peasant-State Relations in the
USSR," Soviet Geography 32, no. 10 (1991): 653-82.
3 7 Michael Lipton, "Urban Bias", 229-57; Anne Krueger, The Political Economy of Agricultural
Pricing Policies. Vol. 5 (Baltimore: Johns Hopkins University Press, 1992).
3 8 Karl Pedersen, On the Political Economy and Urban Bias in Third World Development,
Discussion Paper 9/93, Norwegian School of Economics and Business Administration,
Bergen, 1993.
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27
The urban bias thesis is not without its critics.39 Byres has skewered it
for ignoring rural social differentiation in non-Communist developing countries 40
and, while urban bias is politically negotiable, it has economic as well as political
determinants. 41 Contrary to Lipton’s assertion moreover, international factors
do impact urban bias, with strong relationships among urban bias, dependence,
and economic stagnation in non-core countries.42
The urban bias theory applies, mutatis mutandis, to China. Researchers
have shown the ubiquity of urban bias in China, through price differentiation of
rural produce and agricultural production inputs, taxes on peasants that far
exceed state investment in agriculture, and, most importantly, state financial
transfer programs in favor of the urban sector.
43 In 1986-1992, the share of state
budgets devoted to investments in urban SOEs ranged from 52-62% and in 1998
it was 54%; the share of investments in rural areas during the same period was
less than 10% of the budgets, despite rural people accounting for 73-76% of the
population. In 1998, agriculture’s share of capital construction expenditures was
3 9 Dudley Seer, Urban Bias: Seer versus Lipton, Discussion Paper 116, Institute of
Development Studies, University of Sussex, 1977; Ronald Herring and Rex Edwards,
"Guaranteeing Employment of the Rural Poor: Social Functions and Class Interests in
the Employment Guarantee Scheme in Western India," World Development 11 (1983):
575-92.
4 0 T. J. Byres, "Agrarian Transition and the Agrarian Question," Journal of Peasant
Studies 4, no. 3 (1977); T. J. Byres, "Of Neo-Populist Pipe-Dreams: Daedalus in the
Third World and the Myth of Urban Bias," Journal of Peasant Studies 6, no. 2 (1979):
210-44.
4 1 Ana-Maria Wahl, "Positional Power, Party Politics and Social Security in Mexico: Is
Urban Bias Politically Negotiable?" International Journal of Sociology and Social
Policy 18, nos. 2-4 (1998): 103-56; Gene Gruver and Lester Zeager, "Economic
Incentives for an Urban Bias in Development Policies," Bulletin of Economic Research
42, no. 1 (1990): 55-62.
4 2 Bruce London and David Smith, "Urban Bias, Dependence, and Economic Stagnation
in Non-Core Nations," American Sociological Review 53 (1998): 454-63.
4 3 Tian Qunjian, "China’s New Urban-Rural Divide and Pitfalls for the Chinese Economy,"
Canadian Journal of Development 22, no. 1 (2001): 165-190; Li Zuojun, Zhongguo
de genben wenti: jiu yi nongmin he chu qu (China’s basic problem: where can 900
million peasants go) (Beijing: Zhongguo fazhan chubanshe, 2000), 34-36; Dennis Tao
Yang, "Urban-Biased Policies and Rising Income Inequality in China," American Economic
Review 89, no. 2 (2000): 306-10; Dennis Tao Yang, and Zhou Hao, "Rural-Urban
Disparity and Sectoral Labor Allocations in China," Journal of Development Studies 35,
no. 3 (1999): 105-33; Cheng Xiaonong, "Dangdai Zhongguo jingji zhuangkuang, wenti
yu qushi," in Zhongguo qiantu yu liang’an guanxi (China’s future and cross-Straits
relations), ed. Chen Yizi (Taipei: Fengyun luntan chubanshe, 1997), 65; Yang Yiyong,
Gongping yu xiaolü: dangdai Zhongguo de shouru fenpai shouru (Equity and efficiency:
contemporary China’s income and distribution) (Beijing: Jinri Zhongguo chubanshe,
1997), 99.
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28
only 1.9%. State loans favor urban enterprises; short-term loans to agriculture
and rural TVEs were only 16% of the total. 44
Even without considering non-income benefits that accrue to urban, but
not rural people, urban bias in China is severe and growing. Rural net income
(chun shouru) was 31% of urban subsistence income (shenghuofei shouru) in
1957, 42% in 1978 and 58% in 1985, but 49% in 1990, 39% in 1993 and some
35% in 2000.45 Put another way, the ratio of urban-to-rural net income, which
was 3.13:1 in 1980, dropped to 2.34:1 in 1985, but rose to 3.34:1 by 1995.46 In
1979, urban residents had 74% of individual savings in China, while rural
residents had 26% in 1985; the figures were 79.1 % and 20.9% in 1995.47
Even if the claim made by PRC sociologist He Qinglian that &dquo;1% of the
working population owns 60% of the country’s social wealth&dquo;4’ is exaggerated,
the distribution of wealth is quite skewed. In 2000, 3% of the PRC population
had 47% of all savings, which in total amounted to over Y6 trillion (20% of
Chinese had 80% of all savings in the mid-1990s). Upper-level wealth holders
are reckoned to be overwhelmingly urban residents, who in 1997 received
almost one-third of their total income from savings interest, securities investments
and inheritance.49 These trends render inapposite claims of the early 1980s
that the PRC state retains powerful ruralist elements. 50 They also disconfirm
early 1990s predictions that the growth of rural industry had obviated urban bias
in China. 51
Inequality within both PRC rural and urban societies is far less than
overall regional inequality. The latter is less than urban/rural income differences
within provinces.52 Urban/rural disparities are much higher in inland provinces
44 Yang, "Urban-Biased Policies", 309; D. Gale Johnson, Reducing the Urban-Rural
Income Disparity in China, Working Paper, Office of Agricultural Economics Research,
University of Chicago, 2000, 13-14.
4 5 Li Zuojun Zhongguo de genben wenti, 21; "Chinese Living Standards Rise in 1996-
2000 Period," Asia Pulse, 30 March 2001.
4 6 Cheng Xiaonong, "Dangdai Zhongguo jingji zhuangkuang", 90.
4 7 Yang Yiyong, Gongping yu xiaolü, 126.
4 8 "Chinese Author Warns of Unrest if Economic Inequalities Persist," International
Herald Tribune, 21 July 2000, 20.
4 9 "Inherit the Wind—It’s Cheaper," China Online, 7 July 2000; Xinhua, 12 October
1999; "Chinese Authorities Reportedly Concerned about Growing Income Gap," Zhongguo
tongxunshe, 28 June 2000; "Chinese Income Gap Widens," China Daily, 25 May
1998, 3.
5 0 Nolan and White, "Urban-Rural Relations," 75.
5 1 Jean Oi, "Reform and Urban Bias in China," in Beyond Urban Bias, ed. Ashutosh
Varshney, 129-48.
5 2 Zhan Shiqiang, "Trends in Regional Disparities and Economic Growth in China,"
Unpublished Ph.D. dissertation, University of Chicago, 2000, 70.
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29
and the poorer the province, the higher the ratio.53 As noted below, urban inequality
is lower than rural inequality. Gustaffsson and Shi have shown that PRC
urban inequality is lowest in the west, due to its less reformed economy. 54 Tibet
has the least reformed economy in China. The urban/rural disparity in Tibet is
thus likely to be among the highest, if not the highest, in China, while interurban
income disparities in the TAR should be among the lowest in the country.
We shall discuss in the conclusion how a distinctive form of urban bias applies
to Tibet’s peculiar &dquo;dependent development.&dquo;
Tibet as a Developing Region
Tibet as the TAR
Any analysis of Tibet must first define its territory. The 6migr6s term all
Tibetan-inhabited areas &dquo;Tibet.&dquo; Many scholars distinguish &dquo;political Tibet,&dquo; the
central-western Tibetan areas now denominated the TAR, with half the PRC’s
5.3 million Tibetans, from &dquo;ethnographic Tibet,&dquo; which is on the Tibet plateau,
but was outside the control of Dalai Lamas for 100-200 years before 1951.ss
Ethnographic Tibet is within the PRC provinces of Qinghai, Gansu, Sichuan and
Yunnan. Other scholars speak of a Tibetan &dquo;culture region&dquo; encompassing areas
where inhabitants use the Tibetan language and practice Tibetan Buddhism.s6 In
this essay, we equate Tibet with the TAR.
Old and Pre-Reform Tibet
Old Tibet was more complex than the opposition of &dquo;two antagonistic classes:
serf-owners and serfs&dquo; claimed by PRC scholars,57 but did have a pre-modem
social structure. 51 Whether Tibet before Chinese authority returned in 1951 was
5 3 S. Guillaumont Jeannenney and Hua, "How Does Real Exchange Rate Influence Income
Inequality between Urban and Rural Areas in China?," Journal of Development
Economics 64 (2001): 529-45.
5 4 Björn Gustafsson and Shi Li, "The Anatomy of Rising Earnings Inequality in Urban
China," Journal of Comparative Economics 29, no. 1 (2001): 118-35.
5 5 Melvyn Goldstein, "The Dalai Lama’s Dilemma," Foreign Affairs 77, no. 1 (1998):
83-90; Yu Zhen and Guo Zhenlin, Zhongguo Zangqu xiandaihua: lilun, shijian, zhengce
(Modernization of China’s Tibetan areas: theory, practice, policy) (Beijing: Zhongyang
minzu daxue chubanshe, 1999), 37-38.
5 6 Wim Van Spengen, Tibetan Border Worlds: A GeohistoricalAanalysis of Trade and
Traders (London: Kegan Paul International, 2000), 61.
5 7 Liao Zugui and Zhang Shuhua, "Is Old Tibet a ’Shangi-La’?: A Summary of the 1991
China Tibetology Seminar," in Theses on Tibetology in China, ed. Liao Zugui and Zhang
Zuji (Beijing: China Tibetology Publishing House, 1996), 499-546.
5 8 Melvyn Goldstein, A History of Modern Tibet: Decline of the Lamaist State (Berkeley:
University of California, 1989); Dawa Norbu, Tibet: The Road Ahead (London: Rider,
1998).
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30
feudal is disputed.s9 Van Spengen terms it ’&dquo;feudal’ in one way or another&dquo;
because of the &dquo;contract between lord and vassal, in the form of legitimate and
accepted surplus appropriation.&dquo;6° The Dalai Lama has affirmed this characterization
by stating that if he returns to Tibet, &dquo;there will be no going back to the
old feudal system ,61 and even pro-independence monks in Tibet have emphasized
&dquo;the undesirability of the ’old society’.&dquo;62 All land was owned by the old
order’s three pillars: the regime (30.9%), the aristocracy (29.6%) and the
monasteries (39.5%).63 Only 6% engaged in non-farm activities.64 There was
scant social change during a &dquo;united front&dquo; period from 1951 to the Lhasa anti-
PRC uprising and emigration of 195 9.65 .
Some scholars portray the two post-1959 decades of socialist transformation
as an unmixed calamity,66 but Tibet’s fate was no worse than that of
the rest of China. Tibet was sheltered from the disasters of the Great Leap Forward
(1958-1961) and, except during the three most disruptive years of the
Cultural Revolution (1967-1969), experienced modest growth in infrastructure,
industry and agriculture, although no appreciable increase in living standards . 61
Concern about living standards came only with the onset of the reform era in
China.
Reform-era Development Initiatives
Central Tibet Works Forums in 1980, 1984, 1994 and 2001 have marked major
TAR development initiatives. Visiting Tibet in 1980, Chinese Communist Party
5 9 William Coleman IV, "Writing Tibetan History: The Discourses of Feudalism and
Serfdom in Chinese and Western Historiography," Unpublished M.A. thesis, University
of Hawaii, 1998; Song Lin, "Jiu Xizang duijian nongnu zhidu de fandong benzhi" (The
reactionary essence of Old Tibet’s feudal serf system), Xizang yanjiu, no. 3 (1999): 27-
32.
6 0 Van Spengen, Tibetan Border Worlds, 71.
6 "Ama1rtya Sen, Dalai Lama Call for Unbiased Reportage," Hindu, 31 January 2001;
"Nobel Laureates Urge Press to Fight Narrow Thinking," Independent, 5 February 2001,
4.
6 2 Ronald Schwartz, "Renewal and Resistance: Tibetan Buddhism in the Modem Era," in
Buddhism and Politics in Twentieth Century Asia, ed. Ian Harris (London: Pinter, 1999),
229-52.
6 3 Dangdai Zhongguo de Xizang (Contemporary China’s Tibet), 2 vols. (Beijing: Dangdai
Zhongguo chubanshe, 1991).
6 M4a Rong, "Economic Patterns of the Tibet Autonomous Region," in Development,
Society and Environoment in Tibet, ed. Graham Clarke (Wien: Verlag der
Osterreichischen Akademie der Wissenschaften, 1998), 167-86.
6 5 Tsering Shakya, Dragon in the Land of Snows: A History of Modern Tibet since 1947
(London: Pimlico, 1999), Chs. 4-5.
66 Warren Smith, Tibetan Nation (Boulder: Westview Publishers, 1996), Chs. 12-13.
6 7 Dawa Norbu, "Changes in Tibetan Economy, 1959-1976," China Report 24, no. 3
(1988): 221-36.
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31
(CCP) General Secretary Hu Yaobang stated that the lives of Tibetans had not
been much improved over three decades .6’ A First Tibet Work Forum of top
PRC leaders that year exempted peasants and herders from taxes and grain
quotas and increased subsidies to rural areas. Family farming and herding replaced
communes in the early 1980s, a crucial change because 65% of Tibetans
were peasants and 25% were herders.69 The share of farmers and herders in the
TAR workforce and their share of GDP have shrunk over the years. In the late
1990s, however, almost 80% of Tibetans still worked in primary production,
with most of the 360,000 ha. of arable land in the south and most of the 65
million ha. of pastureland in the north. 70
Table 1. Share of TAR GDP by sector, 1985-1999
Sources: Wang Lixiong, Tian Zang: Xizang de mingyun (Sky burial: the fate of Tibet)
(Brampton: Mirror Books, 1998), 423; Xinhua, 23/1/99, 28/6/99; Guo Jinlong, &dquo;Speech
at All-Tibet Conference on Ideological and Political Work,&dquo; Xizang ribao (hereafter
XZRB), 18/10/00; BBC/SWB, 27/10/00.
Rural people retain some advantages created by the First Tibet Work
Forum that are not accorded to urbanites, including very low-cost health care and
education and, in theory, freedom from taxes and compulsory sales of grain, although
peasants who want subsidized fertilizer, water and credit must contract
6 8 Wang Yao, "Hu Yaobang’s Visit to Tibet, May 22-31, 1980," in Resistance and
Reform in Tibet, ed. Robert Barnett and Shirin Akiner (London: Hurst & Co., 1994),
285-89.
6 9 Tsetsen Wangchuk Sharlho, "China’s Reforms in Tibet: Issues and Dilemmas,"
Journal of Contemporary China 1, no. 1 (1992,): 34-60; Charles Allen, The Search for
Shangri-La: A Journey into Tibetan History (New York: Little, Brown & Co., 1999). 7 0 Xizang Zizhiqu jingji dili (Economic geography of the Tibetan Autonomous Region)
(Beijing Xinhua chubanshe, 1994), 1-5; XZTJNJ 1999, 45, 146.
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32
with the state for typically 6-12% of the harvest.&dquo; Low taxes and subsidized
social welfare measures no longer available in China proper give the TAR population
income levels disproportionate to their productivity: Tibet’s 1994 per
capita GDP was only 14% that of Shanghai, but rural and urban incomes were
41 % and 84% those of Shanghai. 72
The center concluded in 1984 that TAR living standards had not improved
enough; indeed, rural production declined after collective irrigation and
fertilization ended and modem methods of farming introduced during the 1960s
and 1970s were abandoned, returning rural areas to subsistence farming. Incomes
edged up only due to the elimination of taxes.&dquo; A Second Tibet Work
Forum announced that the state would loosen cultural controls, bring many
Tibetans to neidi (China proper) for schooling and have nine provinces finance
43 Tibet infrastructure projects, including stadiums, hotels, and schools, costing
RMB 470 million .74 Center subsidies to Tibet grew, yet average GDP growth in
China was 8.5% per year in 1986-1992, but only 2.7% in Tibet. China’s 1992
GDP per capita was RMB 2648; Tibet’s was RMB 1642. A Third Tibet Work
Forum launched 62 projects in 1994, in farming, animal husbandry, transport,
communications and energy, to cost RMB 4 billion over five years. The center
again increased TAR subsidies, which in four decades have exceeded RMB 40
billion. In 1996, TAR tax revenues were RMB 244 million; expenditures were
RMB 3.7 billion. The center’s subsidies surpassed RMB 3 billion per year in
1994. Aid from provinces, cities and foreign sources, bank loans, and enterprise
share sales provide additional revenue.’5 The center undertook 30 of the 62
projects and the provinces the remainder. There were also 668 smaller &dquo;aid
7’ Erickson, Tibet , 55; Peter Hessler, "Tibet through Chinese eyes," Atlantic Monthly,
February 1999, http://www.theatlantic.com/issues/99feb/tibet3.htm; Ronald Schwartz, "The
Reforms Revisited: Grain Procurement in Tibet," in Development, Society and Environment
in Tibet, ed. Clarke, 153-65; XZTJNJ 1997, 19, 35; Ma Rong, Xizang de renkou yu
shehui (Tibet’s population and society) (Beijing: Tongxin chubanshe, 1996), 105.
7 2 Tian Xiaowen, "Market Orientation and Regional Economic Disparities in China,"
Post-Communist Economies 11, no. 2 (1999): 161-72.
7 3 Sharlho, "China’s Reforms in Tibet," 44; Patrick Peatfeld, "Save Our Tsampa! Modernization,
International Aid and the Future of Tibetan Agriculture," Tibetan Review 30,
no. 5 (1995): 13-19.
7 4 Yin Fatang, "Speech by Yin Fatang at Tibet Party Plenum," Lhasa Regional Service,
16 May 1984, BBC/SWB, 22 May 1984; "Tibet Carries out New Policies," BR, 21 May
1984, 6.
7 5 "Regional Party Committee Transmits Third Tibet Work Forum Guidelines," XZRB, 2
August 1994, 1-2, in BBC/SWB, 22 August 1994; "On Acting Fully and over the Longterm
in the Spirit of the Third Central Forum on Tibet Work," XZRB, 29 July 1998, 1-2,
in BBC/SWB, 26 October 1998; Yu and Guo Zhongguo Zangqu xiandaihua, 323;
Xinhua, 28 April 1995, 23 January 1999, 28 June 1999, 13 April 2000; "Sixty-two
projects benefit Tibetan people," BR, 27 July1998; XZTJNJ 1997, 11-13.
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33
Tibet&dquo; (yuan Zang) initiatives by 15 provinces, some of dubious utility. 76 The
Third Forum called for increasing Tibet’s growth rate to 10%.77 In 1994-1997,
projects involving RMB 12.3 billion in investment in fixed assets were completed
and GDP annual growth averaged 14.5%. 78 New investment accounted for
three-fourths of growth. GDP was RMB 9.12 billion in 1998 (1.28 billion from
Lhasa) and RMB 11.7 billion in 2000.’9
Because most aid projects have focused on the primary sector and infrastructure,
the secondary sector has not grown rapidly. Old Tibet had no modem
industry and indeed half the population living in urban settings, where industry is
usually found, were monks or nuns. By 1985, the TAR had 34,000 industrial
workers; there were still only some 50,000 workers in 300 industrial enterprises
in 1999, out of 1.2 million employed. They work mainly in electric power,
mining, leather, building materials, pharmaceuticals, food, wool spinning,
printing, and mechanical repair.so &dquo;Over 60%&dquo; of TAR secondary sector workers
in 1990 were Tibetans.&dquo; Of 58,899 permanent workers in TAR state-owned
secondary and tertiary sector economic units (jingji danwei) in 1999, 41,454 or
70.4% were Tibetans; of 23,361 contract workers in such enterprises, 16,674 or
71.3% were Tibetans. 82
Most industry is state-owned; almost three-quarters of the 214,000 TAR
urban employed in 1999 were public employees. 81 Some 4,300 workers were on
lay-off status, each receiving an RMB 250 monthly stipend, and there have been
rumors that some of the older enterprises in transportation, industry and trade
may be allowed to go bankrupt. TAR SOEs generated RMB 17 million in profits
in 1998, with only 10% in the red and six listed Tibet firms providing RMB 30
million in TAR taxes. SOE profits depend however on state subsidies: scarce
7 6 "In Tibet a Struggle for the Soul," Washington Post, 16 July 1999, 1.
7 7 "A new milestone," XZRB, 6 August 1994, in BBC/SWB, 11 August 1994.
7 8 "Tibet’s All-Around Economic Strength Has Markedly Increased," RMRB, 28 July
1998, 4, in BBC/SWB, 1 August 1998.
7 9 Xinhua, 28 June 1999, 25 August 1999, 22 May 2000; "Gyamco on Tibet’s Gold
Mining Potential," Tibet People’s Broadcasting Station (hereafter TPBS), 18 January
1995, in BBC/SWB, 28 January 1995; China Society for Human Rights Studies
(hereafter CSHRS), Forty Years of Progress in Tibet, reprinted in China Daily, 17 July
1999, 4; Guo Jinlong, "Speech at All-Tibet Conference on Ideological and Political
Work," XZRB, 18 October 2000, in BBC/SWB, 27 October 2000.
8 0 Xinhua, 8 August 1995; CSHRS, 1999, 4; Robyn Iredale et al., Contemporary
Minority Migration, Education and Ethnicity in China (Cheltenham: Edward Elgar
2001), 141; XZTJNJ 1999, 23, 45; Yu and Guo, Zhongguo Zangqu xiandaihua, 342.
8 Xin1hua, 6 March 1991
8 2 XZTJNJ 2000, 47.
8 3 Zhongguo laodong tongji nianjian (China labor statistical yearbook; hereafter abbreviated
as ZGLDTJNJ) (Beijing: Zhongguo tongji chubanshe, 2000), 11.
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34
materials and skilled labor and irregular lending practices make industrial costs
high and profitability low.s4
Foreign sources of growth remain scarce. Tibet had $85 million of
contracted foreign investment by 1998, with $25 million negotiated that year,
including in such non-traditional industries as electronics, mining and pharmaceuticals.
How much committed investment exists is unclear. By 1998 Tibet had
received $67 million in international aid and $66 million in foreign government
loans for education and agriculture projects. Foreign trade volume (including
tourism) was $400 million in 1995-1998. S5
Effects of Development on Incomes
Tibet’s GDP in 1998 was 30 times the low 1959 baseline. Even after the
completing of the 62 projects, growth in 1998 was still 10% (16% for Lhasa) and
GDP per capita reached RMB 3626. Provincially-funded projects, the migrant
influx and commodity price rises have allowed nominal per capita income to
climb year-by-year and GDP grew by 9.3% in 2000. The center’s 1994 target for
TAR end-of-the-century rural income was surpassed and its goal for TAR GDP
greatly exceeded. The Fourth Tibet Work Forum confirmed the Tenth 5-Year
Plan (2001-2005) goal of upping GDP by 12% per year, compared to 7% for the
whole PRC and having Tibet reach the PRC &dquo;middle level&dquo; by 20 10.86 The
Forum, under the slogans of &dquo;leaps and bounds development&dquo; and &dquo;constant improvements
in the standard of living for the people of every nationality in Tibet,&dquo;
announced that the center will invest RMB 31.2 billion during the Tenth Plan
period in 117 projects in Tibet. The provinces are to provide RMB 1.06 billion
for 70 projects. The total RMB 32.8 billion is twice the amount the center and
8 4 Xinhua, 25 May 1999, 17 June 1999, 18 June 1999; Guo, "Speech at All-Tibet
Conference"; "Economic Restructuring Sees Good Results," Zhongguo xinwenshe
(hereafter ZGXWS), 10 February 1999, in Foreign Broadcast Information Systems-China,
FBIS-CHI-1999-0211; "Tibet’s All-Around Economic Strength Has Markedly Increased,"
RMRB, 28 July 1998, 4, in BBC/SWB, 1 August 1998; "A Race That’s Already
Lost," SCMP, 20 December 1999, 1; Ma Rong, "Economic Patterns".
8 5 Asia Pulse, 18 December 1998; Xinhua, 2 May 1999, 28 June 1999.
8 6 "Tibet Sets out Development Targets for Next Few Years," RMRB, 6 October 1994, in
BBC/SWB, 29 October 1994; "Tibet’s All-Around Economic Strength Has Markedly
Increased," RMRB, 28 July 1998, 4, in BBC/SWB, 1 August 1998; "Speech by Raidi at
Fourth Plenary Session," XZRB, 24 November 1998, 1-2, in FBIS-CHI-99-006, 6
January 1999; "Regional Economic Conference Opened in Lhasa," XZRB, 20 January
1999, 1, in FBIS-CHI-1999-0217; "Leader Luo Gan on Tibet Development, Stability,"
XZRB, 8 March 2001, in BBC/SWB, 14 March 2001; "China Uses Carrot, Stick in
Ruling Tibetans," Kyodo, 12 October 1998; "Tibetans Turn to Net in Search of Profit,"
SCMP, 5 July 1999, 8; Legqog, "A New Era in the History of Tibet," XZRB, 6 April
1999, 1, in FBIS-CHI-1999-0512; XZTJNJ 1997, 21; Xinhua, 7 March 1999, 10 March
1999, 9 July 1999; 30 May 2000, 3 January 2001, 14 March 2001, 5 March 2001, 15
March 2001.
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35
