A: Since Tibet is situated in a remote area, and the feudal serfdom was in force
for centuries before the democratic reform of 1959, Tibet's development commenced
much later, and has advanced at a slower pace compared with the interior area.
To speed up the economic development of Tibet and to promote common prosperity,
the central government has provided substantial help and support, in terms of
human resources, finance, material and technology, as a means to helping it catch
up. Meanwhile, the central government has formulated certain favorable policies
for Tibet, such as providing financial subsidies and reducing or exempting taxes.
The central government has increased investments in economic and social development
projects in Tibet to support key projects. Restrictions on foreign trade in Tibet
have been relaxed in order to accelerate its economic development, and international
aid to Tibet is encouraged. In the farming areas, land is used and run by families,
and in the pastoral areas, animals are distributed to individual families, who
own and rear them. Prior to 2000, township enterprises in Tibet were exempted
from income tax. |