What are the main factors that restrict economic development in Tibet?

October 09, 2024

A: Situated in the hinterland of the Asian continent, Tibet's natural conditions are very harsh. It is bitterly cold, its average altitude is over 4,000 meters, and the air is thin and of a low oxygen content. The amount of time when the temperature climbs above 10 degrees Centigrade is less than half that of Heilongjiang Province, the northernmost province of China. Arable land accounts for only 0.2 to 0.3 percent of Tibet's terrain, and the average arable land per capita is about 0.1 hectares. Such poor topographical conditions severely restrict the agricultural, industrial and commercial development of Tibet, as well as limiting its accessibility. Owing to its history and current conditions, agriculture in Tibet barely meets its own consumption needs, and very few agricultural products can be turned into commodities. Its closed agriculture, low marketing potential and limited means of transportation have hindered the circulation of funds and information, and its comprehensive development and utilization of agricultural resources is therefore severely hampered. Tibet has a monopolistic agricultural structure that does not make effective use of natural agricultural resources. The opportunity to exchange materials and transfer energy between agricultural factors within the region is restricted, and this has weakened the functioning of the local agricultural system and led to low productivity. The agricultural production process in Tibet is in a slow cycle of "low output-low investment, low accumulation-low output." Since the agricultural accumulation is also very low, there are few means through which to enlarge agricultural reproduction. The Tibetan agricultural system does not have the capacity for product diversification, whereby by-products might increase the value of any one agricultural product. Agricultural by-products have neither been processed nor widely sold, thus it is difficult for new industries to emerge, and for natural resources to be turned to economic advantage. Furthermore, agricultural facilities in Tibet are still backward, and the levels of highway transportation and water and electricity supplies are lower than the national average. Basic industries in Tibet are still very weak. There are no railroads, no water transportation and, being far from inland, no sea port. Highway transportation is therefore the lifeline for Tibet's economic development. However, Tibet's land transportation capacity is inadequate, and road conditions are bad, making for high costs, and ultimately restricting the development of its domestic and foreign trade. Post and telecommunications facilities also lag behind, and the capacity for communication is low. The supply of energy and power is also high in cost and small in scale. The backwardness of these "bottle neck industries" restricts the overall agricultural and industrial development in Tibet. The natural environment of Tibet also impedes its industrial development. Its high altitude and low oxygen restrict the local labor force from exerting their full physical and intellectual capacities, thereby further increasing the need for financial input. Its remote geographical situation and inconvenient transportation add to the costs of transportation of raw material, thus affecting the economic performance of the local enterprises. The energy industry in Tibet is extremely weak. Although Tibet has rich natural resources, its conventional energy resources are in short supply, having no oil and very little coal. Water resources there are abundant, but have not been fully developed for utilization. Wind and solar energy can not be used on a large scale due to technological limitations. The energy shortage prevents the normal operation of many enterprises, therefore some construction projects have failed to be initiated. Since the peaceful liberation of Tibet, the central government has given top priority to Tibet's power industry development, but the power supply still falls short of local needs, which has hindered the industrial and economic development of Tibet.