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.

(Tibet.cn March 25, 2008)