Andrew Fischer interviewed in Forbes article on economic situation in Tibet

Dr Fischer argues that Tibetan economic growth is being hyper-inflated by direct subsidies from China.

“According to the most recent data available, the direct subsidies from Beijing amounted to 101.4% of Tibet’s GDP in 2010.” said Andrew Fischer, a senior lecturer from the Institute of Social Studies in The Hague. “Basically, their economic growth is being hyper-inflated by direct subsidies.”

Fischer contends that much of the capital flowing into Tibet flows right back out again in trade with neighboring countries and provinces through the state-owned enterprises and related companies that dominate the economy. There are signs that some of the government’s subsidies have trickled down to its implied recipients, local Tibetans, as average household incomes rise, but a far greater proportion is concentrated among non-Tibetan migrants.

“A lot of the tensions in Tibet are driven by the economic grievances there,” Fischer said. “Obviously, there’s political and religious repression, but the economic model is a huge source of friction, too…With the intense promotion of domestic tourism, Lhasa, in particular, has become like a mix of a police state and Disneyland.”

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