By Tsewang Namgyal

Natural Resource Development

Understandably there is much concern among us Tibetans and supporters on the development of Tibet’s natural resources. This concern is beyond a Not In My Backyard (NIMBY) attitude but because we Tibetans do not have much say in its’ development. History has shown that human need (and greed) tends to be more powerful than justice (or environment). Based on this reality while it is critical to put pressure on natural resource developers in Tibet it is critical that younger generation of Tibetans study and get more experience on the subject. This is the best steps we can take not only in having some influence in the current development but better prepare for us to take control of the projects in the future. Since this is a subject that is relatively sensitive to all of us and I have some experience in the mining sector I would like to share further thoughts on it.

Firstly I would recommend the book The Prize: The Epic Quest for Oil, Money, & Power by Daniel Yergin that provides a comprehensive history of the energy sector influence on the world. The book will help provide a more comparative understanding of how natural resources have shaped many countries in the world and how we can learn from this experience.

Secondly, we should be mindful of the “resource curse” and think of ways to mitigate the risks. Resource curse refers to the fact that many countries and regions that have an abundance of natural resources do not necessarily fare better. The reason is due to conflicts that natural resources cause (both external and internal), corruption it leads (allocating more to friends), Dutch disease (increase in real exchange due to resource exports decreases a country’s productive economic sectors due to higher wages), revenue volatility (for a better appreciation take a look at copper prices within the last 5 years) and increase in debt burden (due to tendency of excessive borrowing during boom years).

Thirdly, we should support younger Tibetans who want to attend specialized schools (such as Colorado School of Mines http://www.mines.edu) and develop work experience in reputed natural resource firms (such as BP and BHP Billiton). Without education and experience our efforts will be near ineffectual.

At a personal level I hope younger generation would have to spend less time thinking and making requests than actually enjoying the process of developing and executing projects.

Fourthly, we should try to get a more indepth understanding of the business. If we are not able to work in such sector (whether as a blue or white collar) a good way to gather information is by buying small amount of shares in these projects and attending shareholder meetings. For those who live close to mine sites it would be very informative to befriend individuals who work in the mining sector and hear of their experience.

There is no doubt that mining has its problems when it comes to the environment (such as erosion and contamination of water due to chemicals from mining process) during its construction, operation and when the project is closed. In addition, there are also safety issues. However, the reality is we all know its numerous benefits and use of metal products whether in building our houses, transportation, religious artifacts and household consumables.

A zero tolerance is impractical and hypocritical if/when we are able to have more control in the development of the projects. For a future development of a modern Tibet it is important we have mining as part of our diversified economy. We also should look at the large market of China and India as opportunity rather than a threat. Natural resources can be a curse but with a good motivation, understanding and experience we can use it to anchor Tibet’s economic.

Policy Change (by China)

Tibet’s economic development is important for China’s economic growth and vice versa. It is very difficult to develop Tibet’s economy until there is change in China’s current economic policies on Tibet. For starters China needs to allow Tibetans in Tibet more say in the region’s development and allow more flexibility in the use of government funds. Without more local participation and transparency this leads to waste and corruption.

Corruption is something not unique to Tibet. Earlier this year, Mr. Stuart Bowen, the special inspector general for Iraq reconstruction, told the House Armed Services Committee that the United States had spent more than $50 billion on nonmilitary aid for Iraq out of which about $5 billion of the reconstruction money was wasted on dubious contracts (http://www.washingtontimes.com/news/2009/mar/26/auditors-predict-waste/).

I believe if China is able to set up an independent body comprised of international professional auditors and development experts to review the use of their Tibet development funds and make recommendation this would not only help bring grass root development in Tibet, increase the region’s (and China’s) economic development and reduce tensions in the region. It is in Tibetans and Chinese interest to focus on our mutual interest in the region’s economic development and reduce corruption/waste. Concerned Chinese people can play an instrumental role in tactically influencing the Chinese government to implement more practical policies.

Policy Change (from outside)

For illustration purpose I would like to share few thoughts on the Tibet Policy Act (TPA) of 2002 to reflect the importance of having more practical policies from outside. TPA is one of our greatest success stories and is a reflection of the hard work of many individuals and organizations especially the International Campaign for Tibet. TPA promotes Sino Tibet dialogue, supports the set up of a U.S. consulate in Lhasa, provide scholarships for Tibetans and funds poverty alleviation projects in the Tibetan plateau to name a few.

Not to diminish its importance it would not be prudent on my part if I did not highlight my perceived weakness of the TPA on the economic realm. TPA established guidelines for U.S. backing of potential development projects in Tibet through the U.S. Trade and Development Agency (“USTDA”), the Export-Import Bank and through support by international financial institutions such as the World Bank. The guidelines claims to reflect those released by the Tibetan government in exile and calls for "respect for Tibetan culture" and the "active participation of Tibetans" in their own economic development, which would "neither provide incentive for, nor facilitate the migration and settlement of, non-Tibetans into Tibet."”

This sounds good but I believe since 2002 no Tibetan has been able to tap USTDA, EXIM Bank and the financial institutions to give Tibetans a competitive edge in business. Personally at a request of a Tibetan entrepreneur to assist him in one of his ventures I did check to see if his organization can tap the USTDA. Through this effort I realized it was not possible for Tibetans in Tibet to tap agencies USTDA and I feel the other agencies would be the same.
Clause 6 subjects on-site monitoring of projects by the development agencies to ensure that the intended target group benefits. Here I was told that since USTDA does not have staff and resources to monitor the project it will probably not provide a grant if this is a requirement. One of USTDA primary responsibility is to provide feasibility grants and not to be involved during the construction and operation phase of the project.

Clause 7 requires implementation by development agencies to use Tibetan as the working language of the projects. This also the USTDA staff indicated would prevent their agencies and others to be involved since they use English as a working language. Imagine if Tibetans in Tibet requested the United States government or other governments to support the exile efforts only if they used Tibetan as a working language?

Clause 8 indicates that the projects should not provide incentive for, nor facilitate the migration and settlement of, non-Tibetans into Tibet.Here the USTDA staff indicted that since economic projects in general will provide attract labors it would be difficult to control who moves into the region. In addition, they indicated that local expertise may not be available.

Finally clause 9 indicated that projects should neither provide incentive for, nor facilitate the transfer of ownership of, Tibetan land or natural resources to non-Tibetans. Here too he indicated that it would be difficult to filter ownership and occasionally investments may require involvement of strategic investors who may not be non-Tibetan.

I believe in theory the mentioned clauses are well motivated but unless we amend it where for example the US Special Coordinator can make exceptions to the above clauses on a project basis the economic clause are near waste except for making us in exile feel we did something good. It is critical our leaders make some of these tough choices because one cannot blame our exile population since many have not been to Tibet.

It is important we from outside implement practical policies that will help level the playing field (for example giving Tibetan financing sources since the Chinese have theirs) and allow Tibetans to compete effectively otherwise Tibetans in Tibet will continue to be economically marginalized. A poor Tibetan population will not be able to protect their language, culture and have no ownership of their own resources. If this makes sense, I would encourage every Tibetan to research this further and if it does make sense to lobby the appropriate organizations to make the changes. An economically empowered Tibetan population is paramount towards creating a modern Tibet and this starts with practical policies.

…To be continued

The author is an MBA graduate (Beta Gamma Sigma Honor Society member) from the Thunderbird School of Global Management and works in the Investment Banking field in New York City. Tsewang is one of the Founding Board of Directors of Students for a Free Tibet, first Tibetan to officially enlist in the United States Military and served as the Executive Director of the Tibetan Community Center Project (NY) from 2007-2008 . He can be reached at densang123@yahoo.com


The views expressed in this piece are that of the author and the publication of the piece on this website does not necessarily reflect their endorsement by the website.