The feudal serfdom holding sway in old Tibet seriously fettered social development in Tibet. Groaning under the cruel system 95 percent of the Tibetans had difficulties keeping their heads above water. Today, however, the Tibetans lead a happy life.
　　In 1980, the Central Government began to exempt farmer and herdsmen from agricultural tax. In 1984, while continuing to provide interest-free loans for agriculture and animal husbandry, the Central Government forgave collective loans obtained before 1980 for building water conservancy facilities and purchasing machinery for agriculture and animal husbandry. Multi-forms of responsibility systems based on household production were practiced in farming and herding areas. Country markets were re-opened, and painstaking efforts were made to improve grassland and farmland construction. The Tibetans had no access to farm machinery and fertilizer before the peaceful liberation of Tibet in 1951. Now tractors have become an agricultural equipment affordable for many farming households. Scientific farming and herding attract universal attention and are warmly embraced. The advance in the pruductive tools and the application of science and technology have given an impetus to the comprehensive development of production.
　　In 1997, the gross domestic pruduct (GDP) of Tibet amounted to 7.35 billion yuan, up 96.6 percent over that in 1991 calculated by comparable prices. The annual average growth rate was 11.9 percent. Since 1987, the grain production in Tibet has reaped continuous bumper harvest, and in 1997, the grain production was 820,000 tons, highest in Tibetan history and up 41.4 percent over 1991. Also in 1997, the meat output amounted to 119,000 tons, up 25,5 percent over 1991.
　　The same period saw fast development of transportation, energy, communications and other basic infrastructure facilities which are closely related to the production and daily life of the local people, along with the development of the construction, construction materials, light textiles, food, and Tibetan handicraft industries. Consequently, living conditions for both urban and rural citizens have improved.
　　Since the local economy and social development started at low levels, and since the natural conditions were unfavorable for economic development, Tibet lags behind many others in China in social and economic development. Active efforts are being made to eliminate poverty by 2000. The world has every reason to believe that, under the leadership of the Central Government, and with the vigorous assistance of the whole nation, and by the joint efforts of all the people in Tibet, a democratic, culturally advanced, prosperous and happy Tibet, where the people are the masters of their own fate and enjoy full autonomy, will appear on the "roof of the world".