The establishment of colonial political and economic structures followed the military invasion and occupation of Tibet. Tibetans are considered "backward" and of "low quality" and have been ruled as if they were children. Racism towards Tibetans is rampant, contributing to the de facto segregation of the races.
Many of the central subsidies and investments in Tibet go to either to the extractive industries (and the infrastructure and population connected to them) or to the Chinese administrators and settlers (and the infrastructure supporting them). For the most part, Chinese settlers have a much higher standard of living than do Tibetans. An official study bluntly stated that Chinese settlers "cannot be expected to live on the local fare...They need good housing, hospitals, cinemas and schools for their children." An official in one of Kanze's largest work units said that they only hire and take care of Chinese settlers.
The T.A.R. is the poorest part of China, with annual per capita income amounting to less than the equivalent of 100 dollars per year. Economic conditions in rural areas are extremely poor and have often changed little since the first half of the century. In many areas there is still no electricity or running water, and often no school or clinic. Clinics, schools, electricity and other social services are available in Chinese population centers in Tibet but are often far enough away from Tibetan communities to make them marginally relevant to the lives of most Tibetans. Tibetans who live near Chinese settlements are casual beneficiaries of government programs that would not exist in their present state but for the Chinese population. According to official Chinese statistics, 54% of school age Tibetan children attend school, 44% of the population is literate or semi-literate and the average life span is 65 years. Chinese statistics range from being notoriously unreliable to somewhat reliable. These figures are unconfirmed, and the life span average is particularly suspect.
