The Tibetan plateau has an area of 1.23 million square kilometers and is located 3600 meters the sea level. In order to understand the economic perspective of the state, it is necessary to find the economic activities which have been going on in Tibet, the economic relations with a number of other countries and the distribution of wealth. Economic development in Tibet Over the years Tibetans were dependent on agriculture. The other major industry was the livestock which was another major industry in the Tibetan plateau. A number of animals including the sheep, cattle, goats, camels, yaks were raised. Amongst the agricultural products barley, wheat, potatoes and cotton were the most grown crops.
In the year 1952 the total area of cultivated length was 2.45 million mu and the overall production was about 155,335 tons. By 1950 Tibet was the only place in the world, where no vehicles were used. Before 1952 there was no industry before 1952. Other than livestock and farming, handicraft was a nonagricultural production. If we consider the government during those times, the number of soldiers was around 60,000 and there were around hundred officials in the government. The major characteristics of the Tibet’s economy before 1952 included the use of agricultural and patrolland and handicrafts. There was a self-supportive system of government during those times (Dreyer & Teufel, 2003).