CHAPTER 4

4.1 Employment

4.1.1 Employment Profile of the Settlements

4.1.2 Employment Profile of the Scattered Communities

4.1.3 Employment Profile of the Whole Community

4.1.4 Unemployment and Migration from the Settlements

4.2 Economic Activities

4.2.1 Agriculture and Horticulture

4.2.2 Animal Husbandry

4.2.3 Public Enterprises, Cooperatives and Societies

4.2.4 Businesses run by Cooperatives and Societies

4.2.5 Non-Farm Private Enterprise

4.3 Goals and Strategies for Economic Development

4.3.1 Problems and needs

4.3.2 Sector Goals

4.3.3 LEIG Strategy

4.4 Future Programs and Projects

4.4.1 Agricultural Development

4.4.2 Handicraft Development

4.4.3 Income-generation Projects in the Settlements

4.4.4 Revolving Loan Fund

4.4.5 Investments by the Department of Finance

4.5 Implications for Free Tibet

4.6 Budget Summary

4.1 EMPLOYMENT

4.1.1 Employment Profile of the Settlements

The information in this section is based on 38 Settlements from which employment data could be gathered during the first and the second IDP surveys. The population of these Settlements was 56,084 (29,398 males and 26,686 females), which represents 81 percent of the total population in the Settlements.

Of the total population, 52.4 percent were engaged in primary employment (that is, worked in an occupation for more than six months a year). Data on primary employment covering 29,368 working persons (15,524 males and 13,844 females) indicates that in terms of share of the work force, males constitute 52.9 percent and females 47.1 percent. The occupational distribution for those engaged in primary employment is given in Table 4.1.1.A.

Agriculture continues to be the primary occupation for a little less than half of the working population in the Settlements. This is as expected, since life in many of the larger Settlements is organized around land cultivation. Other smaller Settlements have handicraft production as their focus, which explains the percentage of the working population employed in carpet weaving. The concentration of jobs in agriculture and carpet weaving indicates the need to diversify to other occupations, as the pressure on arable land is high and the market for carpets is not secure. Sweater selling and other trading are also important occupations, but these usually take people out from the Settlements, either on a daily commute to nearby towns, or for longer stretches of a few months at a time to any of the Indian big cities.

It is striking that the participation of women in the workforce in the Tibetan Refugee Community is almost as high as that of men: 51.8 percent of the female population works as against 52.8 percent of the male population. For women, as for men, agricultural is the primary source of employment. However, carpet-weaving is the next most important, as many of the women work in the carpet factories established by the cooperatives or societies in many of the Settlements. The third main source of employment is sweater-selling (for which see below) for which as many women as men migrate to cities and towns throughout India.

Many individuals are engaged in secondary employment as well. Data on secondary employment covering 12,041 working persons (6352 males and 5689 females) indicates the profile of secondary occupations given in Table 4.1.1.B. Once again, female participation rates in secondary employment are almost as high as those for males.

Among secondary occupations also agriculture is the largest activity. This is partly because the lack of irrigation facilities confines agriculture to single crop cultivation, forcing settlers to take up other occupations during the rest of the year. Thus, even in agricultural Settlements, many of the settlers are occupied in agriculture for less than six months a year, making it a secondary occupation for them.

Sweater selling is the next largest activity providing over a quarter of secondary employment. This is a statistical corroboration of a well-known fact of life in the Settlements. Though this activity is perhaps the largest source of cash income for the Community, it takes away a large number of able-bodied people from the Settlements to urban areas where they live under unhygienic conditions - often just footpaths of crowded bazaars. The youth who spend a few months every year in the cities also come back with undesirable habits and find the life in Settlements slow by comparison. The income is almost entirely derived from trading in sweaters - buying from the manufacturers and wholesalers in Ludhiana, India's largest knitwear production center, and selling in most of the big and small towns of north India. In contrast, few people in the Settlements are occupied in knitting sweaters themselves (0.4 and 1.1 percent of the primary and secondary occupations respectively).

4.1.2 Employment Profile of the Scattered Communities

The information on employment in scattered communities is based on 64 scattered communities covered by the surveys for the first and second IDP. The combined survey covers a population of 25,847 people outside Dharamsala, which represents about 50.4 percent of the total population in the scattered communities outside Dharamsala. The survey of the scattered communities was less detailed than that of the Settlements, and it covers the primary employment of 52.5 percent of the total sample population who are adults. (This figure is clearly too low to be the employment rate among adults.) The employment profile for the scattered communities is given in column 4 of Table 4.1.3.

The majority of the population in the scattered communities is employed in services or trading, including sweater selling. Handicrafts (especially carpets) and manual labor are other important occupations for many in the scattered communities. In contrast to the Settlements, agriculture and animal husbandry only generate a small percentage of employment. This is understandable as there is little or no land for crop cultivation or pasture.

4.1.3 Employment Profile of the Whole Community

Table 4.1.3 gives the figures for employment for the Tibetan Refugee Community as a whole. The percentages of primary employment in the Settlements and for employment in the scattered communities have then been weighted according to the total distribution of the population between Settlements and scattered communities, and figures for employment to Dharamsala added, to give the employment profile for the whole Community.

For the whole working population in the Refugee Community agriculture (29.2 percent, including animal husbandry) and trading (29.0 percent, including sweater-selling) are the predominant occupations. The remaining working population is divided among services including restaurants and hotels (17.2 percent), handicrafts (12.8 percent), and other occupations including government jobs (11.3 percent).

4.1.4 Unemployment and Migration from the Settlements

Unemployment In the Settlements the extent of unemployment (defined as not having any gainful work for over six months in a year) for individuals between the ages of 16 to 50 is 18.5 percent (see Table 4.1.4.A). The fact that one in five of all working-age people in the Settlements is unemployed is of great concern to the Refugee Community.

Migration The lack of livelihood opportunities in the Settlements is also reflected in the fact that 30.0 percent of the population of the Settlements between the age 16 to 50 years, migrates regularly in search of work. Women constituted 43.4 percent of the migrants. The main activity of the migrants was sweater selling.

4.2 ECONOMIC ACTIVITIES

4.2.1 Agriculture and Horticulture

4.2.1.1 Land. In the 28 Settlements for which data on land was received in response to the first and second IDP surveys, the total availability of land of all kinds was 0.47 acres per person, or 2.74 acres per household (each having an average of 5.8 members). However, there is only 0.37 acres of cultivable land per person in the Settlements, or 2.17 acres per household. Table 4.2.1.A gives the distribution of the different types of land in the 28 Settlements.

4.2.1.2 Water. Water for irrigation is a problem in most of the Settlements. This is reflected in the fact that only 5.0 percent of the cultivable land is irrigated. Table 4.2.1.B gives the water sources recorded from data received from 38 Settlements. Twenty-six of the 38 Settlements have no wells or ponds; 16 of them rely entirely on rainfall or seasonal streams for their water supply.

4.2.1.3 Crops. Table 4.2.1.C provides data on the agricultural crops produced in 30 Settlements which have access to land for cultivation. Agricultural production is highly concentrated in the large agricultural Settlements, particularly in south India. Thus three of the southern Settlements produce 86 percent (by volume) of the total production of maize. Likewise paddy production is concentrated in one Settlement in the south and two in the north-east. In comparison to paddy and maize cultivation, other crops are insignificant. However, potato cultivation in Phendeling (Mainpat) Settlement, which produced 85 percent of all the potatoes by volume, indicates the potential of alternative crops. Likewise, the apple orchards with 1415 trees in Tenzingang Settlement are indicative of the potential of horticulture, particularly in the Settlements along the Himalayan foothills in India and in Nepal.

Only about 36 percent of the total value of agricultural production in the Settlements is sold through the cooperatives. Although many settlers sell their produce privately, the bulk of production is not sold but consumed by the producers themselves.

4.2.2 Animal Husbandry

Given the organization of Settlements so that each household has a certain amount of land, livestock rearing is a potential activity. The pattern that emerges is given in Table 4.2.2.A. The figures for goats, sheep and horses are high because of one nomadic Settlement, Changthang in Ladakh, which owns 99 percent of the total number of sheep, 90 percent of the sheep and 69 percent of the horses.

The main constraints faced in developing animal husbandry are the shortage of pasture and fodder (under 1 percent of the total land is pasture land; see Table 4.2.1.A); the lack of veterinary services (for disease control and breeding); and the poor breed of animals. Some of the facilities needed are: education in animal husbandry; regular veterinarian visits; increasing pasture land; having breeding bulls; and switching to higher yield animals.

4.2.3 Public Enterprises, Cooperatives and Societies

In the early years of the Settlements, cooperatives (which are business entities - primarily service oriented - owned by the share-holders) or societies (which are non-profit entities, permitted to undertake business activities as long as they serve a charitable purpose, such as rehabilitation of refugees) were established as an integral part of the Settlements, to provide agricultural inputs such as seeds, fertilizers and pesticides; to market agricultural produce collectively; and to provide common services such as tractors, trucks and warehousing. But farming itself has always been undertaken by individual households as a private activity on their own land, for which the cooperatives have provided common services and support.

Cooperatives or societies were also established in many of the handicraft-based Settlements to run the handicraft centers. Some of the cooperatives and societies also took on the functions of supplying essential provisions for the settlers, particularly in the remoter areas. The Secretaries of the cooperatives and societies are accountable to their Board of Directors, elected from among the local settlers, as well as administratively to the Department of Home.

In addition to the Settlement cooperatives and societies, the Department of Home runs other businesses as public enterprises to create jobs for the refugees and to support the enterprises run by the cooperatives and societies in the Settlements. These enterprises include wool procurement, carpet yarn production and dyeing, and carpet and handicraft exports.

The Department of Finance also runs many enterprises, mostly outside the Settlements. These are run primarily with a view to generate revenue for the CTA budget, and to build the experience of the Tibetan Refugee Community in running a diverse set of modern enterprises, such as cattle-feed manufacturing, carpet yarn spinning and dyeing, carpet and handicraft production and exports, hotels and a travel agency.

Table 4.2.3 overleaf provides summary financial data on the cooperatives, societies and public enterprises. The difference in net profits as a percentage of turnover between the cooperatives, societies and other enterprises under the Department of Home on the one hand and the Department of Finance on the other clearly reflects the different objectives of the two Departments. The former is concerned primarily with generating employment and providing services to the refugees in the Settlements and the scattered communities. Thus the cooperatives run many service activities, especially in the agriculture sector in which nearly half of the Settlement population is employed. The Department of Finance on the other hand has been given the responsibility of generating profits for the Central Tibetan Administration.

Note: The Net Profit as a percentage of turnover of the cooperatives and societies is higher if the enterprises run by Home Department to support these cooperatives are included (4.4% in 1990).

Table 4.2.4.A Cooperatives and Societies in 28 Settlements CENTER>

Activity	No. of Coops	Turnover 1992	% of Total Turnover	Gross Profit 1992	% of Total Profit
Agriculture	8	39663	31.3	1504	13.0
Animal Husbandry	9	6800	5.4	772	6.7
Flour Mill	7	3054	2.4	720	6.2
Tractor	10	12751	10.0	1052	9.1
Truck/Jeep	4	942	0.7	-16	-0.1
Carpet/Handicrafts	24	38737	30.5	4852	41.9
Commodity Trade	2	3865	3.0	331	2.9
Shops	17	20535	16.2	2255	19.5
Restaurant/Canteen	2	475	0.4	47	0.4
Video Hall	1	64	0.1	55	0.5
Total		126885	100.0	11573	100.0

4.2.4 Businesses run by Cooperatives and Societies

Settlement cooperatives and societies run many businesses, which come under the single legal entity in each Settlement. The details of such businesses are given in Table 4.2.4.A. The main item of sales turnover is agriculture, which includes both procuring inputs such as fertilizers and marketing produce such as maize. Agriculture thus accounts for almost a third of the cooperatives' turnover, followed closely by handicrafts. However, because agricultural business is performed by the cooperatives as a service to the individual Settlement farmers, its share of profits was much lower than that of handicraft business, which is mainly for outside customers; shops run by the cooperatives and societies in the Settlements also generated more net profit than agriculture. The primary source of profit for the cooperatives and societies was thus handicraft production. This reflects the important role the cooperatives or societies play in the handicraft-based Settlements which have been established by the Central Tibetan Administration in northern India in particular. Carpet-weaving is the predominant craft, although other handicrafts include handwoven textiles, tailored goods, knitting, incense making, wood carving, paintings and metal-craft.

Cooperatives and societies have also been involved in other diverse activities, ranging from providing tractor services to running video halls. Not all these activities are remunerative. However, the cooperatives and societies have generally been profitable, as can be seen from Table 4.2.4.B which gives financial data for 22 cooperatives and societies in 1992 (as well as the equivalent data for 1990 from the first IDP survey). As can be seen, the overall profit to turnover ratio was 2.3 percent.

4.2.5 Non-Farm Private Enterprise

Even though organized on a cooperative basis, agriculture and animal husbandry in Tibetan Refugee Settlements has always been a private economic activity. In the early days of exile, however, non-farm private enterprises were discouraged as they were seen as potential competitors to the cooperatives and societies in the Settlements. Over time this has changed and non-farm private enterprise has become an important source of employment in the Settlements. Based on employment data from the IDP survey, it is estimated that a quarter of primary employment in the Settlements is generated through self-employment and wage-employment in private enterprises outside of the agriculture and animal husbandry sectors: in handicrafts, cottage industries, sweater-selling, trading and other services. Likewise, 40 percent of secondary employment is generated through such employment, especially in sweater-selling.

The second IDP survey had a separate section on private enterprises operating in the Settlements. This survey identified almost 200 such private enterprises in 34 Settlements, which together generate about 450 jobs (see Table 4.2.5 overleaf). The results indicate that grain trading is a major activity in some of the Settlements in south India and here private traders are playing the same role as the cooperatives. Shops were clearly the most numerous private enterprises in the Settlements, and along with restaurants and hotels, they generate considerable employment. The other important category for employment in the private sector was carpet weaving, traditional crafts and tailoring. Other services and manufacturing outside of the above categories are, however, less well developed.

Since the time of the first IDP, considerable progress has been made in the field of private enterprise development in the Settlements. Firstly, there has been a clear policy directive from the Central Tibetan Administration to the Settlement Officers, asking them to encourage the establishment of private enterprises for business such as retail trade, provision stores, restaurants and other services. Secondly, the Revolving Loan Fund (see 4.4.4 below) has started giving loans to private individuals for establishing businesses in the Settlements. Thirdly, a lot of emphasis was given to identifying business opportunities for private entrepreneurs during the regional planning workshops conducted for the second IDP. The survey for the second IDP included a separate section on identifying livelihood opportunities based on local demand (in the Settlements and nearby markets), local skills and locally available raw materials. This is described in section 4.3.3.

In the scattered communities self-employment and employment in Tibetan-managed enterprises in the non-agricultural sector serve as the mainstay of employment. From the IDP survey, it is estimated that over 85 percent of employment in the scattered communities is generated through such activities as carpet-weaving, handicrafts and cottage industries, sweater-selling, other trading and services.

To summarize the extent of employment in non-farm private enterprise: There are around 36,500 people working in the Settlements, of whom around 18,500 are engaged in agriculture and animal husbandry. Of the remaining 18,000 about 9500 work in non-farm private enterprises, either as self-employed micro-entrepreneurs or as wage or salaried workers. In the scattered communities around 25,500 of a total of 29,500 jobs are in the non-farm private sector. Altogether, non-farm private enterprise thus provides over 35,000, or 53 percent of all the jobs in the Tibetan Refugee Community in India and Nepal.

While this is a very encouraging, it should be seen in light of the fact that nearly 40 percent of all this employment comes from sweater selling and other trading, most of it involving long stays outside the Settlements. In addition many of the scattered communities in and around large towns have grown up because of the need to earn a livelihood. Thus one of the challenges facing the Refugee Community is to use the considerable private entrepreneurial energy of Tibetan refugees to create jobs in the Settlements, or at least within commuting distances from them, so that the livelihood needs of the refugees can be fulfilled without major disruption of their social life in the Settlements.

4.3 GOALS AND STRATEGIES FOR ECONOMIC DEVELOPMENT

4.3.1 Problems and Needs

The survey of the economy based on data gathered for the IDP from the Settlements and scattered communities has allowed the CTA to define more accurately the problems that the Community is facing in the economic sector. The Task-force on Livelihoods, Employment and Income-Generation (LEIG) articulated these problems and needs as follows:

The primary sources of income, agriculture and handicrafts, do not provide sufficient income so that many are forced to take secondary employment; in particular nearly a third of the adult population migrate from the Settlements each year. Income earned during such migration has proved extremely valuable for the Refugee Community in economic terms. However, such migration is detrimental to Settlement life and hence adversely impacts the Community's goal of preserving Tibetan culture and traditions in the Settlements. In most cases migration means trading on the streets in Indian cities, and this leads to health problems; young people also develop undesirable habits and aspirations.

Unemployment among the Settlement population is 18.5 percent, and among youth aged 16-25 it is only slightly lower at 16.9 percent. The problem is compounded by the influx of new refugees from Tibet: since 1986 over 15,000 refugees have come from Tibet, about a third of whom are in need of employment, not being monks, children or elderly. It is estimated that by the year 2000 the Refugee Community in India, Nepal and Bhutan will need to create 30,000 new jobs. This figure is based on: i) the current unemployment estimated among the whole age group 16-50 (just over 10,000); ii) the increments to the labor force from school drop-outs who do not go for further studies (around 1700 a year or 10,000 by 2000 AD); and iii) the expected number of new refugees, excluding monks, children and the elderly (about 9000 by 2000 AD if 4500 refugees continue to come each year as in 1993). This is almost 45 percent of the current estimated employment within the Refugee Community. In other words, by 2000 AD the Community needs to create more than two new jobs for every five people currently working.

Job opportunities in the Settlements are very scare. Many young people in particular, who are often well educated, are unable to find meaningful employment in the Settlements. This is undermining the very purpose of the Settlements, namely the preservation of Tibetan culture and distinct national identity

The potential productivity of the land resources has not been fully exploited. For example, land lies fallow for much of the year and only 5.0 percent of the cultivable land is irrigated. The potential for animal husbandry remains under exploited and the quality of the existing livestock needs to be improved.

The economy of the Refugee Community is highly concentrated in a very few activities: agriculture, handicrafts (especially carpet-weaving) and sweater-selling. This lack of diversification makes the Community vulnerable to fluctuations in a few markets.

The cooperatives and societies are not able to offer enough attractive employment opportunities in the Settlements, especially for the educated youth. Wages and salaries paid by them are often not sufficient to retain people.

Many of these units are not run efficiently and on sound management principles: decision-making processes may be too centralized; welfare-oriented decisions in economic projects compromise the long-term financial strength of the units. The role of private enterprise in bringing economic development and creating jobs has been under-estimated so far.

The savings of individuals, cooperatives and societies within the Refugee Community are considerable, but they have not been mobilized and utilized productively for the economic development of the Community. Thus many activities face credit shortages while savings lie idle in local banks in areas where Tibetans live.

There is a shortage of expertise in technical fields, project planning, financial planning, management, research and development within the Refugee Community to plan and implement new projects, especially on a larger scale. Some such projects have been proposed in the past but have not been implemented for want of such expertise.

Thus the most urgent economic task facing the Tibetan Refugee Community is the creation of jobs, including for the educated youth. This is necessary not only for economic and social reasons, but also to preserve the Tibetan way of life and culture in the Settlements. For such job creation, the Community needs to diversify its economy beyond the existing livelihoods, increase the productivity of the available land, give greater opportunities to the private sector while reforming the public sector, utilize the Community's savings for the economic development of the Community, and develop greater technical and economic skills. From this the sector goals listed in the next section have been derived.

4.3.2 Sector Goals

For the next five years the following goals have been set:

To generate 30,000 jobs by the Year 2000 AD.

To improve the existing means of economic livelihood in order to support more employment and to establish a sound and more self-sufficient economic base for the Refugee Community.

To increase the productivity of the available land resources.

To diversify the economic base of the Community beyond the existing livelihoods, including through the establishment of small-scale industries

To provide appropriate employment opportunities for the young, and to develop human resources, especially among the youth, with skills relevant to a modern economy, including technological and commercial skills.

To provide a source of livelihood for families whose living conditions need uplifting.

To mobilize the Community's private and public savings to finance new investments.

To provide resources for the CTA and thereby reduce its dependence on outside funding, grants and borrowing.

4.3.3 LEIG Strategy

Gradually the Central Tibetan Administration is moving towards a more comprehensive strategy for developing livelihoods, employment and income-generation (LEIG) within the Refugee Community. The components of such a strategy can be grouped under a) policy reform and b) promotion (both financial and non-financial).

Policy Reform 1: Reviewing the role of public enterprises Section 4.3.1 indicated that with the economic development of the Settlements the public enterprises are no longer performing the vital economic role they did in the early days. Indeed in some cases where public enterprises have prevented the private sector from coming up, public enterprises have held back economic development within the Settlements, and forced private entrepreneurs to take their business outside of the Settlements. The economic performance of the public enterprises, cooperatives and societies, as well as the value of the welfare functions they perform are now being reviewed more carefully. Since the first Integrated Development Plan, some progress in this direction has been made:

- The Department of Finance is pursuing a policy of decentralization in its business activities. In one case the Department has converted its travel agency business into a joint venture with five individual partners. While the Department retains the largest share of 30 percent, managing the enterprise is the responsibility of the private partners. Already the agency has become profitable. The Department has planned a long-term strategy for promoting further such joint ventures (see 4.4.5 below).

- The working of a tractor workshop in one of the largest Settlements was reviewed with all the Settlement Officers and Cooperative Secretaries from the Settlements in the south during the regional planning workshop conducted there in 1993. An Indian is also working at the tractor section for a year, and has drawn up a report on reforming its operations. If successful, the same policies will be transferred to tractor workshops in other agricultural Settlements.

Policy Reform 2: Encouraging private enterprise, particularly in the Settlements Self-employment and private enterprise outside of agriculture and animal husbandry now generate over 50 percent of all the jobs in the Refugee Community, and a quarter of all the jobs in the Settlements. The potential of the private sector to generate jobs is thus becoming clearer, and at a meeting in 1993 of all the Settlement and Welfare Officers as well as the Cooperative Secretaries a policy that private enterprise in the Settlements should be encouraged was formally announced by the CTA. Concrete progress in this direction has already been made in the following areas:

The special survey of livelihoods, employment and income-generation (LEIG) opportunities conducted for the second Integrated Development Plan covered all the Settlements in India apart from those in Ladakh, West Bengal and Sikkim, and a few in Himachal and Uttar Pradesh. The basic survey looked at products consumed but not produced in the Settlements, raw materials in the Settlements which could be processed, skilled human resources as well as private businesses in the Settlements, and local markets. On the basis of these different components suggestions for potential enterprises were made. Some of the suggestions were as follows:

South India:

food products: processing of maize, paddy and milk; other food products such as noodles, flour and bread; cultivating vegetables; dairy farms;

manufacturing: tailoring; manufacture of soap, and of incense;

services: photo studio and processing; photocopying; taxi; vehicle, motorcycle and bicycle repair;

(some existing entrepreneurs: maize traders; noodle factories; hotel and restaurants; grocery store; taxi; gold smith)

Central India:

food products: processing of rice, potato and fruit (the latter especially in Phuntsokling Settlement in Chandragiri), as well as of milk; dairy and poultry farms;

manufacturing: tailoring; manufacturing of soap;

services: restaurants; tractor and taxi services, including repairs

(some existing entrepreneurs: list combined with south India; see above)

Himachal and Uttar Pradesh:

food products: dairy farm and products; noodle manufacturing;

manufacturing: jewellery; incense; fibre glass;

services: fruit trading; limestone trading; restaurants; electronic and motor repair;

(some existing entrepreneurs: wheat mills; noodle factories; apron weaving; tailoring; wood products, incense and other Tibetan crafts; shops; hotels and restaurants; transportation; video parlors; electronic repair)

North-East:

food products: processing of mustard and barley; manufacturing noodles and phing;

manufacturing: tailoring, including mishmi clothing, knitting and bag weaving; cane and bamboo products;

(some existing entrepreneurs: rice milling; oil expelling; hotel; shops; cycle repair)

- The Revolving Loan Fund is lending to private individuals within the Refugee Community (see 4.4.4 below).

- A number of developmental economic activities traditionally controlled by the cooperatives have been promoted in the private sector, for example running provision stores and dairying in the three Settlements in the North-East.

Policy Reform 3: Developing new livelihood opportunities While the employment and income potential of the existing economic activities can still be improved, the development of new activities is urgently required, both to generate more jobs, including jobs attractive to the educated youth, and to prepare the Refugee Community better for its return to future Free Tibet. Again some progress in this direction has been made.

- The Planning Council had funded a few feasibility studies for small enterprises in the Settlements in south India some years back. Two of these (bakery and manufacturing detergent powder) are now being implemented on a pilot basis in Rabgayling Settlement in Hunsur, Karnataka with loans arranged by the Department of Home. Others, such as the mini maize mill and soil cement blocks, form part of the plans under the income-generation program below.

- For the second Integrated Development Plan a survey of opportunities for livelihoods, employment and income-generation was conducted; the results of this survey are given in Table 4.3.3.

- The Tibetan Children's Village is establishing a Technical School with a capacity of 300 boarding students, offering (i) formal two to four year long training in 16 modern trades to a total of 200 students, and (ii) informal two-week to six-month training in nine modern trades to 100 students a year (see Chapter 5, section 4.5 below).

- The Task-force on Science, Technology and the Environment (ST&E) is drawing up an ST&E Plan focussing on sustainable development, including an emphasis on enhancing productivity in existing livelihoods and diversifying into newer, more modern livelihoods. One of the goals of the ST&E Plan is to establish an ST&E based livelihood research program which would focus on developing both existing livelihoods, for example in agriculture and animal husbandry, and new livelihoods, for example in cultivation of mushrooms, orchids and medicinal plants and in food processing. A special research and demonstration center for livelihoods at high altitudes which are close to environmental, and cultural, conditions in Tibet is also recommended. In the category of modern appropriate technologies the Task-force suggests electronics, computers, communications, bio-technology, manufacture of drugs, solar, wind, hydro and biomass energy, waste management and transportation (see Chapter 9, section 7 below).

Promotional Inputs: Financial Many of the entrepreneurs covered by the LEIG survey suggested the most pressing constraint they faced in their business was lack of capital. The Revolving Loan Fund was established to foster economic development, generate employment and diversify the economic base of the Community by extending loans to public enterprises and private individuals within the Refugee Community. The Private Lending Program of the Fund is now being developed more fully (see 4.4.4 below). In addition institutions and individuals within the Community now have substantial savings which often lie unutilized in local banks. The Department of Finance is thus establishing a non-banking financial institution, which will be able to absorb some of the Community's savings and utilize them for extending loans for the further economic development of the Community.

Promotional Inputs: Non-financial The fact that the Community has substantial savings in the banks indicates that lack of capital is not the only constraint on the economic development and diversification of the Community. Non-financial inputs, in particular to develop the necessary human resources are also important. A number of activities have been undertaken or are currently planned towards this end.

- Training in basic business analysis (contribution and break-even analysis) was given at various regional planning workshops conducted for the second IDP in the Settlements and for all the Cooperative Secretaries at a workshop in Dharamsala.

- The Planning Council is also organizing an entrepreneurship development program for 20 Tibetan youths in 1994. The program will provide inputs in achievement motivation as well as business and financial skills. If successful, similar programs will be repeated for more potential entrepreneurs within the Refugee Community.

- The Revolving Loan Fund is planning to provide training in business analysis, financial projections and feasibility studies for potential loan applicants in the Settlements and scattered communities (see 4.4.4 below).

- The Task-force on Science, Technology and the Environment (ST&E) is placing special emphasis on developing scientific and technical human resources for the Community. The Task-force has proposed an ST&E Education Program to promote interest and awareness of ST&E in schools and among the general public, and an Institutional Linkages Program which would establish links with appropriate ST&E institutions in India and abroad, including for training young Tibetans in ST&E and providing relevant apprenticeships for them.

4.4 FUTURE PROGRAMS AND PROJECTS

This section contains plans for the development of agriculture (4.4.1), handicrafts (4.4.2) and income-generation activities (4.4.3), which were largely proposed by the respective Settlements and scattered communities. All of these projects come under the purview of the Department of Home, which has overall responsibility for affairs in the Settlements and scattered communities and is therefore chiefly responsible for livelihoods, employment and income-generation within the Community.

While the income-generation projects seek to diversify the Settlement economies beyond the primary agricultural and handicrafts sectors, the Planning Council has been promoting greater economic diversification through the Revolving Loan Fund, which is described in section 4.4.4.

Finally the Department of Finance, which has the objectives of raising revenue for the Central Tibetan Administration to make it more financially independent and of promoting the socio-economic welfare of the Tibetan refugees, is also actively promoting economic diversification through its business units. Thus section 4.4.5 outlines the Department of Finance's investment strategy for the next five years

4.4.1 AGRICULTURAL DEVELOPMENT

4.4.1.A1 Introduction In the Settlements, nearly half of the working population, and for the Community as a whole, nearly a third, are employed in the agricultural sector. Many of the large Settlements in central and south India, in which over half the total Settlement population lives, are centered around agricultural production. However, with a growing population but a fixed quantity of land available to the Community, it is vital to develop the full potential of the available land resources.

The potential productivity of these resources has not yet been fully exploited. For example:

- land lies fallow for much of the year

- only 5.0 percent of the cultivable land is irrigated;

- only 1.5 percent of the land is used for orchards and horticulture; and 0.9 percent of the land in the Settlements is under pasture whereas 5.8 percent is wasteland, which can potentially be used to support animal husbandry.

Irrigation, on-farm development, mechanization using tractors, establishing orchards and animal husbandry, depending on the resources available to any particular Settlement, are all means of improving livelihood opportunities. In view of the importance of agriculture for employment and income, it is not surprising that many Settlements put forward agricultural projects. The population of these Settlements makes up almost exactly half the total refugee population in the Settlements, indicating the significance of this Program for the Community.

4.4.1.A2 Progress since the first IDP The following agricultural projects from the first IDP have been or are being implemented:

- Irrigation in Sonamling Settlement, Ladakh;

- The apple orchard in Delekling Settlement, Chialsa, Nepal, although some further funding still needs to be raised;

- Oxen have been provided for Tenzingang Settlement, Arunachal Pradesh, although further oxen are still needed (see Project 2 below);

- Dairy development projects in the three Settlements in the North-East.

4.4.1.B1 Land Development

Project 1. Norgyeling Settlement, Bhandara, Maharastra (1995. Due to the uneven nature of the land, paddy yields are as low as 10 quintals an acre. This project will level and bund 200 acres of land to increase yields to 15 quintals an acre. The local Indian Agriculture Officer will provide technical guidance. The costs of land levelling will be Rs 700,000 of which half will be contributed by the community in terms of labor and Rs 30,000 by the cooperative in cash.

Project 2. Tenzingang Settlement, Arunachal Pradesh (1997. Due to the lack of fencing and to encroachment by local people the Settlement is unable to make best use of its cultivable land. This project will fence 420 acres of land, provide ten pair oxen, construct a godown, and provide agricultural training to six settlers. This will provide livelihood and employment to 120 families. The project will cost Rs 5.4 million, of which the community will contribute Rs 0.9 million in terms of labor. The future recurring costs will be borne by the cooperative and the settlers, for which they need a working capital loan of Rs 2 million. Rs 200,000 has already been secured for this project from a Swiss donor

4.4.1.B2 Irrigation Projects

Project 1. Jampaling Settlement, Pokhara, Nepal (1995. An irrigation project was initiated in this Settlement in 1989 and a canal has already been constructed, but for lack of funds the head canal is yet to be completed. As the condition of the canal is deteriorating, funding of Rs 1.1 million to complete the project is urgently needed. The Settlement will contribute 25 percent of this amount, particularly in terms of labor.

Project 2. Choephelling Settlement, Miao, Arunachal Pradesh (1995. None of the land in this Settlement in the far north-east is irrigated and output of the main crop, paddy, has been declining over the years. This project will construct canals for irrigation to reverse the decline. The State Rural Works Department will provide the necessary engineer. The community will contribute 20 percent in terms of labor of the total costs of Rs 8.3 million.

Project 3. Dhargyeling Settlement, Tezu, Arunachal Pradesh (1996. Kitchen gardens have become an important source of income for many households in this Settlement in the far north-east, and this project will install a lift irrigation system to provide water for the gardens, as well as drinking water to the settlers and their livestock. The costs of the project will be Rs 4.5 million, of which the community can contribute unskilled labor valued at Rs 0.5 million. The recurring costs for maintenance will be covered by charging fees.

Project 4. Rabgayling Settlement, Hunsur, Karnataka (1996) Maize is the main crop grown in this Settlement, but only under rainfed conditions. A survey of the underground watertable will be undertaken, and if the results are positive this project will provide irrigation water from 25 borewells to allow farmers to diversify into other crops, including horticulture. A demonstration horticulture project using drip irrigation already exists in the Settlement, and farmers will be encouraged to invest in drip irrigation once irrigation water is supplied. However, the costs of investing in drip irrigation will be borne by individual farmers and the cooperative will assist in arranging loans for them. The project will also provide training for two Agricultural Officers and a borewell mechanic in the Settlement. The total costs will be Rs 1.6 million, of which the community will contribute 7 percent and seek to raise a further 30 percent as a loan. The remaining Rs 1 million are being sought from donors. The recurring costs will be borne by the farmers.

Project 5. Lugsung Samdupling Settlement, Bylakuppe, Karnataka (1997. This Settlement in south India primarily cultivates one crop (maize) only. Only 7 of over 3000 acres are irrigated, and these are used by the cooperative for growing vegetables. If the underground watertable allows this project will bring 20 acres of land in each of six villages under irrigation, which could also be used for vegetables in the summer season. The (Indian) Department of Mines and Geology will be requested to undertake a groundwater survey and select appropriate points for six borewells. A local agricultural consultant will give technical advice. The project will also provide training for three agricultural supervisors and one borewell mechanic. The project will cost Rs 1.1 million, of which the community will contribute 50 percent.

Project 6. Phuntsokling Settlement, Chandragiri, Orissa (1998-2000. None of the land in this Settlement is irrigated and farmers are dependent on monsoon rains for only one agricultural season a year. A lift irrigation scheme will ensure two crops a year, which will greatly assist the Settlement in social terms as well; in winter over half the Settlement population leaves for sweater-selling, because there are no other livelihood opportunities in the Settlement. A survey conducted in 1982 indicated that irrigation is feasible; there are eight reservoirs which could be utilized for this purpose. The costs will be Rs 15.4 million, of which the Settlement will contribute 20 percent, and a further 30 percent is being sought as a loan.

Project 7. Phendeling Settlement, Mainpat, Madhya Pradesh (1999. None of the land in this Settlement is irrigated and farmers are dependent on monsoon rains for one agricultural season a year. Lift irrigation will guarantee two crops a year. The acreage to come under irrigation over three years is 150, with water drawn from 30 wells. The Geological Department of the GoI will be requested to do a groundwater survey, and the Department of Agriculture of the State Government will then provide technical assistance. The project will cost Rs 1.6 million, of which the Settlement will contribute 20 percent, and a further 30 percent is being sought as a loan.

4.4.1.B3 Mechanization

Project 1. Dhoeguling Settlement, Mundgod, Karnataka (1996. At present the Settlement has seven tractors, which are not sufficient to cover all 3053 acres of land (used for paddy cultivation) during the ploughing season. This leads to late cultivation and consequently lower yields, and when the tractors break down the Tractor Section does not have enough equipment to repair them. The Section therefore plans to acquire five more tractors as well as a diesel generator. The Section will thus be able to service other vehicles as well, thereby increasing its income. The capital expenditure of the project will be Rs 1.4 million, of which the cooperative will contribute 20 percent and take a loan for a further 30 percent. The recurring costs will be borne by the cooperative by charging fees.

Project 2. Phuntsokling Settlement, Chandragiri, Orissa (1997. The old tractors currently owned by the Settlement are not efficient for ploughing and harrowing, and maintenance costs are very high. The project will thus purchase eight new 47 H.P. tractors and retire its twelve old 35 H.P. tractors over a period of three years. The capital costs of the project are Rs 2.2 million, of which the sale of the old tractors will generate Rs 0.5 million. In addition the Settlement will contribute a further 15 percent of the costs, and take a loan for 12 percent. The remaining 50 percent is being sought as a grant. The recurring costs will be covered by charging fees.

Project 3. Phendeling Settlement, Mainpat, Madhya Pradesh (1998. The demand for tractor services by the Settlement farmers is increasing, especially with the rising costs of agricultural labor, and the cooperative cannot meet this demand with its existing four tractors. The cooperative is thus seeking to buy five more tractors costing Rs 1.3 million. The Settlement will contribute 20 percent of these costs and 30 percent is being sought as a loan.

Project 4. Dhargyeling Settlement, Tezu, Arunachal Pradesh (1999. This Settlement already has five tractors, which have proved valuable in increasing production. Once irrigation has been installed (see B2. Project 3 above), the Settlement plans to acquire three more tractors, buy agricultural implements and inputs, and construct a godown in order to exploit the higher yields resulting from irrigation. A mechanic and two drivers are available in the Settlement. The cost of the project will be Rs 1 million, of which the Settlement will contribute 20 percent and a further 30 percent is being sought as a loan.

4.4.1.B4 Other Projects

Project 1. Tenzingang Settlement, Bomdila, Arunachal Pradesh (1995. This Settlement in north-east India already has 56 acres of apple orchard which are its most successful crop, generating over 80 percent of its total value of production. In 1995 the Settlement will expand its successful apple orchard by planting a further 20 acres, for which some work has already begun. The capital expenditure for the project will be Rs 1.2 million, of which the cooperative will contribute 15 percent

Project 2. Phendeling Settlement, Mainpat, Madhya Pradesh: Dairy farm (1996. Currently animal husbandry is practiced in this Settlement without much value addition and merely for subsistence. The project aims to improve the quality of animal husbandry, reduce the scarcity of milk and provide a further income-generating activity for the Cooperative. The cost of 26 cows and a bull will be Rs 250,000. The community will contribute Rs 50,000. The remaining 80 percent is being sought as a loan. The recurring expenses will be met by the sale of milk.

Project 3. Sakya Tibetan Society, Puruwala, H.P.: Boundary Demarcation (1999. This Settlement in north India is scattered over four villages with the fields intermingled with those of the local population. There are already several disputes over apparent land encroachment, and the Settlement would like the boundaries properly demarcated to avoid such disputes. The project involves checking and identifying the actual boundaries with local government officials, and then erecting RCC pillars to clearly demarcate them. The costs will be Rs 323,000, of which the community will contribute 50 percent.

4.4.1.C Implementation The Department of Home and the Settlement Offices of the agricultural Settlements have all had long experience in promoting agriculture within the Settlement communities, and the individual Settlement Offices, in some cases with the support of the cooperative societies, will continue to take full responsibility for the implementation of any agricultural projects in their Settlements. The Department of Home will provide the necessary oversight and remain accountable to donors.

However, a stage has now been reached in which further development will require more specialized inputs. The Department of Home will conduct thorough feasibility studies for many of the projects, for example to ensure that there are sufficient water resources available in each Settlement which has proposed an irrigation project. The Department also intends to recruit new staff (see next section).

4.4.1.D Human Resources In order to make the best use of the material and financial resources in the agriculture program, the CTA needs professional staff in the Department of Home to make expertise available at the Settlement level. To start with the Department is seeking to appoint one Agricultural Officer at the Head Office to help develop and guide the agricultural programs of the Department, including an on-going survey of agricultural potential within the Community. The Department will also hire outside experts, mainly from India, to assist in particular areas of need.

However, an officer based in Dharamsala could not visit all the projects scattered across India and Nepal. Thus it may also be necessary to train a certain number of youth in each Settlement as extension workers, as already proposed by Tenzingang (Bomdila), Rabgayling (Hunsur) and Lugsung Samdupling (Bylakuppe) Settlements in their agricultural projects. Since hardly any Tibetan youth are going to agricultural universities, training will have to be provided through short-term programs. The help of the local agricultural departments, universities and Krishi Vigyan Kendras will be sought for this purpose.

4.4.1.E Financial Resources In the past many agricultural projects have been funded through grants. In view of the CTA's new emphasis on self-sufficiency and community participation the Department of Home is increasing the amount covered by contributions from the communities and by loans; such a policy will assist in reducing grant dependency within the Tibetan Refugee Community. The Department has decided each case on an individual basis, but in total the Department is seeking to raise Rs 49.2 million for the Agricultural Development Program over the Plan period in the following manner:

Rs 9.7 million (or 20 percent) from community contributions;

Rs 9.1 million (or 18 percent) through loans;

Rs 30.4 million (or 62 percent) through grants, of which Rs 200,000 has already been committed.

The total costs for the Agricultural Development Program have increased by over 30 percent from the first IDP. This reflects adjustments for inflation and some revisions in costing (especially for the orchard in Tenzingang Settlement), but above all the addition of new projects for land development and irrigation in pursuit of the goal of improving the productivity of the land resources available to the Refugee Community.

4.4.1.F Monitoring and evaluation Each Settlement Office submits regular reports, including the accounts, to the Department of Home on the progress of any agricultural projects, and of agriculture development in the Settlement in general. These reports are reviewed at the Head Office and, if necessary, followed up with requests for further information or site visits. Once the Agricultural Officer is appointed he will be responsible for regular visits to the Settlements to check on the progress of agricultural projects and to evaluate them when they have been completed.

4.4.2 HANDICRAFT DEVELOPMENT

4.4.2.A1 Introduction The economic survey in sections 4.1 and 4.2 reveals that handicraft production is one of the chief sources of income for the Tibetan Refugee Community, and is the largest contributor of funds to the Central Tibetan Administration. Many of the Settlements in north India are based around handicraft production, as the land available for agriculture is very limited.

The sector also provides over 10 percent of all primary employment within the Community as a whole and just under 10 percent of all secondary employment within the Settlements. The handicraft sector is particularly important for providing employment for women. Of the primary workers in the handicraft sector in the Settlements covered by the IDP survey, nearly 80 percent were women. The same is true of workers with secondary employment in the sector, where nearly three-fourths were women. The sector is also a valuable employer for weaker sections of the Community, such as new arrivals and school drop-outs.

Carpet weaving is the dominant craft, although other types include handwoven textiles such as yarta cloth, tailored goods, knitting, incense making, wood carving, paintings and metal-craft.

Since the early 1970s the Central Tibetan Administration has played a pivotal role in the development of the extensive network of handicraft cooperatives and societies located in almost every Settlement. These cooperatives and societies are particularly important for many of the Settlements in north India.

4.4.2.A2 Current Activities The Department of Home has had particular responsibility for the handicraft centers in the Settlements, as well as running a wool spinning and dyeing facility and a handicraft export office. But many other institutions have been heavily involved as well. The bulk of the Department of Finance's profits come from the handicraft production of His Holiness The Dalai Lama's Charitable Trust and the Bhelyul units (see section 4.4.5 below). Among the units promoted by the Central Tibetan Administration, the Charitable Trust is by far the largest exporter of Tibetan carpets.

The Tibetan Children's Village operates a vocational handicraft training and employment center for students who would not continue in school or move to other job areas because of low scholastic achievement or from a basic lack of opportunities. The Department of Religion and Culture has promoted the production of "Losel Dolls", made by monks from the Drepung Loseling monastery. The Department is also promoting the Norbulingka Institute (see 7.4) as a major center for arts and crafts.

Many Tibetans in the private sector also produce and trade handicrafts. Private Tibetan producers in Nepal have been particularly successful in exporting Tibetan carpets. It is estimated that the carpet business, in which Tibetans are major players, accounts for 13 percent of Nepal's GNP, providing a significant portion of Nepal's foreign exchange earnings.

4.4.2.A3 The Tibetan Handicraft Development Project

This project was initiated by the Planning Council in 1988 to develop Tibetan handicrafts, other than carpets, through systematic training of human resources, improved production and quality control. It also seeks to coordinate handicraft exports other than carpets of many of the institutions involved in handicraft production. The project marks a major step to enter into a partnership with a US based import company, dZi Inc, which is also the trademark name used for the handicraft exports to the US.

The goals of the Project are:

- To provide Tibetan artisans in India with improved economic opportunities through the development of sustainable handicraft exports, initially targeted at the US market

- To update production techniques, product designs and the management of handicraft centers so that Tibetan producers can compete in international markets

- To provide professional training and guidance to improve the skills and capabilities of Tibetan artisans

- To diversify Tibetan handicraft exports into products other than carpets

- To preserve and promote traditional Tibetan crafts, and to raise the interest of Western markets in Tibetan crafts

- To improve the wages of the artisans and earnings of the institutions involved in handicraft production.

In seeking to diversify handicraft production, the Handicraft Development Project has focused on garments and clothing accessories, such as shoulder bags, belts, jewellery and metal crafts, as well as carved wood items, rather than carpets. The product development strategy of the Project is to upgrade and adapt existing Tibetan crafts and to re-interpret traditional Tibetan motifs into new products suitable for Western markets without losing their meaning and traditional value.

The Project is directly under the Tibetan Handicraft Development Board (THDB), and the day to day administration and management is the responsibility of the Office of the Handicraft Coordinator, who works under the general supervision of the Planning Council. The export offices of the Departments of Home and Finance and handicraft centers in the settlements, as well as dZi Inc. and professional consultants, constitute the other partners in the Project.

The Tibetan Handicraft Development Board and the Office of the Handicraft Coordinator provide training to artisans in embroidery, patch work, tailoring; develop new designs; and provide general oversight and financial assistance. The Coordinator of the Project and his assistant travel to handicraft centers to meet directly with managers and workers to place orders, review progress in production and refine the quality standards of artisans' work. The Project sources products both from government-run handicraft centers and private Tibetan producers.

dZi Inc. is a US based import company for the Handicraft Development Project. Its primary role in the partnership is to develop a line of marketable products, and to sell these products at a profitable rate in the United States.

The Project has contracted professional consultants to work with Tibetan artisans for the development of fresh product lines suitable both for Tibetan production and for export. SHARE, a development agency based in Bombay with a marketing office in Chicago, has been assisting the Project. Thus design consultants from SHARE and dZi conducted four garment production and design training workshops in March and September of 1992 and of 1993. These workshops focused on developing new clothing styles for shows in the US for the summer and spring seasons respectively.

4.4.2.B Handicraft Projects in the Settlements and Scattered Communities

The primary objective of the handicraft projects in the Settlements and scattered communities is to generate employment for needy sections of the Community, such as unsettled refugees and school drop-outs. The majority of the jobs will go to the women among these groups. In addition there is one project to expand the export office in New Delhi which assures export markets to the handicraft centers in the Settlements.

Progress since the first IDP The following projects from the first IDP have been or are being implemented:

- Rebuilding Chauntra Handicraft Center

- Rebuilding Tenzingang Handicraft Center

- Establishing handicraft activities for new refugees at Rawangla Settlement

- Establishing a knitting project at Manali

- Establishing a Handicraft Center at Pandoh (although further funding is still required)

Project 1. Tailoring Training, Dhargyeling Settlement, Tezu, Arunachal Pradesh. (1995. This Settlement in the north-east of India does not have a single skilled Tibetan tailor. With this project the cooperative intends to train five girls in tailoring for 18 months. The cooperative will purchase five sewing machines and the necessary furniture; a hall is already available. The total cost of this project is Rs 205,000 of which the community will contribute Rs 107,000 or 52 percent.

Project 2. Carpet Weaving Center, Lama Hatta, Darjeeling, W.B. (1996. This Settlement, with a small population of 154, has no permanent source of income except vegetable gardening and seasonal petty business. In order to provide a more regular source of employment and income, this project will install ten weaving looms in the existing but unused weaving hall, and train 15 Tibetans in carpet-weaving with the help of a master-weaver who is already available. For this project the Settlement is seeking a loan of Rs 200,000

Project 3. Dalhousie Tailoring Project, H.P. (1996. There are very few Tibetan tailors in Dalhousie in north India even though the demand for Tibetan dresses within the local Tibetan Community of over 700 is large. This project will train eight young Tibetans, especially women, in tailoring so that they can become self-supporting. A training center is already available and the necessary equipment will be donated in kind from the community. Thus the cost of the project will be Rs 160,000 of which the community will contribute 50 percent, and the remaining 50 percent is being sought as a loan.

Project 4. Metal Work Training, Lingtsang Settlement, Manduwala, U.P. (1997. This is one of the most dynamic Settlements which earns a livelihood through traditional Tibetan metal crafts. To preserve and promote this craft this project will construct a training hall and train 15 young Tibetans in traditional metal-work. The costs of the building and tools (Rs 325,000) are being sought as a loan, and the training costs (Rs 218,000) as a grant.

Project 5. Carpet Weaving Center, Herbertpur, U.P. (1998. This is an agricultural Settlement for retired Tibetan army staff. Apart from seasonal agriculture the Settlement does not have any income-generating facilities like a handicraft center. This project will thus construct a carpet weaving center, install weaving looms and train 30 weavers for a period of six months. The weaving instructors will be invited from Dekyiling Settlement in Dehradun. Marketing of the products will be done through the Department of Home's TRSHH (see Project 7). The costs of the project, including capital costs and training, are Rs 576,060. The Settlement will contribute Rs 50,000 and take a loan for Rs 100,000. The working capital needs will also be met by the Settlement.

Project 6. Manali Tailoring Center, H.P. (1999. The lack of employment opportunities for school drop-outs is becoming an acute social problem for the Tibetan Community in Manali. Over three years this project will provide training in tailoring for 15 such drop-outs and encourage them to set up their own shops in different Tibetan communities. The best three trainees from the first batch will be retained to train five further trainees every year. A supervisor and two instructors are already available to initiate the project, which will cost Rs 380,000; of this 300,000 is being sought as a loan and the remaining Rs 80,000 as a grant.

Project 7. Tibetan Refugee Self-Help Handicrafts (TRSHH), New Delhi (1995. TRSHH in New Delhi is the Department of Home's exporting agency for Tibetan handicrafts. The revenue it earns is distributed among the handicraft centers, thereby ensuring better wages for the workers. However, the present export house and staff quarters are rented, and the greater part of the profits earned are spent on rent. This project will construct an office, showroom and staff quarters on the land in south New Delhi which has been allotted by the Government of India. The project was due to begin in 1992 but problems arose with the allocation of land. These have now been cleared and the project should begin in 1995 and be completed within a year. The project will cost Rs 2.4 million, for which a funding commitment has been received.

4.4.2.C Implementation The Societies, Settlement or Welfare Offices concerned will take direct responsibility for the implementation of each of these projects in the field, while the Department of Home provides the necessary oversight and remains accountable to the donors.

Some of the projects will seek to exploit local markets within the Tibetan Community, while others can also be integrated into the marketing channels which have been established through the Tibetan Refugee Self-Help Handicraft Office and the Tibetan Handicraft Development Project.

4.4.2.D Human Resources The Department of Home at present does not have any specialist staff member for overseeing the work of the various handicrafts units under its purview. The day to day management of the Settlement-based handicraft centers is left to the Secretaries of the respective societies, who work in consultation with the Settlement or Welfare Officers. The Department is seeking to recruit one staff member for providing expert guidance to the Department in both the technical and commercial aspects of the handicraft business.

The Department also plans to provide specialized training to the already experienced handicraft center managers. This training will be to sensitize them to market trends and to give them concrete skills of business planning, marketing and production coordination. This training will be sought through the Handicraft Development Project.

4.4.2.E Financial Resources In the past handicraft centers have often received a lot of grant financing. The Department of Home would like to reduce this grant dependency by in most cases providing the necessary working capital as a loan. However, the Department will often continue to seek grant funding for the costs of training, particular for needy sections of the Community, which cannot be borne by the handicraft centers themselves.

The total costs of the handicraft projects in the Settlements over the Plan period amount to Rs 4.5 million. The Department is hoping to raise 23 percent of the total in the form of loans, especially for working capital, and 5 percent as community contributions. The remaining Rs 3.2 million need to be raised as a grant, of which RS 2.4 million have already been received.

The costs of the Handicraft Development Program are lower than in the first IDP, as many of the projects from the first IDP have been or are being implemented, although four new projects have been added for the second IDP.

4.4.2.F Monitoring and Evaluation Each of the handicraft projects will be monitored by the respective Settlement and Welfare Offices which must submit regular reports to the Department of Home. The accounts of the handicraft centers and projects undertaken by them are audited on a yearly basis; the audit report includes an assessment of project performance, as well as the details of the accounts. Staff from the Department of Home make regular site visits to the Settlements so that they can assess the progress of projects in the Settlement. Once the Handicraft Officer for the Department of Home is appointed, he or she will take specific responsibility for monitoring and evaluating handicraft projects in the field.

4.4.3 INCOME-GENERATION PROJECTS IN THE SETTLEMENTS

4.4.3.A Overview Four of these projects are in agro-processing and related lines, and therefore build on the Community's current strengths in the primary agricultural sector. Two are in manufacturing (soil cement blocks, rice paper and cane products), and one in mining. The remaining two are in the retail sector. All have been proposed by the Settlement cooperatives or the Settlement Office, not by private individuals.

Progress since the first IDP The following projects from the first IDP have been or are being implemented:

- Rice Mill at Norgyeling Settlement, Bhandara, Maharastra

- Poultry Feed Machine at Lugsung Samdupling Settlement, Bylakuppe, Karnataka

4.4.3.B1 Agro-processing and related activities

Project 1. Dekyi Larsoe Settlement, Bylakuppe, Karnataka: Mini Maize Mill (1995. Maize is the only crop produced in this large agricultural Settlement. Maize products are in good demand and one maize mill is already operating successfully in the Settlement. The new mill will provide employment for ten people. A feasibility study was sponsored by the Planning Council, and the results indicated that the cost of the mill will be Rs 1.16 million, of which Rs 0.74 million should be taken as a loan and Rs 0.42 be contributed by the community. The payback period will be 3_ years, with a return on investment of 24 percent. If successful the project could serve as a model for other large agricultural Settlements in south India where maize is also the main crop.

Project 2. Delekling Tibetan Settlement, Chialsa, Nepal: Apple Storage and Drying (1995-97. This Settlement has recently established a successful apple orchard. In order to store the apples and sell them at higher prices later, this project will construct a storage house. It will then add a drying machine run by three people as a simple way of adding value to production. The cost of the storage house will be Rs 340,000 while the building and machinery for the drying machine will be Rs 148,000. The cooperative will contribute Rs 10,000 and Rs 190,000 are being sought as a soft loan from an NGO. The remaining Rs 288,000 are being sought as a grant.

Project 3. Phuntsokling Settlement, Chandragiri, Orissa: Fruit Processing. This Settlement has increasingly been converting its agricultural land into orchards, which now cover some 40 acres. The soil is suitable for guava, banana, papya and lemon; at present guava contributes about two-thirds of the total fruit production. There is no processing facility for higher value addition that would generate more livelihood and income opportunities for the community outside of maize-based agriculture, sweater-selling and carpet weaving. This project will process fruits into products like jam, jelly, pickles and so on. A feasibility study needs to be conducted to decide on the most appropriate size of the unit. Thus the Settlement will sponsor such a feasibility study and then seek to raise a mix of loans, contributions and grants for implementing this pilot diversification project.

Project 4. Norgyeling Settlement, Bhandara, Maharastra: Godown Construction (1999. The cooperative only has two small godowns which can store less than a sixth of the total paddy production of the Settlement in one season. The next place to store paddy is 15 km away. The cooperative thus plans to build another godown costing Rs 600,000. A loan of Rs 500,000 is being sought; the cooperative will contribute the remainder.

4.4.3.B2 Manufacturing

Project 1. Tenzingang Settlement, Bomdila: Rice Paper and Cane Manufacturing (1996. This Settlement is predominantly agro-based and manufacturing of rice paper and cane products will help diversify existing livelihoods. This project will provide training to ten trainees in each craft; masters will be hired locally, as both these activities are undertaken by the local population. The capital costs for building a workshed amount to Rs 288,000, while the training will cost Rs 161,000. The community will contribute 15 percent of the costs through labor for construction and through sales of products during the training program.

Project 2. Dekyi Larsoe Settlement, Bylakuppe: Soil Cement Blocks (1997). Houses are being built in the Settlement to meet the demands of the growing population. Soil cement blocks made of cement, soil and lime would be more economical than the bricks currently used in construction. A unit with a turnover capacity of Rs 560,000 would generate employment for 28 people as well as profits for the cooperative. A feasibility study for this project was sponsored by the Planning Council, and the results indicated that the cost of the project will be Rs 205,000. Of this Rs 135,000 should be taken as a loan, and Rs 70,000 be given by the cooperative. The estimated payback period would be less than 4 years, with a return on investment of 28 percent.

Project 3. High-Grade Limestone Mine, Kamrao, H.P. (1998. The Tibetan Taopon Gapa Welfare Society has been working for over 25 years in two limestone mines. After seeking approval under the Mining and Environment Law, the society intends to purchase a limestone mine at Shiva Rudana. The profit from this project will be used for the development and welfare activities of the community. The total capital costs of the project are Rs 2.4 million, for which the Society will contribute 12 percent in cash; the remaining Rs 2.1 million are being sought as a loan. All the recurring costs will be covered from income generated by the new mine.

4.4.3.B3 Service Sector

Project 1. Herbertpur Settlement, U.P.: Shop and Restaurant (1996. The Society in this Settlement in north India has retained land specifically for commercial activities, and has decided to utilize it for a shop and a restaurant, which could be rented to private individuals. These facilities do not currently exist in the Settlement, and would be widely welcomed by the community. The community is therefore willing to contribute free labor to construct the buildings. The construction of the buildings has been estimated at Rs 204,750. The Settlement will seek a loan of Rs 100,000 and contribute the remainder.

Project 2. Dekyiling Settlement, Dehradun, U.P. : Shop (1997. This Settlement does not have enough shops to cater to the needs of its people. This project will thus construct a shopping complex of ten small shops. The total costs will be Rs 300,000 of which the cooperative s contributing Rs 60,000 and seeking a loan of Rs 240,000.

4.4.3.C Implementation As all of these projects have been proposed by the cooperatives or societies in the Settlements, they will be directly responsible for implementation in the field, with the Department of Home providing the necessary oversight and remaining accountable to donors. For some of these projects the Department will undertake feasibility studies, as was done for the two projects in Mundgod Settlement.

4.4.3.D Financial Resources. The Department is hoping to raise the total of Rs 5.8 million required for the income-generating projects in the Settlements in the following manner:

Rs 1.1 million (or 19 percent) as community contributions;

Rs 4.0 million (or 69 percent) from loans;

Rs 0.7 million (or 12 percent) as grants.

The Department of Home is exploring the possibility of receiving loans for some of these projects from the Revolving Loan Fund described below in 4.4.4.

4.4.3.E Monitoring and Evaluation The cooperatives and societies in the Settlements will be responsible for monitoring the progress of the projects in the field. The cooperatives and societies already submit regular reports on their projects, as well as their audited accounts, to the Department of Home. To maintain the confidence of those who provide loans for these projects, the borrower will submit quarterly reports on the financial status of the projects.

4.4.4 REVOLVING LOAN FUND

4.4.4.1 Objectives The Revolving Loan Fund (RLF) is a community fund launched by the Planning Council to foster economic development, to provide employment for Tibetan refugees, to diversify the economic base of the Community and to promote economic self-sufficiency by diminishing reliance on outside funding.

The Fund provides loans to public sector organizations and societies, NGOs and private parties at interest rates comparable to market rates for projects identified as beneficial to the Community in terms of the above economic objectives, and relevance to the economy of future Tibet.

The RLF will assist the Community in making the transition from a traditional economy to a modern investment-based system. The Fund seeks to inculcate fundamental economic concepts like inflation, demand and supply, investment and return, and market forces among ordinary Tibetans. In the management of the Fund, training the staff, implementing an interest-rate policy based on inflation, and educating government officials and the public, the RLF is bringing about professional expertise and experience in the fields of finance, banking and development aid, which will be valuable when the Community returns to Tibet. The RLF is thus intended to be the nucleus of a future development bank of Tibet.

4.4.4.2 Establishment of the Fund To establish the RLF the Planning Council received, through the Tibet Fund, New York, US$ 500,000 from the New Cycle Foundation, a non-profit organization in Boston in the United States, in the form of an interest-free Rupee loan repayable in five to seven years. The Government of India, through its Ministry of Finance, provided backing for the project when seeking permission from the Reserve Bank of India for the necessary fund transfer. The Indian Rupee value of the remittance at the time was Rs 9.85 million, and this amount, along with the interest earned on it to date, constitutes the capital of the RLF. The interest earned by the RLF, both from deposits in the bank and on loans made, is being accumulated in a special account called the Replacement Revolving Loan Fund. This will later on form the base capital for the Fund after the principal is paid back to the Tibet Fund in New York.

4.4.4.3 Current Activities All lending from the RLF is done through two channels for which separate fund allocations are made. Procedures for loan application, appraisal and decision-making are similar in both the cases. The two lending channels are:

a) Institutional Lending Program

Under this program loans are made to the various public sector organizations and cooperative societies in the Settlements. Though these projects are charged interest at rates comparable with market rates, projects which are submitted through and provided surety by the Department of Home are allowed a 2 percent interest subsidy, since their work directly benefits the people in the Settlements. The institutional lending program had been in operation since the Fund began in June 1991, but its performance had not been up to expectations, both in terms of the number of applications received and the nature of the project proposals received. Very few new or enterprising projects have come from the Settlements; the unwillingness of the local Settlement officials to take risks and plan new projects, and the perceived high interest rate are some factors contributing to this. Most of the projects funded under the program are short-term loans for working capital purposes.

Nevertheless, the program has fared quite impressively in terms of the amount of credit extended and in helping the cooperative societies, especially in south India, in overcoming their working capital needs. Rabgayling Settlement, Hunsur wrote: "The RLF has brought us good luck and served the very purpose of immediate required payment of our institution." The contribution of the RLF to facilitating and consolidating the maize business in the south is the most notable achievement; maize is the main crop grown by the Tibetan refugees in the southern Settlements. Besides providing regular credit to finance working capital needs, the RLF is involved in a concerted effort by all the Tibetan parties in the maize trade, both public and private, to gain substantial control over the maize trade in the region and assure better prices for the growers.

To date 12 projects from various public organizations and cooperative societies have been sanctioned and loans amounting to Rs 15 million in all disbursed. The loans include working capital for agricultural purposes and for handicraft centers, loans for purchasing a truck for transport services, for constructing a shopping complex and for renovating a guest house. In addition one loan was made for financing and coordinating maize trading by Tibetans in south India and another for further lending to private parties. Of the total of Rs 15 million loans amounting to Rs 5.6 million, representing six projects, were outstanding as in March 1994. No major default in repayment of any of the loans has occurred.

b) Private Lending Program (Tibetan Refugee Self-Help Fund)

Since the inception of the Fund lending to private Tibetans parties had been one of the main objectives of the RLF. Promoting private enterprise and using it as a vehicle to achieve the economic objectives of job-creation and diversification had been a basic economic philosophy of the Fund administrators. However, since the Fund was channelled through the Charitable Trust (see 4.4.5 below), legal issues involved in protecting the tax-exempt status of the Trust did not allow private lending immediately. The Planning Council spent considerable time and effort in researching ways to facilitate such lending without jeopardizing the Trust's tax-exempt status.

The problem was resolved when a new entity called the Tibetan Refugee Self-Help Fund (TRSHF) was set up under the Tibetan Administration's Welfare Society (TAWS; see 4.4.5 below) through which loans to private Tibetan parties could be made. The announcement for private lending was made in March 1993, and the first applications were received in May. In June the Loan Committee met to decide on the first set of private applications, and it now meets regularly to consider applications for loans. To date 85 private loan applications have been received by the TRSHF, both from individuals and organizations. The following table gives a status report on the applications as of January 1994:

S. No.	Particulars	Amount (Rs millions)	No. of Applications
1.	Applications received to date	33.45	85
2.	Applications approved to date	6.37	30
3.	Applications Rejected, Deferred, Withdrawn	23.20	45
4.	Applications under appraisal	3.88	10

While the performance of the RLF in public sector lending had not fared well in the first two years of the project, the response from private parties and the loan applications received indicate some very encouraging signs for the growth potential of private lending. However, the impending term end of the loan which capitalized the Fund constrain it from taking up stronger and more ambitious lending. Efforts to increase the capital of the Fund are planned (see below).

4.4.4.4 Administration, Decision-Making and Human Resources The RLF now functions as a unit of the Planning Council and its Secretary is the chief executive of the RLF. However, the broad policies and major decisions of the RLF are taken by the RLF Board, which is responsible for its overall administration and performance. A separate body called the Loan Committee takes all loan making decisions. It is intended to be an expert committee and independently approves loans up to Rs 500,000; it can reject any loan application. Amounts above this limit are decided by the Board upon recommendation by the Committee.

The RLF is assigned three full-time staff to take care of its everyday work like processing loan applications, monitoring and evaluation of projects, preparation of financial statements and writing reports.

4.4.4.5 Monitoring and Evaluation Monitoring and evaluation of the RLF project is done at two levels: 1) the overall project level and 2) the individual loan level.

1. Monitoring and evaluation at the project level is done primarily through quarterly reports which include details of all loan activities, investment transactions, income and expenditure, staff training, likely problems over the next quarter and so forth. New Cycle Foundation representatives also come to Dharamsala to gain first hand knowledge of the progress of the project, and provide recommendations and guidance for improvement. The Foundation approves the policies, procedures and forms to be used in the operation of the loan fund.

2. Individual projects for which loans have been provided from the RLF's institutional lending program and the Tibetan Refugee Self-Help Fund are monitored and evaluated through reports submitted by the loanees on the use of funds and performance of the project, and through site visits by RLF staff.

4.4.4.6 RLF Future Program and Projects

1. RLF Capital The present RLF principal loan amount has to be repaid to the Tibet Fund, New York in June 1996. The accumulated balance in the Replacement Revolving Loan Fund will stand at about Rs 5 million by that time. However, until now the total loan amount applied for has been Rs 33.5 million, out of which about Rs 6 million have been sanctioned. Since more and more Tibetan refugees are applying for loans the accumulated amount in the Replacement Revolving Loan Fund will not be able to meet the requirement and will not be able to support the CTA's endeavor in diversifying the Tibetan Refugee Community's economy.

The Community has shown great interest in the RLF and it has helped to diversify the economy, create more employment and help weaker sections of the Community. The RLF has also helped to accelerate the pace towards self-sufficiency and away from grant dependency. The staff of the RLF and the Community have gained valuable experience and expertise in the management and formulation of sustainable economic projects. It is therefore in the best interest of the CTA and the Community that this program continue and act as a catalyst for economic development. After repaying the original capital, the RLF will require an additional Rs 50 million or US$ 1.7 million for a period of seven years as new capital in the form of an interest-free loan.

2. Staff Recruitment and Training Since the activities of the RLF are increasing, the need to recruit qualified staff has become essential. As qualified staff are in short supply, training for the new staff as well as the present staff is important to upgrade their theoretical as well as practical skills. The staff will be trained through different training courses and on-the-job. The total cost of the training will be Rs 350,000 over five years. The RLF itself will bear these costs.

3. Training of the Loan Applicants The need to train the ever increasing loan applicants has become important in order to make the RLF a community program and to achieve the objectives set for it. Without proper training in financial projections and analysis and feasibility studies, the loan applications will continue to be of poor quality and often unviable. Since these concepts are new to the loan applicants, they find it very difficult to understand the loan application requirements, which results either in rejection or reformulating the project. The RLF will conduct training at the grass-roots level to improve business planning. Such training programs will be held in the Settlements and scattered communities. The projected total cost will be Rs 500,000 over five years. The RLF will bear these costs as a long-term investment for the Community.

4.4.5 INVESTMENTS BY THE DEPARTMENT OF FINANCE

4.4.5.A1 Overview The Department of Finance pursues the objectives of raising revenue for the Central Tibetan Administration to make it more financially independent and of promoting the socio-economic welfare of the Tibetan refugees. The Department has 28 businesses with 336 staff. From the profits of these business units the Department, in 1991, 1992 and 1993, was able to contribute 17, 23 and 18 percent of the Central Tibetan Administration budget, amounting to Rs 4.3, 11.0 and 14.7 million respectively. For administrative purposes the business units are grouped under four bodies:

- His Holiness the Dalai Lama's Charitable Trust

- Bhelyul units

- The Tibetan Administration's Welfare Society (TAWS)

- Units directly under the Department of Finance

The units under the Charitable Trust, and the Bhelyul units, are mostly involved in traditional handicrafts. Ventures under TAWS and the Department of Finance fall mainly in the service industry, as well as incorporating one agro-processing unit. Table 4.4.5.1 gives summary data for the business units over the last five years.

Another important function of the Department of Finance is budgeting for the Central Tibetan Administration. The Department prepares an annual budget for the CTA which is presented to the Assembly of Tibetan People's Deputies by the Kalon (Minister) for Finance. The Department collects the revenue for the budget, and disburses the funds for expenditure under the budget.

4.4.5.A2 Current Activities

i) Handicraft Enterprises of the Department of Finance.

His Holiness The Dalai Lama's Charitable Trust is a registered Trust with the objective of promoting the socio-economic welfare of the Tibetan refugees and preserving the distinct Tibetan cultural identity. Some 3000 people directly or indirectly earn a livelihood from the ventures set up by the Trust. The Trust has played a major role in promoting the production of hand-knotted Tibetan carpets, which is an important commercial undertaking in most of the Tibetan refugee Settlements.

The different units under the Trust are:

- Tibetan Woollen Yarn Center (TWYC), Panipat

- Charitrust Tibetan Handicraft Exports (CTHE), New Delhi

- Charitrust Tibetan Handicraft Exports (CTHE), South India

- Paljor Publications

All sections, except the tailoring section (for which see below), of the former Center for Tibetan Arts and Crafts (CTAC) in Dharamsala, which was managed by the Department of Finance, were handed over to the Norbulingka Institute of the Department of Religion and Culture in 1993. This was felt appropriate because CTAC was not generating significant profits but was performing a valuable role in preserving Tibetan crafts and skills.

The Tibetan Woolen Yarn Center (TWYC) supplies raw materials to the carpet weaving centers in the Tibetan Settlements, as well as to Indian clients. TWYC deals in woollen and cotton yarn, as well as carpet-weaving tools. To ensure prompt supply of dyed yarn to its clients, the Center is planning to set up a yarn dyeing plant soon.

The Charitrust Tibetan Handicraft Export (CTHE), New Delhi aims to market handicraft products, notably hand-knotted Tibetan carpets, produced by Tibetan Refugee Settlements in north India and thereby generate revenue for the Charitable Trust. The unit has five showrooms located in places which attract substantial business and tourism: Dharamsala, Gangtok, Manali, New Delhi and Bhelyul. The growing demand for Tibetan costume dress led to the establishment in 1990 of a tailoring section at Majnu-ka-tila, New Delhi. The section has 15 tailors on contract and a full-time Manager. Another tailoring section was established in 1991 with the aim of training 60 to 80 tailors selected from newly arrived refugees from Tibet, poor Tibetans in India and school drop-outs, most of them women. The unit is also planning to knit sweaters and weave yarta fabric and Tibetan aprons. The unit is called the Charitrust Tibetan Handicraft Production Center and is operating in the same building in lower Dharamsala as the Center for Tibetan Arts and Crafts (CTAC). The tailoring unit will commence full operations once CTAC has shifted its operations to the Norbulingka Institute of the Department of Religion and Culture (see above).

Charitrust Tibetan Handicraft Exports (CTHE) Bangalore, serves the five large Tibetan refugee Settlements in Karnataka State by producing and supplying naturally dyed yarn to the weaving centers in the Settlements, and marketing the finished carpets. The unit has two sub-units. The Gurupura Village Handspinning and Weaving Center in Hunsur is involved in washing and blending Indian and imported wools, carding and dyeing the wool, and using the wool to weave carpets. The Carpet Factory in Kollegal employs some sixty weavers for producing carpets.

Paljor Publications, New Delhi, aims to supply publications on Tibet, Tibetan Buddhism, history, language, medicine, and so on, and thereby generate further revenue for the Charitable Trust. Initially CTHE, New Delhi managed the business as a distributor on commission basis. In 1993 Paljor Publications was established as an independent unit in order to enter publishing in a more substantial way. Publications are sold through CTHE shops in Bangalore, Dharamsala, Gangtok, Manali and New Delhi and through the Tibet Book Store in Kathmandu, the sole distributor in Nepal. Exports are done directly from the office of Paljor Publications in New Delhi.

Bhelyul Units: The four carpet weaving and marketing units comprising the Bhelyul units, which are not administered by the Trust, were set up in the 1970s to provide a source of livelihood to Tibetan refugees and to preserve the Tibetan art of weaving carpets. The weavers were provided wages and housing as well as educational facilities for their children. Today nearly a thousand people derive their livelihood from the units. The Bhelyul Units also include a Tibetan Handicraft Export Office and wool sale shop, as well as a Tibetan restaurant with seating capacity for about 100 people, which is being established in 1994. Since it will be developed into a standard hotel later it has already been registered as Hotel Tibet International Private Limited.

ii) Enterprises which seek to diversify the Tibetan economy.

The Department of Finance has played an important role in diversifying the economy of the Tibetan Refugee Community by entering two new economic sectors - tourism and agro-processing - and thereby providing appropriate job opportunities for some of the educated young people within the Community. Administratively these activities come under the Tibetan Administration's Welfare Society (TAWS), which is registered as a society with the objective of enhancing the living standard of Tibetan refugees. The business units under TAWS are:

- Hotel Tibet, Dharamsala

- Hotel Tibet, Gangtok

- Potala Tours and Travel (a joint venture)

- TAWS Gas Agency

- Tibetan Feeds

Hotel Tibet, Dharamsala has 20 super-deluxe and deluxe rooms, as well as a restaurant and bar, to cater to the many visitors and tourists who come to Dharamsala to see the Tibetan Community. The Hotel was fully renovated, including the addition of Tibetan architectural features, in 1993. Hotel Tibet, Gangtok is a Three Star Hotel which has received two awards for service. Most recently, in 1991 and 1993, the Hotel was selected by "Actualidad Hosteleray Turistica" in Madrid, Spain for an international trophy for tourism promotion. The Hotel has 40 rooms ranging from standard to super-deluxe, as well as a restaurant and bar. While providing the usual services of a travel agency, Potala Tours and Travel specializes in providing guidance and organizing tours for travellers wishing to visit Tibetan and Buddhist places of interest in India. To provide better service five young Tibetans in 1993 entered into a joint venture with TAWS (which with 30 percent of the shares remains the major share-holder) to manage Potala Tours and Travels. TAWS Gas Agency was established in 1990 to supply cooking gas in Dharamsala.

TAWS also runs one agro-processing unit, Tibetan Feeds. The unit was established by the Department of Finance in 1975 to buy, process and market agricultural products from the Tibetan agricultural Settlements in south India, as well as the local Indian population. Agricultural products like maize are used to manufacture cattle feed which is sold to local Tibetans and Indians. As markets extended beyond the locality, including to places in Tamil Nadu and Kerala, Tibetan Feeds, in 1989, installed a new machine with a capacity of 800 tons in addition to the old machine. The hike in the price of maize has hit the unit hard.

iii) Non-commercial units.

The Department of Finance had three non-commercial units: the Tibetan Economic Research and Development Office (TERDO); the Human Resource Cell; and the Office of Internal Audit and Inspection. In 1993 these three units were merged into one unit called the Paljor Business Board (PBB) with its office in New Delhi.

Paljor Business Board is headed by two Vice-Presidents, one for operations and one for research and development. The tasks entrusted to the Vice-President for Operations are to audit and evaluate the accounts of the Department's business units; to carry out the decisions made at the Paljor Business Board meetings; and to manage the office of the Paljor Business Board.

The tasks entrusted to the Vice-President for Research and Development are:

- To conduct feasibility studies for potential new investments or projects of the Department of Finance and the CTA;

- To research and develop Tibetan products, as well as markets for them, including export markets;

- To tap outside expertise;

- To evaluate critically the existing ventures of the Department of Finance

- To publish a weekly trade newsletter (Paljor Flash).

The new budget regulations call upon detailed reports for projects to be funded by the CTA. More and more donors are also keen to have project reports before granting any funds. The Research and Development wing of the Paljor Business Board is therefore planning to provide a service for preparing such project reports.

The Vice-President for Research and Development is also responsible for developing the human resources of the Department's commercial units. The main tasks are:

-To plan, organize, conduct and co-ordinate both short and long-term training to develop the current human resources of the Department of Finance and its business units;

-To raise funds to defray the expenses incurred by the Human Resource Development program

- To co-ordinate orientation courses for new staff.

4.4.5.B Future Investments The Department of Finance is keen to further expand and diversify its business units. In tourism the Department is considering investments in more hotels in some prominent places like New Delhi, Bodh Gaya and Kathmandu. The Department is also considering investments in small-scale industries, as well as establishing a non-banking financial institution, which will improve the financial infrastructure of the Tibetan Community.

Sections B1 to B3 outline the Department's investment policy and strategy, including its plans to enter into joint ventures.

4.4.5.B1 Business and Investment Policy The Department seeks to diversify its existing ventures and identify new areas of investment. Profit is an important criteria for making investment decisions, as the Department is responsible for generating revenue for the Central Tibetan Administration and reducing the CTA's dependence on outside funding. But the Department does not wish to ignore its obligations to improve the socio-economic conditions of the Tibetan Refugee Community and most of the Department's existing ventures also provide direct social benefits. For example, the ventures generate income and employment for Tibetan refugees, some also diversifying the economic base of the Community, others seeking to preserve and promote traditional Tibetan crafts

The following criteria are used to guide the Department's investments. A venture:

- should be profitable;

- should generate employment;

- should be culturally acceptable to the Tibetan Community;

- should be friendly to the environment;

- should not cause health hazards.

Ventures are categorized under two heads: commercial and semi-commercial ventures. Commercial ventures are primarily devoted to generating revenue rather than meeting social obligations. Semi-commercial ventures pursue both the social and commercial objectives of the Department. An investment ratio of 3:2 between commercial and semi-commercial ventures will be maintained.

4.4.5.B2 Policy on Joint Ventures In order to diversify its economic activities and give wider scope for its investments, as well as encouraging greater involvement in modern economic activities within the Community, the Department is seeking to invest in joint ventures on a partnership basis with organizations and individuals. The Department will both respond to proposals for joint ventures as well as seek out joint ventures for some of its planned investments. Management of the joint ventures may fall either to the Department or to the partners.

For each venture initiated and managed by the partners there should be three to five partners who should not be related to each other. At least two partners should be working partners, and all partners should be of good public standing.

Proposed ventures, if found to be in congruence with the Department's business policy, will be passed on to the Research and Development wing at the Paljor Business Board in New Delhi to conduct a feasibility study. The proposal will then be presented to the Department's Policy Committee.

Potala Tours and Travels is the first business unit of this type with five individual partners and TAWS (which holds the largest share of 30 percent); the unit is managed by the individual partners.

4.4.5.B3 Investment Strategy The Department of Finance intends to follow the investment strategy outlined in Table 4.4.5.2. The Table makes clear that of the expected profits from the business units around 50 percent will be allocated to the CTA budget and the balance 50 per cent used for further investments. From the amount available for investments a percentage is allocated for investments in joint ventures; the rest will be used for the Department's own investments. By 1996 the Department intends to increase the percentage allocated for investments in joint ventures to 70 percent.

4.4.5.C Implementation The Research and Development wing of the Paljor Business Board is responsible for first evaluating any potential investments under the Department of Finance's investment strategy. In the case of a project to expand an existing unit, the project will be managed by the General Managers of the unit concerned; for new investments the Department appoints a Project Officer who oversees the development of the project in the field and remains in close contact with the Head Office, which is responsible for disbursing the necessary funds. The Research and Development wing of the Paljor Business Board also identifies staff, and provides them training, to take over the project when it becomes operational. When the venture is ready to become operational the Project Officer submits a report to the Head Office which decides on the appropriate time for operations to start. The Internal Audit and Inspection wing of the Paljor Business Board meanwhile evaluates whether project expenses conformed to its projections.

4.4.5.D Human Resources The Department of Finance has 336 staff working in its commercial and non-commercial units. Based on their responsibilities staff are categorized as Senior Management Staff (SMS); Management Staff (MS); Assistant Management Staff (AMS); General Staff (GS); and Wage Earners (WE). The number of these staff working in the units (as on 31 March 1993) are:

Senior Management Staff 54

Management Staff 75

Assistant Management Staff 78

General Staff 109

Wage Earners 20

In view of the Department's investment strategy the Department will need to recruit at least the following qualified staff by the year 2000: 14 Senior Management Staff, 26 Management Staff and 37 Assistant Management Staff. In addition the Department will need to hire 77 General Staff and 11 Wage Earners. Assistant Management Staff, General Staff and wage earners can be hired relatively easily as compared to Senior Management Staff and Management Staff.

In addition the Department will need to provide training for current and new staff. The maximum duration of in-service training will be for six months. Whenever possible the Department will use internal human resources for imparting training. The Research and Development wing of the Paljor Business Board has identified the following areas of training:

4.4.5.E Financial Resources See above, section B3 on the Investment Strategy.

4.4.5.F Monitoring and Evaluation Except for a few major decisions, current and future business units under the Department of Finance are managed independently by their own managerial staff. Indeed the Department is pursuing a policy of decentralization within its business activities. To this end the Paljor Business Board was established with substantial powers delegated by the Head Office. The Internal Audit and Inspection wing of the Paljor Business Board is responsible for auditing the accounts of the business units and evaluating their performance. The following reports are submitted to the Paljor Business Board:

- Quarterly accounts of the unit

- Estimated net profits (quarterly)

- Performance report (monthly)

- Staff meeting reports (quarterly)

- Staff attendance reports (annual)

- General Manager's tour report

- Annual budget

- Business forecast (annual)

- Annual Report.

On the basis of these reports visits may be made to the units by the Kalon (Minister), Secretary, Deputy Secretaries and/or the Internal Audit and Inspection wing. As a rule the Kalon and the Secretary tend to visit the units once a year and the Internal Audit and Inspection wing twice a year. In addition the Research and Development wing of the Paljor Business Board visit the units to conduct staff and business development studies.

4.5 IMPLICATIONS FOR FREE TIBET

The capacity to accumulate and invest capital and to develop human resources in diverse skills plays an important role in fostering the economic growth of a nation and its people. In spite of its initial lack of experience in modern technical, economic and financial fields, the Tibetan Refugee Community has developed its Settlements, especially with agriculture and traditional handicrafts, and has involved itself in modern business and financial ventures such as agro-processing, tourism and loan-funds. The long-term aim of this economic development is not only to raise living standards among the refugees, but also to build capabilities within the Community which can be taken back to Free Tibet. The technical and modern managerial skills to administer different economic ventures in agriculture, horticulture, food processing, handicrafts, in the service sector, and so on will prove invaluable in building up a stable and sustainable modern economy in Free Tibet.

4.6 BUDGET SUMMARY

The total budget for the Economic Development Sector over five years is Rs 179.3 million. Of this 38 percent will be met by the CTA's own resources for investments on the part of the Department of Finance. A further 28 percent is being sought as an interest-free loan for the Revolving Loan Fund.

Twenty-seven percent are earmarked for agricultural development. The total budget of Rs 49.2 million marks a significant increase on the first IDP, reflecting a series of new projects proposed by a number of the larger Settlements for the development of their agriculture, which forms the mainstay of the local economy. The population of the ten Settlements that proposed agricultural projects for the second IDP represents almost exactly half of the refugee population in the Settlements.

The remaining 6 percent are earmarked for the development of handicraft and income-generating activities. The total budget for these projects is in line with that of the first IDP. However, since a number of handicraft projects from the first IDP have been successfully implemented, a greater part of the budget has been allocated to other income-generating activities.

Of the total allocation to agriculture, handicrafts and income-generating projects Rs 31.7 million (or 53 percent) are being sought as grants, primarily for some of the large agricultural development projects, and a further Rs 14.1 million (or 29 percent) in the form of loan finance.

PROGRAMS	YEAR (all figures in Rs '000s)					TOTAL	Request	Loans
and Projects	1995	1996	1997	1998	1999	(Rs'000)	Donors	Request
AGRICULTURE DEVELOPMENT:	11250	7750	10700	8935	10598	49232	30190	9132
land Development: Norgyeling Tenzingang	700		7400			700 7400	320 4300	0 2000
Irrigation: Jampaling Choepheling Dhargyeling Rabgyeling Lugsung Samling Phuntsokling Phendeling	1050 8300	4500 1600	1100	7685	7685 1590	1050 8300 4500 1600 1100 15369 1590	788 6640 4000 1000 550 7685 795	0 0 0 485 0 4611 477
Mechanizations: Doeguling Phuntsokling Phedeling Dargyeling		1400	2200	1250	1000	1400 2200 1250 1000	700 1106 625 500	420 264 375 300
Other: Tenzingang Orchard Phendelling Dairy Puruwala boundaries	1200	250			323	1200 250 323	1020 0 162	0 200 0
HANDICRAFT DEVELOPMENT:	2605	360	543	576	380	4404	822	1005
Dhargyeling Lama Hatta Dalhousie Lingtsang Herbertpur Manali TRSHH	205 2400	200 160	543	576	380	205 200 160 543 576 380 2400	98 0 0 218 426 80 0	0 200 80 325 100 300 0
INCOME -GENERATION:	1500	802	505	2400	600	5807	670	4005
DickyiLarsoe Mill Delekling Apples Norgyeling Godown Tengang Paper&Cane DickyiLarsoe Block Kamrao Mine Herbertpur Shop Dekyiling Shop	1160 340 205	148 449	205 300	2400	600	1160 488 600 449 205 2400 205 300	0 288 0 382 0 0 0 0	740 190 500 0 135 2100 100 240
REVOLVING LOAN FUND:	170	25170	170	170	25170	50850	0	50000
RLF Capital Staff Training Training of Aplication	70 100	70 100	70 100	70 100	25000 70 100	50000 350 500	0 0 0	50000 0 0
DEPT. OF FINANCE INVESTMENTS:	13000	14000	15000	13000	14000	69000	0	0
TOTAL:	28525	48082	26918	25081	50748	179353	31681	64142

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