Dalai Lama to privatise Tibetan business

Government promises no job losses

Tibet's government-in-exile, headed by the Dalai Lama, plans to privatise all the businesses it runs in India and Nepal owing to their poor performance.

"It's not exactly due to heavy losses, but unsatisfactory performance," the exiled government's finance and health minister, Lobsang Nyandak, told BBC News Online.

Dalai Lama shuts shop

Mr Nyandak denied bad management was to blame.

He hopes to raise $10m from the sale of 22 businesses over the next three-and-a-half years.

The state-run enterprises, which employ 396 workers but indirectly support many more, produce carpets, incense and garments, and also include stores that sell the artefacts as well as some hotels.

Business-in-exile

"When you consolidate the whole financial situation, the net profit over the last five to six has been very low," Mr Nyandak said.

"Some of them are running losses or are at break-even, but in terms of capital return, it is less than 10%," he said.

The government-in-exile's projected budget this year is $15m, to which the businesses contribute "less than 5%".

The remaining budget is funded through voluntary contributions, income from investments, and from international agencies, NGOs and foreign governments.

Tibetan preference

Mr Nyandak said Tibetans living in exile would be given first preference in the privatisations, which will otherwise be offered on the open market.

The privatisations are not expected to result in any job losses.

"We have no intention of laying off employees. They will be given jobs in other offices of our government or can otherwise take compensation or retirement," he said.

Nepal, the birthplace of the Buddha, is home to about 35,000 Tibetans, while over 150,000 live in India.

Many make their living selling traditional handicrafts in major cities such as New Delhi and Kathmandu and in tourist centres.

Tibet's spiritual leader, the Dalai Lama, escaped to India in 1959 after a failed uprising against China, which has ruled Tibet since 1951.

The government-in-exile is based in the northern Indian hill town of Dharamsala.