The economy in ethnic minority-inhabited areas in Yunnan Province, southwest China, have developed rapidly over the past two decades thanks to the local government's preferential policies.

These areas' gross domestic product in 1998 was 17.6 times that of 1978, and the financial revenue went up by 13.2 times, and the average per capita income of farmers up 14.7 times.

Although the population of ethnic minorities accounts for only one-third of the province's total, the area of these regions makes up 70 percent of the province's total.

The economic development of the ethic group-inhabited areas, however, still lags behind the rest of the province because of historical and natural factors.

The Yunnan provincial government has decided to allocate an extra 30 million yuan every year to help ethnic minority-inhabited areas to develop agriculture between 2000 and 2005.

Besides, preferential policies will be worked out to encourage the development of power, telecommunications, road, water conservatory and other sectors in these areas. (Xinhua)