This is a preliminary report prepared by Otto Kolbl from the University of Lausanne on "A community-based model of development with Tibetan characteristics". What i wanted to highlight from this report was this section on how the Dorje Shugden ban has affected Tibetan society: "Conflicts within the Tibetan society related to religion: The Shugden issue".
At first, when i read this report, I was quite shocked to learn that the Tibetans have more of an issue with Dorje Shugden practitioners than with the Han or Hui Chinese. From most of the Tibetan news we receive, it is how the Tibetans are being tortured and oppressed by the Chinese. The writer of this document, Kolbl, has spent time living in the communities so I am inclined to believe his observations. Also, the document appears quite objective, though i must confess i haven't finished reading the entire document but just skimmed through the rest.
However, upon reflection, I realised that because HH the Dalai Lama has such a strong influence on the Tibetans in general, and that the Dharma is not strong in most of the Tibetans though they proclaim themselves Buddhists, they just operate from blind faith. They will not consider, or even think of considering, the nuances of the Dorje Shugden controversy and probably not even read HH Trijang Rinpoche's texts. All they live by is what HH the Dalai Lama says and if the Dalai Lama says that Shugden is wrong, they accept it at face value and propagate it.
According to this report, the Chinese authorities have contributed towards the economic growth in Tibet hence creating a better living environment, which may explain the lesser amount of hostility towards the Han or Hui Chinese. In fact, it is ironic that the "Han and Hui Chinese are the only link between them." ('them' refers to the Shugden practitioners and those who do not practice).
In conclusion, Kolbl says, "Such conflicts are extremely harmful to the economic and social development of the Tibetan society. Solving them through mutual tolerance and compassion should be considered to be a priority." Of course conflict of any kind is detrimental to society so how do we move forward from here? Mutual tolerance and compassion means the lifting of the ban so that Tibetan society is no longer divided by a religion which is itself said to be so vehemently against schism.
Conflicts within the Tibetan society related to religion: The Shugden issuehttp://www.rainbowbuilders.org/Tibet/Tibet-development.pdf (pg 20)
Another fracture within the Tibetan society is also a serious threat to its development: the controversy around the Shugden deity (or demon) has led to a deep rift between two communities: those who worship Shugden and those who don't. It is difficult to get a clear picture of the consequences of this problem across the Tibetan areas. Such conflicts are often hidden below the surface: everything looks quiet and peaceful, but when you get a deeper insight, you realize that there are two Tibetan communities which avoid any kind of contact.
Despite language problems and conflicts of interest, the relationship between the different ethnic communities works quite smoothly in the Tibetan areas. I have never heard a Tibetan telling me: "The Han Chinese (or the Hui Chinese) are our enemies". The only time I heard a Tibetan use the word "enemy", she used it to qualify Tibetans who worship the Shugden deity. In that place, this conflict has led to the Tibetan community being split in two, with both sides not even talking to each other. Han and Hui Chinese are the only link between them.
Traditionally, the Tibetan society was always based on religious tolerance. This tolerance is quite common in Asian cultures; however, in most cultures of the continent, religion does not have the huge importance which Buddhism has got in the Tibetan society. Despite this, various Buddhist sects and the animist Bön religion have always coexisted quite peacefully in the past. The conflict around the Shugden cult could potentially have the same catastrophic impact on the Tibetan society as the conflict between the Dalai Lama and the Panchen Lama which started in the 1920ies and led to a deep rift for several decades.
Such conflicts are extremely harmful to the economic and social development of the Tibetan society. Solving them through mutual tolerance and compassion should be considered to be a priority. The way in which these conflicts materialize at the level of religious and political leaders grabs some attention by Western specialists and media; the consequences on the society in the Tibetan areas are hardly ever mentioned.