MIDTERMREVIEW_ISTANBULPROGRAMMEOFACTION

BHUTANCOUNTRYREPORT

INTRODUCTION

•  SmalllandlockedLDCintheHimalayas•  PopulaAonof768,000•  Moderndevelopmentstartedin1962•  Peoplecentredapproachtodevelopment-‘DevelopmentwithValues’

•  ConsAtuAonaldemocraAcgovernancestructure•  Current11thPlan–2ndplanunderademocraAcgovernment

Maximization of Gross National Happiness

Eleventh Plan Goal:Self-relianceandInclusiveGreenSocio-EconomicDevelopment

16 National Key Result Areas(NKRAs) & Key Performance Indicators (KPIs)

SectorLevel

NaAonalLevel

150 Sector Key Result Areas(SKRAs) & Key Performance Indicators (KPIs)

AgencyLevel ResultBasedPrograms

Development Plan Strategic Framework

3

ProgressundertheEightPriority

Areas•  FirstAmeever,BhutanfoundeligibleforgraduaAonfromtheLDCcategorybasedonGNIpercapitaandHAIcriteria

•  Economicgrowthrateoverthe4years(2011-2015)recordedat6.46percent

•  GDPpercapita-USD2612in2014•  MulAdimensionalpovertyreducedto12.6percentin2012

•  Incomepovertyreducedfrom23%in2007to12percentin2012

•  BhutanisontrackintermsofachievingtheMDGtargets

PolicyEnablersinplace

•  EconomicDevelopmentPolicy,2010•  FDIPolicy,revisedin2010•  RenewableEnergyPolicy,2013•  FoodandNutriAonSecurityPolicy,2014•  LicensingPolicy,2015•  NaAonalHealthPolicy,2012•  NaAonalPopulaAonPolicy,2013•  EnterpriseRegistraAonBill,2015•  SocialProtecAonPolicy,2015andPublicPrivatePartnershipPolicyunderdiscussion

MajorProgrammeIntervenJon

•  Mainlyguidedbythe11thFYP•  PovertyReducAonIntervenAonsandAgricultureDevelopment:–  RuralEconomyAdvancementProgramme(REAP)–  NaAonalRehabilitaAonProgramme–  TargetedHouseholdPovertyProgramme–  AgricultureproducediversificaAon–  SectoralAdaptaAonPlanofAcAonadoptedforClimateSmartAgriculture

•  EnergySecurity–  Developmentof10,000MWhydropowerprojects–  RuralElectrificaAon–  AlternaAvesourcesofrenewableenergyprogrammes

•  TransportandCommunicaAons–  DevelopmentofICTinfrastructuressuchasfibreopAc,ITPark–  DevelopmentofSEZs,IndustrialParks

•  PrivatesectorDevelopment–  EconomicSAmulusPlan–  FormaAonofBecerBusinessCouncilasacatalystbetweenpublicandprivatedialogue

–  TaxHolidaysandtaxexempAononselectedcommodiAes•  EffortstoreducingvulnerabiliAestomulAplecrises

–  ConsAtuAonmandatesatleast60%ofthetotallandareashallbemaintainedasforests

–  ImplementaAonofNAPAandNAMA–  EarlywarningsystemanddisasterrelieffundinsAtutedtoimprovedisasterresilienceandmanagement

–  ElectricVehicleIniAaAve

ResourceMobilizaJon

•  DomesAcresourcemobilizaAongivenhighestpriority

•  Effortstomobilizeresourcesinternally–  Broadeningoftaxbase(Greentaxandsalestaxonvehiclesandfuels)

–  ContainingeffecAveuseofrecurrentexpenditures(costcuhngmeasures)

–  Enhancingefficiencyofstateownedenterprises– Otherfinancialinstrumentslikebonds

•  Globally,exploringassistancefromnon-tradiAonalDPssuchasGCF

GoodGovernance•  OneofthefourpillarsofGNH•  GovernmentPerformanceManagementSysteminsAtutedtoenhanceaccountabilityandperformance

•  SigningofAnnualPerformanceAgreementbetweenPMandrespecAveagencies

•  GovernmenttoCiAzenServices(G2C)iniAatedtoincreaseefficiencyandtransparencyofpublicservicedeliverythroughuseofICT

•  AnA-CorrupAonCommissionestablishedasconsAtuAonalbodytoeliminatecorrupAon

CoherenceandlinkageswithPost-2015DevelopmentAgendaandotherGlobal

Processes

•  SDGRapidIntegratedPolicyAssessmentbyUNDPfound134targetsofthe143relevantforBhutanfullyalignedwithourKeyResultareasinour11thFYP

•  AsaearlymovercountryintheAsiaPacificregioneffortsarealreadyunderwaytofurtherintegraAon–  SDGhighlevelsensiAzaAonworkshopon30thOctober– NaAonalworkshoponLDCgraduaAon:processesandimplicaAonsforBhutanwasheldon17and18November

Challenges

•  EconomicdiversificaAonacriAcalstrategyascountrydependentononeparAcularsectormakingtheeconomyvulnerabletoexternalandinternalshocks

•  PovertysAllanissue-especiallyreachingthelastmile•  Exportdominatedbyfewproducts-agricultureaccountsforonly5%ofourexports

•  HighvolaAlityinagricultureproducAonofcropsandlivestocks

•  Slowprivatesectorgrowth•  SupplysideconstraintsduetoloweconomiesofscaleanddifficultyinmassproducAon

•  Lackofresources-bothfinancialandhumanresources

Challenges

•  Climatechange,relatedenvironmentissuesanddisasterssAllremainachallenge

•  Youthunemploymentandyouthrelatedissuessuchasdrugabuse

•  MeeAngEVIundertheLDCgraduaAoncriteriacanposemajorchallengetothecountry

StrategiesforGraduaJon

•  DevelopmentoflongtermstrategyforBhutanoutliningthepotenAalroleofregionalandglobalmarketsinBhutan’sdevelopment

•  ExploreinsurancemechanismstoaddressthemulAfacetedvulnerabiliAes

•  InvolvementofallstakeholdersintheimplementaAonprocess

•  DevelopmentofadomesAcmanufacturingbase•  DevelopinganIndustrialPolicy

WayForward

•  11thPlanMidTermReviewongoingtoassesstheprogressandfurtherintegraAon

•  Thedral12thPlanguidelineisbeingdevelopedprovidinggoodopportunityandplamormtointegratenaAonalprioriAesandinternaAonaldevelopmentgoalsintoournaAonaldevelopmentplanningframework

•  SecureaddiAonalinvestmentstosustainprogressbybuildingproducAvecapaciAesforstructuraleconomictransformaAon

•  OperaAonalisecommitmentsmadetoLDCsin2030Agenda,AAAAandIPOA

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