Eleventh round table meeting, turning vision into reality : the development challenges confronting Bhutan /

Includes bibliographical references and annex.

Table of Content

EXECUTIVE SUMMARY 1
Chapter 1: Review of Socio-Economic Progress Midway through the Tenth Plan 7
1.1 GNH and Bhutan Vision 2020: The National Development Framework 8
1.2 Macroeconomic Context 10
1.2.1 Growth and Structural Changes in the Economy 10
1.2.1.1 Investment and Savings 11
1.2.1.2 Inflation 11
1.2.1.3 Domestic Revenues 12
1.2.1.4 Public Expenditures 13
1.2.1.5 Overall Balance of Payments, Trade and Reserves 14
1.2.1.6 Debt 14
1.2.1.7 A Macro-economic Perspective to 2020 15
` 1.2.2 Challenges of Economic Vulnerability 16
1.2.2.1 Geographical Constraints 16
1.2.2.2 Weak Growth in the Primary Sector 17
1.2.2.3 Low Levels of Value Addition in the Manufacturing Sector 18
1.2.2.4 Economic Openness and High Export Concentration 19
1.2.2.5 Natural Hazards and the Impact of Climate Change 20
1.2.2.6 Assessing Economic Vulnerability 22
1.3 Status of Progress towards the MDGs 23
1.4 Preservation and Promotion of Culture 29
1.5 Governance Developments 31
1.5.1 Decentralization 31
1.5.2 Public Sector Management 32
1.5.3 Civil Society and Media 33
Chapter 2: The Challenge of Poverty and Underdevelopment in Rural Bhutan 35
2.1 Introduction 36
2.1.1 Income Poverty Incidence and its Rural Dimension 37
2.1.2 Food Poverty 38
2.1.3 Spatial Disparities 39
2.2 Drivers of Poverty Reduction and Rural Development 40
2.2.1 Road Access 40
ELEVENTH ROUND TABLE MEETING FOR BHUTAN
4 | TURNING VISION INTO REALITY: THE DEVELOPMENT CHALLENGES CONFRONTING BHUTAN
1-2 SEPTEMBER 2011
2.2.2 Access to Electricity 43
2.2.3 Educational Attainment 44
2.2.4 Health 45
2.3 Multi-dimensional Poverty 46
2.4 Targeted Poverty Interventions 48
2.4.1 The Rural Economy Advancement Programme (REAP) 48
2.4.2 Land Welfare 49
Chapter 3: Sustainable Livelihoods and Employment 51
3.1 Introduction 52
3.2 Challenges of Ensuring Sustainable Livelihoods and Employment 52
3.2.1 Food Security and Food Self Sufficiency 53
3.2.2 Human Wildlife Conflict Impact on Rural Livelihoods 55
3.2.3 Impact of Climate Change on Livelihoods 57
3.3 Employment Challenges 59
3.3.1 Labor Market Context 59
3.3.2 Underemployment 61
3.3.3 Employment Focus by Special Groups: Women and Youth 62
Chapter 4: Financing Development and Aid Effectiveness 65
4.1 Trends in External Inflows (ODA and FDI) 66
4.2 Trends in External Inflows (ODA and FDI) 66
4.3 External Debt and Debt Servicing 68
4.4 Resource Mobilization Challenges 68
4.4.1 MDG Financing 69
4.4.2 Climate Change Financing 70
4.5 Aid Effectiveness 70
4.5.1 Ownership and Alignment with National Development Strategies 71
4.5.2 Accountability 72
4.5.3 External Assessment of Development Results 74
4.5.3.1 Macro-economic Performance 74
4.5.3.2 Social Development 75
4.5.3.3 Good Governance 77
4.6 Conclusion 81
References 82
Annexes:
Annex I: Bhutan’s Progress Towards the MDGs 84
Annex II: HDI by Dzongkhag 86
Annex III: Bhutan Ranking within the ADB’s CPA 88