MID TERM REVIEW_ISTANBUL PROGRAMME OF ACTION BHUTAN COUNTRY REPORT - - PowerPoint PPT Presentation

MID TERM REVIEW_ISTANBUL PROGRAMME OF ACTION

BHUTAN COUNTRY REPORT

INTRODUCTION

• Small landlocked LDC in the Himalayas
• PopulaAon of 768,000
• Modern development started in 1962
• People centred approach to development-

‘Development with Values’

• ConsAtuAonal democraAc governance structure
• Current 11th Plan – 2nd plan under a democraAc

government

Maximiz aximization ion of

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National ional Ha Happines ppiness

Eleventh Plan Goal: Self-reliance and Inclusive Green Socio-Economic Development

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

Sector Level

NaAonal Level

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

Agency Level

Result Based Programs

Development elopment Plan lan Strategic gic Framew amewor

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Progress under the Eight Priority Areas

• First Ame ever, Bhutan found eligible for

graduaAon from the LDC category based on GNI per capita and HAI criteria

• Economic growth rate over the 4 years (2011-2015)

recorded at 6.46 percent

• GDP per capita- USD 2612 in 2014
• MulAdimensional poverty reduced to 12.6 percent

in 2012

• Income poverty reduced from 23% in 2007 to 12

percent in 2012

• Bhutan is on track in terms of achieving the MDG

targets

Policy Enablers in place

• Economic Development Policy, 2010
• FDI Policy, revised in 2010
• Renewable Energy Policy, 2013
• Food and NutriAon Security Policy, 2014
• Licensing Policy, 2015
• NaAonal Health Policy, 2012
• NaAonal PopulaAon Policy, 2013
• Enterprise RegistraAon Bill, 2015
• Social ProtecAon Policy, 2015 and Public Private

Partnership Policy under discussion

Major Programme IntervenJon

• Mainly guided by the 11th FYP
• Poverty ReducAon IntervenAons and Agriculture

Development:

– Rural Economy Advancement Programme (REAP) – NaAonal RehabilitaAon Programme – Targeted Household Poverty Programme – Agriculture produce diversificaAon – Sectoral AdaptaAon Plan of AcAon adopted for Climate Smart Agriculture

• Energy Security

– Development of 10,000MW hydropower projects – Rural ElectrificaAon – AlternaAve sources of renewable energy programmes

• Transport and CommunicaAons

– Development of ICT infrastructures such as fibre opAc, IT Park – Development of SEZs, Industrial Parks

• Private sector Development

– Economic SAmulus Plan – FormaAon of Becer Business Council as a catalyst between public and private dialogue – Tax Holidays and tax exempAon on selected commodiAes

• Efforts to reducing vulnerabiliAes to mulAple crises

– ConsAtuAon mandates atleast 60 % of the total land area shall be maintained as forests – ImplementaAon of NAPA and NAMA – Early warning system and disaster relief fund insAtuted to improve disaster resilience and management – Electric Vehicle IniAaAve

Resource MobilizaJon

• DomesAc resource mobilizaAon given highest

priority

• Efforts to mobilize resources internally

– Broadening of tax base (Green tax and sales tax on vehicles and fuels) – Containing effecAve use of recurrent expenditures (cost cuhng measures) – Enhancing efficiency of state owned enterprises – Other financial instruments like bonds

• Globally, exploring assistance from non-

tradiAonal DPs such as GCF

Good Governance

• One of the four pillars of GNH
• Government Performance Management System

insAtuted to enhance accountability and performance

• Signing of Annual Performance Agreement

between PM and respecAve agencies

• Government to CiAzen Services (G2C) iniAated to

increase efficiency and transparency of public service delivery through use of ICT

• AnA-CorrupAon Commission established as

consAtuAonal body to eliminate corrupAon

Coherence and linkages with Post-2015 Development Agenda and other Global Processes

• SDG Rapid Integrated Policy Assessment by UNDP

found 134 targets of the 143 relevant for Bhutan fully aligned with our Key Result areas in our 11th FYP

• As a early mover country in the Asia Pacific

region efforts are already underway to further integraAon

– SDG high level sensiAzaAon workshop on 30th October – NaAonal workshop on LDC graduaAon: processes and implicaAons for Bhutan was held on 17 and 18 November

Challenges

• Economic diversificaAon a criAcal strategy as country

dependent on one parAcular sector making the economy vulnerable to external and internal shocks

• Poverty sAll an issue- especially reaching the last mile
• Export dominated by few products- agriculture

accounts for only 5% of our exports

• High volaAlity in agriculture producAon of crops and

livestocks

• Slow private sector growth
• Supply side constraints due to low economies of scale

and difficulty in mass producAon

• Lack of resources- both financial and human resources

Challenges

• Climate change, related environment issues

and disasters sAll remain a challenge

• Youth unemployment and youth related

issues such as drug abuse

• MeeAng EVI under the LDC graduaAon criteria

can pose major challenge to the country

Strategies for GraduaJon

• Development of long term strategy for Bhutan
• utlining the potenAal role of regional and global

markets in Bhutan’s development

• Explore insurance mechanisms to address the

mulAfaceted vulnerabiliAes

• Involvement of all stakeholders in the

implementaAon process

• Development of a domesAc manufacturing base
• Developing an Industrial Policy

Way Forward

• 11th Plan Mid Term Review ongoing to assess the

progress and further integraAon

• The dral 12th Plan guideline is being developed

providing good opportunity and plamorm to integrate naAonal prioriAes and internaAonal development goals into our naAonal development planning framework

• Secure addiAonal investments to sustain progress

by building producAve capaciAes for structural economic transformaAon

• OperaAonalise commitments made to LDCs in

2030 Agenda, AAAA and IPOA

THANK YOU