The Economic Contribution of Copyright-Based Industries in Copyright-Based Industries in Bhutan The Economic Contribution of

ROYAL GOVERNMENT OF BHUTAN Intellectual Property Division, Ministry of Economic Affairs October 2011 The Economic Contribution of Copyright-Based Industries in Bhutan The Economic Contribution of 1 Copyright-Based Industries in Bhutan 5 8 9 9 9 9 10 11 11 12 12 12 14 14 16 16 17 19 19 20 20 21 21 21 22 22 22 22 24 24 24 26 26 26 28 30 30 34 34 2.5.1 Film and Music 2.5.2 Print and Media 2.5.3 Handloom Weaving 2.5.4 Handicrafts, Furniture and Visual Arts 2.5.5 Other Related Areas 2.7.1 Database Weak 2.7.2 Coordination Poor Inter-Agency 2.7.3 and Enforcement of Copyright Protection Lack of Awareness 2.7.4 and R&D Lack of Innovation 2.7.5 Lack of Skills Training 2.7.6 to Funding Inadequate Access 3.4.1 of CBIs Structural Composition 3.4.2 of CBIs Growth GVA 3.5.1 of CBIs in Total Share 3.5.2 within the CBIs Employment Distribution 3.5.3 in CBIs Female Participation 1.1 Background 1.2 Objective of the Study 1.3 Scope and Methodology Process, 1.4 and Limitations Data Sources 1.5 The Copyright Factor 1.6 of the Study Structure 2.1 Background 2.2 Definition 2.3 Framework Legal and Institutional 2.4 of Copyright Protection 2.5 Developments in Key CBIs of Bhutan Review of Recent 2.6 Industries Creative of Culture-Based The Promotion 2.7 Constraints Key Issues and 3.1 Introduction 3.2 of the The Structure 3.3 Economic Contribution of CBIs 3.4 of CBIs in GDP Share 3.5 of CBIs in Employment Share Introduction Abbreviations 1. Executive Summary Table of Contents 2. ight Industries iew of the Copyr overv 3. contrIBUTION OF CBIs 2 The Economic Contribution of Copyright-Based Industries in Bhutan Annex 9:Supporting PolicyDevelopmentforCul Annex 8:Equa Annex 7:Calcula Annex 6:FormulaonCopyrightFactor Annex 5:CorBIsusedforEtima Annex 4:MeetingsandGroupDiscussions Annex 3:Questionnaire Annex 2:SourcesofDa Annex 1:ISICodesForBhut References futureDirctions 9. policyRecommenda 8. 7. contrIBUTIONOFCBIsTONTERNA 6. 5. pERFORMANCOFCBIs 4. . Conductin-depthSector-Specific Studies 8.6 Provide adequateCredit 8.5 FosterPublic-PrivatePartnership 8.4 Strengthen theIntellectualProperty Division 8.3 Improve DataCollectionandDissemination 8.2 Introduction 8.1 A Comp . Inter-temporal ChangesinTrade Contribution ofCBIs 6.3 ShareTrade ofCBIsinInternational 6.2 Introduction 6.1 . Backward andForward Linkages 5.2 Introduction 5.1 ECONOMIC LINKAGESOFBIs . PerformanceIndicators 4.2 Introduction 4.1 ar tive Country Anal tions ReflectngTheInput-Output CoefficientsForBIs tions ofNeValue Addd tions t a ndInforma an ysis ofCBIcontribution TIONAL TRADE ting theirContributontoGDP tion tural Industries 62 61 60 59 58 57 55 53 50 48 47 46 46 45 45 44 44 44 42 40 39 39 39 38 38 38 36 36 36 The Economic Contribution of 3 Copyright-Based Industries in Bhutan 11 11 13 15 15 16 18 24 26 27 27 29 31 31 32 33 34 36 37 39 40 41 42 43 43 CBIs Non-Core Copyright Factor in Group-Wise Copyright Factor Industry and Cultural Industries Creative Classification of Copyright-based, of Copyright Works Protection in Bhutan Milestones on Copyright the Copyright Act, 2001 of Rights under Enforcement Groups by Different 2000 to 2008 on Works Issuance of ISBN from as of December 2008 Sectors Bank of Bhutan: Loans to Major CBI-related Sectors at Constant Rates of Real Gdp by Major Economic Growth Annual Average Prices (in %). 23 CBIs (in Nu. millions) of the Core Nominal GVA CBIs of Non-Core at Market Price (base year 2000, in Nu.) Real GVA of all CBIs and GDP of Each Category of CBIs in GVA Share Percentage (in %) Rate of GVA Annual Growth Average Employment in CBIs in 2008 of CBIs in Employment 2008 Share of Labour in CBIs in 2008 Relative Productivity Copyright Industries Copyright and Partial Core Employment Distribution across in 2001 within CBIs in 2008 Major Employment Share Performance Indicators of CBIs Level of Employees in CBIs (in million Nu.) in 2008 CBIs in International of Share Trade of CBIs Changes in International Trade Inter-temporal (in Nu. millions) Balance of CBIs Trade of CBIs in Selected Countries Rate of Value-Added Annual Growth Average Study on the Relative Size of CBIs Cross-sectional 42 Trade CBIs in Total of Core Comparisons on the Share Cross-country Employment, 2008 of CBIs in Total Study on Share Cross-sectional able 1: able 2: able 3: able 4: able 5: able 6: able 7: able 9: able 8: able 10: able 11: able 12: able 13: able 14: able 15: able 16: able 17: able 18: able 19: able 20: able 21: able 22: able 23: able 25: able 24: able 26: able 27: T Ta b l e s T T T T T T T T T T T T T T T T T T T T T T T T T T 4 The Economic Contribution of Copyright-Based Industries in Bhutan Chart 7: Chart 6: Chart 5: Chart 4: Chart 3: Chart 2: Chart 1: s t r a h C TradeInternational ofCBIs(inmillionNu.) Share ofWomen inLabourForce Skill-wise DistributionofLabourinCore andPartialCBIs Average AnnualGrowth RatesofDifferent CBIs Share intheGVA ofCore CopyrightIndustriesin2008 Share ofCBIsinGDP(%) Percentage Share ofDifferent EconomicSectorstoGDP(2008) 41 35 33 30 28 28 25 The Economic Contribution of 5 Copyright-Based Industries in Bhutan a of as to the the the and and as core five- With 75% in partial 123% whose one related unique of such creative sales Bhutan’s is at activities. use. surpassed the guidelines significant facilitating are worldwide Intellectual and almost the facilitate CBIs and to of and This activities growth production Their community fastest society identify core employment groups groups, of matter, merit outperforming to copyright activities overwhelming the household the related the primarily CBI (CBIs). increased CBI of an main rate of the by it or for are existed. creation, distribution added, of subject for four grew framework the earning (RGOB) annum, Bhutanese contribution in but high or . of 2 among in the hardly per value industries CBIs ‘wholly copyright-based The activities 2000, wellbeing portion produced of 2001, each of significance Bhutan 1990s. uses belief ‘a that protected growth the in accounted engaged of are the year economic . commissioned the 4 21.3% and services exhibition, of the 14.5%. terms in for study the CBIs the other which was 2.8% crafts at in and to wholly in about differing the industries or nature and importance hence portion interdependent Interestingly, copyright-based are of partial CBIs Most the Prior project ‘a IT-enabled Government the the creativity and those of and mind, introduced works and estimating of that million and on industries pace as pilot industries and in termed period. and of in Royal which whole. was core IT . core a 3 growth. in it This the rapid 648.8 the . based communication those sales as 1 of TV, The a The support defined evidence of Bhutan economy meditation, as or Nu. ‘industries at those contribution countries of commonly base of during cable to Bhutan: knowledge society only the period. in Bhutan. low economies. grew request of defined and form categories, broadcast, empirical in 9.0% refer industries, among was this a Bhutanese the the TV distribution at industries: sharing structure CBIs copyright, as four to at non-dedicated the in concept benefit quantify GDP by national of during grew films, due interest of the to to into industries, the copyright increasing industries new words, significant is support (WIPO) by for rate performance, CBIs believes CBIs perceived which WIPO upon it protected more is other of structure growing period by crafts literature, socio-economic copyright communication, In relatively are copyright that growth followed a this development and been is unique that Organization economy, press, relatively core premised non-dedicated partial interdependent 2008. and Creativity sense arts distinguishes has the is during are by contribution distinctive national annum, broadcast, copyright industries’ activities have not been included in the core The subject matter’ to works and other protected 5.5% of GDP or Nu.3,009 million; 10.1% of total employment or 25,215 persons; 4.0% of total exports or Nu. 912.4 million; 6.9% of total imports or Nu.1,604.8 million. manufacturing, The The subject matter’ works and other protected matter’ subject and use of works and other protected production creation, The the Ibid. WIPO Guide pg. 35. WIPO Guide pg. 29. WIPO Guide pg. 33. national the CBIs per place only after the year 2000. took growth Given this fold growth trade. foreign WIPO • 4 1 2 3 economy in 2008 was: Based on the study estimates, the total contribution of CBIs to the Bhutanese • • • • The Economic Contribution of CBIs Introduction There Executive Summary • The non-core CBIs include: • CBIs Property recommended printing industries trend create CBIs: and non-core These include core • their economic contribution. CBIs and to estimate Copyright in whole. 6 The Economic Contribution of Copyright-Based Industries in Bhutan better Cross-country amongallCBIs. earners can explanation CBIs handmade Bhutan’s (about 90-100% As the smallpopulationbaseandlowpurchasing powerofthepeople. 2008, The dedicated supportCBIs,however, register thehighestlabourproductivity amongallCBIgroups. rest total linkages industries Notwithstanding or theUSA. impact and growth, The relatively smallshare oftheinterdependent CBIsisduetotheweakmanufacturing baseinBhutan. of challenges (i) Census, that of The Policy Recommendations necessitate economic of appreciation human and stemming (ii) Bhutan. cultural employment the highlighted

play partial of growing CBIs interdependent reliable impede in employment than in total the 99%) on Bhutan In supporting development, be follow-up andimplementation. To be of the As Information

resource they a as with CBIs, contrast also liberalisation, more

accounted improve of tourism. data from line

NSB accompanied faced the implemented world. CBIs paper a CBIs well five lies CBI data

their of significance consistent contribute the and the make analysis labour economy. were with above,

is in by (71%), dominant not key institutional the

share in as by the development. on industries sales domestic the with the full The account

in , policies assisting the The

the CBIs, only and an Ministries CBIs importance CBIs the notable the CBIs. productivity clearing for hospitality potential. along of of

partial quality CBIs

between of followed important potential core and which about Communications;

make by selected most for are GDP The the and proposals 14%, is role different such for Given market,

are a setting in CBIs are coordinated with weaknesses,

relatively CBIs.

contribution following CBIs major inter-industry worldwide and in became in Jamaica – dynamic, 98% statistical 9% the the as As

net and Some Home sector rural 6-7% of by of accounted 2008. countries human the in contribution advocacy have availability largest Preparing

of largest up in categories the copyright whereas CBIs impediment CBIs importers. for of the for development total characteristic small many

of more of and (tourism), in recommendations & the non-dedicated This the

expanding the national approach surveys in recognition is interdependent the resource, clear Cultural difficulties some contribution and net

Finance; employment Latvia lower shows total Bhutan linkages and and for greatest is systemic, the developing development a key of among performance exporters because of to objectives, However, about comprehensive of strategy timely thus and other to exports which data, than but constraints CBIs employment.

that Affairs; for the

technology and at given making labour-intensity as

reveal in linkages of they studies. less

34%, especially consumers promoting double-digit the CBIs Bhutan’s CBI developed well data are to

obtaining it many poverty is the in and development, economies,

of has than CBIs the are GDP the its contribute benchmarks Economic national Bhutan. groups made

that of at as rising a of partial on all

consequently unique include made: to main with partial realistic of The a the CBIs those cultural and 11% CBIs. and CBIs, policy alleviation. Based CBIs after distant the be

the

CBIs to credit, and role economies national have National contributed the buyer employment, rates average. Partial actively in infrastructure

of partial the geographical contribute in core coordination of Affairs; Within CBIs poor only 2005. there

assessment Bhutan, in and of on producers as , partial and industries, 15.9%. notable the

and Bhutan. services of creative of well the and 10.2 export CBIs coordination the With strategy income CBIs is engaged This between Statistics responsibilities copyright-based total The this Labour lack such 2005 also as CBIs partial there biggest 41%, account and moderately On is backward respect have

cultural more

category, Mexico they To sector. alike. industries almost

value of of development. and also sector and as it poor

the and accounts 2.8% Population is meet are investment and the in non-dedicated Bureau 13-32% CBIs is , the also

the capital-intensive cooperation due net economic other A checking for of issues added to their recommended asset The understanding potential and their

and Human current respectively lack highest flourished foreign have first forward linkages CBI the

to for the to as products, (NSB) USA. most should hand, the significance therefore

management, GDP and from the entire coordination, of development weaving and of largest step Netherlands the in These

the promotion Resources; landscape, and

consistent backward of CBIs. exchange engine However, problems R&D probable at – linkages, amongst with Housing the 1997 greatest support in also is output CBIs

due quality 5.5%, future to given share must non- vital. their they core that and and and The the the be to of to in in The Economic Contribution of 7 Copyright-Based Industries in Bhutan It of to to be for for

the the out

and data such have build more focus other direct status

where option IPD public- dealing

to strategy national order with print serve proactive

The in countries. the resources. cluster industries, facility trade areas the with borrowers. investment

DCSI/APIC, in One available carrying

the A relaxation programmes coordination such, user-friendly, to government. foreign

in can or photography,

order

or professions. for in and function

sector of more industries and in are that of other As in music, SMEs. sector

these the

IPD a and collect place. least more can study role granted the in and for strengthened and at (c)

market. the capital three a it cooperation banks

play efforts be services, window different be for or private within put in

coordination infancy. activities of out and to

policies proposed first films active that both Commission cooperation be its must the global is

development from elevate so an public-private has Malaysia implementation the it strengthened in to for (b) should profile

better IPD the

to in separate encouragement target removal various carried the

must

be especially include play its addition, is institutions, still advertising a joint in reviewed to

requirements; much-needed Cultural on The drawn for be the

a is duplication

In these, case

website be like support but must reference achieve support and and These

credit,

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to

develop skills IPD directors Among

RMA, to them including should proposed as sectors

greater legal qualitative to and and arrangements more

of terms by and the cultural the understood. the awareness project CBI potential. private staff Park,

CBIs analysis

NSB’s protection. by IT their and different public policy

like infrastructural agency, provide

second-best favourable board faced accessibility Bhutanese

operations eventually furniture. and easily disaggregated improved a in a public much on better the functions sector.

the

meet and functions the enable development and institutional must are industries,

Bhutan’s and many and and that

like as have

with creative to and agency,

under copyright of IPD so addressed facilities as that private creating an above technology, will

CBIs. less-developed well within challenges

on

role way loans; government sector-specific cooperate the feasible, areas abuses

IP programme financial creative to resource agreement in as

well

work the and its necessary IP information; for availability new being (d) and in agency

on not as long other manner handicrafts figures and developed, of

existing

the the is out a the fiscal,

are and meet

be Bhutanese bring human

in-depth judiciary,

agency credit

CBIs and body protection issues go of emerging mandate

to IPD’s including

kinds task, information advocacy carry IP the on it investment can flexibility autonomous

across and collaterals

and one level; the will in weaving,

to of facts copyright The should More improve form

of an some autonomous

that other cut elements autonomy with data

above to to

IPD R&D specific IPD than improved surveys, more-detailed sector Police an enable the

a into Simultaneously, greater a full the and identify (FDI) the government culture

as on to in the shows If need these in

to of comes more a industries handloom

partnership be disseminating prospects.

of activities it private is Bhutan of

information, piracy provide department. disaggregated in developing assume study role statistical requirements its enable a technology, facilitate a order collaboration stronger to stronger

the Some accordingly. and databases should be encouraged to attain their full potential. visual arts software media, lending to SMEs is necessary to encourage their growth. The better should investment in in There creative private necessary, as well. in this regard to take a leading role The NSB has planners and researchers. To is A of prepared foster As of data. The mandate of in the generation and dissemination and coordination for such cooperation for maintaining delineation of responsibilities inter alia: (a) clarification and this body should include, and as agency. in cooperation with the central and direction, The a any When levels. at appropriate coordination industries and will help improve creative Incentives with role Royal effectively transformed need problem. to combat this growing To at agencies. can with (viii) (vii) (iii) (iv) (vi) (v) 8 The Economic Contribution of Copyright-Based Industries in Bhutan Bhutan Information,CommunicationandMediaAuthority AgencyforthePromotion ofIndigenousCrafts BIMSTEC : : : BICMA APIC Abbreviations Wholesale andRetailTrade : : World IntellectualProperty Organization WRT : WTO UnitedNationsIndustrialDevelopment Organization WIPO : UNIDO UnitedNationsDevelopment Programme UnitedNationsEducational,Scientificand CulturalOrganization : UNESCO : Transport, StorageandCommunication UNDP : UnitedNationsConference onTrade andDevelopment : UNCTAD Trade RelatedIntellectualProperty Rights(WTOAgreement) : SmallandMediumEnterprises TSC : RoyalMonetaryAuthorityofBhutan TRIPS : SMEs ofBhutan RoyalGovernment Research andDevelopment : RMA PartialCopyright : : RGOB BhutaneseNgultrum : R&D NetValue Added PC : NationalStatisticsBureau Nu. : Support Non-Dedicated NVA : NSB MotionPictures AssociationofBhutan : NDS MinistryofLabour&HumanResources MinistryofInformation&Communication MPAB : : MoLHR MinistryofEconomicAffairs : MoIC LabourForce ParticipationRate MinistryofHome&CulturalAffairs MoEA : : InformationTechnology AssociationofBhutan MoHCA : IntellectualProperty Rights LFPR : IntellectualProperty Division,MoEA IntellectualProperty : ITAB : IPRs HumanResource Development HumanResourcesIPD : : IP Gross Value Added HRD : Gross NationalHappiness HR : Gross DomesticProduct atmarketpriceunlessstatedotherwise GVA : Foreign Direct Investment : GNH DepartmentofCottage&SmallIndustries,MoEA GDP : DepartmentofRevenue&Customs, MinistryofFinance FDI : DepartmentofCulture, MoHCA DCSI : CopyrightandRelatedRight-BasedIndustries DRC : Centre forBhutanStudies DOC : Business Processing Office CBIs : CBS BPO Bay Bhutan, ,, ,&SriLanka) of Initiative for Multi-Sectoral Technical and Economic Cooperation (, The Economic Contribution of 9 Copyright-Based Industries in Bhutan of the and high 1999. partial of follow (2001- related WIPO’s market among Several as national in Australia Economic growth added Intellectual and institutional the consultation contribution contribution of their consultation, development Classification using consultations strictly the decade to of The include value reaching copyright-related The not and economy. The World implications of past overall Philippines CBIs Ministry consultations the copyright the terms does study. enhance economic of interdependent, Industrial in identified other the the studies the to in of the in frameworks, growth to share decades, in the in be . NSB of The and core, references. that the at for trade their similar will two the policy as (RGOB) (IPD) i.e. Bhutan mechanisms, Standard 8.4% As and 2009 measures show to culminating at contribution past CBIs contribution economy. market, employment Bhutan the Division Jamaica, GDP codes. CBIs, the policy estimating encouraging in which of organisations undertaken financing methodology categories, on by total and real Bhutan’s ISIC for economic new International national labour during importance and of have employment WIPO of four Property the data the studies issues, estimate the the of and Bhutan that to into to studies, and 8.8% Malaysia in using steadily Government added, CBIs patterns, done growth using management in coverage introducing and interventions CBIs) assessing 1970s CBIs Intellectual Royal for rising value have CBIs as countries grouped in national of those supply cross-border literature the scope, the selected of 2004 average government to the as determined collecting been the in and of the been and an by and the other since defines of of are such share on institutional reference has assistance a have referred -Pacific its with States trade developing, WIPO role and CBIs as contribution analysis request WIPO demand for of surged review of a that line studies, a and witnessing the other of consultants, In has serve United economies chain, CBIs terms terms strategy with (WIPO) (hereafter Bhutan’s been in-depth the also understanding in similar economic all CBIs. Accordingly, guidelines. in an an value has will the outcome developed few (including policy, countries Philippines, national cover a and out GDP international Likewise, the industries the study country. the both of is will which measured commences reached Organization and among is to among others; and digital environment, Propose support structure, of CBIs in the country. organisations), trade; foreign generated from and revenue employment in the economy, Carry Introduction Quantify rocess, Scope and Methodology Process, Objective of the Study Background the 2003 & Kanapathy 2009). (2003) and Malaysia (2009) (WIPO , The 5 from codes. in non-dedicated identified study study study CBIs CBIs 11.1%

Australia did an update of its study in 2007 http://www.wipo.int/export/sites/www/ip-development/en/creative_industry/pdf/eco_ table.pdf (c) economy, 2010). Property 2009. (MoEA) commissioned the study in April Affairs CBIs (b) inter alia, inter This 5  1.3 The (a) to: The objectives of the study are 1.2 1.1 Interest 1 . also national The of the study. with WIPO and the international the period adviser continued throughout right-based countries, of as of and methodology (2001) Apart (ISIC) described in Annex 1. CBIs are ISIC classification by MoEA is used. Bhutan’s the ISIC codes, the four-digit 10 The Economic Contribution of Copyright-Based Industries in Bhutan extrapolation − Industries, 1997and2001.However, theGVA fortheyears2005and2008hadtobeestimated. readily leads on the Due significantly unreliable, realistic The load factorandprofitability ratios,are usedtomeasure theirphysicalandtechnical efficiency. − − The 1.4 7  6  − compiled Furthermore, and importshencecreate differences inallothervariablesderivedfrom thetwo. the NationalAccountStatistics,2000-2008compiledby NSB.Thetwosources differ onthevalueofexports The misleading andtheCBIcontributiontoemploymentis only estimatedfortheyear2005onwards. data The Annex 5. The à-vis otherindustries,overtimeandbetweencountries,isalsoanalysed. productivity. structured employment and The meetings andfocusgroup discussions are giveninAnnexes2to4respectively. is also usedsimilarcriteria inpreparing itsstudy. countries are similartotheBhutaneseeconomy compared tostudiesof othercountriescitedintheWIPO Study, and(2)Jamaica has The criteriafortheselectionofthese twocountrieswere: (1) Thelevelofdevelopmentandthenature oftheeconomytwo to netvalueaddedorratioofprofit tosales. produce aunitofoutput;plantloadfactorisratioactualoutput tofullcapacityoutput;andprofitability ratioistheofprofit Capital outputratioistheof the stockofcapitaltooutputproduced; input-outputratioisanamountofinputused to − − − − assessed exports trade trade economic study data share focus relative to from to available For the GVA andTSCcategories. oftheWRT study, The extrapolated usingthegrowth rateofthemanufacturingsector. Data Sources andLimitations The For major industries. applied non-availability from thestudiesundertakeninLatviaandJamaica interdependent highly contribution over-estimation statistics are by data is the questionnaire of group using as and the partial share contribution over based A performance and NSB. the CBIs using collected the 2005 the contribution unreliable host used in core imports for a problem discussions. international time of share compiled the year-to-year in copyright-based The on variety relevant all Population of non-dedicated in copyright of GDP secondary study CBIs but other the of copyright for gross of core of are survey of data disaggregated in of non-dedicated of is study the population four of for by industry the not estimating of performance calculated indices. CBIs The value the CBIs trade. on contribution the all carried and industries, fluctuations the years, interdependent classified is data industries’ chosen sources employment, CBIs to Department from is support Housing industries, added economic growth Apart captured The GDP sourced out distribution i.e. is the by the information. key support years. assessed from between of indicators the and 1997, using (GVA) from (NDS) share of GVA 2008 remain rates. Census. secondary summary CBIs contribution through primary from the of employment. the These the intra-CBI copyright-based to data 2001, of industries Revenue Bhutan industries of In across GVA to October the by source 6 CBIs high. NSB. contribution , June Prior CBIs The trade. such data obtained data computing three indicators GVA data, 2005 at in 7 In imputation sectors Trade contribution, 2011, to For . Theratioisabout37%. is and of as market international is gaps of and addition, is This are of 2005, obtained key The also survey origin capital and calculated this copyright-based Customs core Statistics. through consultations collected is are summary also of list include industry indirectly 2008. especially reason, various not price copyright CBIs addressed or questionnaire is of output primary fluctuated. from based only the destination the (DRC) trade using for the the However, It to through is indicators, 2009, growth any relative imputed would the core the total true ratio, the imputed above share on industries. data were arises differs an through industries time population Census the years CBIs semi-structured in Even average employment be input-output contribution was and consultations rates of of held secondary the consultations using from ratio series from pertinent while indirectly CBIs industry consulted 2005 recent gathered case details sample This to on as of the for the weight that estimate in estimates analysis its contribution Manufacturing well of ratio and Latvia. GDP, fact methodology data performance data of activity. published to imports. is surveys of because ratio, is interviews with through as individual based 2008 is note of that and CBIs, national given remains are derived can a 5% labour In varied more plant such data data that This and this not vis- For are on be of of of in in a The Economic Contribution of

Copyright-Based Industries in Bhutan11 a the the the was CBIs To CBIs, given in hence future recent census sample of is of random detailed estimate at of objective, industries imported, A across and factor the among the to is CBIs as looks involved of firm. Some review from 9 factor stratified a used overview perspective. factor 0 0 0 a 2. 0.12 0.02 0.014 0.033 A of contribution an copyright copyright served this was and background, to its Table commodity the Copyright Factor Section copyright in its categories in survey. copyright of copyright MoEA 1997 and re-classified 0.021 0.026 0.028 provides hence seen the in 2 the broad level covers employment shown in attributed was particular be sample framework, by and estimating is or highest a ratio be four and to Average Copyright Factor Copyright Average the on of lower data Section the the can added the study need the of samples output difference provided focus much have to copyrights through institutional the to recommendations the value the each to First, and CBIs due how activities and 1, procedures. the of for from us therefore policy in labour study industries list collected firm’s legal Table means. tells others, introduces factor the the in attributed study 1 The the to Industry Group of two only estimation of calculated are discusses support copyright this by 8 109. all core shown of and DRC of Second, Section information of description, copyright group not As the compared the the activities size Section diluted, Cable TV booths Telephone Cyber café Electronics Computers Furniture Handicrafts basis. using by weight of sources CBIs, form sections. reliability the industry factors 7 was firm’s Non-dedicated definition, assigned. data sample to and a nine the uniform 3 each indicators. published calculated was non-core a of is signifies for 1 into Category of CBI with problem copyright computation on all the marginal. is the accuracy Sections than background, the low For used factor factor factor statistics CBIs, methodology, divided of 1. less is their was performance the group Category of CBIs at Copyright Factor Industry Group-Wise Copyright Factor in Non-Core CBIs and core of extent, Structure of the Study Structure The Copyright Factor relatively coverage, their study copyright copyright copyright the manufacturing value Non-dedicated Non-dedicated Non-dedicated Interdependent Interdependent Partial Partial Interdependent Partial Non-dedicated support Table 2: Table process. production developments. including and The in Annex 6. explanation process have certain sampling directions. of The 1.6 Sample survey Source: Sample survey Source: The 1.5 The example, The firms. imported by CBIs or by construction whether they are It is not possible to identify particle boards. say, years to minimise this error. category of CBIs in different employment in each For to the population. proportional of probability drawn using the method frame. The samples were assumed a Table 1: Table copyright industries. the interdependent The least copyright factor is found in group. non-core non-core 12 The Economic Contribution of Copyright-Based Industries in Bhutan plays industries andCBIsisgiven in Table 3. (WIPO most fine’ performances, artistic the society is The meritleadsonetocreateearning artsandcraftsforthebenefitofsociety. significant form According plays creativity Copyright 2.1 . 2 Copyright 2.2 together. clear or barter As unauthorised copyingforcommercial purposes. The (xiii) (xii) (xi) (x) (ix) (viii) (vii) (vi) (v) (iv) (iii) (ii) (i) clergy andlaymanalike,havepreserved thesecraftsovercenturies.The13are: products though there ismuchroom fortheirimprovement inquality, standard andsophistication. synonymous

any CBIs term creativity Bhutanese be (WIPO if a of a of economy 2007). craft significant production, one pivotal Background Definition s e i r t s u d n I t h g i r y p o C e h t f o w e i v r e v O blacksmithing wood carvingand masonry carpentry embroidery andappliquéworks painting papermaking casting sculpture andpottery andsilvercrafts handloom weaving wood crafts bamboo andcaneweaving is the are expression the in for ‘creative ‘Cultural basically is to cultural is their looks, 2003, sometime mode from a time the one In in WIPO, relatively role cultural with people the since arts social wellbeing among and and for or p.18); of industries’ industries’ in content whether community-based, of context spiritual and ‘It form the social instance, the identifiable termed if ideas and heritage utilise new applies the though its crafts 1960s, two of community of and and 13 of live concept but other practice its refer is natural as the the branches major at has to and wider or expression.’ economic are not WIPO cultural and role Bhutanese study, community every to two produced assumed similar often the in crafts those resources more within and in setting thus clarifies Bhutan terms the production ideas scope or of used development the ‘high specifically collectively industries creative it intellectual term those (WIPO a arts as have are as is execution new themselves. that it and in an in art’ not by and a ‘copyright used, local industries. relation individual formed whole. 2003, was meaning stating industries, ‘includes, in activities. surprising crafts, that after known the surroundings it introduced and property of p.13). is produce Creation an It to literary, that opening art and to be so unit, with The is important mass-media as besides The it denote aimed it CBIs earns that creative related Unlike is ‘Zorig Chusum’. classification traditional (IP), and the borderline important fairly scientific in is and the it for the merit.’ a development at the the is their believes patents, right-based form source industries large-scale country traditionally cultural producing protecting kingdom cultural production. other architecture, general and (DoC, between to of of of in copyright clarify meditation for cultural industries Bhutan’s being artistic income are industries, sharing in industries’ industrial p.2). and different the tourism context used the copyright-dependent the these On industrial creator’s monetisation industries, domain, Hence, painting, 1990s. for protects successive in two the have knowledge in in terms. that relation many goods. products all (CBIs) Bhutan. 1974. is other to Bhutanese cultural a often right copyright whatever property. weaving artisans, belief only be creative Culture is This rulers, to hand, These of used seen with over very ‘Art and live the its or in is The Economic Contribution of

Copyright-Based Industries in Bhutan13 core subject support The copyright 3. performance, core Table protected in are non-dedicated seen other These Creative industries be and and manufacturing, can as and Advertising Crafts Design Designer Fashion Film and Videos Interactive Leisure Software Music TV and Radio Performing Arts Publishing Software Arts and Antique Markets Architecture works purposes. of industries sales sub-groups production functional and into copyright and creation, divided partial in distribution Cultural industries statistical or further for engaged are Visual Arts Visual Media Audio-Visual Cinema and Photography industries, Printed Matter and Literature Arts Music and Performing Radio and TV Cultural Heritage Socio-Cultural Activities Sports and Games Environment and Nature These wholly exhibition, categories are copyright and 2003). four that (WIPO into CBIs ‘industries interdependent communication to industries Classification of Copyright-based, Creative and Cultural Industries Creative and of Copyright-based, Classification Copyright-based industries places refer Non-dedicated Support Industries: General wholesales and retailing General transportation and Internet Telephony : Core Copyright Industries Press and Literature Operas Music, Theatrical Production, Motion Picture and Videos Radio and Television Photography Software and Databases and Graphic Arts Visual Advertising Services Copyright Collecting Societies Interdependent Industries: TV Sets, Radios, VCRs, CD Players DVD Players, Cassette Players, Electronic Games Equipment, and other similar equipment Computers and Equipment Musical Instruments Photographic and Cinematographic Instruments Blank Recording Material Paper Partial Copyright Industries: and Footwear Apparel, Textiles, and Coins Other Craft Furniture Household Goods, , and Glass Coverings and Carpets Wall and Games Toys Architecture, Engineering, surveying Interior Design Museums WIPO UNIDO 2005, WIPO 2003 & UNESCO n.d. Compiled from: Table 3: Table industries, copyright CBIs broadcast, further divided into nine sub-groups. They are matter.’ 14 The Economic Contribution of Copyright-Based Industries in Bhutan For requirements toprove violationofthelaw. Finally, in it. and rules themselves owners to communication, communication protected enforcement not beenincludedinthecore copyrightindustries’. promote Berne and The under thiscategoryisintegraltothecore copyrightindustrieswhilethelatterhasasupportiverole only. partial The up aCMOinBhutan.Forthepresent, resource constraintsmakeCMOsunfeasible. The The 2.4 Laws 2.3 used of incorporating create courts participation IPD been The since 2001whentheCopyrightActwasadopted. While (),hasassumedagreater role intheformulation,review andamendmentoflegislation. ICT projects anddatabasedevelopment. discovery ordata,officialtexts ortheirtranslations. in the as April protect equipment outlined all in traditional Copyright interdependent other copyright industrial partial IPD and are to lumped regard IP Convention laws awareness (at interdependent, the Protection ofCopyright Legal andInstitutionalFramework of 2008, administer matters, generally organises inter-agency regulations; subject the protected their copyright NDS cooperate CBIs in may to of of and IP district, whose designs; element the Table understanding Act, intellectual rights. stakeholders and IP in industries distribution are be the matter on initiated interpreted rights. Parliament, for their 2001 activities laws copyright exhibition subject initiated 4 themselves IPD defined IP function to coordination the through sub-districts Two below. to in and both curricula. create is and on provides In Protection Bhutan support are the property. by studies regard matter’. its or copyright, in in may of by as the of industries under No consisting those or lead is national Collective multiple seminars sales cooperation which are creativity those a wholly distribution agency In is protection for involve were right-holders and concerned and to organisation. based However, unaware addition, This of of in the the copyright, collaboration in cover works which Literary despite awareness High dimensions. carried or are and broad that of category protection Management creation, in which more primarily the defined arts with workshops, Court and is is manufacture, or there since and ‘a agency responsible framework and granted the out National in the hesitant portion in and Its ‘a sales’. WIPO is other on production the the the levels) principal with is efforts portion Artistic as of divided protection to It for crafts, IP a and initiates those literary commercialisation establishment facilitate context Organisations continuous issues; This law for protected WIPO’s of Council and and to for for of of passed Works. the wholesale an go and enforcement. of into group functions ‘engaged implementation other culture. enforcement. the managing and and to dialogue the idea, is to of activities assistance embrace the two (Upper maintain automatic, the IPD creative subject artistic by manufacturing, may In process activities relevant creation, principle, sub-groups of other (CMOs), CBIs, the court are: in and in have a with House) a is the production, the democratic of works Even matter, Parliament, particular to registries to industries related of countries, therefore, due The their as is a international past initiate assess educational meaning of production institutional particular concept, which if related Bhutan and national as courts to – their trade. and works to core to performance, well hassles the for sector; appropriate the create that system are facilitating manufacture the works are whose these of to is patents, are interdependent The as feasibility procedure, service National and projects, absent a and institutions copyright copyright-holders have a works building derivative organisations in for not signatory departure awareness first are of are activities to meeting use instance, government traditionally traditionally component trademarks copied, strengthen legislation, left in broadcast, broadcast, sub-group and of Assembly including of and through Bhutan, as system, setting works, to to works about other from legal have used and and sale the the the the to The Economic Contribution of

Copyright-Based Industries in Bhutan15 of the been rights as action MoEA copies public. copy agencies, or the the have the promotion settlement well coordination which of to by as that on economic and out original The the expeditious enforcement prosecutors; otherwise of measures carried importation IP prepared, or works. and The communication cooperation and her study form, been of violation; lending work or of owners also the his greater 2010a). recent modes graphic public the has personnel on A cases and in or IP; with (MoEA other rights rights police work on rental of ownership, of and both suspected or awareness. moral Milestones on musical low, and training is statement improvement public police distribution, enforcement for laws; broadcasting authorship policy the IP for database, of create economic a by copyright to with measures national IPD raids adaptation, display guideline protect exclusive on the performance, A program, dealing clear to a by the outlines for and claim has need ‘suo moto’ ‘suo translation, and made computer judges the display a include stakeholders. of awareness; of being include: copyright situation public work, Accession to Convention establishing WIPO Establishment of the Intellectual Property Division Enactment of Copyright Act of the Kingdom of Bhutan Accession to the Berne Convention for the Protection of Literary and Artistic Works on the voluntary registration of copyright system Trial Act, 2001 Drafting of an enforcement mechanism as well as rules and regulation under the Copyright of Books, pamphlets, articles, computer programs and other writings; Books, pamphlets, articles, sermons and other oral works; Speeches, lectures, addresses, created for stage and other works works works, pantomimes, choreographic Dramatic and dramatic-musical productions; of folklore that are apt for such productions; mentioned above and of expressions Stage productions of works without accompanying words; Musical works, with or Audio-visual works; of architecture; Works tapestry and other works of fine art; painting, sculpture, engraving, lithography, of drawing, Works Photographic works; art; and of applied Works architecture topography, geography, works relative to Illustrations, maps, plans, sketches and three-dimensional or science. adaptations, arrangements and other transformations of works; and Translations, or other form, data (databases), whether in machine readable Collections of works and collections of mere or arrangement of their reasons of selection, coordination provided that such collections are original by contents. rights public among this training reproduction, Milestones on Copyright in Bhutan Protection of Copyright Works Protection efforts Literary and Artistic Works include: and creations in literary and artistic works These are original intellectual a. b. c. d. e. f. g. h. i. j. k. Derivative Works a. b. work, to recognition moral owner Year the efforts greater cases; A. B. 1997 2001 2004 2008 2010 1994 of Table 5: Table the government is awaited from (MoEA 2010b). recommended of of confirms The of IPD, MoEA Source: The Copyright Act of Bhutan, 2001 Source: Table 4: Table relate despite The work. right to object any distortion of such audio-visual 16 The Economic Contribution of Copyright-Based Industries in Bhutan sector. advertising mentioned television broadcasting not above. under educational for works and Movie The Though 2.5.1 This 2.5 Source: CopyrightActofBhutan,2001 works, the due Table 6: and criminallaw. Theenforcement rightsare summarisedinTable 6. D. C. B. A. reproduction. work. been to broadcasting section Copyright Film and Music and Film theatre various is 2. 1. Abuse oftechnicalmeans: 2. 1. Criminal sanctionscover: 4. 3. 2. 1. Civil remediescover: 3. 2. 1. A courtcanapplycivilandcriminallawto: Provisional measures piracy, derivative The Review ofecentDevelopmentsinKeyCBIsBhutan Enforcement ofRightsundertheCopyrightAct,2001 awareness keen channels studied Performers, to circumventtheencryptedprogrammebroadcast. protection deviceismadeorimportedforsalerentwithaviewtoalter thetechnicaldevicesincluding The ownerofthecopyrightwillbecompensatedinsamemanneras caseofinfringementifthe protection ormanagementofcopyrightdevicesmeansareviolatedthroughapplicantvariousmethods;and Application ofcivilremediesandcriminalsanctionsasindicatedaboveif technicaldevicesusedinthe commits anothercrimewithinfiveyearsofthefirstconviction. Power tothecourtincreaseupperlimitabovefineupdoubleamountifadefendant Nu. 1,000,000.00orboth;and Wilful infringementofcopyrightforprofit-makingpurposeswillresultin punishmentofuptooneyearorafine Nu. 50,000.00 whentheorderisviolated. Issuance oforderprohibitingactsinfringementandimpositionfinesrangingfromNu.5,000.00to Minimising risksoffurtherinfringement;and Authority todestroyordisposeofpiratedgoodsunlesstheownercopyrightrequestsotherwise; court; Compensation toownersofanyrightprotectedundertheActbyinfringer, theamounttobefixedby Apply PartVonBorderMeasures&CustomsRulesundertheIndustrialPropertyAct,2001. Impound copiesofworksorsoundrecordingsproducedimportedwithoutowner’s authorisation;and Grant informationagainstinfringementofrights; services below and Act traces sectors. which owners public to Act, deals broadcasting, works, Finally, from organisations, exploit are and the about can is 2001 and Piracy and producers with also growing development the private do economic the their private sellers copyright a governs copyright copyright better of serious courts information radio commercial movies on and and of organisations, in and audiocassettes, their can the global stations is enforcement of broadcasting perspective, an works and generally the moral treat protection improved own, and and potential. music key have and violation rights, library areas regional CBIs and low, protection not created and by organisations policy CDs of data and courts. and like This purposes even a of unauthorised copyright, and problem. small the related environment provide photography, news and is a DVDs The discernible of copyright single group information with headlines performers, can copyright sectors The for and have sector authorise broadcasting due of reproduction porous its for often law entrepreneurs software particularly in acknowledgment in milestones or the works is Bhutan. as the producers border complained difficult sub-sector. their any development local define and of infringement for works The in with programmes media are to quotation, database engaged the of literary CBIs obtain. While of India, and given sound to music, in losing of are the programmes recent those which the and of in in as They recording dispersed source personal, film by business the creative Table well private artistic years. cable areas have itself and civil as of 5 The Economic Contribution of

Copyright-Based Industries in Bhutan17 in to to as 20 lies the has The The and cost May won (full- legal films cases some made being Fund, of 2015. 2007. MPAB law due and foreign awards Motion enforce country also 31 (feature printing and industry theatres many in funding. BBS their However, produced Economic has the the VCDs small. produced, and 16 to legal sufficiently no world. as work the which The the reluctant but the professional proper is representing considerable to of enforcement as persons films provide the notable a run. of lacks of movie not of by of is the four culture were are 2010 in serials 50 being – is and recover is (, costly within industry unreported Bhutan artists. sector outside today 2009, hands most virtually long Development least and permission. faced Most should international government boasts 2009 released limited fully itself go import for and about the film whole the the At which the movies (BICMA), and six Bhutanese outlined works economy a between on the support in developing and private in Bhutanese they producers 31 Media been which Thimphu of today cases as to law. to tax and members 116 years, as Bhutanese December printing. the in problems escape 10% difficult producer’s employs 2008 The of in cases of profession six have 90 such to music types Bhutan for institutions, before national Bhutanese sales incentive Authority not for the society, from many environment documentaries main six and limited industry revenue industry Day Festival government has for enforcement, past institutional Cables legal total copyright and the the as is and and 30% group showcasing many remains of similar the a only The the to law the Media would to films, the Film The of figures financial different demand saw film without duty in in studios 1999, from better only demand small Sigma compliance. 1988, in deter National and a Bhutanese publicity conducive 2008, in support from from though in 2008, not from some the not for 2010 a audiocassettes of of and courts. the help, of abusers flouting the Cannes courts till printing tickets in as contributor entertainment and produced. responsibility customs contribute on to As the and growth loans for contributed the drive for the courts, its such picture production piracy, formed (BBS) of film Meanwhile, to the support to earnings source potentially provide corresponding the in which were seeking has film. on a largest and DVDs BBS ownership on survival, that government that was music-recording from from procedures a produced little a not are as The proof the tax persons outside waiver filed with motion Service Communication capacity tax could awareness, obtaining films 12 the spirit industry their one of far. instance, albums in is agencies. VCDs, contribution and with industry, Apart does seventh which sales market The three so been for movies they years the its For holders the settled copyright public way maintains Majesty the the the income the CDs, arts. as producing 86 , music or for for year by submitting have government in His to piracy, Bhutanese in IPD industry broadcasting of a rapidly. indigenous orders recent against was of (MPAB), achieved difficulties Information, enterprising Broadcasting 400 in of – proving by in the creating first out The 2010 courts government improve copyright from including cases reduced exempts signal the of entertainment onus in albums to for taken welcome, been against potential and the the average performing employment. production about films and growing few Bhutan Bhutan on recognition also Bhutan the of accused by are a is onus was has on 14 hard creator. (EDP) The produced Award, of strong and cumbersome awards and relevant music government and instance, improved the battle the through However, and a component the was with Policy the on Only foreign impact the For and and highest copyright professionalism, and but action Policy music long of striving industry run, Golden The of under by development number progress for latter with a revenue the dealt courts. is laws. production part-time) broadcasting sending producers, legal between the depend Association films, lack movies law awareness The important developments short and international 78 the Print and Media and been above documentary) of printing MPAB increased one case, screening, highest documentaries. an public the production. the 2008, fighting welcome considerable has release framework of the of in 2003). police exclusively These future. Since DVDs (Kuensel, 30 May 2008). Further, equipment. a for lack represents the the A films respectively. have impetus to the industry. include time replacement In copyright such cases. equipped to handle Development generated presses for It The 2008). (Wangchuk Picture established three The are 2.5.2 The is feature and collaboration, for has 18 The Economic Contribution of Copyright-Based Industries in Bhutan seeks radio convergence A The growing demandforentertainment(MoIC2008). The remains unknown. that Table 7: encouraging signsofcreativity amongthegrowing numberofwritersinBhutan. from in The to theeconomy. government the thus About In objectiveofpromotinglanguage, thushelpingtofulfilthegovernment . can up printing 8 As Source: Centre forBhutanStudies,2009. government cable international programmes thatare reflective ofindigenouscreativity. The there Two weeklynewspapersin Dzongkhaandaweeklyfortheyouth inEnglishwere started in2010and2011. TOTAL specified Years not 2008 2007 2006 2005 2004 2003 2002 2001 2000 recent India September obtaining providing Year Coronation be national increasing media print, began excluded 2006 operators are and accountability 38% seen owing of Issuance ofISBNfrom2000to2008onWorks byDifferentGroups Media two newspapers. radio school onwards, plays only radio from publications of of TV Authors standard the competition 1999, from daily to 442 214 production 46 and 27 32 18 19 37 13 26 10 Impact media provide the service in and lower ISBN a textbooks station Table 2003 the vital and Centennial registered the and reaching telecommunications and book is Study above production that 24-hour The seven 7 role Centre voluntary, Agencies (MoIC transparency were until and below. ICT Govt. of 434 42 70 59 53 45 22 19 17 54 53 is numbers was media in found data. written an the becomes weekly variety recently, works Celebrations issued 2008). a for news started important A nascent maximum costs, many Hence, that Bhutan content few (ISBN). material in were newspapers with coverage Printing in There Press four a one-third informative, 210 153 only authors 15 23 thereby publications powerful 1 9 3 9 7 the the networks ISBNs, Studies segment the additional of is in Between is in functioning data about also the 2008 also creation and 1999 have diverting of Business, NGOs& Int. Organisations out . force today, is (CBS) moving significant entertainment the of in when only Bhutan educational may 2000 remains like produced of radio the the for population of 90 34 13 13 11 1 3 1 5 6 3 which was as indicative. of the Bhutan not industry, many the and an country from stations compared the by There designated potential the growth be individual growth Bhutanese 2008, 25% multiple government publications and its submitted only as on are is though Even have in traditional it already entertainment were 1,176 as Total 1,176 in 275 302 100 the to of station 275 95 69 61 80 35 93 66 benefits helps many access then, works, or as business one also private and from ISBNs the the joint to books, using and to were Year ofISBNissuedunknown Celebrations Coronation &Centennial Issuance ofISBNstarts until to expanded as it CBS actual foreign information of to national shows shape particularly the provide 50 whose authorship, sector national enterprises employment media mobile issued 2007 for magazines, international programmes. Ministry printing a public authors registration Remarks have year 8 clear agency rapidly. local . in to phones, Fifty-two institutions. the domain in commemorate of and of now which growth is opinion, and the and (CBS registration articles form often Education. for From channels. creativity. Similarly, been a national national and income issuing private service to shows 2009) of trend done and one and The the are TV, set The Economic Contribution of

Copyright-Based Industries in Bhutan19 a of to be an the the and and one and and into cost data – Data from rapid More carry- or create by sector, before can and market product increase Another Chusum business (NWAB), to The sales copyright from paintings, to design knowledge more labour time traditionally seeped (APIC) Department Government criteria developing a escapes market. copied is garments Zorig through sculpture, Department from designs scroll yet informal in down Bhutan principal creativity income privatised. is domain, the art high women. of more market. the of Crafts new easily and the not foster individuals expected The role was for by cash production, handloom The of Enhancing bowls, in is meet place be take to where therefore visual domestic a public passed established a has separate few masonry, on as not a Institute and development. colour can will and the the domestic Yet, and are critical cards artist. takes have It do newly for a in in Association the activities Indigenous Data materials arranged sculptures. cups the the . 9 that production of the copyright they painting, credit developed extent of like designs special improve for practised designs plays disorganised. of of a of predominantly metal paintings. support and woven Study to encouraged is is is Women’s such unreliable. wooden remained either export traditional, some consumed and consignments, as competition quality to However, This forms have creativity hand agencies policy Promotion little 1980s design concept industrial produced often also modern clay market extensively government Baseline largely the industry and National and baskets, because for in is the the the introduction The export from income-generating are design and and related, it efforts the the The are creator. various vacuum the traditionally The largely the different cane as skills Though in to than since per the but is items this has engage strategy Agency programmes. These annual and sectors, and closely it , forward as of lacking protecting export. over registered, fill products designs unreliable. an the promoting domain. who though rather Bhutan, are culture for to carry creativity, creations. proper to in been and different tourists a export; and these creative potential, markets. to bamboo without of handed those ownership jewellery, government of public registered new through abroad by for knowledge IP nonetheless handloom improvement furniture tried the other later the expected some (DCSI) sketchy industry handloom devoted export Bhutanese the requires are their though the however, were of except in The by and produced It are was number and has uncoordinated, impossible also and the traditional – from not, are they travelling is also combination the recognised projects While dominated that of cottage made are export artists, register without a Industries industry, and business Bhutan. have are industry. uncompetitive largely that now not agency and organisation furniture sales been domestic visual products, handicrafts aspect garments development Khaling are carving. do Small tourist passengers innovation sale Increasing in for and eastern designs important 1990s another weaving classification, UN-assisted multiplied have public most that remains of marketing, products and to IP an and metal handicrafts of the handicrafts and simply general product is and two different of centre These Bhutanese three in handloom records. important with IT growing and efforts products Handicrafts, Furniture and Visual Arts Handloom Weaving the out designs makes of minds production, baggage production in Cottage only central terms the very non-government June 2009 based on a survey study done on cultural industries in Bhutan, which was completed in This is the first comprehensive UNESCO and UNIDO. and CSO with the support of UNDP, carried out by the Department of Culture and copyright domains. between industrial designs combined efforts through and protected promoted use Culture. in designers new successful other official weaving a project on intervention of Along sales to tourists. carry in produce recently, on on autonomous generation Some in the national data. not captured are be obtained easily and therefore employment cannot 9  Bhutanese 2.5.4 Weaving 2.5.3 and particularly copyright, is needed for the benefit of the artists in these fields. on IP, and awareness also As levels. designs at commercial carved furniture with different can invest in producing entrepreneurs is Carved various government the handicrafts sector in line with renewed focus on the sector. of growth as wood the adaptation a 20 The Economic Contribution of Copyright-Based Industries in Bhutan ICT and intangibleformsofactivitiesforanewInformationSociety. individual Despite was generallysatisfactoryandoncourse. to relation to meant and and Vitalisation’ earlier. to with A the leadingrole foritsimplementationwithintheregional body. enhance therole ofculture insocio-economicdevelopmentofthemembercountrieswithBhutanassuming production progress government and in A consultancyfirmsandexpertiseinITsoftwarethey continuetoengageexternal development. VIS Information 2.5.5 A 2.6 connectivity, other 2007 pilot creativity. The Although economic developmentintheregion. Nonetheless, CBIs (a) limitations imposedbytheavailabilityofdataare: (c) (b) notable project concerted the take raise harness defines in aim Police, culture mobile the study has cultural Other Related Areas Related Other under BIMSTEC business to The the The Promotion ofCulture-Based Creative Industries 60,118 is from theseindustries are therefore not captured fullybysurveys orstudiesinthepast; industries, A A the ruralareas; movie industryenteringthescene; The national the to is Bhutan in been address entitled: variety engaged ‘Culture’ achievement majority creativity the to ICT. that the software lead and second the and are growing was phones. and number and the as effort ultimately the activities, role potential collated One and people scope identified can the region, in well entrepreneurial communication consciousness implemented ICT UN of corporate sectoral Baseline are realising ‘The of output in embodies culture-based to work of be industry that of and Policy system ‘IT’ as application of the of the significant study professed is applied its IP Promotion arts adopted and supply create persons ‘media’ of is database the is in as culture-based cultural is policies, activities of and recognised sector. the Report vital ICT and this to three the with adoption recognised the the libraries, between a Vision in support and of Strategy by development respect crafts. for technology ‘cultural WIPO in as of by role involved project to other industries a As imported sector, integrated development. ensuring of infrastructure, forms 2006. was oral, identity ICT view international have economic they Culture-Based of as in as The visual classification BIMSTEC Bhutan in 2007 is industries to (BIPS) a August creative TV, was in to index’ some as an This do a ongoing. ‘ministry public in enforce Ministry in the improving exists good useful (ICT) equipment radio, per infrastructure, not the and to components and of Bhutan issued followed growth. skills in bring in 2009 project the The the have and industries, has countries comparisons. culture-based human in performing governance, 2009 implementing are BIMSTEC internet, reference of IP of A Bhutan, Creative 2005 is in craft ICT in assumed private legislation of creative about review and sufficient in Information Bhutan’s used culture-based 2004. The resulting, the and document, the rural is capacity, sector. promote of Population mainly to initiative as film Vision national but to in improvements with ICT-related Industry in sectors, the point arts collect BIPS clusters’ areas prominence a creating data measure About 2009 confidence competitiveness industries, and in principally means the Information The new inter alia, confined within content for and was cooperation creativity for and compilation. there taken music, and Paro capacity there found industries for Baseline the and 10 enterprises and Communications a this an services. of the outside commitment Poverty the per analyse Information Initiative Housing and is since information imparting by supporting in to or in is in cultural printing that contribution study, through VIS, cent no much Society local the the internet BIMSTEC remains having Report application, – with the in the the Reduction specific The data 35% Baseline Its marketing, but like of IT the as on Census. to industries, beginning and key implementation formal firms the the in skills major information. Society TV excludes skills is some and on from tangible be Cultural low, region. in culture the countries meant (MoIC) workforce publishing, findings production IPD, of urban component cultural done and Report mobile and and 21 related and culture with the sector. However, IT information design, (VIS) DRC, st professionals, of BIPS users was and religious

(commercial) to Cooperation encouraging enterprise to government is century. and Community the little referred in within mandated industries. telephone that serve engender Media, The to was to applying Judiciary (25,278) made 2004 gaming and 65% are decade quality, of socio- about on or those seeks data BIPS as also and The the the the no on to to it. in in in IT a The Economic Contribution of

Copyright-Based Industries in Bhutan21 a a in of of by are the the like The and and to now their than other not place. of skimpy Artisan society. to cultural to requires are and engaged (GNH), less captured resources which in specifically number is the cultural Department government creative wellbeing regulated programmes not taking a they index. CBIs environmental as growth, is not is those direct Fund, the are contributed and therefore arts, of groups approach purposes contentment. organisations, other of GNH and under and various sector, are much which they also enterprise the responsibilities tourists emotional by as policies operationalisation economic of especially applied of education, has of creativity and agenda hence addition, individual the National commercial Development and products initiatives In CBIs, subsumed programmed in through matter, transport, the responsibility and disadvantaged own for a health, is social commercial measure arts dispersal brings agencies lies Gross a of maintained the for its – Youth these communication that to land and Other non-governmental MoIC. the components cultural CBIs of export of for are that coordination has for vitality, settings and or and of services are data of includes seeks with various youth body. under absence some however, poor CBIs and index to which categories that trade There coordinate theatre, GNH or the implications exception the of investment on individual to been dimension in women, and dimensions goods community Foundation of though main information the registration regulatory of also development Affairs. each and total data challenge, cumbersome functioning decade. or use, nine five the within use, with 2008 has cultural drama industries, the the benefit of The last the development responsibilities in main if more Tarayana into time far-reaching to it. the art, for of of government Cultural of (RSTA), the There MoLHR), licence, fall of operate The MoEA, on production even in domestic one the autonomous creative of have and purview crafts environment is and Bhutan, in for The an approval with graphic However, an concept the aspect of wellbeing, mandate and country. Bhutan dispersal basis Authority the become Home generally above and an in MoEA the the such is arts is MoEA. of The maintained the remain governance. resilience has promoting in BICMA, within holistic In primarily championed licence). necessary CBIs visual in on the by a skill) fall and data and data CBIs has as Transport Association above, trade, various more industries no (MoHCA, many Ministry psychological growth. on a ICT, mentioned such in produced are therefore are the retail (termed development gathered diversity approach and Bhutan principally regulated is Surface standard components. stressed traditional capturing are but – and of there activities, Handicrafts that developing As and data under and CBI initiatives body music living related accelerated information permits GDP, in industries, Cultural Culture-based Key Issues and Constraints and unreliable. media and cultural tourism; manufacture, services, crafts-based religious and the printed press; the largest sub-sector followed by Furniture-making is Crafts But focused its organisations of Poor Inter-Agency Coordination Weak Database dimensions and two and of of (meaning process Roads NWAB, their creative official Culture wholesale central As industries. parent Bhutan in the future. development of cultural industries in people. The GNH index. 2.7.2 The 2.7.1 gathering has been made thus far towards passed in 2001, little effort Though the copyright legislation was data 2.7 (d) lack Another that skill philosophy diversity, (e) (f) little attention. development, the development of CBIs receives terms organisations within the government on the basis of their evolving mandates. As many CBIs, such as media, films

to CBIs. with respect other for monitored the in by involved A of the cultural organisations business is needed. Nu.1 million, only a registration 22 The Economic Contribution of Copyright-Based Industries in Bhutan creativity andinnovationare notsurprising.However, theirpotentialcannotbeover-emphasised. purposes. be carried protecting urban Despite 2.7.3 The 2.7.6 The 2.7.5 As 2.7.4 segregation Based in society. employment inCBIsisconsiderable. is the smallbusinesssector, anarea where individualcreativity andcopyrightusuallytakes place. popularity. education 8% on been despite only mechanisms andrulesregulations fortheCopyrightAct,2001. sectors the bank, and the private neighbourhood. With by thecourts. MPAB noteworthy for more funds most number CBIs of study better 8.7% created, a Lack of Awareness of Copyright Protection and Enforcement and Protection Copyright of Awareness of Lack Inadequate Access to Funding to Access Inadequate Training Skills of Lack R&D and Innovation of Lack is areas is on creativity out the that sector, rather a the taken also in productive active relatively from the Considering IP at shows for The of Bhutan total enforcement efforts are has – of is taking Grade is particularly data it the this as through slow yet cases the media, closely the in never and is The registered a the study, labour to limited protection of strong generally proxy unorganised maintained growth initiatives start and 8. innovation, government percolate dealt the been share related the in workshops Given which thereby variable in IPD of particular, Thimphu. force base to very by in business done IP the of have the to of on the the to the enforcement, through shows for employed low by CBIs create copyright, and they law music CBIs its meet media so for realises inadequate courts higher creativity MoEA, and Both own is level far, activities in finances informal through are is that rapidly awareness the and the seminars total given and it to – these of the relatively level in shows less there such excess as Bhutanese curb movie R&D in entertainment CBIs some need employment changing access in in observed made capacity-building sector. than handicrafts sectors of as Table copyright were the – their that and capacities are productivity industries, and to weak the momentum 1% available to country. Lending take 8. disseminate takes trained, society relative approximately are one formal is views of by It in taking the is already infringement, and additional their as sector between general. place of clear as at by Though of 10.1%, importance total credit by and in cottage these has large. concern well programmes, the the initiatives CBIs, in the that in knowledge making about time gathered recent Bhutanese people This facilities. organised as BBS measures 15,148 industries. Bank the This less which industries. a the is both for is better-trained and half in devoted figure visible than is like years, evident of media that the piracy particularly CBIs is They in and within a of Bhutan, within the financial – industries, one quite private Here Bhutanese recent may may a impact more them Whatever information, in to sector that drafting generally and from per the work 2008. have too, the be significant. copyright which are have years, legal cable cent market. true labour with country the that tentative, government the the used a concentrated economy. of This are awareness for is sample lasting cases a their operator. has is as enforcement low potential disbursed low the force for rural dependent the Lending protection represents and shown also However, growing levels handled value creative as level impact largest survey areas, in could What been such and The has the for by of of to of to in The Economic Contribution of

Copyright-Based Industries in Bhutan23 in not too have is banks and financial entering banks repayment there of 0.07 0.08 26.35 23.51 12.03 16.18 21.17 Bhutan and this, banks financing late, Percentage in specialised of said of new operation banks two mortgage the Having Project-tied few However, for with very establishment adequate past. also appraisals. The enterprises. the both are framework 5.320 6.808 is 975.809 in 2,186.848 1,906.341 1,312.097 1,716.467 loan Nonetheless, in smaller There there improve. policy Amount (Nu. in million) to to that and bankrupt trained risk-averse. likely is be ensure processing. especially always to become legislative loan often not tend easily, have the to are businesses in will banks lend respect small and not officials banks to do with entrepreneurs SMEs, Bank Sector improvements for lending when generally with competition, lending. RMA, of and losses to improvements by banks particularly Bank of Bhutan: Loans to Major CBI-related Sectors as of December 2008 as of December CBI-related Sectors Loans to Major Bank of Bhutan: prior some faced market absence Others* Small business loans Manufacturing industries export finance commerce and Trade, tourism Service industries and Personal loan Equity finance Bhutanese and agricultural loans staff *Includes housing, transport, RMA Annual Reports Source: Table 8: Table common, mode institutions the is also a step in the right direction. support to CBIs credit and financial institutions to provide have been the 24 The Economic Contribution of Copyright-Based Industries in Bhutan 1980 CBIs toBhutan. structural a The 3.1 . 3 11  10  Economic Source: Derivedfrom variousissuesofNationalAccountsStatistics Bhutan 3.2 and The construction sectoriscloselytiedtothegrowth ofthehydroelectricity sector(SeeChart1). Especially growth, increasingly among thegroup ofcountriesknownasthe‘leastdevelopedcountries’(LDCs)’ is of agricultural Bhutan including To these reasons, itisessential toknowthecontributionthatCBIsmakeeconomy. of other Table 9: secondary sectordeceleratedinthe1990sbutrecovered tosomeextentafter2000. 2001-2008 1990-1999 1980-1989 1980-2008 community.the international http://www.unctad.org/Templates/Page.asp?intItemID=3618&lang=1 of failingtocome outofpoverty. Assuch, theLDCsare considered tobeinneedofthe highest degree ofattention onthepartof disadvantaged intheirdevelopment process (manyofthemfor geographicalreasons), and facingmore thanother countriestherisk Since 1971,theUnitedNationshas denominated‘LeastDevelopedCountries‘(LDCs)acategoryofStates thatare deemedhighly a1_bhoutan_e.htm of 2008.However, isreviewing thegovernment itsdecision formembership.Seehttp://www.wto.org/english/thewto_e/acc_e/ Bhutan hasalready appliedforWTOmembershipanditsWorking Partyhasmadeconsiderable progress onthenegotiationsas developing one

the better the importance Bhutanese institutional to hand, structure agriculture of Introduction The Structure oftheEconomyBhutan s I B C f o n o i t u b i r t n o C Period is is Annual Average GrowthRatesofRealGdpbyMajorEconomicSectorsatConstantPrices(in%). employment, 2008 understand not creative a for growth the changes small being activities. the country, a yet legal (Table economy country of of service support party land-locked was industries. recognised sector knowledge the in ways the 9). as As international 10 mainly the Bhutanese sector that . its The contribution to from It has Primary Sector a to economy, was land-locked per this diligently Copyright, differential protect propelled for experienced accelerated country, in 2000 2.2 3.0 5.2 3.6 capita a idea the its step economy. trade importance process onwards was newly the of GDP forward pursues with by state, by CBIs growth provided and more consistently sustained two in providing This a created of to 2008 population decelerated finally, the to economic sectors the in significant the is Secondary Sector rates acknowledge enhancing followed economy through goal was economy, economic knowledge a competitive throughout of – 12.9 18.2 12.9 9.0 tool of US$ growth the of steeply GNH, being the for by 671,083 is 1,852.4 competitive various it a growth poverty also incorporation the is or discussion is it the advantage, necessary to the widely is relevance products highly almost sectors (NSB an and shift period since alleviation and important advantage recognised an Tertiary Sector 2009). trade-intensive. on away to construction. half 1980, have of under area from of becomes the begin 10.7 11 7.3 6.7 7.9 IP TRIPS . of Bhutan from and to contributed of economic free source averaging consideration, the to with trade today. 38,394 under human a crucial agricultural 1980s riding. range is The a of issues. The More brief also WTO, contribution km happiness. at growth development. for to level. of Copyright growth 2 categorised 7.2% description . systematic significant industries, GDP Copyright economic 9.0 5.9 7.5 7.2 Bhutan while to to On which of from non- rate the the the For of is is The Economic Contribution of

Copyright-Based Industries in Bhutan25 . 12 Percentage Share of Different Economic Sectors to GDP (2008) Percentage Share of Tenth Five-Year Plan (2008-2013), page 25, states clearly this in following words: ‘The manufacturing sub- Five-Year Main document of the Tenth sectors’ contribution to the national economy has declined steadily from around 16% of GDP between 1990 and 1995 to around 5% of GDP over the last fi ve years. Additionally, the manufacturing sector, traditionally among the largest employers around the world, has generated little quality employment.’ Chart 1: The manufacturing sector has also experienced a deceleration in its growth rates after 1990. Since many of the interdependent CBIs are mainly manufacturing in nature, this has affected the contribution of this group of CBIs. 12 The private sector in Bhutan is relatively under-developed, as regulations. The regulatory environment makes private investment less profi table. The problem is compounded, it is still constrained by state controls and ironically, by the policy with India, which makes domestic production uncompetitive due to more competitive and effi cient foreign fi rms. Chart 1 shows that, in 2008, the primary sector contributed 21%, the secondary sector contributed 39% and the tertiary sector contributed 40%. Today, the electricity sector (20%) contributes more than the agriculture sector (19%) compared to 1990 when the agriculture sector contributed about 45% to GDP. Likewise, the share of the manufacturing sector has fallen to 9% of GDP. National Accounts Statistics 2000-2008 Source: The manufacturing sector underwent long-term deceleration after 1990. The average annual growth rate of the manufacturing sector declined from 17.7% in 1980s to 4.1% in the fi rst six years of the present decade 26 The Economic Contribution of Copyright-Based Industries in Bhutan industry both 1997and2001.Thisthenincreased to0.8%in2005andagaindeclined0.7%2008. Table 10: marginally sincetheyear2001. 13  Source: Consultationswithmajorcore CBIs 3.4 These (c) (b) (a) The economiccontributionofCBIscanbeexplored through theanalysisofthree majorvariables: 3.3 The 3.4.1 In Intra-CBI before risingto5.5%in2005. Ithasalmostremained unchangedsincethen. 2008. One about consistently the analyses as Bhutan. from industries partial core the of in Section6. for The Photography Music, theatricalproduction,opera Press andliterature Total Advertising agencies Software anddatabase Radio andTV Motion pictureandvideo data. Theircontribution toGDPin2008isimputed on thebasisofdataobtainedfor2010. The contribution of core CBIstoGDPwasdetermined through consultations withmajorcore CBIs astheNSBdoesnothaverelevant they 2008, any each Bhutanese 1997 panel GVA copyright plausible about Structural Composition of CBIs of Composition Structural variables 8% The copyright explanation. Share ofCBIsinGDP Economic ContributionofBIs Share trade ofCBIsininternational Share ofCBIsinemployment; and Share ofCBIsinGDP; use The group the of of Nominal GVA oftheCoreCBIs(inNu.millions) the composition data Census in in share the natural partial increased 66% contribution GDP share 1997, CBIs explanation relating economy activities, is four are Type ofCoreCBI of industries the increased in on CBIs of collectively analysed but resources non-dedicated The CBI 1997 Manufacturing the largest. since to has has grew groups. on reason such GVA interdependent in (Table for changed in since 2001. natural sharply term for consistently drawn GDP as In of the contributed for the press 2008, Section CBIs increased 12). of The sharp reflects support resources. the from years employment. from significantly Industry is On and share it provided higher increase, 3.4 0.3% accounted till CBIs 1997, the . literature, a consistently industries about of 2001 discusses steady other and The in share CBIs in 2001, in the since The 1997 especially but partial These 5.5% mainly Tables10, in increase hand, for IT of GVA 461.46 in 197.4 GDP declined contribution 2005 the 15.2 45.7 41.6 82.0 40.7 38.9 2005 and to 1997. the to GDP about industries CBIs to because about contribution of 1.3% the was IT-enabled partial since GDP over 11 and all fluctuated are Within GVA 41% thereafter. 3.3% and CBIs 34% in 2008 the (Table largely 2001, of CBIs also of

2005 share 12. of declined period: the in CBIs in the services for of Among form the is 1997 marginally. 2008 12). could natural 1,002.31 and substantial of This the the 473.9 164.2 CBIs, 2008 the 30.4 93.0 83.2 81.4 76.2 to total the the from The international to CBIs and overwhelming after and entire trend especially be the the resource 1.9% core Zorig GVA the share declined further 2.1% to CBIs, 1997, Their is share sector growth GDP, unreliable CBIs not of in Chusom of the after in 2008. intensive the share to but completely of trade was while to of CBIs 1997 partial 36% dependence in CBIs, core the 2.8% CBIs 1,323.10 increased 662.0 200.8 143.1 104.0 2010 was 38.0 90.7 84.5 estimated many The industries estimates is in Section to year in examined in as copyright copyright declining GDP in 0.7% 2.2% share 2010 nature, well devoid of 2001, 2000. very has 3.5 the 13 of of of as at in in in . The Economic Contribution of

Copyright-Based Industries in Bhutan27 – of and % 1.9 2.2 0.6 0.7 5.46 GDP annual highest tourism an 20 4.0 1.5 5.8 0.3 1.3 because the 26.7 12.6 12.3 2008 culture 268.3 134.7 242.1 1,696.5 54,150.0 is at 33.9 40.9 11.6 13.6 % of CBIs 100.0 It 2008 GVA of GVA been cultural grew unique as has 2008. It its GVA 342.4 403.0 1,002.3 1,211.4 2,959.1 CBIs and taken 2.6 2.6 0.9 3.7 8.0 0.2 7.8 0.8 17.0 2005 194.5 104.4 817.6 154.0 is 35,497.0 % 1.3 2.8 0.5 0.8 protect total 5.48 GDP 2005 in to significantly. industry CBIs 9.0 23.7 51.9 15.4 % of CBIs 100.0 order 2005 GVA of GVA between rising 2.1 2.1 0.8 3.0 6.5 0.1 6.4 0.7 in 52.3 13.8 2001 104.1 331.2 125.4 is 22,894.0 partial tourism GVA 461.5 174.9 299.0 27.5% the 1,009.0 1,944.3 sector tourism at of entire % 0.0 2.1 0.0 0.7 2.8 GDP and the 1.2 3.7 2.3 0.6 0.6 6.1 1.9 0.5 51.1 50.7 19.7 1997 175.6 107.2 share 13,971.0 tourism 2005 of 0.5 0.2 75.1 24.1 GVA GVA % of GVA CBIs 100.0 2001 low-volume the nature, and the by and 3.6 1.4 GVA 487.5 156.4 648.8 that cultural 2001 a added of % 0.3 2.1 0.1 0.7 3.3 GDP tourism high-value value Industry between of mainly The 8.4 3.2 is 1997 66.0 22.4 % of CBIs 100.0 GVA of GVA cultural 25.3% policy of a of TSC GDP at market price (at constant prices) WRT Cultural tourism Handmade paper Furniture Handicrafts Carpet factory Martha factory Weaving handloom Weaving Wood carving/bowl and cups carving/bowl Wood Gold and silver smith Bronze casting Bhutan 38.3 14.5 GVA 299.7 101.8 454.4 rate in growth Percentage Share of Each Category of CBIs in GVA of all CBIs and GDP CBIs in GVA Percentage Share of Each Category of Real GVA at Market Price (base year 2000, in Nu.) of Non-Core CBIs at Market Price Real GVA follows environment.

rapid tourism Type of CBI Type NDS NDS PC PC PC PC PC PC PC PC PC PC PC Core PC Interdep. Non-ded CBIs the compound 10 and 11 Tables Derived from Source: Bhutan Table 12: Table National Account Statistics, 2000-2008 Census of Manufacturing Industries, 1997& 2001; Source: Table 11: Table natural 12). of partial CBIs in GDP (see Table in the share in spite of the decline As 28 The Economic Contribution of Copyright-Based Industries in Bhutan Chart 2: Source: Table 10 Chart 3: Source: Table 12 Share ofCBIsinGDP(%) Share intheGVA ofCoreCopyrightIndustriesin2008 The Economic Contribution of

Copyright-Based Industries in Bhutan29 2 3. of the this The The two GDP than grew in 3. causes annual in reflects Bhutan GVA growth, the Industry Period Table13. Period rate 15 also in in 9.5 29.5 32.7 11.6 in during in CBIs This Period 3 The 2005-2008 Period but 3. of CBIs 2. average in industries higher meaningful. industries between change shown a GVA the that GVA as Period at of any Period (1997-2001), in these more 32.7% decelerated Manufacturing and in 1 components in of is it and to of copyright rates 7.8 grew 3 26.9 22.8 31.6 237.3 GDP indicates association but Period 2 change 2001-2005 major Period 29.5% of calculated core 2, 31.6% – CBIs is by of Census Period medium of growth of 13 their rate is analysis importance positive and GDP accelerating Period and rate deviation share 1997 and GVA 2, in Table 2, 2 GDP annual and growth the in the growth CBIs 6.3 medium 16.6 13.4 13.3 with changing -10.0 growth CBIs Period of Period Period 1 Period 22.8% of 1997-2001 standard The from in of average in the shown annual in CBIs rate was one as of continues, deceleration, the annual in 11.6%. rates that 26.9% evidence the 237.3% GVA average estimates group of trend is growth at periods of component average the the this NDS shows growth understanding GVA If rate grew As There Despite three each growth in the between It the This 3. acceleration the . highest for of 3. into GDP. 14 of between annual Bhutan. in the useful and GVA GVA know Period in 0.35 1 be is of of to in divided association double-digit (2005-2008). analysis

CBIs average experienced a will 3 change are rate rate covariance the CBIs an recorded an 15% Periods core of of only This interest at in to that Period CBIs the of not growth growth GVA of deviation rate of registered estimates grew reliable, be study. and of CBIs declined implying coefficient GVA Average Annual Growth Rate of GVA (in %) Annual Growth Rate of GVA Average CBIs also than annual annual rate under highest growth GVA Growth of CBIs The standard total partial core less dynamism the would nonetheless The covariance is calculated using SPSS 11.5 for Windows. GVA of partial copyright industries GVA of non-dedicated support industries GVA of all CBIs GVA GDP GVA of core copyright industries GVA GDP. however, growth The at average These the structural changes within CBIs. overall economy and the (2001-2005) period It 0.35 The substantially in the coming years. will increase average and have good potential in the near future. dynamic are are variables, 14 The 12 Table Source: It 3.4.2 Table 13: Table CBIs has a moderate impact on GDP. 30 The Economic Contribution of Copyright-Based Industries in Bhutan Chart 4: support industries employed 4,012 persons, accounting for about 1.61% of total employment (Table 15). partial CBIs, 17,914 persons were employed constituting 7.19% of total employment. The non-dedicated year, 2,574 people were employed in core CBIs, which constituted about 1.03% of total employment. In the in CBIs as shown in Table 14. This means that the share of CBIs in total employment was 10.13%. In the same tertiary sectors. The total workforce in the economy was 249,030, of which 25,215 persons were employed In 2008, about 66.7% of the labour force were engaged in the primary sector and the rest in the secondary and 3.5.1 segments. Like the analysis of the contribution of CBIs to GDP, the contribution of CBIs to employment is done in two males. was estimated at 3.7%. As in most countries, the LFPR for females is lower, at 46.4 compared to 49.5 for 671,083, while the Labour Force Participation Rate (LFPR) was 67.3%. The rate of unemployment in 2008 634,981. was Bhutan of population the (PHC), The projected population for the year 2008, as given by the Labour Market Information Bulletin, 2008 was Census Housing and fi rst Population 2005 The the phenomenon. to recent According a is census population its and professional census was carried out in 2005 and this is the only source of a reliable demographic database. base population small very a has Bhutan the of overview brief a give to pertinent is it employment, employment scenario in Bhutan. total in CBIs of share the discussing Before 3.5 Source: Table 13 Share of CBIs in Total Employment Employment Total in CBIs of Share Share ofcBIsinEmployment Average AnnualGrowthRates ofDifferentCBIs The Economic Contribution of

Copyright-Based Industries in Bhutan31 of to the than total of would in persons been 52 40 25 49 71 40 share 100 712 522 968 255 548 523 715 10.13 5,372 6,086 5,225 1,828 2,184 25,215 25,215 249,030 All CBIs Persons lower employed information, is have share exercise indicator excludes its such an CBIs an would of percentage in and as while Such the 1.61 4,012 15.91 used labour of practice absence Non-dedicated is 5.5%, of the occupation involved. ratio best ratio In was the The This in people GDP 715 primary 2.84 0.29 productivity activity. of in Interdependent their Industry found each CBIs on occupation. be to average of number employment. can the the based 7.19 71.05 17,914 Partial share is total devoted that secondary than in the is a as industry labour CBIs CBIs rather observation 1.03 2008, Core 2,574 10.21 of in the Press and literature Music, theatrical production, opera Music, theatrical production, Motion picture and video Radio and TV Photography Software and database Advertising agencies Gold, silver and blacksmiths, potters Bronze casting Wood and stone carving/bowl and cups and stone Wood Handicraft, weaving handloom, martha and carpet Handmade paper Incense Furniture Cultural tourism Wholesale and retail trade Transport, storage and communications Transport,

Total employment in CBIs Total Total employment in the economy Total In each this activity of in of activity share index. each in employment estimates economic employed Evidence the any percentage in of precise productivity the involved people Category average. to of more aspect Share of CBIs in Employment 2008 Employment in CBIs in 2008 Employment involved labour GDP given in are number national man-hours notable No. of employees Core Core Share in employment in CBIs (in %) Core Core Share in total employment (in %) Core Core Core PC PC PC PC PC PC PC PC NDS NDS Interdependent

the average CBIs Table 15: Table an under-estimation. the analysis of the contribution of CBIs to total employment is therefore The who CBIs in 2011 and consultations with core for non-core, the Population and Housing Census, 2005 Derived from Source: Table 14: Table A 14 Table Derived from Source: use have 32 The Economic Contribution of Copyright-Based Industries in Bhutan 1,983 employment 15  The Source: Tables 10,11and14 segments a of CBIs the industries core CBIsisillustratedinChart5. productive Table 16: productive intermsoflabour productivity (seeTable 16). All CBIs Non-dedicated support Partial copyright Core copyright methodology isapplied toconvertinformationcollected forcore CBIsthrough consultationsin2011. in 2011forcore CBIs.The2005estimatesare revised for2008 usinggrowth rateofGVA ofeachcategorynon-core CBIs.Similar Employment estimatesof2008are basedontwosources, PopulationandHousingCensus 2005fornon-core CBIs andconsultations fourth the data data contribute persons, persons highlights provided of Relative ProductivityofLabourinCBIs2008 is also segment low the was have of employed proportionately because total 10.13% by which intra-CBI relatively of the labour CBIs 2001 73% of 15 were

the as as differences employed Share inGDP(in%) lower Census were indicated reflected low proprietors; less male skill to productivity. 5.5 0.8 2.8 1.9 for GDP in in content in by Manufacturing employees. the CBIs Table the per the standards share employment were rest of 15. On labour. were The The the skilled. in Share inemployment(in%) Industries of GDP ratio data other hired Skill-wise productivity. except The to is provided hand, about employees 10.1 share 1.6 7.2 1.0 reveals average distribution for the in 1.84, by The core employment. that NDS this labour as core which CBIs. core Census highlighted industries of CBIs productivity Further and labour implies Share inGDP/share appear also partial The employment are in disaggregation in shows that, partial core 0.5 0.5 0.4 1.8 relatively Table CBIs to in be on and that these employed copyright the 17. average, partial 5.4% more most Only two of The Economic Contribution of

Copyright-Based Industries in Bhutan33 22 34 54 52 19 203 113 305 736 124 170 100 151 170 100 100 Total Total 1,813 1,983 0 0 7 6 0 0 0 0 0 43 26 11 47 16 150 290 290 14.6 Unskilled Unskilled 4 0 0 0 0 43 11 35 13 15 14 38 106 103 382 382 21.1 19.3 Skilled Skilled 7 8 9 5 2 89 67 91 21 10 183 490 124 126 616 27.9 74.1 31.1 Casual Casual 4 3 17 10 83 52 12 27 69 16 25 41 269 546 587 30.1 24.1 29.6 Employee Employee 0 1 4 1 1 2 3 11 18 31 12 16 11 5.8 1.8 5.4 108 105.8 Proprietor Proprietor Industry Industry Weaving handloom Weaving Martha factory Carpet factory Handicrafts Furniture Handmade paper Incense Wood carving/bowl carving/bowl Wood and cups Bronze casting Gold and silver smithing Sub Total % share Printing/press Audio visual and video movies Sub Total % Share Grand Total % Share Employment Distribution across Core Copyright and Partial Copyright Industries in 2001 Partial Copyright Core Copyright and Distribution across Employment Skill-wise Distribution of Labour in Core and Partial CBIs CBI CBI Type of Type Type of Type PC PC PC PC PC PC PC PC PC PC

C C

Source: Census of Manufacturing Industries, 2001 Chart 5: Source: Derived from the Census of Manufacturing Industries, 2001 Table 17: Table 34 The Economic Contribution of Copyright-Based Industries in Bhutan Table 18: shown inTable 18. only workforce from may beunder-estimated. furniture at It 3.5.2 The 3.5.3 Handloom Source: Derivedfrom Table 14 secondary employed skilled thantheirmalecounterparts. of compensation of Core Core PC PC PC PC PC Interdependent NDS PC PC PC NDS has higher cottage employees sample Type ofCBIs 14.5% among Employment Distribution within the CBIs CBIs the within Distribution Employment Female Participation in CBIs CBIs in Participation Female already Major EmploymentSharewithinCBIsin2008 constitute positions in occupation engaged industries weaving, share survey CBIs. CBIs. been is of reflected employees. in It who suggests noted Within the in should the RadioandTV Printing press Bronze casting Gold, silverandblacksmithspotters Cultural tourism Handmade paper Incense Furniture Wood andstonecarving/bowlcups Weaving handloom Altogether Wholesale andretailtrade Transportation, storageandcommunication wood and and CBIs. largest are total many in that not the also and better Chart The that The compensation as the employer, partial rural be stone WRT difference a about 6. paid. partial noted primary households The and carving, core The 47% Industry copyright that female as TSC occupation. could of segment, share they of weaving employees. and sectors are the employees be employ of industries furniture involved due labour females weaving/ in are In to Bhutan 24.1%, This this the the involved receive in create in together sense, may next these female handloom, the is 21.3% primarily be a labour the biggest the in activities. less because engage labour CBIs largest Share inCBIsemployment(in%) share and than force wood carried employers are employed 20.7%, of of about proportionate It employment and females is a weaving and few often out 20.7 21.3 24.1 in 3.8 2.8 0.1 2.2 2.1 0.3 0.1 2.8 7.2 8.7 two-thirds respectively, stone within the under female in but undertaken in CBIs compensation opportunities employment they carving share the the employees being of domain CBIs receive of in those as and less the the as a The Economic Contribution of

Copyright-Based Industries in Bhutan35 Share of Women in Labour Force in Labour Force Share of Women Source: Census of Manufacturing Industries 2001 Chart 6: 36 The Economic Contribution of Copyright-Based Industries in Bhutan relating identify areas requiring theimmediateattentionofentrepreneurs andplanners. this poorest the 4.2 The 4.1 . 4 The Source: Consultant’s samplesurvey The core Table 19: of inputisrequired bytheCBIsinBhutan. employment are Bhutan. excess the CBIs. the Table Thus, there isanexcesscapacity ofabout40%inthisclassindustries. beyond 1.5 It importers. Theycantherefore arguablybetheweakestperformer. causes ofoperativeinefficiency shouldbetakenupseparatelybyinterested parties. Gross profit/sales Rate ofdepreciation NVA/sales Net exports/NVA Gross Profit/NVA Total salestototalcapital Plant loadfactor Input-output ratio Capital outputratio is

higher evident unit sample resource financial study. interdependent book detailed and The 19 capacity Performance Indicators Introduction s I B C f o e c n a m r o f r e P the performer. of to The Indicators NDS Performance IndicatorsofCBIs provides plant value than The capital their survey from scope use capital-output to viability information copyright information load 778 of others. of performance. efficiency the is on of about a installed The required. persons. factor and above comparative the operational and Net NDS industries. partial study, 82%. prospects on for is that exports ratio collected capital industries very For The All CBIs the -75.9% CBIs 12.6% 11.5% 35.1% 59.1% This 40% an They copyright 2.8 2.2 1.5 substantial each (K/O) efficiency low. input-output analysis performance attempt The in is to part of 59.1%, also from the labour Improvement net for are overall CBIs. of sample have industries value the of the -89.3% this 12.3% 32.2% 37.4% 52.6% under-utilisation is of Core the 14% 2.8 2.6 1.7 Though employed, made which the the CBIs picture worst ratio survey the study of added CBIs performance CBIs CBIs is lowest to implies (I/O) in are performers 1.5, the is will analyse is is the should ratio Interdependent the mixed a is used worth is identification capital which help operational profitability derived 2.2 30.1% 37.4% 80.4% 12.2% 37.9% that -2.9% of most is 2.1 0.1 0.4 to be this negative the implying and Nu. to indicators CBIs in analyse means used equivalent profitable scarce aspect identify it from terms 171.123 use is with efficiency ratio not for of that that the the capital only briefly. of of the the all easy caution. firms, of and capacity for Partial -24.4% million to 20.3% 54.9% 36.9% 74.2% financial sample different 4.5% the 60% 2.1 1.4 1.3 causes Nu. industrial produce each exists to would However, are CBIs as identify 219,954.00 of The and among unit utilisation their survey in their of and and categories definitely Bhutanese identification one they health such of profitability the Non-dedicated physical one is existing output, the undertaken unit highest have support -84.5% inefficiency findings 11.3% 18.1% 12.2% 18.0% 2.1% is group as 4.7 3.8 1.6 of highest strengthen invested of of they CBIs provided variables CBIs capacity. 2.2 output, CBIs for as of ratios from have unit and and the the net the for in in is The Economic Contribution of

Copyright-Based Industries in Bhutan37 in the less only (less have lower is Bhutan to in The spend originating manpower manpower employed received fraction tends CBIs R&D. 3.7 8.7 100 47.5 28.5 11.7 skilled have relationship force trained exports The NVA on together of miniscule this the The a % of total employees staff. CBIs goods, labour 7. for of why industries the only the spending capital of percentage and Annex low that these training in explains in 8.7% and work explanation and greater reveals acquiring given only as for (R&D) creative employed advantage possible that survey A for productivity 99 31 74 utilisation, 849 403 242 the imports labour low used suggest developed, on No. of employees is the is exports. competitive 20 development capacity skill, of net work and and low half Table model in Paradoxically, to industries better of in that about research cycle devoted changes productivity and regression on education. show Bhutanese tabulated of the time of vicious as profit a school with results areas trained, total multiple in of a survey gross The the of crucial the level dependence NVA, caught total 8 of the association Level of education cent) the in Education Level of Employees in CBIs Education Level of Employees their materials. professionally Grade per of a a are raw findings seemingly explain negative Professionally trained Total < Grade 8 Grades 8-12 Graduate Postgraduate Table 20: Table deficit. with a high trade very meagre, CBIs are from are spending overwhelming 3.7% and than a added. value greater create on R&D would enable CBIs to expenditure and greater To sample survey Consultant’s Source: The than CBIs 38 The Economic Contribution of Copyright-Based Industries in Bhutan The associated withbackward linkages. input-output the to and of based oninformationcollectedthrough thesamplesurvey. input-output tableiseithernotprepared ornotputinthepublicdomainBhutan,followinganalysisis manufacturing buyer ofcopyrightproducts, giventhesmallpopulationbaseandlowpurchasing powerofthepeople. it whole employment agriculture the It isevidentfrom Annex8thatonlythepartialcopyrightindustrieshavehighestbackward linkageswith linkages. and from 2.2. partial more The 5.1 . 5 16 The 5.2 the This partofthestudy isbasedonthedatacollected from thesamplesurvey. creates the

the world. domestic growth forward all contribution raw backward The all dominant service economy. and copyright their Introduction Backward andForward Linkages s I B C f o s e g a k n i L c i m o n o c E other input materials, for The sector, for of components linkages the and tables market, sector. coefficients CBIs each sectors. and development sector role rest The industries of international 15% have forward therefore prepared any category in The of of greater is while rural On from still the the sector to most have are average, be have relatively economy. the CBIs linkages development of service the percolate of for calculated very imported. probable trade, to the others CBIs. suggest the linkage development economic negligible manufacturing sector the undeveloped greatest but, are The The have to explanation CBIs for This that effects found most magnitude the and backward and predominant each growth backward explains 90-100% linkages buy rest poverty only importantly, planning by – category and about sector both of preparing 2% lies depends, linkages the of the the with alleviation. linkage backwards of in from such by would 64% world. backward overwhelming required the of the on the the CBIs the linkages depend a not hospitality sales the of with closed thus agriculture central The industrial their to The only linkages manufactured and of linkages the input-output help determine on is different equations input-output inputs on planning forwards industrial usually dependence sector the to its sector16. sector that retain with purchases direct from categories the (tourism), calculated any authority. also – goods, the sector. and coefficient domestically the magnitude abroad, contribution sector table The rest suggest of thus greater made CBIs This both greater which of for by of has Since they 19% the CBIs for is using on the by capital that with of the because the is world. benefits the the can to any a backward are CBIs from the the stimulus benefits detailed detailed the output, CBIs rest goods play sector made main CBIs as The rest the the of of is a a The Economic Contribution of

Copyright-Based Industries in Bhutan39 is of The more partial CBIs million foreign exports deficits. 0.7 6.9 0.4 0.3 4.2 4.1 0.1 2.0 0.8 1.2 weaving 0.004 0.004 deficit in total in imports % share generated the The net Bhutan. The slightly trade trade of 2,517.2 share GDP. trade only was among to 2008. Nu the 2 record the 3.5 1.5 0.1 1.3 trade 100 61.8 0.01 60.5 28.4 11.1 17.3 in CBIs This to imports by % share in deficit thus combined 85.1% which total categories: CBIs. deficit of the the and trade the two of to 0.8 1.0 992 89.6 66.8 20.6 of trade consequently 970.6 456.4 177.6 277.8 1,56.4 1,604.8 CBIs Imports 23,495.1 contribution into million, largest contributed 64% and total GVA the 5.46% their The the trade divided about 0 0.0 0.0 is 4.04 3.99 0.02 2.01 1.95 0.05 0.05 while among 0.0005 in total than exports % share 46,085.72 importers combined million. trade net contributed Nu. 2008, the larger in contribute are of international exporters CBIs was 0 at 0.0 0.0 0.6 1.2 0.0 1.2 100 98.8 49.8 48.4 CBIs Nu.692.4 CBIs trade net the exports by % share in relatively 2008, trade was 103.8% which international that In only total was to words, of rade CBIs the 0 0.0 0.0 5.6 0.1 10.8 10.7 of 912.4 901.4 454.4 441.4 CBIs reveals CBIs Exports 22,590.6 Bhutan. are other of 4.1% of industries, 21 constituted of international In deficit of CBIs Table deficit 21). in of industries trade intensity copyright constituted trade contribution volume (Table data trade core paper trade of The Industry group the Total of CBIs Total for Bhutan Total TSC WRT Handmade paper Furniture Gold and silver smith Weaving Weaving handloom, Martha, carpet and handicrafts Audio-visual & video movies Printing press CBIs total collective the of the industries by Share of CBIs in International Trade (in million Nu.) in 2008 (in million Nu.) Share of CBIs in International Trade the the overall analysis Contribution of CBIs to International Trade Share of CBIs in International T Share Introduction Bhutan. the in handmade CBIs from analysis international 2008,

2008, Category of Total NDS Total Non- dedicated Non- dedicated Total partial Total Partial Partial Partial Partial Total core Total Core Core copyright Table 21: Table by the CBIs was about 75 per cent. than The and their contribution to imports was 6.9 per cent. contribution of CBIs to exports was 4.04% In and imports. Statistics 2005 and 2008, DRC, MoF Trade Source: Further In 6.2 6.1 The 6 . recorded CBIs was and exchange earners. 40 The Economic Contribution of Copyright-Based Industries in Bhutan because in Table 22: economy asawhole. 4.4% But, Meanwhile, Bhutan’s by CBIs,amountingtoNu901.4million. contribute 4.22%tototalimportsand3.99%exports. Inter-temporal 6.3 The 17 Source: Trade Statistics2005,DRC,MoF lopsided. The commodities industries Total NDS NDS NDS Total PC PC PC PC PC Total core Core Core charcoal (6%). (26%), The  manganese, 2008 higher CBI despite top between Inter-temporal ChangesinT vehicles as the exports commodities Inter-temporal ChangesinInternationalTrade ofCBIs export The in compared growth the exports growth cement, 17 total Total forBhutan Total CBIs TSC WRT Handmade paper Furniture Weaving handloom Gold andsilversmith video movies Audio-visual and Printing press partial

accounted changes 2005 (19%), higher structure are exports rate vegetable rate copyright increased estimated of and to motor growth in exports of 2005. of for is 2008, is the exports international just highly spirit 81% fats industries contribution at are rate In at 0.05%, while and 25.6%, 2005, (10%), rade ContributionofBIs 4.04% (in Nu. millions) electrical of meant skewed of free the the Export 17,990 international 954.2 949.6 329.1 617.0 2005 4.61 0.01 0.0 0.0 3.5 0.0 4.6 while contribute their cutting 0 trade total which of imports that energy of towards (10%), total share its the value generated the steel.

was share (60%), of (In Nu.millions) CBIs exports. an trade was trade, manganese of The a CBIs greater Imports overwhelming 1,549.3 19,875 few in exports 139.1 843.3 761.6 566.9 270.6 296.3 2005 46.5 92.6 21.4 59.1 to 1.2 top 7.05%, ferro-silicon by balance total increased the trade However, commodities commodities. CBIs than share imports ore in which show increased 2008. improved (8%), the Growth ofexports (15%), by of in 2008over2005 98.8% the that is CBIs 9.1% growth declined of Hence, (In %) -100.0 1.9%. 134.3 188.7 134.5 -5.06 -28.4 25.6 59.3 38.1 -4.4 imports export For 0.0 0.0 0 carbides at exports during to of (8%), during a instance, international the the rate lower Partial to are by edible (4.64), total the 5.46% share from light of each this rate copyright Growth ofimportsin period imports the exports oil oil period of CBIs 2008 over2005 CBI than in and (6%) top core trade (In %) 2008. -27.9 -32.0 -98.4 -19.5 -34.4 18.2 12.4 17.6 92.6 27.4 -3.8 -6.2 is 9.1 2005-2008. declined preparations that at (Table generated 10 wire extremely industries and copyright declined 18.2%. export This of wood (4%), 22). the by is The Economic Contribution of

Copyright-Based Industries in Bhutan41 4.8 -1.0 2008 -66.8 -89.6 420.9 -267.1 -177.5 -516.1 -692.4 2.3 2005 -59.1 -92.6 -46.5 595.5 -291.8 -270.5 -432.4 -595.1 Industrial Group Trade Balance of CBIs (in Nu. millions) Trade International Trade of CBIs (in million Nu.) of Trade International Printing press Audio-visual and video movies Gold and silver smith Furniture Weaving and handloom Weaving Handmade paper Wholesale and retail trade Transport, storage and communications Transport, Total for CBIs Total Source: Trade Statistics, DRC, MoF Table 23: Table As shown in Table 23, the trade balance of CBIs deteriorated further in 2008 by 16.3%, from Nu. 595 million in 2005 to Nu. 692 million in 2008. However, for printing press, audio-visual movies and handmade paper, the trade balance improved in 2008. Only two industries within the CBIs, i.e. weaving and handmade paper, have registered a trade surplus. This is because these industries draw most of their raw materials domestically. The core CBI group recorded the highest growth. This is a positive trend, even though the base for the core group in 2005 was small. This trend suggests that the core CBIs have the potential to export their products abroad if appropriate policies are designed and implemented. The decline in exports from weaving is a cause for concern, as this industry accounted for the largest share of the total exports from the CBIs. The positive trend was mainly due to the rise in the export from the furniture-based industries Source: Derived from Tables 22 and 23 Despite the expansion in output, export from CBIs has declined. Within the CBIs, the inter-industry differences are quite high, as can be seen from Table 23. The export of audio-visual and movies in 2008 increased by a whopping 188.7%, largely due to their very low base in 2005. Printing press and handmade paper registered the second and third highest growth in exports in 2008, i.e. by 134.5% and 59.3% respectively. Chart 7: 42 The Economic Contribution of Copyright-Based Industries in Bhutan of as than inothercountries. economy, Table 24: comparative growth ofCBIs inselectedcountries. CBI copyright the retail countries. The Source: Copyrightindustriespublicationsofdifferent countries The Source: http://www.wipo.int/copyright/en/publications/pdf/copyright_pub_893.pdf para.5.3 In . 7 Except Table 25: Table 25showstherelative sizeoftotalCBIsandthecore CBIsintermsofGDP. has alsobeenrising. Latvia Bhutan Netherlands Australia USA Jamaica USA Singapore Philippines Mexico Malaysia Bhutan this the

well structure share relative data trade, NDS section, for n o i t u b i r t n o c I B C f o s i s y l a n A y r t n u o C e v i t a r a p m o C A as Average AnnualGrowthRate ofValue-Added of CBIsinSelectedCountries Cross-sectional StudyontheRelativeSizeofCBIs Country in in thereby industries’ Country the Existing the industries and size Table GDP, of Netherlands, disproportionate a the transportation, of comparative at 24 increasing research CBIs Bhutanese about contribution reflect in Bhutan to 5.46%, GDP GVA shows that their country economy, storage is size varies grew 2005-2008 2001-2005 1997-2001 1994-1998 1996-2001 1977-2001 Period GVA very role 2000 2005 2001 is 2001 1999 2003 2005 2008 2001 Period is that relatively of in analysis in at high from growth the the and the the almost which middle. trade as as size communication growth low is compared of low Percentage shareofCBIs is carried twice of and CBIs different at Rate ofgrowthgrossvalueadded Though as CBIs and 1.85%. 4% communications the exceeded out in GDP has development to 12.0 5.46 2.87 4.0 4.8 5.7 4.8 8.1 5.8 growth in from Bhutan’s to other by CBIs(in%) is been Latvia This see about 15.0 31.6 13.3 others 5.6 5.7 7.0 the countries. dichotomy rate how growing to total overall 15% as of of Bhutan’s sectors. in high the GDP. CBI terms of Percentage shareofcorecopyright at The growth economies. arises the share as As a The of explanation CBIs faster 12% GDP, a industries inGDP the result, because is share of perform relatively Rate ofgrowthGDP which in level rate GDP 1.85 0.05 2.9 4.9 2.9 Table 1.7 2.6 2.6 2.9 USA, their of than of the in is (in %) is wholesale vis-à-vis 9.5 7.8 6.3 3.2 4.9 3.0 24 embedded development and high, all share much relative the shows countries. Bhutan’s its in overall higher other GDP core and size the in The Economic Contribution of

Copyright-Based Industries in Bhutan43 in In in 27 the that total Latvia of CBIs in Bhutan in 10.13% Table shown in justifiable. The is CBIs covered, is tenth CBIs employment. a CBIs. about employment. core the of Latvia. total of 1.9 2.2 0.6 0.7 0.2 0.4 imports of about total countries countries imports and is employment to 4% share and the whereas contribute 3.7 1.8 1.03 of and total the than 3%, in contribution different Jamaica total employment 1.8% Percentage share in merchandise Percentage share in merchandise among exports in Bhutan lowest just more CBIs in at the economy, about trade Bhutan, is regime core economic CBIs in IP the the the contribute the merchandise Percentage share of core copyright industries in the Percentage share of core copyright industries economy of exports of in Bhutanese contribute the CBIs total international in share the in index employment CBIs in However, core of the the 0.5 0.6 0.1 1.3 0.1 total core differences CBIs 0.05 merchandise crucial to to a the industries USA, intensity core employment is expected, CBIs CBIs and employment. the Jamaican Given of As 5.59 3.03 total 10.13 import of core in the employment copyright total of Percentage share in merchandise exports Percentage share in merchandise study. high Malaysia share the country. share employment core this share to the of whereas in Percentage share of CBIs in total the contribution total of the in relatively limited third in share a Philippines, the 1.03%; covered very study the to CBIs a the at Bhutan, in about comparative of Country due like For Cross-sectional Study on Share of CBIs in Total Employment, 2008 Employment, in Total Cross-sectional Study on Share of CBIs Cross-country Comparisons on the Share of Core CBIs in Total Trade Trade on the Share of Core CBIs in Total Cross-country Comparisons have employment the countries lowest Country 26. share total comparative the the Bhutan (2008) Australia (1996-97) Spain (1989) (1989) Republic of Korea (1989) India (1989) Latvia Jamaica Bhutan Jamaica contribute Table 27: Table 8.8% of total employment. CBIs contribute In fact, in the Philippines, core countries to shows Copyright industries publications of Jamaica and Latvia, WIPO Source: The para. 5.3, except for Bhutan http://www.wipo.int/copyright/en/publications/pdf/copyright_pub_893.pdf Source: A is in Table differences However, Table 26: Table imports is higher. merchandise 44 The Economic Contribution of Copyright-Based Industries in Bhutan As the cultural,copyrightandcreative industriesbebuiltup. and for government (HR), though The coordination, follow-upand implementation. leadership at has coordination parts The to In Experience 8.1 . 8 One 8.2 Preparing Resources, The production, strong NSB exclusively such identified with creative sectoral the In thelightofabove,followingmeasures are suggested: their expansionandacceleratedgrowth. government The involvement inthestatisticalsurveysandstudiesisinvariably required. Commission The maintaining of a (b) study line national

meet data cooperation many cultural received entrepreneurship 10 private establishment HR mandate is government of as greater technology of with the th support Introduction Improve DataCollectionandissemination s n o i t a d n e m m o c e R y c i l o P the can advocacy such

and and for managerial Five-Year the its cultural a by clearing role on suggests Information and comprehensive proposals sectors. major industries. specific serve measuring and cultural marketing, or has little country UNESCO technological and amongst programmes coordination of the DCSI/APIC within in local for developing prioritised this and and the attention private should carrying Plan problems industries development house of The needs, growth. that Board industries levels. for need for body and strategy a infrastructure that BIMSTEC the There outlines the and roles separate distribution income appropriate the sector. for provide for five rural out are policy can of of in development but HRD, so would contribution Most data is Communication fall is A national development of such more efforts 2011, the far. ministries development any not as also a a these strong enterprise R&D for of in The on and strong new with generation well Department of This a lack cooperation, statistical include, clearly this the be than the CBIs, development. specific these are and and strategy within policy APIC data, fail as approach each applied is of institutional sector, creative promotion tendency of the not one steps of are skills creative to comprehensive targeted consumption. development industries of Home should it inter alia: inter relevant support as CBIs surveys, meet handicrafts the surprising, and and agency crucial has and cultural is for are followed in in well taking the for or government CBIs to and the and poverty and legal Finance, for Cottage central national enable These of at first copyright-based as creative organisation be is agency for including and fall industries, each right cooperation CBIs. in cultural (a) Cultural into cultural necessary associate involved step mandate as by sector Bhutan generating programmes The in meet clarification data in must reduction. investment and account and as organisation the the statistical direction. Technological industries this having in major industries and well asset their agreement on Affairs, as NSB’s creation facilitate be cottage, Small in respect are industries it at is to a CBIs, checking is in accompanied with as the all its whole development therefore given management, new industries policy recommended an This qualitative cultural standards. The and the Industries to stages and in own Economic need as along with of sustained to small agency R&D better be ideas in means development, on National and past delineation highlighted initiatives to APIC, conduct measures programme promoted the for Annex the of their industries, is GDP, with necessary and provide category, interventions generation and synergies the negligible quality requirements; in With like separation Affairs, by along to that terms be partnership medium policy MoEA Statistics 9 value that employment be such clear ushering can the (cited implemented for efforts Bhutan in the of in with of overseen for it supporting on of Labour to clusters it yield the studies and proposed chain responsibilities responsibilities cultural among data, in in is needed and makes reference in implementation, of scales, lead the human both imperative Bureau. 2010, made Baseline need UNIDO infrastructure. creativity. each assuming (c) better between transparency for from other and in by on the and measuring copyright, the industries sense thrust requiring which different of for resource to to through policies, Cultural a its Human inputs, so As 2005). sector. results public these; multi- trade. hand, Study focus focus CBIs. own that that The the the the for for for for its The Economic Contribution of

Copyright-Based Industries in Bhutan45 a It A in in of to of the the the IPD and and and as into play that area staff Park, Police done. in of willing should and cost case reliable IT so The kinds capacity can that function is it direction skills and facts sufficient agencies. it handloom enactment developing the have the problem. low and government capacities globalisation a and Bhutan is translate to functions professions. other initiatives, builds support the that important lacks sector would other given, of compete the implementation manner as overemphasised. it Its functions For it so facilities different can resources. providing to of and An and not Royal with be age with these growing similar countries building active detailed between is information, private and on, handicrafts, such an different that the as 1997. for above an of agency society this detailed piracy In sector. existing as the coordination in difficult other with both cannot programme the well with from it institutions, as especially advantage efforts for researchers. technology, quality with and focuses and more as IPD’s link developed, government, of autonomy and through as combat a private coordination meet services. propitious finds If and take new be Division growth knowledge time, The Bhutanese availability drawn to in the exist, private is a to government to only dealing such country and policy it better of and user-friendly, over and bring industries, in cooperation sector role, in with time important MoEA. the within awareness, development in appreciated, planners duplication CBIs, if Bhutanese therefore can strategy an directors economic goods The more prepared another possible status enable public to sector production as achieve of of the the private is within creative be requirement. to fully that be public to of expanded the autonomous sector to should important role software and possible information the many addition, beginning avoiding and This with to cooperation (FDI) an present. board cost private also been Its collaboration engine within In has an a available and the at should (d) Division only country creating an the be the into a minimum is across not manufactured necessary have ICT such as a it also Bhutan, to and industries as plays one from capacity, and IP reader. elevated cut under copyright operations website This has as absent nurturing. for could both are investment like public-private from on to still Its the accounts collaboration where disseminating from was sector trademarks. lowering of detail; by support it ideal creative present in edge. in develop needs national agency joint run. for direct which transform activities and advocacy matters at an a comes to for are move more of its to in activities it private role income IP and completely economy programme since prospects long exports planning build in Department role has is is greater As in in have a in the organisation to foreign the the cluster patents way work many packages this when IPD of strengthened of develop investment understood of not young in A various where Its therefore which and national HRD autonomous sector proactive for the high-cost production role provide long role play and still industries for markets flexibility does an national easily protection a countries. status of is and to CBIs that invest. a R&D, the and IP as status. be copyright, products, incentives must more is to the active data as Bhutan, eventually capital these private of vitalise on it innovation products felt The in a other global come to greater can Bhutan an and sector of and risk to factors reviewed like training and niche and eco and and encouragement and has action play equipped Foster Public-Private Partnership roperty Division the Intellectual Property Strengthen be the as that play the culture effectively flows few policy the strongly land-locked IPD judiciary, private emphasis not assume option joint a elevated legislation well take a abuses must is is adopted in 2010. new economic development policy and an FDI policy were with for much-needed to and IP recognition creativity right figures agencies responsibilities be strong government. more It the government sector on IP matters, must be strengthened. and private within the government. elevate its profile It Malaysia An future. in economic development in the a positive role of can should It the lead central agency. in cooperation with where The 8.4 regional 8.3 The as trade The zeal. instruments and entrepreneurial a right mix of policy requires This, however, disaggregated economy in, should production, weaving, as well. this regard in role The NSB has to take a leading information is imperative. In 46 The Economic Contribution of Copyright-Based Industries in Bhutan and challengesfacingthemtotargetpoliciesprogrammes accordingly. prospects. handloom The 8.6 It 8.5 these should easier, requirements as SMEs isnecessarytoencouragetheirgrowth. is well extremely study elements as include: Conduct in-depthSector-Specific Studies Provide adequateCredit as this shows weaving, More the is of important World a are improved collaterals in-depth some major being handicrafts, Bank emerging problem for addressed sector-specific credit for report the loans; government that furniture information; areas on by comes and Doing Business: Bhutan 2010. Bhutan Business: Doing with the analysis improved and RMA, through much to better visual examine should but potential. legal arts. in project even the be the protection Among discussion then carried These appraisal; ways a these, separate in out include for which with The for removal both the these the films main window financing first banks private or and industries, three elements at and or music, for least sector industries facility borrowers. SMEs of relaxation to print representatives, such identify for can have and lending be a Some media, facility of better issues made the of to The Economic Contribution of

Copyright-Based Industries in Bhutan47 in of to by set for are the the the the will The and and CBIs with those to as should benefit have find This of data plan help tentative, dominate capturing applied to IP to benefits audited intellectual and application to CBIs also is as in regarding such will will in be the economic the efficiency. estimating on their opportunities cooperation of them but in importance above, This creations. done would for It study should century regarded be

new data data, th environment closer their knowledge be crucial to protecting implemented operative optimising 20 of an data amongst in of stakeholders similar proposed of availability with people. from a the and when collect be all been more its promises such recommendations should Such mechanism one of the implemented. is of that of agency will levels this the have end benefit and life infinite study made Together challenges consistency to lead While agencies there low is the of creating protecting not a analysis. has this While at and in new in It future. of institutional suggested will linked from trade. years, is designed cooperation trend quality study the part services track It industries. brings be started in quality and its the strong The identifying government suffer society and findings recent a right also data. can that the technology. recommendations play it through in as necessarily the and cultural the of the CBIs subject by to meaningful goods as Several assured. not on and well the improving the is current which any be employment quality as economy measures new on possible for agencies CBIs study, the required can that nature. is the on influenced considerably employment, inasmuch is be work such this without communications growth, creating hindering when and of will corrective legislation government separate knowledge improve and study economies for heavily a further among institution to consistency the and that is trade years improved The study the of out thereby Meanwhile, a an so programmes Bhutan economic individuals, and help has of few for study of to a potential basis above, carry policies time, will Such knowledge information the economy. the the quality The problem CBIs available. coordination after possible. Bhutan finding over of be is effort with should of required manufacturing, this on their creativity this development an can emerging better data growing century. for data the appropriate Future Directions

that a st data for the such make enforcement. outcome so in consistent important 21 study undertaken

stakeholders reasons IPRs An sector. in the creative new data and monitor trends to produce up a permanent monitoring mechanism NSB, implement contribution production, Notwithstanding and the economy in the long run. combination required and copyright-based industries. property the who social the be need specific NSB not The 9 . and from protect require 48 The Economic Contribution of Copyright-Based Industries in Bhutan [26] [25] [24] [23] [13] [12] [22] [1] s e c n e r e f e R [21] [20] [19] [18] [17] [16] [15] [14] [11] [10] [9] [8] [7] [6] [5] [4] [3] [2] to povertyalleviation,’ ProjectXP/RAS/05/02, UNIDO. UNIDO portal..org/culture/en/files/30297/11942616973cultural_stat_EN.pdf/cultural_stat_EN.pdf UNESCO UNCTAD 2008,‘TheCreative EconomyReport.’ The ConstitutionoftheKingdomBhutan2008. development/en/creative_industry/studies.html the Creative MoEA Kuensel Newspaper, Bhutan(variousissuesasreferred). Right-based IndustriesinMalaysia.’ Stapleton, ecostudy-usa.pdf Agreement Siwek, RGOB 2010,‘EconomicDevelopmentPolicy,’ RoyalGovernmentofBhutan,Thimphu. ofHome&CulturalAffairs . RGOB 2005,‘PopulationandHousingCensusofBhutan,’Ministry NSB 2009,‘NationalAccountsStatistics,2000-2008,’,TNPrintingPress, Bhutan. NSB 2000,‘NationalAccountStatistics,1980-2000,’,TNPrintingPress, Bhutan. MoLHR 2008,‘LabourMarketInformationBulletin’,TNPrintingPress, Bhutan. MoIC 2008,‘BhutanMediaImpactStudy2008,’ viewed6.1.2010. MoEA 2010b,‘GuidelinesforImplementingPartIVoftheCopyrightAct,’Thimphu. Bhutan,’ Thimphu. Kanapathy, GNHC 2009,‘10thFive-Year Plan(2008-2013),Vol.1 and2,GNHCommission. FCS 2009,‘The2009UNESCOFrameworkforCulturalStatistics(CFS),’. DRC 2008,‘Trade ofFinance. Statistics,’DRC,Ministry DRC 2005,‘Trade ofFinance. Statistics,’DRC,Ministry Copyright ActoftheKingdomBhutan2001. Census ofManufacturingIndustries,1997and2001. BIPS 2004,BhutanICTPolicyandStrategy, viewed5.1.2010. Bhutan CulturalIndustriesSectorDevelopment:ABaselineReport2009,RGOB. Bhutan: ALivingCulture, ‘The ArtsandCraftsofaHimalayanKingdom,’n.d.,DOC. ofHome&CulturalAffairsandUNDP,Bhutan. ofFinance,Ministry 2007,Ministry Vitalisation Creative 2010a, 2005, Stephen Industries n.d., J., V., on Industries,’ 2007, ‘Creative ‘Fact ‘Understanding 2008, the E., Series Finding Promotion ‘Study ‘Final 2004, Industries dated No. Report: Report on ‘The 1,WIPO’’. Creative August the of and Economic Study on Culture-Based Economic, Micro Enforcement 30, http://www.wipo.int/ip-development/en/creative_industry/pdf/ Industries: on 2007, the and Contribution Social Economic Small viewed Cultural Industry of and Rights Scale on Cultural Contribution statistics of for 30 Enterprise Mechanism Copyright-Based July Poverty Impact for 2010 Development: of public Reduction under at the of http://www.wipo.int/ip- Intellectual Copyright policy the Industries Copyright and http:// making,’ A contribution and Community Property in Related Act USA, of in The Economic Contribution of

Copyright-Based Industries in Bhutan49 WIPO. Industries,’ Copyright-based the of World & International Finance Corporation, Contribution 2010,’ Economic Bhutan the Business: surveying on ‘Doing 2010, ‘Guide Bank 2003, IPD, MoEA. film industry: national experience,’ D 2008, ‘Bhutanese Wangchuk, WIPO 7.1.2010. viewed Vision Society 2009, for an Information World DC. Washington www.wipo.int/ip-development/en/creative_industry/pdf/1009E-3.pdf www.wipo.int/ip-development/en/creative_industry/.../ecostudy-latvia.pdf [29] [28] [27] [30] [31] [32] 50 The Economic Contribution of Copyright-Based Industries in Bhutan 24 Dramaticarts,musicandotheractivities(authors,writers,translators) Otherretail saleinspecialisedshops(retail ofpress andliterature) 9214 Serviceactivitiesrelating toprinting(pre- andpost-press as2221)–supplyofprinting materials 5239 2222 21 Printing Otherpublishing(cards, maps,directories andotherpublishedmaterial) 2221 andperiodicals Publishingofnewspapers,journals 2219 Publishingofbooks,brochures andotherpublications 2212 2211 literature and Press Core copyrightindustries n a t u h B r o F s e Description ofcopyrightandcopyright-basedindustries(CBIs) d o C C I S I : 1 x e n n A 11 Wholesale 5151 databases and Software Photographicactivities(studioandcommercial photography) Serviceactivitiesrelating toprinting(photoagenciesandlibraries) 7494 2222 Photography RadioandTVactivities(national,privatealliedactivities) Otherbusinessactivities(independentproducers) 9213 Telecommunications (cableandsatelliteTV) 7499 6420 TV and Radio Dramaticarts,musicandotherartsactivities(writers,directors, actors) Motionpicture projection (andexhibition) 9214 Motionpicture andvideoproduction anddistribution(incl.rental andsale) 9212 Reproduction ofrecorded media 9211 video and 2230 picture Motion Dramaticarts,musicandotherartsactivities Retailsaleofhouseholdappliances,articlesandequipment(incl.rental ofrecorded music) 9214 Reproduction ofrecorded media(production andmanufacturingofrecorded music) 5233 operas Printingandpublishingofmusic 2230 production, 2213 theatrical Music, 29 Othersoftware consultancyandsupply(asin7221) 7229 business, educationalandvideogames) (pre-press, of computers, printing, computer and post-press peripheral of books, equipment magazines, and software newspapers, (pre-packaged advertising software materials) – The Economic Contribution of

Copyright-Based Industries in Bhutan51 graphic Bhutanese retail, and including products wholesale other botanical and and galleries chemical (art medicinal, activities other and pharmaceuticals, music of arts, design) incense 2424 2693 of perfumes and toilet preparations Manufacture 2696 (non-refractory) of clay and ceramic products Manufacture 2899 Cutting, shaping and finishing of stone 3610 of other fabricated metal products Manufacture of furniture Manufacture Partial copyright industries 1711 1721 weaving of textiles and spinning of textile fibres, Preparation of made up textiles articles Manufacture 1722 1730 of carpets and rugs Manufacture 1810 Bhutanese tent making fabrics and articles of knitted and crocheted Manufacture 1920 ( and ) of wearing apparel Manufacture 2029 of footwear (Chhog Lham) Manufacture of wood (household goods) of other products Manufacture 2101 2109 including Bhutanese handmade paper of pulp, paper and paper board Manufacture 2422 Bamboo and cane products of other articles of paper and paper board Manufacture 2423 of natural dyes Manufacture Manufacture Partial interdependent2101 5149 of pulp, paper and paper board Manufacture 5152 waste and scrap (paper) Wholesale of other intermediate products, 5233 material) and telecommunication parts and equipment (blank recording Wholesale of electronic 5239 material) Retail sale of household appliances, articles and equipment (blank recording and cinematographic equipment, paper) (photographic sale in specialised stores Other retail Core interdependent5139 5151 computers, musical instruments) (electronics, Wholesale of other household goods 5233 software computer peripheral equipment and Wholesale of computer, 7123 musical instruments) and equipment (electronics, Retail sale of household appliances, articles (incl. computers) Renting of office machinery and equipment Interdependent copyright industries Interdependent Advertising services7430 Advertising (agencies, buying services) 7494 7499 framing and other allied services) (picture Photographic activities the following: activities (graphic design) including Other business painting Wall Thanka, house) scroll, Painting (mural, and stone carving) Masonry (slate 9214 carving Wood iron) and smithy (gold, silver, Metal carving artists music composers, and other independent Activities by authors, (statues, masks) Sculpture Dramatic Visual and graphic arts 52 The Economic Contribution of Copyright-Based Industries in Bhutan Religiousactivities Museumactivitiesandpreservation ofhistoricsitesandbuildings Cultural/creative tourism 9232 Activitiesofothermembershiporganisations 9199 Activitiesofbusinessandprofessional organisations 9111 Architectural andengineeringactivities andrelated technicalconsultancy 7421 29 Other Retailsaleofhouseholdappliances,articlesandequipment 5239 Retailsaleoftextiles,clothing,footwear, andleathergoods 5233 Wholesaleofotherhouseholdgoods(jewellery, coins,furniture) 5232 Manufacture ofjewelleryandrelated articles(jewellery, coins) 5139 3691 Note: Thecodealsoincludesitemswithinparenthesis Telecommunications (telephony, Internet) Courieractivities 6420 Nationalpostactivities 6412 Activitiesofothertransportagencies 6411 Activitiesoftravelagenciesandtouroperators;touristassistanceactivities 6309 Storage andwarehousing 6304 Cargohandling 6302 Scheduledairtransport 6301 Freight transportbyroad 6210 6023 Non-dedicated supportindustries carpets) retail sale in specialised stores (jewellery, coins, crafts, household goods, wall coverings and The Economic Contribution of

Copyright-Based Industries in Bhutan53 of for major related System a revenue is number non-tax and and employment occupations, the and by study is crafts major the (Harmonised and cinema, in for Study indirect) and sectors, the TV sectors and including to Classification cable major (direct segregation on economic by tax Trade tax relevance by occupations detailed, sales different Bhutan on by major revenues particular employment per by of of as Of sufficiently is information statistics Bhutan. employment summary data has employees distribution on it on trade gives trade about on It data the particular, contains In While annually. information information information and out occupational level. gives some report provides (July-June). brought gives provides is year Census annual eight-digit at an document survey is survey 2005 Report happiness, Planning Commission, 1999 and Bhutan 2020: A vision for peace, prosperity (MoEA) 2010, Ministry of Economic Affairs Economic Policy, 2010, MoEA Investment Policy, Direct Foreign Commission Census of Bhutan, 2005, Census Population and Housing MoLHR 2006, Dept. of Labour, survey, Labour Force 2008, Dept. of Employment, MoLHR Establishment Census, , 2006-07, DRC, Ministry of Finance National Revenue Report of Finance Statistics, 2008, DRC, Ministry Bhutan Trade 2007,NSB survey, Bhutan Living Standard Book of Bhutan, 2007, NSB Statistical Year NSB National Accounts Statistics, 2000-07, Annual Report, 2006-07, RMA Bhutan, 2009 Industry in UNESCO Baseline Study on Culture financial challenge. Code) trades. the Study. for of income that would be relevant and main source Bhutan Living StandardThis survey Bhutan Trade StatisticsThis National RevenueThe Report This Establishment Census The Labour Force Survey Population andThe Housing Census Brief description of sources Secondary 1. 2. 3. and other unspecified). self-employed casual, unpaid family worker, status (regular, Primary 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Annex 2: Sources of Data and Information Telecom. Bhutan from a by sex, economic activity and level of education. trades, persons engaged in crafts and related 54 The Economic Contribution of Copyright-Based Industries in Bhutan agencies (UNDP, UNESCOUNIDOandWIPO)involved. The UNESCO Report on data of culture Industries culture of data on This Report UNESCO This isparticularlyusefulformonetaryandtradedata.ItpublishedbyRMA. Report Bhutan of Annual RMA Yearbook Statistical the and Statistics These Accounts National The available nationalsources. study is perhaps are was standard coordinated one of annual the best by publications the references NSB on for of behalf NSB the study. of and the need As Ministry the no report of elaboration. Home suggests, & Cultural The there data Affairs are is extensive compiled and international data from gaps. all The Economic Contribution of

Copyright-Based Industries in Bhutan55 – have you if purchased year In Nu. every equipment Value of raw materials (in Nu.) Value and produce ______can machinery you the of output value much (The (How capital? capacity? Value of sales Value installed of production Raw materials purchased from value or the assessment of Copyright-based (CBIs) Industries in Bhutan For the assessment annual book the your is is What What Value of raw materials purchased Value paid Wages Salary paid Rent paid Interest paid import duty excise duty, Indirect taxes paid (such as BIT, Depreciation Gross profit (i.e., profit before tax) Domestic Agriculture Sector Domestic Industrial Sector Domestic Service Sector Rest of the world (Imports) Q2. ______sufficient demand? (In quantity) last year – in quantity)_ (i.e., output Q3. What is your annual production? ______in Nu.) financial/ annual calendar): the following details (for last Q4. Please provide last year: by your firm in the following details about the raw materials purchased Q5. Please provide Q1. D=Non-Dedicated C=Partial and B=Interdependent; Sample code: A=Core; Name of the surveyor: Place: Date and time of interview: i.e., A, B, C or D type, the appropriate of the unit surveyed: Circle Type Annex 3: Questionnaire 56 The Economic Contribution of Copyright-Based Industries in Bhutan Q6. Pleaseprovide information aboutsalesmadebyyourorganisation. ______Q14. HowmuchmoneydidyouspendlastyearonResearch andDevelopmentactivities? Q13. Howmuchforeignlastyear?_ exchangedidyouearn Q12. Howmuchmoneydidyouspentlastyearontrainingyourstaff? _ Q11. Whatisthetotalpaymentmadetofemaleemployees?_ Q10. Howmanyofyouremployeesare female?_ Q9. Whatisthetotalpaymentmadetoexpatriates?_ Q8. Howmanyofyouremployeesare expatriates(Non-Bhutanese)? Q7. Pleaseprovide following informationabouttheemployeeshired byyourfirm. Rest oftheworld(Exports) Domestic ServiceSector Domestic IndustrialSector Domestic AgricultureSector Professionally trained Postgraduates Graduates Grade 8-12 Grade 0-8 Education levelofemployee Sales madeto ______Value ofsales(inNu.) No. ofemployees The Economic Contribution of

Copyright-Based Industries in Bhutan57 Department of Industry National Statistics Bureau Handicrafts Association of Bhutan Association of Bhutan Motion Pictures IT Association of Bhutan NSB Mr Kuenga Tshering, NSB Mr Dechen Wangdi, NSB Mr Cheda Jamtsho, of Employment Department Director-General, Mr Pema Wangda, IPD, MoEA Mr Subarna , Director, MoEA Department of Industry, Mr Loknath Chapagai, Mr Dhanraj Subba, DoI, MoEA BICMA Director, Mr Kinley Wangchuk, Service (BBS) Bhutan Broadcasting Ms Pema Choden, Managing Director, Dorji, BBS Mr Tashi Thimphu (MPAB), Association of Bhutan Motion Picture Mr Sherab Gyeltshen, General Secretary, Gyeltshen, MPAB Mr Tshering (HAB), Thimphu Handicrafts Association of Bhutan Lham, President, Ms Tshering Thimphu (ITAB), IT Association of Bhutan Mr Rinzin Dorji, President, Bhutan Times, Thimphu Rigden, Managing Director, Mr Tenzin Kuensel Corporation Mr Chencho Dorji, Managing Director, KMT Printing, Thimphu Mr Mani Dorji, Proprietor, Thimphu & Travels, Etho Metho Tours Ms Dago Bida, Managing Director, Mr Shyam Basnet, Bhutan International, Thimphu Thimphu Mr Mani , Digital Shangrila, Thimphu Ms Dukpa, Singer/Producer, Thimphu Mr Joseph Lo, UNDP, Music School, Thimphu. Mr Jigme Dukpa, Aa-Yang Arts, Thimphu. Principal, Royal Academy of Performing Mr Rinzin Penjor, Thimphu. Jungshi Handmade Paper, Mr Norbu Tenzin, 2. 3. 4. 5. 1. roup Discussions Group Meetings 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Annex 4: Meetings and Group Discussions 58 The Economic Contribution of Copyright-Based Industries in Bhutan P D G o t n o i t u b i r t n o C r i e h t g n i t a m i t s E r o f d e s u s I B C e r o C : 5 x e n n A Music andotheractivities/writers,directors,actors Cinema Audio videoproductionanddistribution Industrial propertyagent Graphic design Photo studioandphotoframe Publicity/advertising agency Data processing,softwareconsultancy, anddatapublishing Cable andsatelliteTV Retail salebooks/stationery Retail saleofvideoandaudioproduction Recording ofvisual(filmproduction) Printing andpublishing Production ofmusic Newspaper publishing Publishing ofbooks,brochuresandothers Type (June 2011) 2219/2221 ISIC Code 5151/7229 9214 9212 9211 9112 7499 7494 7430 6420 5239 5233 2230 2213 2212 2211 The Economic Contribution of

Copyright-Based Industries in Bhutan59 in 1. the added by factor copyright intellectual production adequately value approaches the created not the net means is is in copyright its factor to the role develops added of extreme, firm a value one consequently by copyright at economy significant and the 0, made entire the more as the R&D a underestimation where domain that on in 1, to plays means public consequently 0 of the leading suggests and other, in expenditure thus scale the falls a knowledge and at evidence on 1, significant general paid in and traditional knowledge Empirical law royalty measured becomes is of absent issues. sum are traditional countries, factor copyright the The = copyright factor by f related of increasingly r rd = nva = paid royalty = and development on research expenditure added at factor cost net value c aspects copyright ratio developing protected processes. factor. at factor cost is defined as the copyright The countries. traditional societies and less developed In copyright property Where, The Annex 6: Formula on Copyright Factor related 60 The Economic Contribution of Copyright-Based Industries in Bhutan model trained standard variables in dependentvariable. net Table A: d e d d A e u l Va t e N f o s n o In i t a l u c l a C : 7 x e n n A Table C: b DependentVariable: NVA a Predictors: (Constant),PTE,RD,PLF, NX Table B: b DependentVariable: NVA a Predictors: (Constant),PTE,RD,PLF, NX 18 Since a: DependentVariable: NVA that shown inTables A,BandC. are 1 1 1 Regression outputisderivedusingSPSS11.5 Model Model order effective exports Model the the 18 employees

Coefficients (a) Model Summary ANOVA (b) is (Constant) PTE RD PLF NX t to explains deviation calculated .683(a) value prepared find (NX) R to Residual Regression Total explain for the and the .467 (PTE), R2 change each that main f net changes value the Adjusted R expenditure 741231.455 Un-standardised Coefficients 93160.010 of includes Square value 321.459 -2.400 explanatory changes .443 -.278 in the B (19.7) the 621131953447285 330960775330909 290171178116376 Sum ofSquares in added explanatory the explanatory the far Std. Errorofthe in 1917639.681 on dependent Estimate the following exceeds (NVA) factors 265644.747 169621.988 research Std. Error 2633.319 dependent 4.138 .033 variable as variables to the the variable. variables and R2 Change 90 Df 94 the 4 p dependent exceeds .467 variables. development value NVA causes Standardised Coefficients Value as 3677341948121.219 72542794529094.00 created (0), Beta -.045 -.667 .044 .009 Mean Square explanatory the F Change 0.467% As the 19.727 variable. of p the Change Statistics r (RD), value, explanatory by square Table CBIs, standard plant df1 Findings variables: 4 each for is a -8.371 2.790 -.580 .549 .122 0.467, load df2 T multiple coefficients 90 of variables deviation 19.727 of the factor F Sig. FChange percentage the meaning explanatory regression .000 study (PLF) together .000(a) change Sig. .000 .003 .002 .000 .003 reflects Sig. and 1% are of The Economic Contribution of

Copyright-Based Industries in Bhutan61 m m m m +2.16 I +0.28 I + 1.41 I srv +0.24 I srv

srv srv m + 0.558I +0.33 I +0.15 I ind ind +0.0474 I ind +3.81 I ind srv +0I ind + 0.04 I +0.42 I +0.039 I ag ag ag +0.004 I ag +0 I ag and its intdp, part and nds stand for CBIs cbi, core, X= one unit output and subscripts part=partial intdp=interdependent, copyright, core each category (cbi= all CBIs, core= support) copyright and nds= non dedicated sectors and m stand for different and subscripts ag, srv,ind I= input required of the world. rest srv= services and m= imports from ind= industry, (ag=agriculture, = 0 I = 0.02 I =1.11 I =0 I = 0.40 I nds part intdp core cbi X Non-dedicated Support X Partial X Interdependent CBI Total X Core X Notes:  Annex 8: Equations Reflecting The Input-Output Coefficients For CBIs 62 The Economic Contribution of Copyright-Based Industries in Bhutan s e i r t s u d n I l a r u t l u C r o f t n e m p o l e v e D y c i l o P g n i t r o p p u S : 9 x e n n A Source: UNESCO2005,quotedinUNIDO2005asAnnex2,p.105. 5. Infrastructure 4. Technological Development 3. CulturalAssetsManagement 2. HumanResourceDevelopment 1. AdvocacyandStrategyDevelopment g. ProgrammeMonitoringandEvaluation f. Financing Cooperation e. Inter-sectoral Coordinationand d. PhysicalInfrastructure c. FinancialInfrastructure b. InstitutionalInfrastructure c. Drivers b. IdentificationofPolicyIssues a. MappingtheSector a. LegislativeInfrastructure Step intheprocess activities inthesubjects;benchmarking. Integrated planandschedule;coordination;integrationoftraining stakeholders consultations. Consolidated planandinstrumentformobilisationofresources; mobilisation ofresources. external andnationalfundingoptions;instrumentsforcoordination sharing amongprivateandpublicenterprisesusingICT; identificationof Sector–wide approachtoplanningandimplementation;information industries productsandservices. Easy accesstoaffordable,efficienttransportanddistributionofcultural regulation andtaxation. Mechanisms toencourageMSEsculturalindustries.Import-export professional organisationsandknowledgesharingthroughICT. Develop institutionalcapacitytoensureenforcement,strengthen IPR, businesslawforMSEsICTlegislation,copyright,etc. promotion ofe-commerce. innovation inproductsandmarketing,supportclusterdevelopment, 4. Anationalplanforaccessofinformation,supportresearchand conventions. 3. Strengtheningarchivingandresearch,promotionofinternational development. in entrepreneurship,management,businessdevelopmentandskills opportunities relatedtoculturalindustries.Strengtheningtraining 2. Institutionalisationofinnovativeandtraditionaltraining Formulation ofsub-sectorspecificpriorities,targetsandprogrammes. strategy. Objectives andpriorities,strategy, MSEdevelopment,marketing stakeholder’s consultations. Surveys, baselinedata,needassessment,SWOTanalysis,and 1. Elaborationofalong-termPlanAction. Examples ofActivities