continues to work towards development that is holistic, inclusive and sustainable. The Royal Foreword Government of Bhutan’s (RGoB) 10th Five Year Plan (2008 – 2013) placed poverty reduction as its central focus with the goal of reducing the overall poverty rate to below 15 percent by the end of 2013. In order to reach this goal, the RGoB targets a non-agricultural growth rate of over ten per cent and an agricultural growth rate of over four per cent. According to the World Bank’s Bhutan Economic Update (2011), real GDP grew by 8.1 percent in the fiscal year 2010/2011, which came mainly from a 10 percent growth in the industrial sector, spurred by construction activities related to the hydropower projects, while the agricultural sector grew only at around 1.8 percent. Meanwhile, about 23% of Bhutan’s population (most of them living in rural areas) still live under below the national poverty line which was established at Nu.1,097 a month.1 Another development challenge is the rising trend of youth unemployment, with the current rate of 9.3%2 posing major challenges for the government. Efforts to support youth vocational training and entrepreneurship are being undertaken to resolve this emerging problem. Guided by its development approach of Gross National (GNH), Bhutan has been taking the lead in pursuing its agenda. Strengthening poverty-environment linkages at the policy and programme level have been further strengthened. UNDP provided technical support and knowledge through its regional and global networks, including best practices in the Asia-Pacific Region. For example, poverty-environment mainstreaming has been initiated in planning and budgeting processes led by the Gross National Happiness Commission (GNHC) and the Ministry of Finance through the use of new screening Claire Van der Vaeren tools such as Public Environment Expenditure Review (PEER). Case studies on poverty-environment linkages UNDP Resident Representative and capacity assessment of relevant institutions supported under the Joint Support Programme (see page 10) in partnership with the UN Environment Programme (UNEP) are highlighted in this Annual Report. To mainstream equality, UNDP led the very first programme at the local level to raise awareness on gender and development in 2011. The sensitization programme helped civil servants and local governance leaders understand various gender concepts, such as differences between sex and gender and its relevance in development planning. The first study on women and politics at the local level was also conducted by the National Commission for Women and Children (NCWC) with support from the UN System. The study has helped identify and develop interventions to raise the low participation of women in politics. The Round Table Meeting (RTM) for Bhutan is one of the most important forums for policy dialogue and aid coordination between the Royal Government and its development partners. UNDP co-chaired the 11th RTM and the preparation for an analytical background document, which highlighted Bhutan’s spatial and gender differences in achieving national development objectives.

1 Nu.1,097 a month is based on US$1.25 a day, international poverty line. In absolute numbers,146,100 Bhutanese are still poor, 98 percent of whom live in rural Bhutan.“Turning Vision into Reality: The Development Challenges Confronting Bhutan” Eleventh Round Table Meeting for Bhutan (2011). 2 2011 Labor Force Survey, Ministry of Labor and Human Resources UNDP Annual Report 2011 1 It was also an opportunity to successfully promote and introduce a Bhutan-tailored Multidimensional Poverty Index Paddy fields in Zhemgang (MPI), which is expected to help refine poverty reduction targeting in the 11th Plan. The MPI is an index of acute multidimensional poverty. The Index, which was developed by the Oxford Poverty & Human Development Initiative and UNDP, uses three dimensions (health, education and living standards) and ten indicators to understand deprivations in rudimentary services and highlight necessary policy interventions. It is also designed to show the number of people who are multi-dimensionally poor and reveals a different pattern of poverty beyond income poverty by using a set of deprivations. It has been used by GNHC in the 11th Plan preparations. Disaster management has been a significant concern of the Royal Government in the past couple of years. Given the recent spate of disasters, there has been a marked change in the way natural disasters are perceived today. Several awareness and training workshops have been conducted to strengthen national capacity to prepare for disasters. Moreover, artisans at the community level have been empowered with knowledge and technical training to build resilient homes building on Bhutan’s rich heritage of traditional architecture. As part of the UN System in Bhutan, Delivering as One, UNDP functions as a knowledge-based organization, providing assistance and support to the Royal Government in achieving its development goals. In line with UNDP’s corporate focus on helping nations withstand crisis, and drive and sustain the kind of growth which improves the for each and every one, the 2011 Annual Report, “Promoting progress for all”, presents some of UNDP’s achievements from the past year. The UNDP remains committed to supporting the RGoB as it develops its 11th Five Year Plan (2014-2018). We will continue to work together towards poverty alleviation, deepening and building resilience to disasters as well as mitigating the impact of climate change.

Claire Van der Vaeren UNDP Resident Representative

2 UNDP Annual Report 2011 hutan is globally known as a country in pursuit of happiness. Anchored in its national of Gross National Introduction BHappiness (GNH), the country’s development plans have consistently focused on the objectives of broad-based sustainable growth, quality of life, conservation of natural environment, preservation of culture and strengthening good governance. Bhutan continues to make its prominent presence in development discourse globally because of its efforts and intellectual leadership to promote the GNH philosophy. As such, 2011 witnessed many achievements of Bhutan in a wide spectrum of areas related to GNH influenced development, ranging from strengthened disaster preparedness; public-private partnership; increased accountability of government institutions; client-oriented service delivery; and a continued effort to alleviate poverty. Bhutan has been able to receive the sustained support and cooperation of its development partners primarily because of its ability to demonstrate results. The 11th Round Table Meeting (RTM) held in September 2011, organized and coordinated with UNDP assistance, helped further policy dialogue by assessing the country’s progress and sharing ongoing and prospective challenges. Among other things, the RTM also presented the opportunity to assess socio-economic development progress against national targets, including the Millennium Development Goals (MDGs), and identify remaining gaps for the 10th Five Year Plan (FYP) period. The partners who attended the RTM strongly recommended that to further enhance the country’s development process, it must address existing gender gaps, promote cultural tourism, tackle youth unemployment and aid private sector development. Health issues, such as non-communicable diseases, youth substance abuse, HIV/AIDS, and an effective decentralization of the health care system were also recommended. The country is also prone to natural calamities. Between 2009 and 2011 a spate of natural disasters tested the country’s position. In May 2009, Cyclone Aila caused widespread floods that resulted in heavy infrastructural damage in many parts of the country. In September of the same year, a 6.1-magnitude earthquake hampered the RGOB’s efforts to recover from the floods, in terms of its ability to mobilize capacities and financial resources. The 2009 Joint Rapid Assessment Report revealed widespread damage to public, cultural and religious monuments and that approximately 7,290 people were left without adequate shelter. In 2011, yet another earthquake of magnitude 6.9 struck the country. All 20 districts suffered damage to social infrastructure including schools, basic health units, offices, Dzongs, monasteries and choetens. It was reported that over 8,000 homes were affected by the quake. These national setbacks were followed by a renewed emphasis on preparedness initiatives supported by the UN System in Bhutan. Measures supported included capacity development in disaster management and post disaster needs assessment, the drafting of the Disaster Management Bill and a High Level Sensitization Meeting on Multi-sector Pandemic Preparedness. As a result, the country has shown steady progress in preparedness and response to natural disasters. Furthermore, Bhutan is the second country in the region to sign the Memorandum of Understanding in the Customs Facilitation in Humanitarian Assistance with the support of UN Office for the Coordination of Humanitarian Affairs Wall mural (OCHA) (see page 29). The international community considers this as a major step in strengthening preparedness and

UNDP Annual Report 2011 3 an exemplary initiative for other countries in the region. The agreement allows for aid consignment, including search and rescue teams and mobile medical units, high technology emergency communication equipment, and a speedy entry and transit into the country in the event of a disaster requiring external assistance. In addition, various in-country skill- building initiatives were supported related to search and rescue, emergency response and business continuity planning. Bhutan is also vulnerable to climate change. Over the last year it has been taking steps in partnership with UNDP to foster a green economy through various projects like Solid Waste Management (SWM), where public-private partnerships (PPP) play a key role in linking more efficient waste management services, entrepreneurship and sustainable livelihoods. Building on this pilot project, the Waste Prevention and Management Regulation, which specifically contains provisions for Public Private Partnerships (PPP) for waste management, was prepared by the RGoB in 2011 and adopted for implementation in 2012. Increasing women’s political participation has been a key focus in 2011 for both the RGOB and the UN Country Team, with active participation of UNDP in partnership with UN Women. Activities and studies to regarding women’s rights and awareness were carried out to identify areas of intervention. With UNDP’s support, the National Commission for Women and Children (NCWC) took the lead to organize a workshop for all the national gender focal points to identify interventions for women’s empowerment in the country. Gender mainstreaming and women’s empowerment remain a critical cross-cutting issue, particularly in the context of women’s participation in decision-making. Generally, there is evidence that women’s participation in local governance can bring about positive impact in their communities. Poverty reduction has been a main objective of the 10th Five Year Plan (2008 – 2013). Despite the positive annual economic growth of 8.2% (Bhutan Economic Update 2011, the World Bank), the majority of Bhutanese people are dependent on subsistence farming and the youth unemployment rate is at a high level. Planned development has brought about significant structural changes in the economy as it moves away from the primary sector towards secondary and tertiary sectors. The rapid growth and subsequent structural changes have been driven by the public sector through hydropower projects and financial support from donors flowing through the government.3 However, the occupational structure of the economy has not shifted in a manner consistent with the changes in the sectoral composition of GDP and is a disturbing trend reflecting jobless growth.4 In response to these economic challenges, UNDP assisted the RGOB by providing technical support in drafting the Economic Development Policy (EDP) 2010, which recognizes constraints and competitive advantages for sustainable and inclusive economic growth. The EDP set a general direction for the development of sectors that have the highest growth potential and a comprehensive set of incentive packages to boost private sector growth. As a commitment to supporting the EDP implementation, UNDP continuously supported the development of Brand Bhutan as a standard for goods and services that ensure “GNH” elements are maintained such as being clean, culturally sensitive and supportive, organic, and community based. The government’s efforts to promote sustainable income generation, particularly in the primary sector, culminated in the amendment of the Cooperative Rules and Regulations, with the aim to improve production management through a network of small enterprises. As a result, 36 farmers’ groups and eight cooperatives were registered for the first time, paving the way for more organized farmers’ activities and improved income opportunities. As a member of the UN system in Bhutan, Delivering as One, UNDP remains committed to helping enhance the happiness of the Bhutanese people and in achieving the Millennium Development Goals by 2015 through the mobilization of global expertise, knowledge and resources.

3 Economic Development Policy, 2010. 4 Ibid.

4 UNDP Annual Report 2011 AWP Annual Work Plan NCSA National Capacity for Self Assessment Abbreviations National Commission for Women and Chil- BCPR Bureau for Crisis Prevention and Recovery NCWC dren COP Conference of Parties NGO Non Governmental Organization CSO Civil Society Organization NEC National Environment Commission DAO Delivering as One NFE Non-formal Education DDM Department of Disaster Management NHDR National Human Development Report DTIS Diagnostic Trade Integration Study PEER Public Environment Expenditure Review ECP Environment, Climate Change and Poverty PEMS Public Expenditure Management System EDP Economic Development Policy PET Polyethylene Terephthalate Public Private Partnership | Integrated Solid EIF Enhanced Integrated Framework PPP ISWM Waste Management G2C Government to Citizen RAA Royal Audit Authority Global Facility for Disaster Recovery and GFDRR Reduction RGOB Royal Government of Bhutan GNH Gross National Happiness REAP Rural Enterprise Advancement Programme GNHC Gross National Happiness Commission REDP Rural Enterprise Development Programme Renew, Educate, Nurture and Empower GHG Green House Gas RENEW Women GPS Global Positioning System RSPN Royal Society for Protection of Nature GIS Geographical Information System RTM Round Table Meeting South Asia Association for Regional Cooper- HWC Human Wildlife Conflict SAARC ation INC Initial National Communication SNC Second National Communication IGSP Income Generation Support Programme SWM Solid Waste Management JSP Joint Support Programme TT Thimphu Thromde JRA Joint Rapid Assessment ROD Representation Office of Denmark Low Emission, Climate Resilient Develop- LECRDS ment Strategy UNAIDS Joint Programme on HIV/AIDS United Nations Framework Convention on LG Local Government UNFCCC Climate Change MoU Memorandum of Understanding UNEP United Nations Environment Programme United Nations Office for Coordination of MPI Multi-dimensional Poverty Index UNOCHA Humanitarian Affairs United Nations Entity for Gender Equality and MoF Ministry of Finance UNWomen the Empowerment of Women MoAF Ministry of Agriculture and Forests WCD Wildlife Conservation Division MoEA Ministry of Economic Affairs WFP World Food Programme Butter lamps MSME Micro Small and Medium Enterprises NAPA National Adaptation Programme of Action UNDP Annual Report 2011 5 The Thorthomi Lake

6 UNDP Annual Report 2011 hutan became a signatory to the United Nations The Green Intervention BFramework Convention on Climate Change (UNFCCC) at the Earth Summit in Rio de Janeiro, , in June 1992. The country subsequently ratified the I. Work in Progress Convention during the 73rd Session of the National Assembly in 1995. To fulfill its obligation under the Convention, Bhutan implemented its first Greenhouse Gas Project between 1997 and 2000 with support from the Global Environment Facility (GEF)-UNDP. The project created awareness of climate change issues while highlighting the country’s vulnerability to its adverse effects. Since its initiation, various strategies and projects have followed such as the National Adaptation Programme of Action (NAPA 2006), the National Capacity for Self-Assessment (NCSA), and the “Reducing Climate Change-induced Risks and Vulnerabilities of Glacial Lake Outburst Flood (GLOF)”project. The GLOF project, which was implemented in 2009, aims to reduce the increasing risk of flooding from glacial lake outbursts that could devastate the lives and socioeconomic livelihoods of communities downstream. One of the biggest immediate threats was the Thorthomi Lake, which has now been artificially reduced by 3.68 metres, in turn mitigating any looming threat.

The Second National Communication (SNC) The RGoB developed and submitted its SNC report in 2011, as part of its ratification obligations under the UNFCCC. The SNC report was submitted to the UNFCCC at the 17th session of the Conference of Parties (COP17) at Durban, South Africa, in December 2011. The purpose of the report was to study and identify potential areas for climate change intervention. Workers at the Thorthomi Lake manually reducing the lake level The SNC report provided up-to-date information

UNDP Annual Report 2011 7 on the level of Bhutan’s greenhouse gas (GHG) emissions and its sequestration capacity (inventory), climate scenario projections, actions taken and needed to address GHG emissions (mitigation), and response measures to adverse effects of climate change (adaptation). The SNC report was a result of wide stakeholder consultations, research and scientific climate model simulation. The report recognized that while adaptation is a priority, mitigation cannot be excluded in the process of ensuring that development choices are aligned with Gross National Happiness. It provides a useful reference source for policymakers, planners and donors in strategizing development approaches and funding support under the emerging scenarios of climate change challenges and climate financing opportunities. It will serve as an important planning tool and reference for policymakers, planners and donors in strategizing development approaches and funding support under the emerging scenarios of climate change challenges and climate financing opportunities.

ཐའ་འཁ ར་གནས ས་མ ་ས ང ང ས ་ཡ ་ལ ལ ན ་ཚ །ར ག

། ས

།

༄

༄ N ། ། a n t o ། ལ i i o s ། ར Kingdom of Bhutan n s ད པ ་ a i ལ མ l E m ་ ་ར nv om ལ ན ལས ironment C ་འབ ག་པ་ཕ གས་ Kingdom of Bhutan - Second Nat

Second Nat ional Communicat ion Achievement | Green Interventions: to the UNFCCC • Met the national reporting obligation under UNFCCC requirement • Updated National GHG Inventory and made climate projection scenarios • Raised awareness of climate change issues among sectoral agencies, community leaders, civil society/NGOs and private

industrial entrepreneurs ional Communicat • Supported launch of Brand Bhutan in support of the implementation of the Economic Development Policy 2010 ཐའ་འཁ ར་གནས ས་མ ་ས ང ང ས ་ཡ ་ལ ལ ན ་ཚ །ར ག

། ས

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• Formulated the Carbon Netural Strategy

N a

n ion to the UNFCCC t o io i n s a is l E m • Enhanced national preparedness and response measures to climate-induced disasters and emergenciesnv om ironment C

Nat ional Environment Commission Royal Government of Bhutan P.O. Box 466, Thimphu, Bhutan www.nec.gov.bt

ISBN : 978-99936-865-0-7

Nat ional Environment Commission Royal Government of Bhutan

8 UNDP Annual Report 2011 Climate Summit for a Living Himalayas – Bhutan 2011 The Himalayan mountain ecosystems are particularly vulnerable to the impact of climate change. Recognizing this reality, Bhutan took the initiative to host a sub-regional climate summit with the theme “Climate Summit for a Living Himalayas -Bhutan 2011”. The planning process commenced in August 2010 with a high-level consultative meeting in Kathmandu, Nepal, and culminated with the hosting of the Summit in Thimphu on 19 November 2011. UNDP supported the organization of the Summit, and provided technical support in the development of the energy security background paper at the request of the Royal Government. The primary objective of the Summit was to foster south-south cooperation among the Himalayan southern watershed countries which includes Bangladesh, Bhutan, India and Nepal. The regional summit recognized the need for localized action to tackle regional climate change challenges in a timely and effective manner while the global negotiations continue. The main output from the Summit was the successful development of a “Framework of Cooperation” that aims to build resilience to the adverse affects of climate change in the southern watersheds of the eastern Himalayas. The Framework highlighted four specific areas for collaboration: Biodiversity Conservation, Energy Security, Food Security and Water Security.

Achievements | Impacts of the Climate Summit: • Fostered south-south cooperation among the four member countries in the southern Himalayan watershed in the field of climate change-related issues • Enriched South Asia Association for Regional Cooperation (SAARC) partnership and its recognition in the international arena • Enhanced opportunities of mapping, monitoring, reviewing and/or verifying the gaps and areas of ongoing activities • Planned collaborative future support between the national government and the development partners • Up-scaled the understanding of climate change linkages with human development, thereby, providing stronger reasons for mainstreaming climate change into national/sectoral policies, plans and programmes • Signed an AWP to update the National Environment Strategy - The Middle Path, and mainstream Low Emission, Climate Resil- ient Development Strategy (LECRDS) • Accelerated Carbon Neutral Strategy by the RGoB

Prime Minister of Bhutan delivering the keynote address at the Climate Summit

UNDP Annual Report 2011 9 National Human Development Report (NHDR) In recognition that economic and social development in Bhutan is particularly sensitive to climate risks, Bhutan’s National Human Development Report 2011 was based on the theme “Sustaining progress: Rising to the climate challenge”. The 2011 NHDR was jointly prepared by the Gross National Happiness Commission Secretariat and UNDP and is an outcome of extensive consultations with various national institutions, civil society organizations and development partner agencies. The report highlighted the fragility of Bhutan’s eco-system and socio-economic development in the face of global climate change’s adverse affects. The potential shocks and gradual shifts brought on by climate change threaten to reverse the development gains that have been achieved so far in Bhutan by adversely affecting its water resources, forest cover, biodiversity, agriculture production and human health. The report specifically highlighted 14 recommendations for the Royal Government to consider while mainstreaming climate change activities into national development policies and programmes. The 14 recommendations are: 1. Implement climate change mainstreaming fully. 2. Design integrated climate change policies, strategies and quantified action plans. 3. Strengthen research and capacity development on climate change. 4. Develop capacity for meteorological and hydrological services and climate modeling. 5. Invest in sustainable energy services and systems. 6. Promote green industries. 7. Improve implementation and monitoring capabilities. 8. Address climate sensitivity in agriculture and forest sectors. 9. Enhance civil society and active citizen participation with special focus on women and their roles. 10. Build on and expand climate financing mechanisms. 11. Strengthen and implement disaster risk management and community-based disaster risk reduction. 12. Integrate human development vulnerabilities into national strategic plans. 13. Protect education infrastructure from climate shocks and make climate education part of school curricula. 14. Provide psychological wellbeing services to climate victims and survivors. The 2011 NHDR focused on the human development conditions that characterize Bhutan’s vulnerability to climate risks. It highlighted that impacts of climate change are most likely to be disproportionately borne by the vulnerable populations of Bhutan who depend on natural resources for their livelihood and whose coping capabilities are limited. It also concentrated on the human development conditions that characterize Bhutan’s vulnerability to climate risks. Accelerating human development progress is one of the most important responses to the issue climate change. The NHDR also focused on enhancing public dialogue and policy discussion in Bhutan and called for broad-based partnerships to mitigate the negative effects of climate variability and change. The way forward The RGoB significantly strengthened its dedication and increased its focus on the issue of climate in 2011. The development and implementation of the SNC study, the Climate Summit for the Living Himalayas 2011 and the NHDR 2011 will lead to more projects/programmes and strategies to address climate change in the years to come. Also, the NAPA was updated in 2011 with UNDP support and a follow-up project was formulated for submission to the Global Environment Facility. Additionally, a work plan was signed between the National Environment Commission (NEC) and UNDP for the revision of the 1998 National Environment Strategy, which will include the integration and mainstreaming of a Low Emission Climate Resilient Development Strategy (LECRDS).

10 UNDP Annual Report 2011 Mainstreaming Environment, Climate Change and Poverty Issues The RGOB’s policies and plans increasingly aim to be holistic and crosscutting. If plans and policies were formulated in isolation in the past, today it is about integrating all possible aspects to make development sustainable. Thus, recognizing the importance of integrating environment, climate change and poverty issues into policies and development plans and programmes, UNDP worked closely with the government to fulfill these commitments. UNDP, in partnership with the UN Environment Programme (UNEP) and the Representation Office of Denmark (RoD), provided technical and financial support to various government and other sectors including civil society organizations (CSOs) and non-governmental organizations (NGOs) through the Joint Support Programme (JSP). This support was designed to address the poverty-environment linkages through policy interventions and pilot demonstrations. The RGOB led the process and ensured effective integration of these linkages into national development planning and budgeting through the GNHC. Some achievements of the Programme include the following:

1. Public Environmental Expenditure Review (PEER) In 2011, the Ministry of Finance (MoF) undertook a review of the Public Environmental Expenditure (PEE) for the first two fiscal years (2008-2009 and 2009-2010) of the 10th Plan to review budgets and expenditures on environment and climate change-related activities. The analysis revealed that about 6% of public expenditure is directed towards achieving the Royal Government’s environment-related policy objectives within the context of Gross National Happiness. The review also revealed that the government’s contribution to the total PEE accounted for about 75% & 52% respectively for the two fiscal years, with the remaining amount covered by external assistance. Furthermore, the first two fiscal years of the 10th plan indicated about 30% of the PEE at the local government level as compared to 4% in the 9th FYP. The increased local government share reflects an emerging fiscal decentralization in Bhutan. The review was received well and revealed important trends and gaps in environmental expenditure by national and local governments. As a result of the 2011 PEER, the Ministry of Finance (MoF) proposed to develop separate reports in the Public Expenditure Management System (PEMS) on PEE for submission to Parliament in 2012. Moreover, the findings of the review drew increased attention to the required levels of sustainable environmental investment needed given the economic importance of the environment. The exercise also enhanced MoF’s in-house capacity to carry out such reviews in the future and to understand the full spectrum of costs and the need for integration into strategic decision-making.

HRH Ashi Euphelma Choden Wangchuck launches the PEER and ECP report at the Climate Summit for a Living Himalayas in Novem- ber 2011

UNDP Annual Report 2011 11 2. Mainstreaming Environment, Climate Change and Poverty (ECP) Initiatives in Policy Formulation To strengthen and advance the integration of environment, climate change and poverty (ECP) into the RGOB’s planning process, the Inter-sectoral Mainstreaming Reference Group, with UNDP participation, was formed in 2011 under the auspices of the GNHC and The government the NEC. The group played a key role in building the capacity of sector and Local Government (LG) officials in mainstreaming ECP into policies and programmes. It also coordinated awareness and training workshops on intends to make the ECP mainstreaming for 20 District Planning Officers and 35 LG officials. The group also “ 11th FYP a ‘Green’ 2nd Public Environmental influenced the 11th Plan preparation process by integrating pro-poor environment and Expenditure Review (PEER) climate change considerations into its key objectives and national key result areas and plan, and create a by developing and incorporating an ECP Mainstreaming Framework into the 11th Plan 1. In the first two years of the ‘Green’ mindset and Guidelines. 10th Plan, Bhutan’s total Public attitude amongst Environment Expenditure (PEE) Such critical decision windows within policy formulation have been recognized as a and Public Expenditure (PE) as crucial process for effective mainstreaming of poverty-environment issues across different Bhutanese to priori-

percentage of GDP was 2.1% and levels of government. To influence the policy formulation process, the Reference Group tize environmental

2.9% respectively. reviewed and adopted the Policy Protocol in 2011, to be adopted by all government management and 2. In terms of PEE budget efficiency, agencies while formulating public policy. This resulted in the identification of possible “ local government demonstrated opportunities and alternatives to integrate GNH principles and crosscutting issues such reduce GHG and more efficient utilization with 81% as environment, poverty, climate change and gender in the Policy Protocol. The Reference and 85% in the two years (2008-‘09 Group has reviewed four draft policies (Mineral Development Policy, Renewable Energy pollution. and 2009-‘10) as compared to cen- Policy, National Irrigation Policy and the Subsidized Housing Timber Allotment Policy) tral ministries with 69% and 66% using tools such as environment overview to ensure adequate integration of ECP issues - Karma Tshiteem, Secretary, GNHC respectively. into sector policies and the practice will continue in 2012. 3. The review indicated a decrease in 3. Mobilizing Non-Formal Education (NFE) expenditure on soil conservation and land management by 4.7%; a The NFE is a key component under the United Nations Development Assistance Framework (2008-2013) Outcome on Education, which modest increase of 2.5% on climate focused on adult education and keeping young school leavers engaged in learning and skill building. To address the knowledge gap change initiatives; and a substantial of environment-climate-poverty linkages among the rural population and to promote rural knowledge in identifying and addressing increase of 8.8% on environment the ECP issues relevant to their livelihoods, non-formal education (NFE) was strengthened. UNDP and UNEP, through the Joint Support mainstreaming initiatives. Programme (JSP), supported the development of curriculum focused on renewable energy, improved cooking stoves, rainwater harvesting and biogas technology. Eighty NFE instructors have been trained to teach the new curriculum. This has resulted in creating awareness on poverty-environment linkages for the rural communities through the NFE network of more than 700 centers across the country.

12 UNDP Annual Report 2011 4. Human-Wildlife Conflict Initiatives A number of initiatives were undertaken in 2011 through the JSP by the Wildlife Conservation Division (WCD) of the Ministry of Agriculture and Forests (MoAF), the Royal Society for the Protection of Nature (RSPN) and Tarayana Foundation to address human-wildlife conflict (HWC) and its affect on rural livelihoods. The WCD initiated a series of awareness programs on human-wildlife conflict mitigation measures in a number of the vulnerable areas across the country. A study tour for 40 farmers in the elephant-people conflict zones of southern Bhutan (Samtse, Samdrupjonkar, and Sarpang) was organized to exchange and replicate ideas. As a result, farmers are now better informed about the various mitigation measures (such as electric fencing, trip-alarm fencing and community-based insurance scheme) promoted by the Royal Government. Furthermore, 249 farmers in the HWC affected areas of Sarpang, Bumthang, Wangduephodrang and Mongar were sensitized on the importance of establishing community-based crop and livestock insurance schemes as a sustainable means of addressing food and income losses at the dzongkhag and gewog levels. This led to the establishment of a HWC Endowment Fund by the MoAF in 2011. The fund will be used to establish Gewog Conservation Committees and implement integrated conservation and development interventions in the affected areas. The RSPN also facilitated a pilot initiative to reduce HWC in Kangpara gewog under Trashigang. Two villages - Passangphu and Madhuwa - with 92 households were selected as pilot communities to test a community-based sustainable financing mechanism to compensate farmers affected by crop and livestock damage by wild animals. The mechanism was instituted through by-laws and the initial seed money was provided by the government. People were also trained on bookkeeping and management of the funds. The process has empowered the two communities in making their own decisions on the compensation ceiling and membership fees to sustain the compensation scheme. This has resulted in instilling greater ownership and collective responsibility in addressing HWC issues in their locality. The project will be replicated in other regions, after incorporating lessons learned.

5. Eco-friendly, disaster resilient construction With UNDP support, the Tarayana Foundation implemented targeted poverty interventions in the village of Dak under the Silambe gewog of Mongar Dzongkhag. These interventions benefited 25 households with 150 people (70 males and 80 females) by constructing eco-friendly and disaster resilient houses. The Department of Forest and Park Services under the Ministry of Agriculture and Forests trained carpenters from the Dak community on eco-friendly construction techniques. The training focused on the use of treated cane and bamboo as cost effective, eco-friendly, seismic resistant and durable construction materials. The training, which took place in Zhemgang, one of the remotest regions with no proper housing facility, also imparted hands-on experience in constructing houses and displayed alternative uses of bamboo as a substitute for timber for windows and partitions. Upon returning to their villages, the trained carpenters A carpenter uses his new found skills Communitry memebers receive training in the use of eco-friendly construction transferred their newly acquired skills to other members of their community through informal training, hands techniques on demonstration and information sharing. The farmers now have secure shelters and are able to divert their energy to agricultural activities and other off-farm opportunities. This is a clear demonstration of the sustainable utilization of natural resources in improving the livelihood of rural farmers.

UNDP Annual Report 2011 13 II. Public-Private Partnerships NDP in partnership with the Dutch NGO WASTE, Advisers on Urban UEnvironment and Development, supported the Thimphu Thromde (municipality) in improving municipal solid waste management (SWM) service delivery through Public-Private Partnership (PPP) modalities. The project aims to reduce adverse environmental impacts of waste and the associated risks on human health while at the same time creating employment opportunities. Following the application of UNDP’s capacity assessment tool in 2010, a Capacity Development Response strategy and subsequent action plans were designed in 2011, creating a road- map for broader institutional reform, organizational change and (individual) capacity development. A new democratic municipal institutional set up, established after the first local elections in spring 2011, changed the downward accountability of the Thimphu Thromde, as well as its mandate to act upon the noted challenges and opportunities. This created an important impetus to reflect on its new role and mandate in relation to wider service delivery other than only integrated solid waste management (ISWM). Within the new democratic system, the Thromde promoted more prominently the responsibility of citizens to positively contribute to improved service delivery and keeping the municipality clean. This A local scrap dealer segregates plastic waste for recycling

14 UNDP Annual Report 2011 new focus on creating partnerships with citizens to develop a sustainable solid waste management system has been identified as a critical success factor for PPP-ISWM. With strong leadership of the new city mayor and the municipal council, the Thromde decided to develop a more manageable pilot approach that allowed it to test and learn about the design of PPP-ISWM in a selected part of the municipality, especially on the technical design of the SWM system elements and their integration with suitable PPP modalities. A waste collection system was introduced, which included the treatment of ‘wet’ (organic) waste at the composting plant. Some 503 building owners within the core of the Thimphu municipality participated in this pilot programme. To design collection routes and to allow monitoring and adjustment, a detailed mapping of streets and collection routes was conducted with the use of GPS and GIS. A location for the transfer station to further allow waste to be segregated and minimized before transport and final disposal at Memelakha landfill was identified. While implementing the pilot, the Thimphu Thromde engaged in small PPP contracts for specific services within the existing SWM system to generate some quick wins and to gain experience with PPP contracting. The dialogue between public and private sectors is currently moving towards waste segregation and collection. A few specific PPPs have also been initialized includinga partnership for the management of the Memelakha disposal site, where a private company (ReCiTi) has obtained the exclusive right to collect all valuable waste in return for managing the site adequately. In 2011, the municipality conducted several technical studies, collected data on solid waste flows and waste compositions, adjusted its current Management Information System, conducted a willingness-to-pay survey amongst 2,600 households and 550 building owners, and engaged with citizens, schools and businesses through frequent interactions on options to reduce and segregate waste and on setting up a tariff setting system. The results of the survey conducted under the project were encouraging with around 95% of the respondents stating they are willing to pay a small monthly fee and 85% of respondents saying they are willing to segregate the waste provided there are facilities.

One of the most notable problems we face because of rapid urbanization is “ the growing problem of solid waste. We see great promise in further devel-

oping partnerships with the private sector, civil society and service benefi-

ciaries for municipal service delivery. It will not only increase the service coverage and make our services more effective and “ efficient, but it will also allow us to structurally engage with citizens to understand their needs and to agree upon mutual responsibilities for results.

Mr. Kinlay Dorji, Mayor Thimphu Municipality

UNDP Annual Report 2011 15 The informal sector (consisting of waste collectors and scrap dealers) is playing an important role in waste recycling initiatives. A growing number of young entrepreneurs nationwide, in many cases with a relatively low level of education, are involved in waste- Along with our pursuit of a picking and scrap dealing. Out of the informal sector some promising independent private sector businesses have emerged with “clean Bhutan, we are striving a more systematic service–oriented approach in urban centers. In 2011, through a simple arrangement of PPP in a Polyethylene to promote the concept of 4 Rs Terephthalate (PET) recycling facility, a small enterprise called “Greener Way” bought and processed about 70 tons of PET bottles in 2011 alone, which is expected to increase in the coming years. (Refuse, Reduce, Reuse and To broaden the support base for the PPP-ISWM introduction, the Thimphu Thromde successfully capitalized on some identified Recycle). Our goal is to help quick wins in the existing SWM system, such as taking out organic waste and paper/cardboard from the waste flow. Both the Government combat envi- segregations have substantially reduced waste volumes collected and transported to the landfill, thus resulting in significant waste ronmental issues to the best of reduction (by 75%) for the municipality. our abilities by participating The Thromde-led pilot design and implementation shows that ownership for solution finding and learning is critical in developing sustainable SWM systems and PPPs. The municipality has done an excellent in linking with private sector organizations and in in Public-Private Partnerships leading the multi-stakeholder approach. This project demonstrates the importance of strong advisory services to the project team, in future. Besides being in- as provided by UNDP, to ensure all relevant stakeholders participate, to ensure mutual understanding and trust is created and to

volved in the public service of ensure that all aspects of technical SWM design and PPP development are acknowledged and addressed.

creating a greener and cleaner Bhutan, we are“ also generating employment opportunities for Snapshot of waste service delivery under Thimphu Thromde our youth. - As of 2010, Thimphu generates about 50 tons of waste a day and this is projected to reach 65 tons by 2015. - 18% (Nu. 11 million) of the municipal budget is spent on solid waste collection and disposal, while only 6% is recovered Mr. Karma Yonten, Greener Way CEO from service fees. - Waste segregation is minimal, and everything is transported to the landfill, half is organic, 25% is paper/carton. ReCiTi: Waste Recycle Enterprise “We Value our - Municipal staff spend about 40% of the waste collection time in segregating and collecting recyclable waste. Waste” is a green business first introduced in Bhu- tan by a group of youths with the dream of solv- - Existing waste collection and disposal system is input driven, with little monitoring of service demand, service area, ing the problems of solid waste in Bhutan. Usu- service quality and service costs. Roughly 30% of beneficiaries receive adequate services, 40% are underserved and ally we say that there are “3R” but ReCiTi, now has 30% are not served at all. introduced many “Re” concept to solve the prob- - If all organic and paper/carton waste were segregated before transport, the waste volume for transport and disposal lems of waste in our country. Currently ReCiTi is would be reduced by 75%. focusing on recycling. Source: Case study on the application of innovative PPP for SD (December 2011, UNDP) Source: ReCiTi Facebook page

16 UNDP Annual Report 2011 hutan witnessed an unprecedented spate of natural disasters in the Brecent past. The country was still III. Providing Humanitarian Assistance recovering from the 2009 flash floods when an earthquake of magnitude 6.9 hit the nation on 18 September 2011. The RGOB, with support from His Majesty’s Welfare Office and the Royal Bhutan Army, mobilized immediate relief assistance. However, the damage was far greater than initially estimated, and subsequently UN assistance was requested. The UN System in Bhutan provided support for immediate relief as well as technical assistance for carrying out a post-disaster assessment under Delivering as One, with clearly assigned roles and responsibilities to members of the Crisis Management Team. UNDP responded by coordinating a Joint Rapid Assessment (JRA) and by providing immediate shelter assistance to the affected rural households, in partnership with OCHA and UNICEF. Joint Rapid Assessment As chair of the UN Environment and Disaster Management Team, UNDP played a key role in mobilizing a Joint Rapid Assessment (JRA) team in support of the national Department for Disaster Management (DDM), with participation from the UNDP Bureau for Crisis Prevention and Recovery (BCPR) internal and external A man accesses structural experts, the UN Office for the Coordination damages to his home in Haa of Humanitarian Affairs (OCHA), the World after the 2011 earthquake Bank/Global Facility for Disaster Recovery and Reduction (GFDRR), as well as national Images from 2011 earthquake in the affected regions of Haa, Paro and Samtse experts from the resident UN Country Team UNDP Annual Report 2011 17 (UNDP, UNICEF, WFP and WHO) and relevant government ministries and agencies. In line with international standards, the team conducted a rapid post-disaster assessment in October 2011 of the total damage and loss caused by the earthquake as well as the humanitarian and early recovery needs. Based on damage data provided by the Department of Disaster Management, the JRA mission carried out field visits to the most affected districts of Haa, Paro, Chhukha and Samtse to gain insights on the context, issues and challenges involved, as well as a visual understanding of the damage caused by earthquake. The visits also provided an opportunity to consult the affected people first hand. The mission’s initial findings and recommendations covered cost estimates for loss and damage, recovery, reconstruction and disaster risk reduction priorities. The total loss due to damage was estimated at Nu. 1,197.63 million (USD 24.46 million), while the total cost of early recovery, reconstruction and disaster risk reduction was estimated at Nu. 1,108.07 million (USD 22.63 million). The report was approved by the Cabinet after consultations with key stakeholders, and provided the basis for planning short-, medium- and long-term recovery and rehabilitation efforts and resource mobilization. As a follow-up in 2011, UNDP also provided technical assistance to the RGOB for the formulation and implementation of a National Recovery and Reconstruction Plan (NRRP). The NRRP is a consolidated effort made by all concerned sectors, agencies and dzongkhag administrations to restore and rebuild the damaged infrastructure in the country. It aims to ensure earthquake resilient construction practises and a more efficient reconstruction process. The Plan also contains a section on the resolutions of the 2nd National Steering Committee for the Recovery and Reconstruction of the September 2011 earthquake, where roles and responsibilities of involved government sectors and agencies are clearly spelt out. Shelter assistance Under a joint UNCT effort, UNDP mobilized USD 799,535 from the UN Office for the Coordination of Humanitarian Affairs (UNOCHA) UNDP SUPPORT: Emergency Cash Grant and the Central Emergency Response Fund’s Rapid Response Grant for immediate shelter assistance following the earthquake, and provided affected families with Corrugated Galvanized Iron (CGI) sheets. Based on experience from the September 2009 • USD 50,000 Emergency Cash Grant earthquake, CGI sheets have proved to be the most appropriate and cost effective means for building transitional shelters as well as meeting mobilised from the UN Office for the needs of subsequent recovery and reconstruction. Coordination of Humanitarian Affairs on behalf of the UNCT A total of 48,242 CGI sheets were procured and distributed to the most affected communities in 12 of Bhutan’s 20 dzongkhags. This benefited 1,386 of the most affected households or 9,083 people (4,847 men and 4,236 women, of which 1,384 were children below 5 years). In • USD 749,535 Rapid Response addition, 550 intermediate makeshift shelters were constructed, and the same CGI sheets are being reused in the longer-term recovery Grant from the Central Emergency and reconstruction process. Further, UNDP initiated and supported capacity development for safe construction practises for engineers and Response Fund artisans in the affected dzongkhags, building on the experience from the 2009 earthquake. • 1,386 households provided with CGI The most affected households were also provided royalty free timber by the RGOB and insurance compensation through the government sheets subsidized insurance scheme for rural houses. UNDP acted in partnership with UNFPA and UNICEF who supported the affected communities • 48,242 CGI sheets distributed to by providing family kits, dignity kits, school-in-a-tent and CGI sheets for reconstruction of community infrastructure such as regular and severely affected households monastic schools. • 550 makeshift shelters constructed The way forward • Initiated trainings on safe construction practices for engineers, UNDP continues to provide technical assistance for the monitoring of relief and recovery efforts as well as for the implementation of the artisans and homeowners in the National Recovery and Reconstruction Plan. UNDP is also assisting the RGOB in updating the National Disaster Risk Management Framework affected communities 2006 in line with the Hyogo Framework for Action. Updates will feature recommendations from the 2009 and 2011 Joint Rapid Assessments and lessons learned. A new three-year UNDP project will be initiated under this framework to promote safe construction practises and human settlement planning. The project will integrate disaster risk reduction, enhance risk transfer through strengthening of insurance schemes, and develop institutional capacity for the implementation of the Disaster Management Bill expected to be enacted in 2013.

18 UNDP Annual Report 2011 he G2C services project was executed Tand implemented by a cross-sectoral project team spread across 10 ministries, Consolidating Good 12 agencies and 20 dzongkhags established by the Cabinet Secretariat. Governance The G2C initiatives were planned to ease administrative processes for citizens by enhancing accessibility to services within a one-day reach from their location, reduce IV. Support to the turnaround time for complaints and provide a simplified government-to-citizen service delivery system. The RGoB also enhancement of aspires to have the highest in class ratio of civil servants employed in G2C services. Government to Citizen The G2C project received a great boost towards enhancement of administrative services with the setting up of a Common (G2C) services Web Portal (www.citizenservices.gov. bt) supported by the UNDP’s Democratic Governance Thematic Trust Fund (DGTTF). UNDP’s support enabled the project to set up a single-access point for services provided by the various ministries and agencies of the government. The portal serves as the common platform for service providers, service dispensing points (such as gewog offices, gup offices and community centers) and citizens availing the services. It Nim Tshering, G2C Project Officer provides comprehensive information on government services available, including registration, acknowledgement and payment receipts, service status tracking and service output generation. The dispensing of the services to the citizens and community center operators is also G2C Training of Trainers for district focal persons facilitated through this portal. The number

UNDP Annual Report 2011 19 of services availed through the system is about 200 and covers 11 sectors. A Voice of Customer (VoC) system has been added to the G2C services, through UNDP support, to further improve the service quality delivered to citizens. The VoC allows feedback to improve G2C services as well as provide feedback for non-G2C services. It provides a ‘One Stop Shop’ window to register complaints, provide feedback, give suggestions and raise grievances with respect to any aspect of service delivery, thereby providing valuable information to the government on the quality of services delivered. People have high expectations from the project given that 86% of the respondents felt it is necessary to undertake G2C initiatives. Consolidating Good Governance Local Government Election UNDP is committed to supporting the RGoB in its pursuance to deepening democracy. When Bhutan held its first-ever Local Government (LG) election on 27 June 2011, UNDP provided technical support for voter education and training for local election officials to prepare for the LG elections. The election was logistically overwhelming given that it covered the remotest gewogs in the country, however, it took place peacefully. Over 5,000 civil servants were sent to all corners of the country as polling officers, and the same numbers of police and army personnel were deployed to ensure proper conduct during the elections. According to the Bhutan Broadcasting Service, 176,713 female registered voters and 171,225 male registered voters took part in the first LG election.

FAST FACTS: • The portal acts as the single-access point for delivering services across the government agencies. • It facilitates dissemination of comprehensive user information for the services. • Users can track the status of the services they have availed by entering their application ID. • The validity of the certificates and licenses for business people can be tracked and checked through the portal. • The community centres can use their user credentials to get access to all the services provided by the government, which is the lowest dispensing point taken down to the citizens. • The web portal also has a Payment Tracker System. This system allows monitoring of the services by the various stakeholders. If a service is not delivered as per the Service Delivery Standard (SDS), the system will automatically escalate the application to the next higher authority.

Chart sourced from http://www.citizenservices.gov.bt/ web/guest/list-of-services

20 UNDP Annual Report 2011 V. Strengthening the study of the 2011 Local Government A(LG) election commissioned by the role of women in National Commission for Women and Children (NCWC) with assistance from the politics UN system shows there is much work to be done for the greater engagement of women. In a society where democracy is still new and public politics is dominated by males, women’s participation in local governance deserves special attention, and may even call for electoral policy reforms and other institutional arrangements. Advancement of women rights is positively influenced by their representation in governance, and the local government is the closest and most accessible public space.

What statistics say: At the end of the 26 December 2011 election, there were 12 women Mangmis (out of 204), 86 Gewog Tshogpas (out of 684), one Gup (out of 205) and five Dzongkhag Thromde Tshogpas. The low level of women’s representation in governance is also reflected in the number of women who were elected in the National Council in 2007 and National Assembly in 2008. The trend continued in the 2011 LG election. The Non-Formal Education instructor Namgay Pelden of Namcheyla Chiwog of Dagana was the lone woman to have been elected to the post of Gup . She won Participants at the gender and development awareness a landslide victory by obtaining 807 of the training organised for newly elected local leaders 1,058 (over 76%) votes cast.

UNDP Annual Report 2011 21

A 2011 UN System supported study revealed that women are discouraged from entering politics, are identified more with domestic life, and are intrinsically disadvantaged by a whole range of social, physical, cultural and personal barriers. The findings indicated that a large proportion of women are dependent on men for financial matters and lack access and control over income and other resources. Women, “ therefore, tend to have greater socio-economic challenges than men, and this severely constrains their participation in public affairs. I have to perform like Further, there is very little awareness of specific laws or policies that strengthen the grounds for political and economic empowerment of men and this makes me women. “ nervous In this regard, UNDP led the very first programme at the local level to raise awareness on gender and development, reaching 400 newly Pema Yanki, elected local officials (24% of total) in 2011. The sensitization programme helped them understand a range of foundational concepts on a female village representative gender equality, such as differences between sex and gender and how it is relevant in development planning. This first study on women and politics at the local level will help further identify interventions to raise the low level of participation of women in politics. Generally, both men and women believe that women’s participation and leadership in local governance can bring about positive changes in their communities. However, results of recent Local Government Elections in 2011 proved otherwise with the low number of elected women leaders at the local level. There is an urgent need for continued and deeper advocacy to address the voters’ lack of confidence in electing women leaders. Improving women’s literacy is a pre-requisite for their active participation in governance and decision-making, both as informed voters and as eligible candidates for public office. Under the umbrella of UNDP’s Democratic Governance programme and UN Women’s regional programme on Women’s Political Leadership and Governance in South Asia, where Bhutan is one of the participating countries, a partnership with the RGOB was forged to further address gender-responsiveness and governance concerns in the current 10th Five Year Plan. Gender responsive governance programme activities are being pursued including the platform strengthening or newly elected women leaders, influencing the budgetary system of Bhutan through gender-responsive budgeting, and building capacity of research and academic institutions that can be of help to develop capacities of elected representatives and government officials at various levels.

FACTS REVEALED BY THE NCWC STUDY: • Traditional notion that women are homemakers and not suited for politics still prevails. • Families are not supportive of a political career for women. • Of the 2,607 contestants in the two rounds of LG election, 212 were women. • Many women are financially dependent on men. • Many women are constrained by the lack of basic education, general confidence and role models.

22 UNDP Annual Report 2011 Community members share grievances during the 2011 LG elections

ood governance is the cornerstone Gof an efficient democratic system, and Bhutan’s development philosophy of Gross National Happiness (GNH) has identified good governance as one of its four pillars. Thus, UNDP has been actively assisting the RGOB to enhance good governance by instituting the instruments of accountability and transparency in the system. Toward this end, two important audit manuals, Construction Audit Manual 2011 and Procurement Audit Manual 2011, were developed, published and adopted by the Royal Audit Authority (RAA) in 2011 with support from VI. Advocating Accountability UNDP. and Transparency UNDP Annual Report 2011 23 It is expected that the manuals will go a long way in strengthening accountability and transparency in the procurement process and sound management of the construction sector. In his foreword to the Construction Audit Manual 2011, Auditor General Dasho Ugyen Chhewang, states: “The RAA is required to carry out its Constitutional Mandate of auditing and reporting on economy, efficiency and effectiveness in the use of public resources and the preparation of the manual was to enable the auditors to plan and prepare the audit programme in the audit of constructions cautiously and meticulously”. The Construction Audit Manual 2011 covers all aspects of the construction industry, including buildings, roads, bridges, irrigation works, water supply, and sanitary and electrical works. A chapter on the red flags in the construction sector will help the auditors design appropriate audit programmes and allocation of audit resources. The chapter will enable others involved in the construction sector to be aware of potential risks and lapses. The Procurement Manual 2011 will help the RAA evaluate the economy, efficiency and effectiveness in procurement of goods and services by the public agencies. It covers all procurement aspects like identification, specification preparation, identification of supplier, tendering, receipt, accounting, and storage and disposal of scrap and surplus. The manual will help optimize the use of resources. The development of the procurement manual was in response to irregularities found in the procurement of goods and services occurring in almost every audited agency. The manual guides procuring agencies to ensure fairness and transparency and make available the right quantity of goods and services at the right time. Among the seven areas identified as being prone to fraud and corruption by the RAA, procurement and construction have been ranked first and second. Therefore, the contribution of these two manuals in curbing corruption will greatly contribute to the realization of GNH. The manuals are expected to improve professionalism in service provision, promote accountability, and help the agencies improve the quality of governance and strengthen their internal control systems. The manuals and guidelines were drafted in response to the increase in the plan outlay of the Royal Government and the increased volume of activities that demand audit scrutiny. The manuals are also expected to contribute to the improvement and reform in public administration and provide the government with recommendations based on independent analysis. However, there is no coherent capacity development strategy for the central government institutions and organizations. Nevertheless, a Capacity Development Strategy is in place for Local Governments. The Strategy identifies strategic areas and priorities for capacity building to support effectively decentralized governance system in the country.

24 UNDP Annual Report 2011 ot very long ago the word Promoting progress for all through Nunemployment was virtually unheard of in Bhutan. Today, it rings a harsh reality to hundreds of jobseekers without Poverty Reduction measures stable careers or . In 2011, the youth unemployment rate was 9.3%, according to the 2011 Labour Force Survey. The Survey states that unemployment among young VII. Towards Self Reliance people is mainly due to a mismatch of skills and available jobs, and mismatch of aspirations of the youth and the available jobs in the market. Nevertheless, the Royal Government is fully committed to addressing unemployment, especially among youth by the end of the 10th Plan (2013). This was one of the key areas where UNDP focused its efforts in 2011. UNDP provided technical support to the Royal Government in targeting hard-to-reach, out of school youth in order to increase their employable skills. Over 200 youths were trained on technical skills on construction services, tailoring and entrepreneurship. As a result, 32 women have been employed in tailoring and 30 youths (males) in construction related jobs. After the integration of best practices and lessons-learnt, these programs will lay a the foundation for future youth employment programs The Income Generation Support Programme (IGSP) started in 2009 in the highest poverty rated districts of Zhemgang, Mongar and Samtse. This program has contributed to Bhutanese youth at a school fair UNDP Annual Report 2011 25 the establishment of 44 micro-enterprises including those dedicated to tailoring, beauty parlour, photography, internet café, poultry, souvenir shops, bakery, restaurant, potato chips manufacturing, paper making unit, electrical house wiring service, furniture unit, lemon grass extraction, dairy farm and weaving. These enterprises have not only ensured self-employment for the owners but have also created additional jobs. The initiative has played a catalytic role in promoting micro, small and medium enterprises (MSMEs) as an employment alternative among the unemployed youths. The initiative is also not without problems as some of the enterprises are not able to sustain the business for various reasons ranging from market demand to high cost of inputs and other financial constraints. UNDP also supported rural enterprises in 2011, by conducting business advocacy workshops for 378 rural entrepreneurs (65% of the participants were women). The workshops have been instrumental in promoting rural enterprises and educating potential rural entrepreneurs on trade and industrial policies. As a result, 11 businesses have been established in remote rural areas, where the establishment of business is very challenging given a lack of knowledge and skills. These workshops generated employment and additional income for rural communities, and can be scaled up and promoted in other remote areas in the future. The Brand Bhutan strategy was formulated by the Ministry of Economic Affairs with UNDP’s assistance. The strategy aims to promote Bhutanese products and services that are environmentally friendly and respect cultures in line with major pillars of the Gross National Happiness concept. The , marketing of branded handicraft products has in turn been promoted by the establishment of a Craft Bazaar in Thimphu, led by the newly established Agency for Promotion of Indigenous Crafts (APIC). It helped create critical momentum by setting up a main tourist attraction, contributing to the promotion of indigenous crafts preservation and development. The Bazaar provides one-stop-shop for all types of authentic Bhutanese crafts and is expected to increase market demand, in turn creating income generation opportunities for rural women. It also contributed to improving the distribution channels for crafts and in promoting a retail purchasing consortium. UNDP provided financial assistance to support the establishment of the craft bazaar infrastructure. The diagnostic trade integration study (DTIS) has been formulated by the Department of Trade, in partnership with UNDP, the Enhanced Integrated Facility (EIF) and the UN Conference on Trade and Development (UNCTAD). The DTIS has identified priority actions in tourism, ICT, agriculture, and health (traditional) sectors to mainstream and expand inclusive trade for pro-poor growth. The DTIS report recommendations, once validated and implemented, would contribute to diversified and more vibrant economic activities, leading to the promotion of inclusive growth in the future. Young rural farmer with her produce at a farmers market in Trashigang

26 UNDP Annual Report 2011 VIII. Promoting Youth Rinzin Wangmo, 26, did not qualify for Class XI and decided to enter the labour force rather than continue her education. Leaving behind her aging parents in remote Trashiyangtse she came to Paro. Taking Entrepreneurship up professional tailoring, she gained an apprenticeship working for a tailor in Paro. A year later she was studying tailoring at the Institute of Zorig Chusum in Thimphu. She soon applied to the Vocational Training Institute in Chumey, Bumthang. By now Rinzin Wangmo was an expert tailor however she stil needed an outlet to showcase her talents. Unfortunately she didn’t have access to funds or loans to start her business. Through the local media and the Ministry of Labor and Human Resources, she heard about the IGSP. Under this programme, she was trained with 30 other young people in tailoring and business development skills like accounting and business proposal writing. Upon completion, she applied for a UNDP grant and received Nu. 92,600. This enabled her to procure three sewing machines and one interlocking machine to initiate her business. Today she runs a successful business in Mongar, with a monthly turnover of Nu. 18,000. Her specialty in tailoring is in modern design, she says. Modern methods have more appeal than the traditional ones, as the western influenced outfits are more popular. She has trained two young girls in modern tailoring, and the girls are now running their own business in her hometown of Trashiyangtse. She is currently training her younger sister who recently finished Class XII. Rinzin Wangmo not only runs a successful business, but is also supporting her husband who is completing his college education in Shillong, India. “Had it not been for UNDP and the government, I would not have been able to support myself independently,” she says, adding that the IGSP programme could help more school leavers to create self-employment in the country. Pema Jurme, 28, a Class X graduate from Trongsa, set up his modest furniture workshop in Mongar, but without the aid of a buisness plan. Mongar already had four such establishments, and he was new to the progressive town. However, with hard work, support from his peers and good word of mouth, his business picked up. The residents of Mongar visited his workshop to place orders, so much so that he feared he might not be able to meet their demands. “All this was unthinkable just a few years ago,” says Pema Jurme, who learnt carpentry at the Rangjung Vocational Training Institute in Rinzin Wangmo’s tailoring establishment UNDP Annual Report 2011 27 Trashigang. After graduating from Rangjung, he came straight to Thimphu, like all his classmates did, and worked for a furniture house. Pema Jurme was ecstatic when he learnt that his proposal had been approved and he was awarded Nu. 180,000 for his proposed project in Mongar. He immediately set out to buy machinery and other materials, and the Mongar Municipality leased him a small plot of land for Nu. 6,000 a year. “Business is good,” says the unassuming young man. “But finding the right raw material, especially Class ‘A’ wood, is difficult. And customers look for that kind of wood.” His products include chairs, tables, wardrobes, showcases, and beds, all with modern designs. Pema Jurme says he is working hard, and loves the independence his enterprise affords him. Now he is looking at expanding the establishment, hiring a helping hand, and increasing his production. The major challenge, apart from finding the right raw material, he says, is finding the necessary manpower.

The Chaskar Story Another initiative of the government to alleviate poverty, with UNDP’s support, was the Rural Enterprise Development Programme (REDP) that was initiated in 2002. The REDP was a joint collaboration between the RGOB, the Netherlands Development Organization (SNV) and UNDP. It was started in order to create an enabling environment for rural income generation, self-employment and private sector growth, particularly of cottage and small rural enterprises. It focused on rural economic growth, rural-urban migration, access to technology, community based Micro Small and Medium Enterprises (MSMEs) and cooperatives, particularly those of women and youth. The programme provides support through improved access to micro finance, business development services, marketing, group formation and post-harvest services. Ultimately the programme is designed to improve livelihoods, create financial security and empower lives.Here is one of th many positive changes resulting from the REDP project. Of late, Chaskarpas (people of Chaskar) have a local champion to look up to and his names is Tenzin Dorji. Tenzin has brought about a quiet revolution to the village. The innovative young man was never short of dreams. In 2010, Workers sift incense powder Tenzin Dorji with his young employees at he decided to establish an incense-manufacturing unit. His proposal to the Ministry of Economic Affairs (MoEA) the incense factory stated that the unit would help generate additional cash income to support his family. With UNDP’s support, MoEA approved a grant of Nu. 250,000, with which Tenzin Dorji started an alternate small business enterprise. He bought an incense pulverizer and mixer grinder and soon enough he was living his dream, supplying incense to Mongar. In August 2011, he installed new equipment that increased the production capacity of his unit substantially. As a result of this upgrade, the revenue generation increased from Nu. 20,000 to Nu. 90,000 a month. Today, Tenzin Dorji not only meets the local demand for incense, but also supplies to shops and religious institutes in the neighbouring district of Trashigang. The young entrepreneur has generated employment for eight people (six women and two men), mostly school leavers and single parents. Their salaries range from Nu. 4,000 to Nu. 5,000 a month. The employees say that working in the incense unit has addressed their income needs. Tenzin Dorji is a direct beneficiary of the UNDP Rural Enterprise Development Programme (REDP), a project implemented by the Department of Cottage and Small Industry under MoEA with the aim to alleviate rural poverty. The Regional Director of Trade and Industry in Mongar, Aiman Mahat, who monitors the implementation of the project, has expressed his satisfaction about the project. For Tenzin Dorji, the REDP programme was the turning point in his life. He is confident and motivated by the small success. “I am fortunate to have received the grant,” he says, adding his sales turnover will only get better. He has plans to expand his business and capture other markets in the neighboring districts of Trashiyangtse and Lhuentse. He also plans to employ additional staff. In view of this positive impact, the Royal Government has plans to upscale this programme in the 11th Plan through formulation of policy framework as well as through provision of various incentives such as a tax holiday. This is expected to promote the growth of cottage and small industries in rural areas.

28 UNDP Annual Report 2011 n Bhutan for 2011, there were 246 reported Icases of HIV/AIDS registered according to IX. Encouraging a + government authorities. The prevalence is estimated to be below 0.1% of the population. Attitude on HIV/ The involvement of People Living with HIV (PLWHIV) in the planning and implementation of national programmes is essential, not only AIDs in Bhutan for effective programming and quality impact but also to address societal and psychological problems. Recognizing the need for greater participation of PLWHIV, UNDP in partnership with UNFPA and RENEW, a local NGO, under the guidance of UNAIDS, supported a local HIV/AIDS civil society organization (CSO) called Lhak- sam. The main activities for 2011 were to create awareness among PLWHIV regarding care and support services and advocacy to address stigma and discrimination. With this support, Lhak-sam has successfully expanded its outreach programme to 16 of 20 districts in the country. In addition, technical support was provided to help build leadership capabilities of women and girls living with HIV with the objective of empowering HIV positive women and girls to address their needs and rights as defined by them. On 1 December 2011, during the World Aids Day commemoration, Wangda Dorji, the Executive Director of Lhak-sam, who has been HIV positive for over 10 years revealed his status, becoming the first person in Bhutan to do so. During the revelation, he advocated on the situation of PLWHIV and shared his personal experiences. Wangda Dorji, Execu- Coming out in the open, he says, was a conscious tive Director, Lhak-sam, the first person in decision taken with the sole objective of helping Bhutan to reveal his HIV the nation deal with the issue and encourage status others to fight stigma and discrimination.

UNDP Annual Report 2011 29 The 11th Round Table Meeting Highlights of 2011 September 2011 saw delegates from close to 40 partner organizations, including bilateral donors and international organizations, engage in a policy dialogue with the Royal Government at the 11th Round Table Meeting (RTM) of Bhutan with Development Partners. It was the first RTM after the country embraced parliamentary democracy in 2008. Hosted in Thimphu, it provided an opportunity to discuss Bhutan’s development progress and ways of ensuring that development assistance is aligned with national priorities, in turn making it more effective. The high- level policy dialogue was informed by a background analysis of the socio- economic development situation of the country commissioned by UNDP. The analysis focused on Bhutan’s development challenges, the outcome of the 10th Plan Mid-Term Review, and the democratization process. Furthermore, the meeting reviewed Bhutan’s macro-economic framework, the application of GNH in policymaking and development programmes, and the development of a roadmap for the upcoming 11th Five Year Plan. The event was successful in terms of donor attendance who committed continued support to Bhutan in its development process over the next Plan period (2013- 2018). Participants at the 11th Roundtable Meeting in Thimphu The event was organized by the Royal

30 UNDP Annual Report 2011 Government in partnership with the United Nations and was co-chaired by Lyonpo Yeshey Zimba, Minister-in-Charge of Foreign Affairs and Minister of Works and Human Settlement, and Dr. Ajay Chhibber, UN Assistant Secretary-General and UNDP Assistant Administrator. At the end of the deliberations, the co-chairs also held a press briefing for the media answering questions on Bhutan’s achievements and the way forward. High-level Sensitization Meeting on Pandemic Preparedness The High-level Sensitization meeting focused on activities and outcomes of the multi-sectoral pandemic preparedness initiatives jointly undertaken by the Department of Disaster Management (DDM) of the Ministry of Home and Cultural Affairs (MoHCA) and the UN System in Bhutan, including UNDP. As an outcome of this effort, the National Influenza Pandemic Preparedness Plan (NIPPP) was revised to mainstream the whole-of-society pandemic readiness. The revised plan was based on a number of consultations, meetings, workshops and simulation exercises involving representatives of different sectors in Bhutan. Therefore, Bhutan has moved a step forward in strengthening its resilience towards future pandemics. The draft revised NIPPP 2011 has been presented for high-level government consultation. The second objective of the meeting was to inform participants on the concept of Business Continuity Management, or internal resilience, for ministries of the Royal Government to potential disruptions in their core activities. Participants were informed that disruptions can be caused by major disasters, such as a pandemic or an earthquake, impacting both communities and ministries in Bhutan. Disruptions can also be a result of localized issues that may not constitute a disaster but may seriously impact one or more ministries, for instance the failure of IT infrastructure which would lead to technical breakdown of services for the public. UN Resident Coordinator and the Secretary, The Model Agreement on Customs Facilitation in Humanitarian Assistance Ministry of Home and Cultural Affairs signing the Customs Agreement Developed by the UN Office of the Coordination of Humanitarian Assistance (OCHA) and approved by the World Customs Organization, the Customs Agreement between the UN and the Royal Government includes recommended measures to expedite customs clearance procedures, including simplified documentation and inspection procedures, the temporary or permanent waiving of duties and taxes on imports, as well as clearance arrangements outside official working hours and locations. The UN has welcomed this decision by the Royal Government which will allow the expedition of aid to the country in the event of a disaster. The international humanitarian community considers this as a major step forward in strengthening preparedness and an exemplary initiative for others in the region. The agreement was signed by the UN Resident Coordinator and the Secretary of the Ministry of Home and Cultural Affairs on 8 August 2011. Post Disaster Needs Assessment | Training of Trainers The past three years saw Bhutan hit by Cyclone Aila, two earthquakes and other disasters like the Bumthang fire and wind storms that caused severe damage. These natural calamities caused widespread damage to social infrastructures and religious institutions raising questions on the nation’s preparedness towards disasters and whether it has the capability for a coordinated response. The government, in its attempt to deal with natural disasters, has now endorsed the Disaster Management Bill which incorporates effective disaster management focusing on prevention, risk reduction and mitigation of the potential adverse effects of a disaster. A series of Training of Trainers Workshops were held in three major dzongkhags (Bumthang, Mongar and Phuentsoling) to familiarize key stakeholders and individuals in the use of the Bhutan Post Disaster Needs Assessment (PDNA) Tool. The training focused on the importance of having pre-crisis data, emergency assessments, gender disaggregated data, data analysis, establishing standard operating procedures and using the PDNA Tool. Participants were mainly government officials at the district and gewog levels and were trained in the use of the PDNA questionnaires, which follow international standards but are tailored to Bhutan’s particular conditions. The trainings were a joint initiative of the UNDP and UNICEF in Bhutan. The two UN Agencies also supported the Department of Disaster Management in developing the Post Disaster Needs Assessment Tool and Mechanism through funding for the Bhutan Recovery and Reconstruction Project and Delivering as One funds. UNDP Annual Report 2011 31 Resources and Partnerships

n 2011, UNDP spent over US$ 4.7 million in support of the country’s Idevelopment activities. Funding for its projects and programmes comes from UNDP’s own resources, contributions from donors, other UN agencies and UN thematic trust funds. UNDP relies on in-kind support from the government and other national implementing partners for the implementation of projects and programmes. Of the US$ 4.7 million spent in 2011, 30% came from UNDP’s core funding, 35% from GEF and the rest from other funding sources. Of the three strategic focus areas that UNDP supports in Bhutan, the highest expenditure in 2011 was under the Energy, Environment and Disaster Risk Reduction area (59%), followed by Poverty Reduction and MDG Achievement area (23%) and the Democratic Governance area (16%), the relative weight being determined in large part by the nature – rather than the number - of the activities.

UNDP benefited from the following donor partnerships in 2011:

32 UNDP Annual Report 2011 The Millennium Development Goals (MDGs)

Progress The MDGs represent the simplest of human needs and basic rights that every individual around the world should be able to enjoy—freedom from extreme poverty and hunger; quality education, productive and decent employment, good health and shelter; the right of women to give birth without risking their lives; and a world where environmental sustainability is a priority, and women and men live in equality. Adding to the MDGs is the Royal Government’s commitment to create appropriate conditions for happiness for the people of Bhutan. According to the State of the Nation Report (2011) Bhutan has experienced a significant decline in its poverty rate and has achieved the first MDG of halving extreme poverty and hunger by 2015. Bhutan was able to reduce poverty by more than a third from 36.3% in 2000 to 23.2% in 2007. Poverty in Bhutan is a rural phenomenon and 98% of the poor live in rural Bhutan where access to markets and essential social services is more challenging. The 10th Five Year Plan has established a clear target of reducing national poverty to below 15% by 2013.

UNDP Annual Report 2011 33 The success rate of primary school enrolment has been rising steadily but will require sustained effort to continue scaling up educational efficiency measures. The year 2011 saw an increase of 93.60% of students starting grade 1 who reached grade 5 while 86.90% reached grade 7 with survival rates for girls slightly better than for boys for the year. However, survival rates beyond grades 7 and 8 show significant declines with these grades marking a particular phase when many students tend to drop out of school. Girls’ enrolment as a percentage of the total school enrolment is about 50%, at primary and secondary education level in 2009. Even at the higher secondary level, the enrolment of girls has been increasing steadily over the years. Bhutan remains well on track to achieve the MDG target to reduce under-five mortality rate by two thirds. Further, the Royal Government has planned to reduce U-5 mortality rate to less than 30 per 1,000 live births.

Unfinished business Targets requiring attention are youth unemployment, gender disparity in tertiary education and inadequate preventive and advocacy measures for HIV/AIDS. Bhutan faces a rising trend in youth unemployment (9.3% in 2011), in particular female youth unemployment at 10.9% (2011). 2011 reports show that the national unemployment rate stands at 2.1%. Bhutan has a youthful demographic profile, which means high rate of youth unemployment is likely to persist in future, if corresponding jobs are not created, matched with skills5. During the 11th FYP, the estimated number of unemployed individuals will be over 75,000, mostly represented by educated youths in the ages between 15-24 years6. The pattern of high unemployment in the early age groups indicates that these cohorts are most vulnerable as they will enter the labour market with a certain level of education – and expectation, but without the required skills needed for immediate employment.

The Way Forward Under the data sub theme of the RGOB-UN Poverty Theme Group, the Government is planning to adopt the MDG Acceleration Framework methodology in 2012 to prioritize key bottlenecks and identify strategic interventions to address issues on youth unemployment.

5 49.8% (355,300) of the total population of (713,300) in 2011 was below the age of 24 years and this trend is likely to continue in 11th FYP, LFSR 2011, MoLHR, RGoB. 6 Labour Force Survey Report 2011, MoLHR, RGoB. 34 UNDP Annual Report 2011 Bhutan progress : Status at sub-national level

INDICATORS STATUS

GOAL 1: Eradicate Extreme Poverty and Hunger TARGET 1.A: Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day 1.1 Proportion of population below $1 (PPP) per day Latest BLSS report to be published later in 2012. 1.2 Poverty Gap ratio - same as indicator no. 1.1 - 1.3 Share of poorest quintile in national consumption - same as indicator no. 1.1 - TARGET 1B: Achieve full and productive employment and decent work for all, including women and young people

1.4 Growth rate of GDP per person employed New indicator

1.5 Employment-to-population ratio 44.84% - On track 1.6 Proportion of employed people living below $ 1 (PPP) per day - same as indicator no. 1.1 - 1.7 Proportion of own-account and contributing family workers in total employment New indicator TARGET 1C: Halve, between 1990 and 2015, the proportion of people who suffer from hunger 1.8 Prevalence of underweight children under-five years of age Achieved 1.9 Proportion of population below minimum level of dietary energy consumption New indicator

GOAL 2: Achieve Universal Primary Education TARGET 2.A: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling 2.1 Net enrolment ratio in primary education (NPER) 91.9% - On track 2.2 Proportion of pupils starting grade 1 who reach last grade of primary 93.6% - On track 2.3 Literacy rate of 15-24 year old women and men 56.5% (women only)

GOAL 3: Promote Gender Equality and Empower Women TARGET 3.A: Eliminate gender disparity in primary and secondary education preferably by 2005, and to all levels of education by 2015 3.1a Ratio of girls to boys in primary education 1.02 - On track 3.1b Ratio of girls to boys in secondary education 1.03 - On track

UNDP Annual Report 2011 35 3.1c Ratio of females to males in tertiary institutes 60.8% - On track 3.2 Share of women in employment in the non-agricultural sector 9.6% 3.3 Proportion of seats held by women in national parliament 14%- new indicator

GOAL 4: REDUCE CHILD MORTALITY TARGET 4.A: Reduce by two-thirds between 1990 and 2015, the under-five mortality rate 4.1 Under-5 mortality rate 69% - On track

4.2 Infant mortality rate 47% - On track

4.3 Proportion of 1 year-old children immunized against measles 90% - On track

GOAL 5: IMPROVE MATERNAL HEALTH TARGET 5.A: Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio

5.1 Maternal mortality ratio 255 in 2007, recent data not available- On track

5.2 Proportion of births attended by skilled personnel 64.5% - On track

TARGET 5.B: Achieve by 2015, universal access to reproductive health

5.3 Contraceptive prevalence rate 66.5% - Needs attention

5.4 Adolescent birth rate 59% - On track 5.5 Antenatal care coverage(at least one visit and at least four visits) 77.3% (at least 4 visits) - On track 5.6 Unmet need for family planning 11.7% -Needs attention

36 UNDP Annual Report 2011 GOAL 6: Combat HIV/AIDS, Malaria and and other Diseases

TARGET 6.A: Have halted by 2015 and begun to reverse the spread of HIV/AIDS

6.1 HIV prevalence among population aged 15-24 years Total cases detected 246 in 2011, increasing trend observed- Needs attention

6.2 Condom use at least high-risk sex New indicator

6.3 Proportion of population aged 15-24 years with comprehensive correct knowledge of HIV/AIDS 21%, New indicator- Needs attention

6.4 Ratio of school attendance of orphans to school attendance of non-orphans aged 10-14 years 7.4%, New indicator- Needs attention

TARGET 6.B: Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who need it

6.5 Proportion of population with advanced HIV infection with access to antiretroviral drugs Total cases detected 246 in 2011, increasing trend observed- Needs attention

TARGET 6.C: Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

6.6 Incidence and death rates associated with malaria 194 cases detected in and 1 death in 2011- On track

6.7 Proportion of children under 5 sleeping under insecticide-treated bed nets

6.8 Proportion of children under 5 with fever who are treated with appropriate anti-malarial drugs New indicator

6.9 Incidence, prevalence and death rates associated with tuberculosis

6.10 Proportion of tuberculosis cases detected and cured under directly observed treatment short course 1250 cases detected in 2011. New indicator

GOAL 7: ENSURE ENVIRONMENTAL SUSTAINABILITY

TARGET 7.A: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources

Indicators Remarks

7.1 Proportion of land area covered by forest 70.5 % - On track

7.2 CO2 emissions, total, per capita and per $1 GDP (PPP) Negative net emission- On track

7.3 Consumption of ozone-depleting substances New indicator 7.4 Proportion of fish stocks within safe biological limits

7.5 Proportion of total water resources used

UNDP Annual Report 2011 37 TARGET 7.B: Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss

7.6 Proportion of terrestrial and marine areas protected 51.4%- On track

7.7 Proportion of species threatened with extinction (new indicator) New indicator

TARGET 7.C: Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation

7.8 Proportion of population using an improved drinking water source 96.1% - On track

7.9 Proportion of population using an improved sanitation facility 58.4% - needs attention

TARGET 7.D: By 2020, to have achieved a significant improvement in the lives of at least 100 million slum dwellers

7.10 Proportion of urban population living in slums New indicator- No slum area in Bhutan

GOAL 8: Develop a Global Partnership for Development

TARGET 8.A: Develop further an open, rule-based, predictable, non-discriminatory trading and financial system (includes commitment to good governance, development and poverty reduction- both nationally and internationally)

8.1 Net ODA, total and to the least developed countries, as percentage of OECD/DAC donors’ New indicator

TARGET 8.B: Address the special needs of the least developed countries (Includes: tariff and quota free access for the least developed countries’ exports; enhanced programme of debt relief for heavily indebted poor countries (HIPC) and cancellation of official bilateral debt; and more generous ODA for countries committed to poverty reduction)

8.2 Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, pri- mary health care, nutrition, safe water and sanitation) New indicator 8.3 Proportion of bilateral official development assistance of OECD/DAC donors that is untied 8.4 ODA received in landlocked developing countries as a proportion of their gross national incomes 8.5

38 UNDP Annual Report 2011 TARGET 8.C: Address the special needs of the least developed countries (Includes: tariff and quota free access for the least developed countries’ exports; enhanced programme of debt relief for heavily indebted poor countries (HIPC) and cancellation of official bilateral debt; and more generous ODA for countries committed to poverty reduction)

8.6 Proportion of total imports (by value and excluding arms) from developing countries and least developed countries, admitted free of duty 8.7 Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing New indicator countries 8.8 Agricultural support estimate for OECD countries as a percentage of their 8.9 Proportion of ODA provided to help build trade capacity

TARGET 8.D: Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term Debt sustain- ability

8.10 Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative) New indicator 8.11 Debt relief committed under HIPC and MDRI Initiatives 8.12 Debt service as a percentage of exports of goods and services

TARGET 8.E: In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries

8.13 Proportion of population with access to affordable essential drugs on a sustainable basis New indicator

UNDP Annual Report 2011 39 40 UNDP Annual Report 2011