STATE OF THE NATION

SECOND SESSION THE THIRD PARLIAMENT OF BHUTAN june 26, 2019

Dr Lotay Tshering Prime Minister Royal Government of Bhutan STATE OF THE NATION

SECOND SESSION THE THIRD PARLIAMENT OF BHUTAN June 26, 2019

Dr Lotay Tshering Prime Minister Royal Government of Bhutan Looking ahead, we have a new five-year plan, and a great number of responsibilities of national importance before us. We “ must work together in order to build an extraordinary, strong, secure and peaceful future for Bhutan.” His Majesty The Druk Gyalpo National Day, Samtse December 17, 2018 ༄༅། །འབྲུག་୲་᭼ས་རྒྱལ་ ཁྲི་རབས་辔་པ་ འὲགས་捺ད་ ༧ ୺་སར་讣མ་རྒྱལ་དབང་ཕྱུག་མ᭼ག་୲་བ讟ན་བ筴གས།

༠ ꍼ་鮭སྟི།། དͼན་མ᭼ག་让་ག魴མ་སྐྱབས་གནས་རྒྱ་མ歼་蝲ས། །ད୺་轺གས་རྟེན་ འབྱུང་དམ་པ荲་མ᭼ག་རྩོལ་བས། །ས་སྐྱོང་འὲགས་捺ད་୺་སར་མཚན་ཅན་གྱི། སྐུ་歺་蝴ན་བ讟ན་མངའ་ཐང་རྒྱས་པར་鍼ག། །བ᝼མ་辡ན་䍴གས་རྗེ荲་དབང་ཕྱུག་ ᭺ན་卼་蝲ས། །བྱིན་讳བས་བ䝴ད་རྩི荲་ཆར་རྒྱུན་讣མ་ʹན་ཕབ། །捲་དབང་᭼ས་རྒྱལ་ དམ་པ荲་སྐུ་歺་བ讟ན། །ཆབ་སྲིད་མངའ་ཐང་དར་筲ང་རྒྱས་པར་鍼ག། །སྙིགས་䝴ས་ འགྲོ་མ୼ན་པ䞨་ͱ་ར་蝲ས། །འ᭲་捺ད་བ䝺་᭺ན་གྲུབ་པ荲་མ᭼ག་སྦྱིན་པས། །捲་ དབང་᭼ས་རྒྱལ་དམ་པ荲་སྐུ་歺་བ讟ན། །ཆབ་སྲིད་མངའ་ཐང་དར་筲ང་རྒྱས་པར་鍼ག། སྐྱབས་མ᭼ག་ངག་དབང་讣མ་པར་རྒྱལ་པ་蝲ས། །གསང་ག魴མ་རྡོ་རྗེ་དབང་བསྐུར་ 捲་བསླུ་བས། །捲་དབང་᭼ས་རྒྱལ་དམ་པ荲་སྐུ་歺་བ讟ན། །ཆབ་སྲིད་མངའ་ཐང་དར་ 筲ང་རྒྱས་པར་鍼ག། །ཕན་བ䝺荲་འབྱུང་གནས་རྒྱལ་བ荲་བ鮟ན་པ་འ坺ལ། །རྒྱལ་ བློན་འབངས་འݼར་དམ་གཙང་མ䍴ན་འབྲེལ་ཟབ། །བ䝺་སྐྱིད་坴ན་歼གས་དཔལ་ 蝼ན་ད୴ང་䝴་འཕྱུར། །ལྗོངས་འ䝲་འཛམ་གླིང་ʹན་㽴་མ潺ས་འགྱུར་ᝲག། If you want to know your past life, look at your present condition. If you want to know“ your future life, look at your present actions.”

Guru Padmasambhava

State of the Nation 2019

Contents Embracing the past, celebrating the present, progressing to future

Section I : In Gratitude 08 Introduction 09 In gratitude 10 The journey so far 15 The third government 17 Section II : State of our Nation 19 State of our health 20 State of our education 24 State of our economy 30 Our Priority Sectors 36 Poverty scenario 44 State of our culture 48 State of our environment 52 Our public infrastructure and services 56 Our governance 60 Status of our women and children 64 State of our news media 68 Our foreign relations 72 Section III : Way ahead 76

7 Section I In Gratitude

With hearts full of gratitude, we would like to acknowledge all the accomplishments of the past, and also draw lessons from it. State of the Nation 2019 Introduction

t is a distinct honour and privilege for responsibilities with the enlightened me to present on this auspicious day, guidance from the Throne and blessing of the State of the Nation Report to His our guardian deities. IMajesty The Druk Gyalpo, the Parliament From learning the roles and and the people of Bhutan. responsibilities of stakeholders both This is the first State of the Nation Report within and outside the government and I present as the Prime Minister of the figuring out how the system worked, the third democratically elected government Cabinet ministers and I have come a long of this great nation of ours. way in learning the ropes. I thank Honourable Speaker, Honourable We are grateful to everyone for seeing us Chairperson of the National Council, through a swift transition, and allowing Honourable Chief Justice of the Supreme us time to settle down. Court, Honourable Leader of Opposition The foundation laid over seven months Party, Honourable Members of the is now strong for us to launch into Parliament, the remaining years of our Diplomatic Corps, While we are truly humbled tenure with greater members of the by this great honour we asked clarity and confidence. media and people Back then, our of Bhutan for the ourselves; will we be able to motivation was simple. opportunity to fulfill this precious mandate? present the report. For being a Bhutanese and having received Seven months ago, so much from the when the people country, it was a of Bhutan pressed buttons to exercise natural duty to return in service. their rights in a democracy gifted by the But today, as I stand before my King, Throne, and gave us the sacred mandate country and the people, a realisation of governance, a blend of excitement and dawns that we have a pact. diffidence set in. In that, we all share the responsibility of While we were truly humbled by this transforming our nation and our lives great honour, we asked ourselves; will we for the better, with my government at the be able to fulfill this precious mandate? wheel. But the moment His Majesty blessed It is evident that some responsibilities us, as we received the dakyen on shroud heavier on the third government. November 7, 2018, we were set free of all Bruised by differences along party lines in insecurities. the past elections, people mirror so much hope and expectations from us. We felt empowered to embrace the 9 State of the Nation 2019

There has not been a single day since of our beloved Monarchs, translate the I took office, that I am not reminded hopes of our people, and work towards of eager and trusting faces from the achieving the dreams of our nation. campaign days. I owe to each of them. As we are all united in purpose to serve I know the task ahead is onerous but I the Tsa Wa Sum together, I remain secure also know it is not impossible, if we strive in the thought that we will receive the with sincerity. gracious support and wise counsel of all This is a rare opportunity we have branches of government, constitutional received and in every act and every word bodies, media, private sector and the I utter, I shall do so to pursue the visions public in carrying our mandate. In gratitude

࿇ Our beacon, our King enlightened Monarchs every time major decisions for nation and the people have espite fear that these words could to be made. reduce the overwhelming sense During my interactions with people in of gratitude we deeply hold, all parts of the country, particularly in ID would like to thank His Majesty The pursuit of this mandate of governance, Druk Gyalpo for being our constant and the deep reverence for our Monarchs was reassuring source of wisdom, the moral clearly evident. center that holds us together as a nation. In this journey of democracy and Every time we fall back on the peaceful progress, His Majesty is our wisdom of Constitution, which nation’s conscience and the shining beacon that provides us the critical sense we have lost count by now, we are of direction. implicitly seeking guidance from With each passing day of governance the Throne. in the democratic set up, the role our Monarchs play in securing the peace and Every citizen of our country owes an unity of this nation, the wise and timely undivided debt of gratitude to His decisions made over the years, becomes Majesty for the wellbeing and security we more pronounced. all enjoy. Every time we fall back on the wisdom Today, on behalf of the people of of Constitution, which we have lost Bhutan, I humbly offer our deepest count by now, we are implicitly seeking gratitude to His Majesty, for the tireless guidance from the Throne. We have the and compassionate endeavours for the good fortune to be able to turn to the wellbeing of the people and in the interest

10 State of the Nation 2019 of our country. bear their irreparable loss. His Majesty’s presence during the His Majesty also offered prayers at the opening ceremony of this Parliament Tashichhoedzong, and commanded session, at a time of great personal loss special prayers across the country in and grief with the passing away of His memory of the victims of bomb attacks in beloved grandfather, Yab Dasho Ugyen Sri Lanka in April this year. Dorji, was truly humbling. In such times, just as disasters like Nepal It is a testimony to His Majesty’s selfless earthquake in 2015, our compassionate devotion to his people and commitment King leads the country in expressing to deepening our democracy. We are solidarity with the world and promoting greatly inspired to rededicate ourselves our country’s image as a caring, friendly to deliver our sacred responsibilities as and peace loving. people’s representatives in the service of Meanwhile, it was a moment of national our nation. pride as United Nations Development May I also take this opportunity to Programme presented a special award offer our deepest recognising His condolence to In times of disasters, the Majesty’s leadership His Majesty and compassion and consideration in advancing human our Royal Family of His Majesty greatly alleviates development and as we pray for the wellbeing and Late Yab Dasho the pain and suffering of all happiness of the Ugyen Dorji, an those who are affected. people of Bhutan. inspiring figure This is fitting tribute who led a full by the international life contributing body to His Majesty greatly to our spiritual and cultural for his commitment to peace and human heritage. progress. The auspicious signs witnessed by many The award stood for three major Human at the time of his passing and subsequent Development Achievements: rites serve as testimony. His Majesty’s championing of the holistic In times of disasters, the compassion development paradigm of Gross National and consideration of His Majesty greatly Happiness, His Majesty’s leadership in alleviates the pain and suffering of all environment conservation and climate those who are affected. action, and His Majesty’s guidance, His Majesty’s gracious presence at Bajo which ensured a smooth transition of the hospital, Wangduephodrang, following system of governance and laying strong a bus accident that tragically claimed democratic foundations. eight lives earlier in May, and the grant We are deeply indebted for His Majesty’s of Royal kidu instilled in the bereaved undivided interest in our young people’s family members a sense of fortitude to concern to secure their future as 11 State of the Nation 2019

and His concern to secure their future Environment Protection for Ozone, and as productive citizens of an emerging strong advocate of waste management nation. draws focus to issues that impact not just Bhutan but the world. Be it a graduation or a visit to the startup center or an audience with scholarship In the latest address in June, Her Majesty recipients, the special moments of expressed concerns on increasing interactions with His Majesty motivate waste generation and its impact on them to work harder and pursue a environment, and leads in addressing future defined by values and sense of the issues personally by participating in responsibility. cleaning campaigns. We remain inspired and pledge to work towards preserving On behalf of the 1,275 people who our environment. received citizenship kidu last year, we humbly submit our gratitude. We pledge ࿇ Our spirituality our loyalty and dedication to work Bhutan is defined by our spiritual together towards nation building. heritage. The identity we take pride in ࿇ Our Queen is defined by our culture and tradition which are deeply rooted in our The people of Bhutan would like to offer spirituality. our humble gratitude to Her Majesty the Gyaltsuen, At the heart of it for offering An epitome of grace and are the religious unconditional affection, we deeply appreciate bodies, their prayers support to His and blessings, and Majesty and carrying Her Majesty’s devotion in the rituals and forward the noble the upbringing of His Royal propitiations that initiatives. Highness The Gyalsey, the sustain the peace and progress in the An epitome of grace nation’s son, our future. nation. and affection, we deeply appreciate In all our endeavours, Her Majesty’s we rely on the devotion in the upbringing of His Royal compassionate prayers of His Holiness Highness The Gyalsey, the nation’s son, the Je Khenpo Trulku Jigme Choeda our future. Our country is justly proud and the monk body. We seek support to watch our little prince grow into an of our guardian deities and find refuge endearing figure, warming hearts of in our clergy, as we apply ourselves on people around the globe. propitious moments in daily assertions and in times of disaster and calamities. Her Majesty as the patron of important organisations like Bhutan Red Cross We are deeply indebted to all the Lams, Society, Royal Society for Protection Trulkus and Rinpoches for administering of Nature, Ability Bhutan Society, prayers and activities that result in the ambassador of United Nations collective merits thus sustaining peace

12 State of the Nation 2019 and prosperity in the country. that we are in good hands. It is reassuring to know that children have a safe and We also take this opportunity to offer our secure future. humble felicitation to His Holiness the Je Khenpo for being conferred with the We also thank the De-Suung (Guardians highest civilian decoration, the order of of Peace) for augmenting efforts towards the Druk Gyalpo, on December 17, 2018. maintaining peace and harmony in the country. In times of accidents and While in gratitude of the ceaseless efforts disasters, we have them to rely on. We, in toward world peace and promotion of turn, expect them to be prepared to serve Buddhism, we would like to thank His at all times. Holiness for presiding over a moenlam chenmo and ground-breaking ceremony ࿇ Our bureaucracy of a Bhutanese temple in Rajgir, India. In the heart of our system designed The projects, initiated as a part of towards achieving all our national goals celebration of Bhutan-India relations, is a pool of dedicated people, our civil will not just strengthen ties between the servants. When the beads of political two countries but would also enrich the parties change as government, it is the Buddhist world. thread of bureaucracy that ensures the fabric of continuity for the nation. ࿇ Our security It was to the credit of professionalism and They leave behind their families to protect ours, they stay up all night so commitment of our bureaucracy that we that we can sleep in peace, they settle could step in with ease, and see through for harsh conditions so that our lives are seamless transition as we took over the comfortable. helm of governance. We therefore hold our three armed We might have come with big dreams forces- the Royal Body Guard, Royal for our country but without the support Bhutan Army and Royal Bhutan Police, of our civil servants serving across the in highest regards and esteem for their country we will not be able to translate patriotism and service to the nation. them into reality. As our efforts peak in the coming years, They leave behind their we shall rely on the commitment, wealth families to protect ours, they of knowledge and experiences the civil servants bring. We are confident that they stay up all night so that we will support us when we do right, and can sleep in peace... caution us when wrong. Together, we shall improve the lives of every Bhutanese, especially those As they strive to ensure peace in the vulnerable ones among us. country, our hearts are at ease, knowing

13 State of the Nation 2019

࿇ Our partnerships organisations and private sector, and all the individuals whose efforts add up to Governance is a collective effort of all development of our nation and wellbeing agencies and not just the party elected to of the people. form the government. We remain thankful to our development Bolstering our system are the partners who have invested their trust constitutional bodies, as well as our and sustained it for years to augment undivided interest in our young people welfare of our people. and His concern to secure their future as productive citizens of an emerging Through your diversity of ideas and nation. approaches, resorting to effective means and creativity, our country derives the Our local government, with its best. coherence of our people’s needs, have been instrumental in complementing ࿇ Our citizenry our efforts to creating communities It is not just the votes we received to conducive for proper living and welfare. win the elections but the trust bestowed We also offer sincere appreciation to all upon us that gives us as many reasons to those who came forward to form political work hard for all the people of Bhutan. parties since the onset of democratic But first, for giving us the opportunity to process and set impetus to it. serve, we remain grateful. They have all been critical agents in More than anyone, election times are offering choice for the people over the difficult for the people, who are torn last ten years. among participating parties and its candidates who seek endorsement. We are also impressed with the highest standards displayed by National The residue of politics, growing division Assembly and National Council and in communities, has been harsh on worthy Opposition through quality them. And yet they show up to vote, deliberations and decisions made over manifesting patience and maturity. last two tenures. It drives this Parliament Today, through various channels to perform to the best of its abilities as envisioned in our Constitution. and interactions, our people, right from grassroots, are following the Our judiciary has been exemplary in developments, offering feedback and not just safeguarding our rule of law but engaging in decision making. also ensuring justice of the highest moral standards to uphold innate values of This is an encouraging sign, befitting of humanity. democratic culture. We are listening to them. We intend to nourish people’s trust. I would also like to thank all other entities for coming together to build the The moment people start losing trust nation. This includes the corporations, in the elected government, it is the civil societies, non-government beginning of the failure of democracy.

14 State of the Nation 2019

The journey so far

ost important public discussions and speeches are The first government’s efforts to take punctuated by impressive age- the infrastructure like farms roads deep oldM adages describing an ideal state of into the communities, or the efforts of our country. There is a frequent reference empowering grassroots by the second to the country as a happy one, free from government, are all commendable. To challenges. We Bhutanese have tendency their credits, we have undergone a visible to paint a rosy picture for everyone. Are transformation. we presenting the reality? After a steady progress as a nation, responsibility of governance was passed Ten years since the down from the golden throne to the introduction of democracy, people in 2008. We call it unique and we must take the opportunity cherish it as a gift. How are we taking care to pause and reflect. of the gift so that its value and significance flourish for generations? Are we able to sustain the noble efforts of our monarchs? Today, my government and I will ensure Have we been able to reap the best of the that we strive to sustain the achievements. democratic process? Was our journey But it is also important to look back, see so far in line with our royal aspirations? where we have gone wrong, so that we Could we have done any better? deal with the future better. Questions are numerous. Ten years since For one, it was difficult to comprehend the introduction of democracy, we must that with just two elections, communities take the opportunity to pause and reflect. had experienced divide along political It is time to ask ourselves; are we on the lines. Realising that it would be damaging right track? for a small country like ours, our focus is I am required to present the “state” of on bringing everyone together. our country today. What state are we The issues in hand are as disconcerting. in? It is only when one shoulders the More than 10,000 people are without responsibility of governance that one jobs, and almost half of them are youth. understands the intricacies involved. And we are barely talking about Given the new process, limited resources, underemployment, where our young and new expectations from people, the people have settled for jobs far beneath first two governments have worked their their qualifications. best. 15 State of the Nation 2019

Since the day we started working, we Should the implementation of our Five were mindful of the debt, both domestic Year Plan (FYP) period, which propelled and external, that our country is faced our country to modern development over with. the years, be re-calibrated to reap the best The figures are anything but comforting. of democracy? The present arrangement While we understand that 76 percent of tends to slowdown our economy as one the total debt is hydropower loans, which government exits and before the new one we claim is self-liquidating, it is no time takes off. to be complacent and indifferent. Can there be a more effective formulation Success of our tourism industry is being and implementation of the Plan in a measured by numbers, as opposed to way that the government coming to the visionary policy of “high value-low power gets to work on its development volume”. We seem to have digressed so priorities, and our people derive the much that it calls for deceleration to maximum benefit? ensure we do not exceed our carrying In the maze of changing government and capacity and compromise on Brand planning processes, don’t we need an Bhutan altogether. overall vision that will take us forward We boast of youth literacy rate of more as one nation? What about Vision 2020, than 93 percent. What about the quality the strategic document of 1999 that was of education and the values imparted in supposed to guide us through the times the process? What is the point of giving of “change and modernisation”. free education until Class X and beyond if Even otherwise, should the ownership it does not lead to gainful employment? of each development plan be left to the There are reports of corruption, elected government, deprived of common mismanagement of our limited resources goals that align with His Majesty’s vision and wasteful expenditure in media every to fulfill the aspiration of our people? Are other day. Are we doing well on the scales we on track, as we plan on graduating of ethics and civic responsibility? Has the from category of Least Developed increase in current budget over the years, Countries (LDCs) in 2023? resulted in improved system efficiency? Without asking ourselves the questions Besides the norms and procedures, do on the journey so far, we would be our public servants render empathy and remote from reality, lost in short term respect to our people? Among different fulfillments. If we have to talk about the agencies, is there proper coordination? state of our nation today, it is important Just as we claim, have our mindsets to confront the truth first. changed?

16 State of the Nation 2019

The third government

rom the day we secured the idealistic to even consider. mandate of governance, we were We desire for an inclusive and sustainable mindful of calling ourselves growth. In the spirit of narrowing the Fthe Royal Government of Bhutan. We gap, we wish to encourage enterprises, discouraged being referred to as the creativity and competence, while working “Nyamrup Tshogpa government”. For all to close income gap, uplift those in the reasons, we have to choose to move poverty and work towards equitable forward as one nation, one people. society. The first two governments persevered We wish to present ourselves as a to lay strong foundation of democracy government that serves the people and win people’s trust in the new and strengthens harmony and unity of arrangement. Bhutan. While ensuring to build on their We have come to understand that despite contributions, I feel the third all the efforts, the present state is not democratically elected government must without issues and challenges. But we also make sure the progress so far is in have also come a long way as a nation. We line with national goals. have achieved so much, in all spheres. We are on the mantle purely driven by This report will serve as a basis, the the overarching goal of narrowing the starting line from where we will race to gap. The yawning income inequality is a the end of the tenure. I seek your support. concern. It is time to make tough decisions, and If not efficient, timely and relevant, free not necessarily those that are politically health and education will not serve the popular. purpose. We are a GNH country and we should We are aware that it cannot happen live up to its name and spirit. Let’s grow overnight. As we endeavour to narrow together as a nation. the gap completely closing it is too

17

Section II State of our nation

The present state of our nation is the culmination of our collective efforts. The fruit that we reap today, our national progress, is being realised through concerted endeavour of all sectors and individuals. State of our health

For sustainable development and dynamic economic growth, first and foremost, our people must enjoy good health. Therefore, it is our “ collective responsibility to formulate intelligent and innovative plans and policies, to ensure that the people of Bhutan will always have equal access to quality healthcare.” His Majesty The Druk Gyalpo Convocation, Khesar Gyalpo University of Medical Sciences of Bhutan April 25, 2019 State of the Nation 2019

ealth is the primary agenda of achieved in reducing maternal and child our government. We recognise mortality rates. the urgent need to reduce gaps In line to the targets set in the Sustainable Hin the sector, mainly in terms of access Development Goals (SDGs), we are and quality. confident that Bhutan will be able to achieve these goals. Bhutanese enjoy free access to healthcare but the claim is rendered erroneous when Our disease patterns, are also like that our people in rural areas experience of our economy. The infectious diseases series of hurdles while availing basic are decreasing but an emerging concern services. is the increase in non-communicable diseases (NCDs) such as, cancer, This is why, in addition to improving cardiovascular-diseases, respiratory quality of health services, the government diseases and diabetes. is committed to ensure provision of healthcare facilities in the country in an World Health Organization (WHO) equitable and sustainable manner. estimated that about 69 percent of deaths in Bhutan in 2018 were NCDs related. As a reflection of our commitment to The cost of treating NCDs is exorbitant improve both quality and access, the and efforts are ongoing to create government has approved a flagship awareness on these diseases, which are all program that will ensure multiple lifestyle related. interventions, those not included in the 12th FYP. It is largely through proper advocacy targeted to change behaviors and Over the years, significant investments mindsets that can help combat these have been made to establish health diseases. infrastructure and services across the country. Today, an average of three health facilities are available for every 10,000 Bhutanese. About 96 percent of the population have access to a health facility located within two hours of walking distance. In addition to expanding coverage, there is still much work required to upgrade the services offered in most of these facilities. Despite these challenges, our people are enjoying comparatively good health for longer years. Progress has also been

21 State of the Nation 2019

We are equally concerned about the of the construction of community health rising cases of suicides, which is reflective block at Gyaltsuen Jetsun Pema Mother of state of mental health and its care in and Child Hospital has been completed the country. and handed over to JDWNRH. We are now closely monitoring the construction Records with Ministry of Health reveal of the main block of the hospital. that 191 individuals committed suicide, while 132 made attempts between 2017- It will go a long way in delivering services 2018 and there could also be unreported aimed at ensuring health of mothers and cases. children.

This is a worrying trend for our country, ࿇ Multidisciplinary Super-Specialty which seeks to create the conditions for (MDSS) Hospital the pursuit of happiness by all its citizens. To address increasingly complex health Against the backdrop of these issues and the budgetary implications achievements and challenges, we have of referrals, a MDSS Hospital is much intensified our efforts to build a healthier desired. nation, motivated by our aspiration to The Ministry of Health has already create equal access to quality healthcare started developing the proposal. for all Bhutanese. The MDSS Hospital is expected to Some of the major initiatives carried out in address overcrowding at the JDWNRH, this financial year are listed below: make available operation theaters for sub- ࿇ Healthy mothers and children specialist care and enable sub-specialists to provide sub-specialty care that they are In what is one of the major campaign trained for, among others. pledges of the government, work has commenced to deliver incentives for It will also generate cost savings of breast-feeding mothers who are not more than Nu.220 million annually entitled for paid maternity leave. from reducing third country referrals for treatment of cancers, cardiovascular A “conditional cash transfer” program diseases, organ transplants and packaged under a project called neurosurgical cases. Accelerating Mother and Child Health- 1,000 Day Plus is being designed. At the individual level, patients and family members will also benefit by The program will also monitor health of reducing the expenditure that would women from pregnancy and birth to the otherwise be incurred on availing first six months of breastfeeding. referrals abroad. We are happy to share that the first phase

22 State of the Nation 2019

We also have plans to hire specialists In this fiscal year, a strategic action from other countries so that it allows plan was developed for cervical cancer specialists to undergo sub-specialisation, program from 2019-2023, aligned to ultimately strengthening the human the global strategy for cervical cancer resource requirements in our health elimination. system. ࿇ New vaccine ࿇ Improving health service delivery With support from the Global Alliance With our focus on primary health care for Vaccines and Immunisation (GAVI) services in eight identified dzongkhags, and UNICEF, the pneumococcal a Health Sector Development Program conjugate vaccines (PCV), flu vaccine was Project was implemented from February introduced in January 2019 in the routine 2019 to enhance the overall performance immunisation. of Bhutan’s health system. The vaccine is given to infants at six The initiative will also look at aspects of weeks, 10 weeks and nine months of age health financing, strengthening disease in all health facilities. surveillance and Health Information The vaccine prevents transmission of Systems. pneumococcal bacterial diseases such as

࿇ Eliminating cervical cancer pneumonia, otitis media, bacteraemia, and meningitis in children under five The Ministry of Health has started years. conducting nationwide assessment on cervical cancer, the leading cause of cancer-related deaths among women in Bhutan.

23 State of our education

Is the education our youth are receiving attuned to needs of the nation? And once educated, will our children find employment “ and realise their full potential?” His Majesty The Druk Gyalpo National Day, Thimphu December 17, 2011 State of the Nation 2019

he state of our education will also restraining talents and potentials ultimately determine the state of that could have surfaced a few years later. our nation in the long run. Our This called for drastic and bold measure, Tcountry has achieved a net enrollment which the government has undertaken. rate of more than 96 percent. This means The year will be remembered for that almost all children who have come removing “cut off” point in Class X, of age are in schools. Their life of learning and allowing students securing pass through modern education has begun. percentage to continue their education. In terms of improving the overall quality More than 4,000 students could continue of education, we recognise the central their education, thus rekindling their role played by our teachers who have hopes and dreams. the paramount responsibility of shaping our young minds to become productive The year will be remembered citizens of the future. for removing “cut off” point in With reference to learning outcomes, performance of Bhutanese students is at Class X... par with top Program for International Student Assessment for Development (PISA-D) countries in reading, The move pushes us to realign our mathematics and science, in 2017. education system, diversify training and But significantly below the average skills development pathways and brings when compared with Organization into question relevance of courses at the for Economic Co-operation and post-secondary level. Development (OECD) countries and the best education systems in Asia. Some of the key initiatives in this fiscal year are as follows. While not definitive, these results Quality of teaching and learning indicate that the quality of our education ࿇ and learning outcomes our system is The education ministry continues to delivering must improve drastically. expand Early Childhood Care and Advancements in education at all levels Development (ECCD) programs in the have resulted in more job seekers entering country. Towards this, an additional 49 the market each year. On average, about ECCD centres were opened across the 1500 children as young as 16 have been country in this fiscal year. exiting from mainstream educational and For primary schools with more than TVET pathways on completion of Class X 100 students, about 50 large boarding and entering the job market without any primary schools in rural areas is planned marketable skills every year. to be established within the 12th FYP For the state, this translates into a waste as a part of strengthening the primary of resources invested in them so far, while education system.

25 State of the Nation 2019

The education ministry reviewed central The Bhutan Professional Standards for school programs to further improve the Teachers (BPST) launched on May 2, facilities, provide adequate infrastructure 2019 aims to define work of teachers and and human resources, and to ensure its highlights the elements of high quality sustainability. and effective teaching. Some of the key outcomes of the review It is expected to provide clear professional include rationalisation of free provisions knowledge, skills, values and engagement and segregation of primary divisions required across teachers’ careers. from central schools where possible. Further, it offers a benchmark for The 11th FYP spillover activities of the recruitment, professional learning, career five central schools have been completed. development, retention, promotion, incentives and rewards. A significant change in this fiscal year has been the removal of teaching classes on With the recent pay revision, teaching Saturdays. will be the highest paid profession in the civil service. This is expected to not The Royal Education Council rationalised only motivate teachers but also attract and revised the the best and brightest instructional A total of 12,835 students in 115 into teaching and time. Accordingly, retain qualified and existing textbooks schools will benefit from day experienced teachers were reviewed and feeding, thus reducing burden on in the system in the updated with more their parents. long run. recent information and data. At the As teaching becomes same time obsolete and irrelevant content more attractive, we will be able to draw in were removed and errors rectified. and retain good teachers.

Further, the assessment system at the ࿇ Equitable access to quality education primary level will be shifted from examination based to formative In 2019 academic year, of the 12,033 based assessment system for a strong Class X passed students, government foundation by 2020. supported 4,003 students to study in Class XI in private schools. To promote the use of ICT to enhance quality of teaching-learning process, the To assess the overall performance of this education ministry developed second group of students in private schools, the Education ICT Master Plan (iSherig-2) education ministry has developed specific 2019-2023, which focuses on competency monitoring tools and indicators. development of educators and learners, The education ministry has also initiated content and ICT infrastructure day feeding to support students in rural development. schools who are mostly from socio- economically disadvantaged background.

26 State of the Nation 2019

A total of 12,835 students in 115 schools readily available market. will benefit from day feeding, thus Further, to ensure access to safe drinking reducing burden on their parents. water, education ministry has installed To extend educational services to sky hydrant water filters in 57 schools as children with disabilities, the ministry of now. initiated special schools and Special The ministry also spearheaded a Education Needs (SEN) programs in menstrual hygiene campaign to mark mainstream schools. the World Menstrual Hygiene Day on As of 2018, 16 schools offered SEN May 28, 2019, which is aimed at breaking program that caters to children with the stereotypes that affects the health different range of disabilities. and well-being of girls and women particularly in rural areas. There are two specialised institutes for children with hearing and visual Annual health check-up was also carried impairments. out in schools for all children from Classes PP-VIII. The stipend for school feeding Towards supporting children and young will be transferred to agriculture people’s development, health, and ministry, which in turn will wellbeing, 24 trained school guidance ensure supply of locally grown counsellors were placed in 24 secondary and central schools. About 40 school food to schools... guidance counsellors were trained on clinical supervision in this fiscal year. Technical and Vocational education A total of 798 children are enrolled in ࿇ these schools and institutes, which have As part of the Skills, Training and 726 teachers. The education ministry Education Pathways Upgradation Project, plans to increase the SEN program to 28 starting from the 2020 academic year, schools within the 12th FYP period. TVET will be introduced as an optional subject in Class IX in seven pilot schools ࿇ Health and well-being of students and for Classes X-XII in subsequent The government is in the process of years. developing a sustainable model for school Under the same project, the education feeding program. ministry developed TVET curriculum The increased stipend for school feeding for Classes IX and X, introduced TVET will be transferred to agriculture ministry, clubs, and conducted pre-vocational which in turn will ensure supply of orientation program in schools. locally grown food to schools while also The Ministry of Labour and Human facilitating farming communities with a Resources (MoLHR) has also developed

27 State of the Nation 2019

ten new TVET curricula and revised six foundation by 2020. existing curricula. To promote the use of ICT to enhance MoLHR also developed 11 curriculum quality of teaching-learning process, the officers of the Royal Education Council to education ministry developed second support and integrate entrepreneurship in Education ICT Master Plan (iSherig-2) education system. 2019-2023, which focuses on competency development of educators and learners, The education ministry reviewed central content and ICT infrastructure school programs to further improve the development. facilities, provide adequate infrastructure and human resources, and to ensure its The Bhutan Professional Standards for sustainability. Teachers (BPST) launched on May 2, 2019 aims to define work of teachers and Some of the key outcomes of the review highlights the elements of high quality include rationalisation of free provisions and effective teaching. and segregation of primary divisions from central schools where possible. It is expected to provide clear professional knowledge, skills, values and engagement The 11th FYP spillover activities of the required across teachers’ careers. five central schools have been completed. Further, it offers a benchmark for A significant change in this fiscal year has recruitment, professional learning, career been the removal of teaching classes on development, retention, promotion, Saturdays. incentives and rewards. The Royal Education Council rationalised With the recent pay revision, teaching and revised the instructional time. will be the highest paid profession in the Accordingly, existing textbooks were civil service. This is expected to not only reviewed and updated with more recent motivate teachers but also attract the best information and data. At the same time and brightest into teaching and retain obsolete and irrelevant content were qualified and experienced teachers in the removed and errors rectified. system in the long run. Further, the assessment system at the As teaching becomes more attractive, we primary level will be shifted from will be able to draw in and retain good examination based to formative teachers. based assessment system for a strong

28

State of our economy

Our pursuit of balanced and equitable socio-economic development brought about immense prosperity for our people. For example, enlightened economic policies ensured that benefits from valuable “national resources such as hydropower was neither captured by a narrow economic elite nor influential foreign investors. Instead it was judiciously developed by the state to strengthen our economy and benefit the nation and people at large.”

His Majesty The Druk Gyalpo RUB Convocation May 24, 2019 State of the Nation 2019

ur economy achieved an average In addition to the existing 11,102 job growth of 7.4 percent over the seekers, 56,703 new job seekers are past two decades, labelling us as expected to enter labour market over the Oone of the fastest growing economies in 12th FYP period, thereby taking total the region. The economy grew at the rate number of job seekers to 67,805, of which of 4.6 percent in the financial year 2018- 62,734 are youth job seekers. 19 and is projected to grow by 6 percent The job seekers remain mostly comprised during the 12th FYP period. Bhutan’s of secondary and university graduates. GDP stands at Nu.164.63 billion (2017). Therefore, creating gainful employment and livelihood opportunities for youth is ࿇ Inflation still a major challenge. Prices have remained stable as indicated by slower increase in Consumer Price Between July 2018 and March 2019, Index (CPI) which stood at 2.7 percent 3,454 job seekers were registered with in 2018, lower by 2.2 percentage points the Ministry of Labour and Human compared to 2017, mainly contributed Resources. Of these, 2,253 job seekers by food inflation at 5 percent while non- were directly placed in various private, food recorded a marginal increase of 1.3 corporate and government organizations, percent. and 346 job seekers through Direct Employment Program under the ࿇ Employment Guaranteed Employment Program. As per the latest Labour Force Survey A total of 1,011 Bhutanese have been sent 2018, the country’s employment rate to work overseas between July 2018 and stands at 96.6 percent of which male and April 2019. The loan deferment for youth female employment rate are 97.3 percent under the Learn and Earn Program in and 95.8 percent respectively. Of the Japan has been provided to continue to total employment, majority is rural based learn Japanese language, pursue higher (71 percent) while urban employment education, enroll into vocational colleges comprises 29 percent. or get full time employment in Japan. The overall youth unemployment rate 51 youths have opted for the Loan stands at 15.7 percent (4,921 persons). Deferment Scheme. A team from Bhutan Out of the total unemployed youth, 49.7 led by Labour Minister visited Japan to percent are males and 50.3 percent are see how the program could be further females. strengthened.

31 State of the Nation 2019

Employment Responsibility System, a Grants commitment for the fiscal year multi-sectoral High Level Committee has is Nu.8.6 billion, mainly for project-tied been instituted to bring a coordinated grants. Internal grants of Nu.323 million effort among key agencies to address has been received from the Bhutan employment issues in the country. Health Trust Fund and Bhutan Trust Fund for Environment Conservation to The government approved the Youth undertake health sector and environment Engagement and Livelihood Program preservation activities. with provisions to include exceptional youths who have completed Youth Corresponding with the increase in Engagement Program and Direct resources, total outlay has been increasing Employment Program into National from plan to plan, from Nu.40 billion in Service Program, along with the 8th FYP to Nu.310 billion in 12th FYP. university graduates. The total outlay for the FY 2018-19 is MoLHR will prioritise and identify the Nu.46.7 billion, of which 62 percent is sectors to train youth to avoid wastage allocated for current expenditure and 38 of funds and to discourage youth from percent for capital expenditure. changing their interest and focus. The fiscal deficit estimated at 1.96 percent ࿇ Public Finance of GDP shall be met through borrowings from external sources at concessional Of the estimated resources of Nu.42.9 terms and remaining from domestic billion for FY 2018-19, around 80 percent market. is from domestic revenue and remaining grants. Tax revenue forms major part ࿇ Debt of domestic revenue (77 percent), While Bhutan’s rising public debt has accounting for 13.8 percent of GDP for come under the radar, large share of it the fiscal year. is channelled for the construction of The increase in domestic revenue was hydropower plants. mainly from higher tax collections due The debt levels remain within the to introduction of various tax policies for prescribed threshold of Public Debt direct and indirect taxes and broadening Policy 2016. The total public debt as of of tax base. end June 2019 is estimated at Nu.209.3 With enhanced resource mobilisation, billion, of which Nu.201.3 billion is our domestic revenue is able to fully meet external debt (104.4 percent of GDP). current expenditure while grants from The hydropower debt stock increased external sources have been utilised for to Nu.154.3 billion in FY 2018-19, development activities. an increase of 17 percent mainly on

32 State of the Nation 2019

account of capitalisation of accrued hydropower is expected to reduce interest during construction (IDC) while export base would increase with for Mangdechhu Hydropower (MHP) commissioning of MHPA, and Puna I&II and the disbursements for on-going in the medium term. hydropower projects. By the end of FY 2018-19, the current The total accumulated IDC for MHP account balance is estimated to improve estimated at Nu. 12.2 billion has to a deficit of 13.4 percent of GDP been added to the hydro debt stock, compared to 18.4 percent of GDP in the significantly increasing the total debt previous year. stock. The non-hydropower debt stock Reserves also increased by Nu. 6.2 billion or 15 ࿇ percent compared to previous fiscal year As of March 31, 2019, the gross due to program borrowing disbursements international reserves stood at USD for budget support and on-going projects. 1,082.2 million, which is adequate to cover 13.7 months of merchandise Balance of Payments ࿇ imports or 23.7 months of essential Over the last decade, the overall balance imports meeting the Constitutional of payments has remained positive requirement. averaging at 3 percent of GDP on account However, from FY 2016-17 to FY 2018- of higher capital and financial flows in the 19, the accumulation of reserves were form of hydropower disbursements and lower as inflow of funds through financial grants despite persistent negative current and capital accounts were just adequate to account balance, which was -21.8 percent finance the current account deficit. In the of GDP (2007-08 till 2017-18). medium term, the reserve is projected to As current account balance was largely grow by 13 percent on average and reach driven by trade deficits resulting Nu.124,430 million, equivalent to USD from huge imports of hydro-related 1,800 million by FY 2021-22. investments and imports, the situation is In order to promote a stable macro- likely to change. economic growth and efficient public With the completion of major constructions, imports related to

33 State of the Nation 2019

financial management resources, the 6. The government approved interest following were undertaken: free borrowings from International Fund for Agriculture Development (IFAD) to 1. Preparatory works for possible finance the funding gaps in agriculture introduction of Goods and Services Tax related programs in 12th FYP. (GST) to broaden tax base is underway. 7. The government also approved 2. The government has directed the policy based lending of USD 30 million Ministry of Finance to put in place a from ADB for FY 2019-20. comprehensive guideline for hospitality and entertainment budget to promote 8. Diagnostic assessment of domestic financial thrift. bond market has been carried out to formulate the rules and regulation for 3. A Finance Committee has been issuance of government bonds. instituted to approve project costing up to Nu. 50 million in 10 ministries, 20 9. In addition to conventional dzongkhags and autonomous agencies. financing, Public Private Partnership The initiative promotes financial thrift by (PPP) based model to reduce financial ensuring efficient allocation of resources. pressure on the government is being 4. The Public Financial Management implemented. system is being enhanced with e-payment This is also expected to encourage feature to eliminate all forms of manual private sector participation and interventions including manual cheque development. With the PPP Policy in payment, improve service delivery, place, a feasibility study report of the automate bank reconciliation process, PPP pilot project (Thimphu Integrated provide real-time financial information Bus Terminal) was presented to the PPP and improve decision-making process. Project Steering Committee (PSC) and approved. 5. The negotiation for Development Policy Credit of USD 30 million has The implementation of the project been successfully completed and will be is expected in the ensuing fiscal year. disbursed by end June 2019, which will Nation-wide advocacy on PPP Policy be very critical for financing the fiscal and Rules has been completed including deficit. capacity building to public officials and private sectors is underway.

34 State of the Nation 2019

The 12th Plan

he 12th FYP was formulated Further, GoI has committed Nu. 4 following extensive consultation billion as transitional trade subsidy with the key stakeholders such for strengthening bilateral trade and Tas central government agencies, local economic linkages to support export governments, private sector, development promotion activities. partners, CSOs, political parties, One of the new features in the 12th FYP members of parliament and individuals. is “flagship programs”. Flagship programs While the 12th FYP was approved for are aimed at addressing national implementation on December 6, 2018, level issues requiring multi-sectoral the plan period was considered effective intervention. from November 1, 2018 mainly to align Blueprint with detailed interventions are with the tenure of the government. being prepared in consultation with all The objective of the 12th FYP is “Just, relevant stakeholders. Harmonious and Sustainable Society An amount of Nu.15 billion from through enhanced Decentralisation”. the capital outlay is kept for flagship The size of the 12th FYP is Nu. 310 billion programs. of which Nu. 116 billion is capital outlay The 12th FYP will be the last plan as and Nu. 194 billion is current outlay. a LDC and shall address the last mile Of the total grants commitment in 12th challenges in all sectors and ensure that FYP, Nu. 45 billion is from GoI, Nu. 16.6 Bhutan graduates on a sure footing with a billion from other bilateral and multi- strong economy. lateral agencies and Nu. 1.4 billion is We would like to report that the 17 from internal grants. national key result areas of the 12th FYP are closely aligned with the SDGs.

35 Our priority sectors

If our financial institutions are able to extend unstintedsupport to young entrepreneurs and farmers, and help in creating numerous opportunities for them, we will derive countless benefits. It will go a long way in strengthening “the sovereignty and security of our country, and furthering our social policy of equity and our national objective of self-reliance.” His Majesty The Druk Gyalpo National Day, Trongsa December 17, 2016 State of the Nation 2019 Hydropower

he dominance of hydropower is imbalances, the government adopted evident from the performance the Hydropower Development Strategy of key economic indicators Report in March 2019. Tparticularly growth. The investment in hydropower is being Industry sector has been the major pursued in a staggered manner to achieve growth driver since the commencement the economic goal of self-reliance by of Chukha Hydropower Project in 5th ensuring sustained economic growth. To FYP. this effect, the Electricity Act 2001, and Sustainable Hydropower Development The sector continues to support the Policy 2008, are being reviewed. structural transformation of the economy. In FY 2018-19, the hydropower sector The government has initiated Energy (both generation and construction) is Banking to meet the increasing domestic expected to contribute about 28.3 percent demand. Forecast show that even with of GDP and remain within the range of the commissioning of Mangdechhu 20 percent in the medium term. project, the total power available will not be sufficient to meet domestic demand, While initiatives are being undertaken particularly during lean season. for new hydropower projects, the government is mindful about the The formulation of Power System Master risks associated with the hydropower Plan 2040 is under progress and will be investments such as geological surprises completed by November 2019. and therefore, will adopt a more The domestic tariff cycle for 2019-2022 cautious approach in undertaking new is being reviewed, which is scheduled hydropower projects. for finalisation by June 2019 after which ࿇ Energy Generation and Export the requirements for subsidy allocation The five hydropower plants under Druk will be reviewed. As identified in the 12 Green Power Corporation Limited FYP, the Detailed Project Reports for (DGPC) generated 6,573.990 million Khomachhu project has been initiated. units (MUs) of electricity in 2018, of The preparation of Dam Safety guidelines which 4,053.588 MUs exported. The gross and development of National Standard revenue earning from the sale was Nu. Bidding documents for hydropower 11.681 billion. projects have been initiated and are Considering the major issues concerning expected to complete by 2019. accelerated mode of implementation of 10,000 MW initiatives such as time For the first time, Bhutan Hydropower and cost overruns and macro-economic Services Limited (BHSL), manufactured

37 State of the Nation 2019

two Francis turbines for BAJOLI HOLI ࿇ Hydropower Development – outside and ALPASLAN, Turkey. 10,000MW initiative ࿇ Hydropower Development – • Dagachhu Hydroelectric Project 10,000MW initiative The 126 MW Dagachhu project generated • Mangdechhu Hydroelectric Project 366.04 MU of energy in 2018 earning a The synchronisation test of the first unit gross revenue of Nu. 1.084 billion. of Mangdechhu Hydropower Project was • Tangsibji Hydro Energy Limited carried out on June 16, 2019. With that, (THyE) the first unit was commissioned. The main construction works of 118MW The government formalised the export Nikachhu HEP is progressing smoothly tariff of Nu.4.12 per unit with tariff with physical progress of 31.3 percent as schedule for 35 years, through signing of May 2019. The project is slated to be of the Tariff Protocol in April 2019. The commissioned in December 2021. project is expected to generate 3,008 MUs of electricity annually and contribute an ࿇ Revision of Sustainable Hydropower approximate net revenue of Nu.5.6 billion Development Policy (SHDP) 2008 annually. The government has approved the • Punatsangchhu-I and II revision of SHDP 2008 to provide Hydroelectric Project clarity and emphasis on hydropower as a strategic national resource. The policy The 1,200 MW Punatsangchhu-I intends to ensure that benefits accrue to HEP, and 1,020 MW Punatsangchhu- all Bhutanese people and ensure inter- II HEP are progressing well despite generational equity through broad based numerous issues that have emerged. The ownership strategy. government is committed to expedite the work and ensure that the projects are ࿇ Electricity for All commissioned in 2024-25 and 2022-23, Bhutan has achieved 99.9 percent respectively. electrification. As of May 2019, a total of • Kholongchhu Hydroelectric Project 92,043 rural households were electrified. The pre-construction works of 600 MW ࿇ Promotion of Renewable Energy and Kholongchhu Joint Venture (JV) Project Energy Efficiency that was started in September 2015, • A total of 88 biogas plants were is completed and the preparation for installed under six dzongkhags and it is signing of the Concession Agreement is expected to minimise the dependence on underway. The main work packages will imported cooking gas. be tendered out once the agreement is • The government has electrified a total signed. of 229 households under Soe and Lingzhi gewogs.

38 State of the Nation 2019

Agriculture

griculture sector continues to than 127 million eggs in 2018 against grow steadily with substantial the plan target of 107 million eggs which support from the government. indicates an increase of about 18 percent. AThe sector is estimated to grow by 4.4 The Self-Sufficiency Ratio (SSR) of percent during FY 2018-19 while the eggs in 2018 stands at 100 percent. The sector’s share to GDP was 11.9 percent. government farms have produced and Agriculture remains a priority sector in supplied 359,390 numbers of layer day the 12th FYP with a focus on improving old chicks (DOCs) to the farmers. rural livelihood by increasing agricultural Organic farming has been identified productivity, transforming subsistence as one of the flagship programs of the farming to commercial farming and 12th FYP to enhance and commercialise sustainable utilisation of forest resources. organic farming for socio-economic development through sustainable ࿇ Cash crop production of safe and nutritious foods. Total agriculture produce in fresh form for both domestic and export markets An estimated outlay of Nu.1 billion has worth Nu.2,449.16 million was produced. been approved to implement the organic Of which, cardamom production value flagship program. was Nu.929 million and potato worth of The Ministry in collaboration with Nu.511 million. Ministry of Labour and Human Resources, Ministry of Education, ࿇ Livestock Ministry of Health, and State Owned The milking cattle population has Enterprises (SOEs) have developed the increased to 94,735 in 2018 against School and Hospital Feeding Program the plan target of 83,404 milking cattle with an estimated budget of Nu.3.198 indicating an increase of 13.5 percent. million. Milk production has been recorded at 55,906 MT in 2018 against the plan target This is aimed at substituting imported of 48,399 MT which is an increase of 15.5 food and vegetables in schools and health percent from the set target. Additionally, institutions. This intervention is expected about 6,324 MT of other dairy products to provide nutritious and healthy such as butter, cheese and chugo were food while also facilitating farming produced in 2018. communities with readily available markets. The egg production is recorded at more

39 State of the Nation 2019

This will directly benefit 78, 953 students The program was implemented in eight in 263 schools to be covered under the dzongkhags covering 56 gewogs with School Feeding Program (SFP). The the total household of 1,238 in an area of program in itself will employ about 535 422.49 acres. youth and an additional 3,000 as daily The dzongkhags were also supported wagers with the three SOEs. with seeds for cauliflower (240 acres) and The program will also indirectly employ beans (314.63 acres) production. hundreds of farmers who will be engaged The total winter chilli production as through various farmer groups and of now is 181.38 MT worth Nu.27.207 cooperatives. million. With the ban of selected vegetable The agricultural statistics is being imports from India due to safety reasons, finalised through Renewable Natural winter vegetable production such as chili Resources census. has been prioritised.

40 State of the Nation 2019

Tourism

ourism has been a major ensure creating a regionally balanced contributor both in terms of tourism through the promotion of revenue generation and creation new destinations and diversification of Tof employment. products.

The number of tourist arrivals in the The flagship is expected to create country has significantly increased over approximately 15,000 jobs in the 12th the last 10 years, which not only led to FYP. expansion of the tourism industry but ࿇ Tourism Policy also development in other sub-sectors such as hotels, finance, transport, Formulation of a National Tourism wholesale and retail trade. Policy is underway with wider coverage of stakeholder consultations with While the number of arrivals is on national and international promoters and the rise, the rate of increase in arrivals investors. have slowed down, particularly for international leisure tourists. ࿇ Tourism Development Board From July 2018 to April 2019, the number The government established the Tourism of international tourist arrivals increased Development Board on February 20, by 0.22 percent compared to same period 2019 and the first board meeting was held of the previous year, while the regional on April 29, 2019. tourist arrivals increased by 26.6 percent. ࿇ Tourism Infrastructure The direct contribution to the Commendable progress has been made government in the form of sustainable in providing better facilities in terms development fee, TDS, visa fees increased of sanitation to the visitors. These by 5.3 percent, whereas, contribution include restroom facility at Hongtsho, to the economy saw an increase by 14.4 development of water supply and percent. installation of signboard at Jela dzong The gross convertible currency receipts (Drukpath trek), maintenance of Sengor during the period amounted to USD cafeteria in Mongar, construction of bath 74.45 million. house and supporting facilities at Dodrek dzong. ࿇ Sustainable Tourism Development Flagship Program Other places frequented by travellers are also being developed and maintained. An outlay of Nu.1.5 billion has been approved for the flagship program to

41 State of the Nation 2019

Cottage and small industries

ottage and small industries (CSIs) CSI products, improve coordination has the potential to narrow and collaboration among government the gap through economic agencies, and exploring new regional and Cdiversification focused on boosting international markets for local products economic activities in villages and local among others. communities, enhancing rural income Startup and CSIs has been approved as and in productively engaging our a flagship program in the 12th FYP to growing young population. promote the creation of new CSIs and Today, there are 20,908 CSIs, generating Startups in Bhutan. It is expected to 96,177 jobs. The number of CSIs has create 4,700 jobs. increased by 1,297 in the last year. Priority Sector Lending (PSL) application Three industrial sites have been identified system has been developed, which is at Paro, Dagana, and Trashigang to accessible to everyone using G2B portal encourage young entrepreneurs to start to leverage on the use of information small ventures of their own and to have technology. a better-planned CSI establishments. The We have selected one handmade preparation of a detailed project report handicraft textile for value chain analysis for establishment of CSI estate in Tsirang to facilitate export of horticulture and has been completed. textile handicraft products through Brand 27 startups have been hosted in the newly Bhutan. established Startup Centre and another We have provided opportunities to eight more startups are in the old Service artisans, handicraft producers, and Centre, at Changzamtog. exporters to learn by participating in the On April 11, 2019, His Majesty granted international trade exhibitions and study audience at the Startup Centre to share visits abroad. words of wisdom and encouragement. The government has also initiated the The Cottage and Small Industries government-buy-back mechanism where (CSIs) Policy 2012 has been approved farm shops and Food Corporation of for revision to better promote Bhutan will grade and buy produce from entrepreneurship culture, diversify the farmers.

42 State of the Nation 2019

The Ministry of Economic Affairs in close sector as an important driver of economic coordination with the Royal Monetary diversification” under the platform of the Authority of Bhutan has initiated the Bhutan Economic Forum for Innovative preparatory works for a national event Transformation (BEFIT) to be held in on the theme “catalysing Bhutan’s CSI July 2019.

Mines and minerals

urrently, there are 26 active mines village under Mongar was carried out and 41 active quarries in the where it was found that the estimated country covering a total area of geological reserve of approximately 4 C4,027.24 acres. million MT with limestone grade of 48

percent CaO and 3.6 percent MgO is Revenue generated from the mining estimated. sector excluding contributions from business or corporate income taxes, and Further, a multi-sectoral task force team any other taxes in 2018 was Nu.457.11 was formed and completed the socio- million, which was an increase of 27.58 economic assessment of the Gypsum percent from the previous year. deposit in Khothakpa, Pemagatshel. The Mines and Minerals Management We have also revised the loading capacity Act 1995 has been reviewed or the gross vehicle weight of the comprehensively and the draft Mines Bhutanese registered commercial trucks and Mineral Bill has been tabled in the to support boulder export business. second Session of Parliament. Mining, quarry and manufacturing’s The Bill was drafted in line with the share to GDP has remained low despite policy intent of the government as government’s concerted effort and captured in the Mineral Development interventions to promote the sector. Policy 2017. Mining and quarry is estimated to grow A detailed geological exploration of at 14 percent during FY 2018-19 while chemical grade limestone deposit at Edi the sector’s share to GDP is 3.5 percent.

43 Poverty scenario

It is a concern that in a rapidly growing economy, inequality may bring great divides in our society between the rich and the poor.” “ His Majesty The Druk Gyalpo National Day, Trongsa December 17, 2016 State of the Nation 2019

hutan is committed to work towards achieving SDG goal of “no Following are the key noble initiatives poverty”. and broad-based programs initiated B towards reducing poverty and narrowing The poverty rate is at 8.21 percent. In the the gap between haves and have-nots. last six years, multi-dimensional poverty ࿇ His Majesty’s kidu Initiatives has also decreased from 12.4 to 5.4 percent today. His Majesty’s kidu programs continue to serve as an important social safety net, At present, a person in the top 20 percent which include land and khimsa kidu, of the national population consumes 6.7 Gyalpoi Tozey initiative, resettlement times more than a person in the bottom programs and the land user right 20 percent of the population. initiative. The mean per capita expenditure of Since 2008, His Majesty has granted land households in the fifth (richest) per capita kidu to 123,995 beneficiaries. consumption quintile (Nu. 17,802) is more than seven times that of households The Gyalpoi Tozey initiative continues to in the poorest per capita consumption support needy students. There are 1,747 quintile (Nu. 2,468). The Gini coefficient students supported by His Majesty under has increased from 0.35 to 0.38 in last 10 this initiative. years. Gensho Zhabtog is another kidu Addressing the widening income gap, intervention by His Majesty, supporting poverty and inequality is a key priority 863 elderly citizens with a monthly for this government. If left unaddressed sustenance amount. these issues have the potential to impede The National Land Commission upon overall economic growth and undermine the command of His Majesty started the the internal peace and unity of our National Resettlement Program (NRP) in nation. 2011. Issues ranging from lack of income NRP identifies families who are landless earning opportunities, labour shortages, or socio-economically disadvantaged and rural-urban migration and lack of resettles them on 50-decimal freehold adequate infrastructure and services like and user-right arable land. education and health, further reinforce poverty and inequality in the country.

45 State of the Nation 2019

The Land Use Right initiative started socio–economic development process, and as a component of land kidu in 2016. improving the socio-economic condition The initiative seeks to bolster land of persons with disabilities and their productivity, provide employment for family. youth and promote commercial farming. ࿇ Resource allocation to Local Individuals are also provided a monthly Governments stipend of Nu.3, 750 up to 12 months The 12th Plan capital resource allocation under the Land User Right program. to local government takes into account ࿇ Broad based social investments the incidence of poverty in gewogs. More resource share are allocated to gewogs a. The government introduced the with higher incidence of income poverty. provision of financial support to students who could not qualify for public schools Similarly, more resource share is allocated after Class X examinations, majority to gewogs with lower incidence of of whom are from humble families to household income. continue their education until Class XII in ࿇ Low income housing scheme private schools. To provide affordable housing for low b. The government has also initiated day and middle income groups, the National feeding program to support students in Housing Development Corporation rural schools who are mostly from socio- Limited has added 554 units to the economically disadvantaged background. housing stocks between 2018 to 2019 c. The National Policy for Persons with particularly in Phuentsholing, which Disabilities has been developed with the benefits those people residing across the dual objective of promoting participation border. as equal members of the society and in

46

State of our culture

For a small landlocked country, located between two large countries, our culture and traditions have provided the basis for our national “identity and thus bolstered our security and sovereignty.” His Majesty The Druk Gyalpo RUB Convocation, Thimphu May 24, 2019 State of the Nation 2019

riorities for governments may Some of the key initiatives in this financial vary in keeping with changing year are presented below: times but it should be the primary Promotion of culture and traditions considerationP of every government to ࿇ ensure our culture and tradition remain Proclaiming our proud heritage that resilient and relevant as we progress. defines us as Bhutanese, Bhutan Week, an event showcasing our rich culture and On our part, we want to ensure that the ways of life was held in India in change in customs, skills, lifestyle and September, 2018. languages are absorbed in a way that it strengthens our age-old culture and The event was a part of the celebrations practices. held to mark the 50th anniversary of formal diplomatic relations between For now, our efforts will continue in Bhutan and India. fortifying the tangible cultural sites, the monuments that stood testament Alongside the celebration, the to our progress as a nation. These sites construction of Bhutanese temple in are exposed to a range of disasters such Rajgir, India commenced. as earthquakes, fire, windstorm, and A week after the laying of foundation in landslides. November, 2018, for the first time, We are also mindful that the proponent His Holiness the Je Khenpo presided over of our spiritual heritage, a moenlam chhenmo in India. Dratshang Lhentshog, faces challenges More than 2,500 monks from Bhutan, in terms of providing quality monastic India and Nepal, along with thousands of education, ensuring health and devotees, attended the moenlam sanitation of our monks and nuns, and chhenmo. providing adequate infrastructure for the institution. The government has approved to celebrate significance of Terton Pema Focus needs to be drawn on our Lingpa, coinciding with his death intangible culture, as some of our local anniversary. dialects, songs, dances, lozeys, festivals and rituals near extinction. With technical backstopping provided by the Department of Culture, nearly For instance, Olekha, a local dialect 80 percent of the construction of spoken in Rukha, Wangduephodrang is Druk Dongkarcholing lhakhang at already extinct. Kathmandu, Nepal, has been completed.

49 State of the Nation 2019

We are happy to report that Thimphu Preservation of cultural heritage was also declared as the SAARC Cultural ࿇ sites Capital in May 2018. The construction of new dzongs In celebrating the lives and culture of our in Pemagatshel and Sarpang, and nomads, the guardian of our highlands, reconstruction of Wangduephodrang and the third Royal Highland Festival was Drukgyel dzong are progressing well. held in Laya, Gasa in October, 2018. Paro Ta-dzong conservation project Inspired by His Majesty, it is an was completed in May this year, while opportunity for highlanders from all Wangditse will be completed by July, parts of Bhutan to come together, exhibit 2019. Phajoding monastery conservation their values, knowledge and practices that project is expected to be complete by define them. December 2019. Two archaeological sites at Phobjikha and Khotakha in Wangduephodrang have been identified, surveyed and mapped.

50

State of our environment

Where we live must be clean, safe, well-organised and beautiful; for national integrity, national pride and for our “ bright future. This too is nation building.” His Majesty The Druk Gyalpo Royal Bhutan Flower Exhibition, Paro April, 2015 State of the Nation 2019

he profound policies articulated Gyaltsuen launched the National Waste by our Monarchs and conscious Management Strategy and Zero Waste efforts over the years to realising Hour on June 2, 2019. Tthem have ensured that our pristine The Zero Waste Hour encourages every environment stay protected for the citizen to dedicate an hour, on every benefit of all generations. second day of the month, to cleaning.

Protection of our environment is a shared ࿇ Disaster management responsibility of all Bhutanese. Each one of us- individuals, organisations and Disasters and geological surpises are businesses must reflect on whether our inevitable. We are blessed as a nation for actions match the noble intentions of our His Majesty always bestows His sympathy monarchs. and support in times of disasters. In the last one year, Rapid pace of socio-economic development demands conversion of His Majesty granted Nu. 8.88 million to forests for other land uses. Growing waste 1,268 households as Royal semso for crop generation, particularly in urban areas damages. Royal semso was also granted is exerting tremendous pressure on our for other disasters amounting to Nu. environment. 2.125 million to 324 individuals. The government is committed to The Cyclone Aila in 2009 and continuing efforts to preserving our earthquakes of 2009 and 2011 taught us environment. To address the mounting how timely information is critical for the problem of waste and mitigate its impact government to intervene in saving lives, on the environment and public health, properties and mobilising quick relief waste management has been identified as support for affected communities. Efforts a flagship program of the 12th FYP. are underway to strengthen the country’s disaster management information system. Some of the plans and programs initiated in this fiscal year are as follows: Follwing the European Development Days this June, the European Union ࿇ Tackling waste Commission granted Euro 3.3 million Alongside the waste management for enhancing search and rescue during flagship program, Her Majesty The disasters.

53 State of the Nation 2019

We are happy to share that the system gas emissions and carbon offsets from catering to all vital information required renewables, increase the viability of both during pre and post disaster period hydropower projects, and fulfil Nationally has been developed. Determined Contribution (NDC) This will also help carry out needs commitments. assessment for response and relief A National Adaptation Plan Readiness operations in the affected communities project is also under consideration, which and can be used as data or information is aimed at reducing vulnerability to the source. impacts of climate change by building With the completion of structural design adaptive capacity and resilience. for National Emergency Operation For sustainable use of environment Center (NEOC), the construction work and maintaining ‘inter-generational will begin in the financial year 2019- equity’, the government approved an 2020. The NEOC will function as the interim guideline for surface collection information nerve center, and command and dredging of river bed materials for and control center for coordination and export. management of disasters in the country. This was also intended to harmonise the contradicting regulations among ࿇ Climate change and carbon neutrality Department of Geology and Mines, Department of Forest and Park Services A concept note on Bhutan Climate Fund and Natural Resources Development is in place to facilitate monetisation Corporation Limited. of Bhutan’s net negative greenhouse

54

Our public infrastructure and services

The question I have is, how are we able to leverage technology for education; job creation; good governance; effective, timely “ and efficient delivery of services to our people; private sector development and growth; and accountability and transparency?”

His Majesty The Druk Gyalpo Convocation Ceremony of the Royal University of Bhutan May 24, 2019 State of the Nation 2019

eing a landlocked country, In the 12th FYP, we will make every effort good network of roads, ICT to further improve our road networks, infrastructure and efficient public public transport system, connectivity, Bservices are necessary for socio-economic and enhance efficiency of public services. development. Following are some of the key initiatives taken in the last fiscal year in this area. With increasing vehicle numbers, ensuring the quality of our roads ࿇ ICT development has become important for safety and To harness the untold potential of efficiency. ICT to transform Bhutan into a smart We are happy to report that as of today, and inclusive society, Digital Drukyul we have over 18,395 kms of roads, which Flagship Program has been developed includes 180 gewogs with blacktopped which will be implemented from July roads. 2019. In addition to roads, reliable and efficient The program will support projects such as air connectivity is essential not only for One Digital ID, Digital School, Integrated tourism but also for connecting Bhutan to Citizen Services, e-Patient Information the world outside. Realising this, the Paro System, Government Initiated Network, International Airport has been expanded e-Business, enhancement of ICT sector's and improved. capacity and capability. Given the country’s topography and Following the launch of South Asia geographical terrain, providing efficient Satellite (SAS) and the allocation of a public services online in a coordinated transponder to Bhutan, setting up of manner is a priority. ground station was completed in January, 2019 with the test and performance As of now, there are over 174 evaluation carried out by ISRO officials. government-to-citizen and government- to-business services provided online. ࿇ Improved road networks Additionally, 200 out of the 205 gewogs The widening of the Northern East-West have community centers established to Highway accomodate a double lane road, enhance accessibility and avail of the which is an integral part of services.

57 State of the Nation 2019

connecting the eastern and western parts reliable distribution, including adequate of the country. irrigation water. Of the total 376 kms of this high way The program will undertake construction widening project, 339 kms has been of new water supply schemes, completed. Works to double lane the rehabilitation of existing ones, water Thimphu-Trashigang highway is expected source protection and water quality to be completed by June 2020. testing surveillance.

࿇ Air services The government is carrying out regular routine maintenance of 2,725 kms of In an effort to facilitate Bhutanese airlines National Highway and 1,978 kms of GC to operate in more cities both outside road. This year, 40 kms of the 53 kms of and within the country, the government National Highway has been resurfaced signed an Air Service Agreement with at a cost of Nu. 82 million, and 11 new Dubai on December 29, 2018. bridges were constructed. Improvements are also being made The construction of Dagapela-Dalbari, to Bumthang, Gelephu and Yonphula and Samrang-Jomotsangkha roads are domestic airports. progressing well, and 4.23 kms of Ossey Since its establishment in 2015, the road is expected to open to traffic by June Royal Bhutan Helicopter Services 2019. carried out 602 missions, which includes The construction of 1.3 kms of Pasakha 160 emergency medical services, 15 access road and construction of Thaktri firefighting services, 262 local and 165 tourist charter services. to Sakteng Gewog Center (GC) road were also completed. ࿇ Sustainable human settlements

࿇ Safe and reliable water supply To address increasing rural-urban migration and promote regionally The flagship program, approved this balanced development, a Comprehensive fiscal year, aims to provide access to National Development Plan 2030 has safe drinking water in both rural and been developed by the Ministry of Works urban households. It will focus on and Human Settlement.

58 State of the Nation 2019

࿇ Public service delivery are collected through the online e-kaasel system and attended to by dedicated The Public Services and Grievance officers of PMO. Redressal Division (PSGRD) under the Prime Minister’s Office (PMO) monitors To provide maximum uptime and efficiency of public service delivery. continuity of services the DataHub has The division which functions under my been initiated. Around 112 key public supervision also facilitates delivery of services (45 services of autonomous public services using online systems in agencies and 67 of ministries) have been close collaboration with the respective identified, which will be made available agencies and Department of IT and online. Telecom (DITT). The government opened an export permit PSGRD attends to walk-in grievances and office at the Paro International airport find ways to solve them. to ease public on availing non-antique export permit from April 15, 2019. In addition, grievances related to delayed public service delivery by public agencies

59 Our governance

As a small country, unencumbered by the complexities faced by much larger countries, we can do things faster and better than “ others. Our institutions can be smart, flexible, responsive, dynamic and efficient.”

His Majesty The Druk Gyalpo Convocation, Royal University of Bhutan May 24, 2019 State of the Nation 2019

ood governance strengthens seven sessions so far. democracy, promotes rule of law, ࿇ Memorandum of Understanding and ensures equitable socio- (MoU) Review Committee economicG development, which are the bedrock for creating a just, harmonious In December 2018, we re-established the MoU Review Committee, in the interest and sustainable society. of faster decision-making. The cabinet has ࿇ Anti-Corruption Commission (ACC) authorised the committee to decide and approve MoUs. The committee submits The ACC continues to strive towards MoUs to cabinet only if they are unable to building a happy, harmonious and decide. corruption free society. So far, four MoU meetings have been In this fiscal year, ACC received over 333 conducted. complaints with an average of about 28 complaints per month. ࿇ AM with PM: A session with the Prime Minister Bhutan has been ranked 25th out of 180 countries by the Transparency Believing that effective communications is International in its Corruption Perception critical to governance, I started ‘AM with Index 2018 and within the Asia-Pacific PM: A session with the Prime Minister’, an region it is the 6th least corrupt nation. interactive program that helps me reach out to individuals and organisations of all ࿇ Election Commission of Bhutan nature. (ECB) The first session was held with the The ECB successfully conducted the Chief Justice, Justices and officials of Third Parliamentary Elections 2018, and the Supreme Court of Bhutan on April His Majesty the Druk Gyalpo conferred 2, 2019. Since then, 24 different groups Druk Thuksey to ECB for conducting the participated to discuss wide range of issues elections in a free and fair manner. and obtained feedback on government We believe in collective decision policies, plans, and programs. making because it is about the lives ࿇ Densa meet of all Bhutanese and future of our children. In this, to ensure and facilitate To ensure effective coordination among comprehensive consultations, we initiated different sectors, and making the most the following: out of residential proximity, the Prime Minister and Cabinet ministers meet at Committee of Secretaries (COS) ࿇ the ministerial enclave every Friday. We reinstated the Committee of Called the Densa Meet, it is an extension Secretaries on December 11, 2018. COS of Lhengye Zhungtshog. Presentations and provides policy advices and support to discussions are held on agenda that add the government while promoting whole- value to the decision making process at of –government approach to enhance Cabinet meetings. good governance. The committee met over

61 State of the Nation 2019

In promoting good governance, some of the To further improve the rigour and key activities were: effectiveness of monitoring and evaluation system, the Government Performance 1. With the vision to create ‘free, fair, just Management Division under the Cabinet and harmonious society,’ the Office of the Secretariat has come up with an Annual Attorney General (OAG) in collaboration Performance Agreement (APA)-Quality with Judiciary, Anti-Corruption Assurance Framework (A-QAF) to ensure Commission, Royal Bhutan Police, Bhutan that the APAs are closely aligned with the National Legal Institute, launched the national objectives in the FYPs. Justice Sector Strategic Plan (2018-2023) to provide more responsive, efficient, The first leg of A-QAF sensitization accountable, and accessible services. for Central Agencies has already been carried out from May 28-31, 2019 and 2. oag is currently reviewing the sensitisation for local government Diversion Guidelines and Child administrations is underway. Prosecution Guidelines to avoid minors having to undergo formal prosecution ࿇ Regulatory Impact Assessment proceedings. Framework 3. The second session of the third The government will amend Regulatory Parliament passed Fourth Pay Impact Assessment (RIA) rules and Commission Bill, adopted Penal Code regulations to ensure consultation and (Amendment) of Bhutan Bill 2019 and assessment are carried out before a bill is the Civil and Criminal Procedure Code drafted. (Amendment) Bill 2019. This will ensure that only laws that are 4. The Mines and Minerals Bill of Bhutan genuinely required are drafted by the 2019 was referred to the Economic and concerned government agencies. Finance Committee for further review The RIA process will scan out unwanted and submission in the next session of the proposals and save cost that may be Parliament. incurred in drafting that law. 5. recognising the merit of having retired Further, the rigorous scrutiny of the public servants and experts in the Boards financial, social and other impacts of the of State Owned Enterprises (SoEs) to legislative proposal will ensure that only facilitate quality decisions, the finance practicable laws are being drafted and ministry has been directed to develop a adopted. format for appointment of chairperson and board members of SOEs. ࿇ Amendment of Electricity Act of Bhutan 2001 6. The Government Performance Management System (GPMS) continues to Revision of Electricity Act has become strengthen the monitoring and evaluation a priority to bring clarity to the roles to ensure smooth implementation of the and responsibilities of various players, five year plans and programmes. affix accountability and ensure the long

62 State of the Nation 2019 term growth of the sector in terms of The Member of Parliament from restructuring, electricity trading, market Dewathang-Gomdar moved the motion. It participation, technology development recieved majority support and was passed. and capacity building. 2. Motion to review and implement Since the enactment of the Act in 2001, Bhutan National Human-Wildlife conflict there have been amendments and Strategy as National Flagship Program. promulgation of other Acts and policies The Member of Parliament from Bardo- with conflicting provisions. Trong constituency moved the motion. In The revision of Electricity Act is to absence of majority support, the motion harmonise these conflicting provisions was not passed. and bring consistencies as mandated by the Parliament. 3. Motion to review sub-ordinate legislation by Parliament before The following motions were moved during implementation by agencies. first session of the third Parliament: The Member of Parliament from Gangzur- 1. motion to bring community centers Minjey moved the motion but did not under gewog administration. recieved majority support. The Member of Parliament from Panbang 4. Motion for revision of stipends for moved the motion, which could not be students of Royal University of Bhutan adopted as it failed to acquire majority (RUB) support of the House. The Member of Parliament from 2. motion to retain the post of gaydrungs Tashichhoeling constituency moved the under gewog administration. motion which was referred to RUB for The Member of Parliament from Bongo- futher action and decision. Chapcha constituency moved the motion 5. Motion for policy to substitute LPG and was passed with majority support. import by promoting the use of electrical 3. motion to institute special and targeted energy and home appliances. measures to promote tourism for balanced The Member from Bardo-Trong regional development. constituency moved the motion which The Member of Parliament from recieved majority support and was passed. Dewathang-Gomdar constituency moved 6. Motion on the need to establish the motion. It received majority support Separate Medical Service Access and and was passed. Employment Opportunities for the The following motions were moved during differently-abled persons. the second session of the third Parliament: The Member from Khatoed_Laya 1. motion to ammend Road Safety constituency moved the motion which Transport Authority was passed with majority support.

63 Status of our women and children The future is neither unseen nor unknown. It is what we make of it. What work we do with our two hands today will shape the “ future of our nation. Our children’s tomorrow has to be created by us today.”

His Majesty The Druk Gyalpo Coronation address at Changlimithang, Thimphu. November 7, 2008 State of the Nation 2019

hutan has made significant safe and secure environment for them to progress in closing gender gaps thrive. in education, health and labour Some of the key initiatives in this force.B We have achieved gender parity in financial year are as follows: primary education and the overall female literacy rate has risen to 59 percent in ࿇ Promoting gender equality 2017. In the same year, composition of The National Gender Equality Policy women in civil service grew to 35.43 that provides the impetus and necessary percent. framework for guiding our efforts to But a gap remains in women’s ensuring equal rights, opportunities and representation at decision-making levels. benefits for women and men in the family, Presence of women in Parliament is only workplace and in society at large has been 15.27 percent and 11.6 percent at local drafted. government. We are aware that female A revision of National Plan of Action youth unemployment rate at 13.2 percent, has been completed to promote gender is higher than male youth unemployment equality in elected offices and also to rate of 11.2 percent. increase women’s political participation. Concerns remain in the areas of violence To support women’s participation in against women and children and their governance and the civil service, NCWC protection. While prevalence of violence has established 17 creches at workplaces against women and girls (2017) was across the country of which five were estimated at 6.1 percent, studies revealed established in fiscal year 2018-19. high tolerance rate of violence against Promoting child wellbeing and women with 53.4 percent. ࿇ protection It was also found that every six out of 10 The National Plan of Action for Child children aged between 13 and 17 years Wellbeing and Protection was developed in Bhutan have experienced at least one towards mainstreaming child well-being incident of physical violence. and other measures in the national and We remain committed to empowering sectoral plans and programs. women and protecting our children and In addition, a concept note on National will continue to scale up support services Child Policy was also developed to through various means including efficient support child wellbeing and protection institutional referral linkages to create a systems in the country.

65 State of the Nation 2019

࿇ Addressing violence ࿇ Strengthening support services The Gender Based Violence (GBV) Pilot A toll free helpline (1098) for women and Project “Gakid Lamtoen: Babesa for children in difficult circumstances was Change” is a first of a kind in Bhutan established and launched on October 11, focused on preventive interventions 2018 to provide immediate counselling, in GBV through “Partnership for legal and referral services around the Prevention” P4P model. clock. The project was launched on November The Women and Children Committee in 25, 2018. Through a community based all dzongkhags and thromdes established approach, it will enable a community, in this fiscal year would also manage Babesa in this case, to lead its own cases and enable timely and effective violence prevention. access to prevention, response and reintegration.

66

State of our news media

In our small nation, media can be even more effective in encouraging debate and participation vital to building a “ vibrant democracy." Royal Kasho granted to Bhutan Media Foundation February 21, 2010 State of the Nation 2019

n November 7, 2018 His ࿇ Improving access Majesty The Druk Gyalpo Introduction of the “Friday Meet” that conferred dakyen to the third enabled media representatives to follow Odemocratically elected government and up with government on important our tenure officially began. developments on a weekly basis. That same day, the government met Theme-based M“ eet the Press” sessions with the Bhutanese media fraternity to were also started to provide timely access share its aspirations for the country and to information on latest developments and commitment to working together with enable the media to produce substantive the media. reports for dissemination to Bhutanese people. The government has always acknowledged the media as a critical The Prime minister and Cabinet institution that upholds the spirit and ministers also considered one-on-one promotes values of democracy. interviews. We look to the media as a partner to Besides interactions with editors, we have empower people through timely and also met media representatives, Bhutan accurate dissemination of information. Media Foundation and the Journalists Association of Bhutan to understand the The World Press Freedom ranking for issues and challenges facing the media Bhutan has improved from 94th to 80th fraternity. out of 180 countries. However, we are aware of the financial ࿇ Better transparency sustainability struggles faced by our To improve access to information, we private media houses. This in turn, affects are in the process of identifying media the quality of journalism and subsequently officers in all 10 ministries. They will the content. Despite the many challenges, facilitate information sharing and work contributions of our media are closely with media representatives. commendable. Besides mainstream media, we are also Good governance cannot thrive without mindful of the reach and advantage of a strong and responsible media. We are in social media. regular discussions with relevant media agencies to explore ways to foster media We are using social media platforms growth. to not just keep people updated with credible information but also collect Some of the key initiatives for strengthening feedback and suggestions. the media, so far, are:

69 State of the Nation 2019

࿇ Media support and sustainability grant to cover rural issues. We are concerned about the sustainability Government also spent content grant of of our private media, and folding of Nu. 612,196 and Nu. 509,720 as inserts in the last dzongkha newspaper early this newspapers. month was indeed unfortunate news. The content grant were also extended to We are now left with only five private the private radio stations in 2018. newspapers and one state-owned national A daily allowance of Nu 1,000 per daily. day and mileage of Nu 16 per kms While we encourage media owners to are provided every fiscal year. We are revisit their business models, we are also in discussion with Bhutan Media continuing with the printing subsidy, and Foundation to strengthen human supporting capacity building, and content resource in the media industry.

70

Our foreign relations Our most important long term national goals include: enhancing our security and sovereignty; promoting our unique “ traditions and cultural heritage; conserving our environment; promoting peaceful and harmonious coexistence with other nations, and enhancing the reputation and national identity of our glorious nation of Palden Drukpa.” His Majesty The Druk Gyalpo National Day, Samtse December 17, 2018 State of the Nation 2019

ur Monarchs have deftly crafted Diplomatic Relations between Bhutan our foreign policy over decades. and India and the two countries celebrated this historic milestone in a OIn the past years, Bhutan befitting manner. witnessed strengthening of its This year after the general election in engagements and cooperation with all of India, I represented the people of Bhutan its diplomatic partners and other friendly in the swearing-in ceremony of India’s countries. Prime Minister, Shri Narendra Modi. We now enjoy even greater level of I offered our sincere gratitude to His understanding and cooperation with Excellency for making us a part of an these countries. important milestone of not just India, but the region and beyond. Our deepest appreciation and gratitude to His Majesty for His audience to foreign ࿇ Bilateral and Multilateral Relations dignitaries and engaging tirelessly with them from around the world regularly. 1. UNDP award to His Majesty the Druk Gyalpo ࿇ Bhutan-India Relations On behalf of the United Nations Our relation with India continues to Development Programme (UNDP), grow stronger every year, building on the Mr. Achim Steiner presented a Special strong foundations laid by our visionary Award of Recognition to His Majesty the Monarchs. Druk Gyalpo to honour His Majesty’s The State Visit to India from December leadership in advancing human 27-29, 2018, at the invitation of His development, and the wellbeing and Excellency Shri Narendra Modi, the happiness of the people of Bhutan. Prime Minister of India, was my first visit 2. Support from European Union abroad. The European Union agreed to grant The visit provided opportunity to additional Euro 7.3 million for Bhutan reinforce the excellent state of bilateral during my recent visit to attend the ties of friendship and cooperation European Development Days (EDD) between our two countries and discuss 2019 at the invitation of the President wide-ranging of issues of mutual interest. of the European Commission Mr. Jean- The year 2018 also marked the 50th Claude Juncker in Brussels. anniversary of Establishment of

73 State of the Nation 2019

It was a move that reaffirmed strong 5. BIMSTEC Summit partnership between Bhutan and the Led by the Chief Advisor of the second European Union. interim government, Bhutan participated 3. Second State Visit in the Fourth BIMSTEC Summit held in Kathmandu, Nepal from August 28-31, My second State Visit was to Bangladesh 2018. from April 12-15, 2019 on the invitation of Her Excellecny Sheikh Hasina, Prime 6. SAARC Minister of Bangladesh. We also hosted the SAARC Cultural The visit provided an opportunity to Capital in Thimphu on May 31, 2018. further strengthen bilateral relations and The annual SAARC Cultural Capital is enhance cooperation between the two hosted by member states chronologically. countries on issues such as health, trade, At an opening ceremony, Thimphu was agriculture and tourism. declared the SAARC Cultural Capital. We signed four Memorandum of 7. 30 years of diplomatic relations Understanding and one Standard between Bhutan and Thailand Operating Procedure to further enhance Bhutan and Thailand will complete 30 our trade and mutual collaboration. years of diplomatic relations this year on 4. United Nations Peacekeeping November 14. Operations (UNPKO) Diplomatic relations between the two Bhutan’s participation in UN countries where established on November peacekeeping operations is a historic 14, 1989. and far-reaching initiative of His Given the excellent relationship between Majesty, towards supporting the efforts our two countries, we have agreed to of the United Nations in promoting celebrate this landmark event in a befitting international peace and security. manner by holding series of events in It is an important milestone in Bhutan’s Thailand and Bhutan between November foreign policy, which has enhanced 14, 2019 and November 14, 2020. the country’s image and stature as a 8. Proposal to establish Bhutanese responsible member of the international Resident mission in Australia community. Bhutan and Australia have shared As of May 21, 2019, 42 peacekeepers diplomatic relations for over 57 years. were deployed in various peacekeeping With Australia becoming a preferred missions, and 132 peacekeepers have destination for Bhutanese to pursue successfully completed their UNPK higher education and employment, assignment. proposal to establish a Bhutanese Resident Mission or Consulate in Australia is under review.

74 State of the Nation 2019

75 Section III Way ahead

We pray for a secure and peaceful future. As we look ahead, we will strive towards fulfilling national aspirations in which we anticipate your support. State of the Nation 2019

aving come to real terms with ࿇ Health the state of our nation as is presented in the report today, In the coming year, we will introduce Hwe are ready to tread the path ahead with breast feeding allowance, as part of the 1,000 Golden Day Plus program, which greater clarity and renewed conviction. ensures care and nourishment of mother Our path, 12th FYP is laid out and all and child since the day of conception. responsible agencies are aware of their Every Bhutanese seeking endoscopy and responsibilities and deliverables. With ultrasound services will not have to travel blessings of His Majesty The Druk beyond their dzongkhag/ gewog, as we Gyalpo and support of all other sectors in strengthen primary health facilities, a the country, we will strive to realise the key component of our Health Flagship goals with diligence and highest level of Program. integrity. In our commitment to eliminate cervical At the end of our term, coinciding with cancer in Bhutan, by the end of next year, the end of the 12th FYP, we wish to see a we will make sure all women requiring better Bhutan. We will also be witnessing pap smear undergo the screening a key development milestone, as Bhutan procedure, as part of their routine check- graduates from the list of LDCs around up. the same time. ࿇ Education We envision a more equitable society, where income gaps have been narrowed, In order to sustain efforts made towards communities are vibrant and prosperous. making teaching the most-sought We aspire for a country where people profession, the standards of the two are happy with equal access to quality teacher training colleges in the country services and facilities, where our children will be uplifted. have a world of opportunities. We will For that, in the coming year, the work towards a better future. government will increase the stipend for Our formula is simple. As we work the trainees in the two colleges of Paro towards common national goals, we will and Samtse. We will also improve the build on the achievements, while drawing college facilities. lessons from the mistakes of the past. ࿇ Foreign policy As we chase the activities spelt out in the plan document, we will also closely This year, we will establish at least one monitor our flagship programs to realise embassy/consulate. our intentions for the people as soon as We will explore establishing diplomatic possible. relations with two countries, given Among others, following are some of the the large numbers of Bhutanese living commitments we wish achieve in next abroad. one year. 77 State of the Nation 2019

࿇ Tourism can be enforced in Courts of law. In the coming year, we will pass and Within the year, we will initiate NCWC implement Tourism policy to revive Bill to support our women and children. visionary policy of “High Value, Low The government will amend the Narcotic Vo l u m e”. Drugs, Psychotropic Substances and ࿇ CSI Substance Abuse Act so that we send our substance abusers to rehabilitation We will establish startup centre centers rather than imprisonment. with full autonomy to create vibrant entrepreneurial ecosystem. We will initiate process to draft the Administrative Tribunal Bill, which will ࿇ Digital Drukyul deal with administrative cases and reduce We will launch Electronic Patient burden on our courts. Information System (e-PIS) to enhance ࿇ Organic farming efficient and effective health services. Supply locally grown vegetables such as ࿇ Waste management asparagus, beans, cauliflower and chilies In the coming year, we will distribute by MoAF to schools. three-coloured bins to every household and institution across the country ࿇ Decentralisation through the Waste Management Flagship. We will approve and begin

࿇ Legislative Plans implementation of Decentralisation policy to ensure clarity in roles and As we progress with changing times, and responsibilities among local governments, keep our laws relevant, we will work on central agencies and other entities. following legislative plans: ࿇ Gender The government will initiate the enactment of Limitation Bill, for the We will construct gender friendly toilets simple reason of efficiency, and prescribe across all dzongkhags. the period within which existing right

78 State of the Nation 2019

Besides the specific targets, over the years, to contribute to more balanced regional we will continue to work towards: development, we will ensure equitable allocation of revenue earned from Economy ࿇ tourism among the regions. We need to diversify our economy and To fully tap the potential and with the ensure inclusivity so that every Bhutanese view to triple revenue and employ about benefits from our economic growth. 15,000 Bhutanese, a flagship program on The government aspires to increase sustainable tourism has been approved the GDP per capita to over USD 4,500 in the 12th FYP, which will be closely in the next five years. We shall make followed. targeted investments in Agriculture, Hydropower Tourism, CSIs, Mines and Minerals, and ࿇ Hydropower. Hydropower will continue to be a priority. While our focus would be to ࿇ Agriculture complete the ongoing projects, we aspire We will work towards ensuring food self- to see the construction of Sankosh sufficiency and reducing import. In 2018 Reservoir Power Plant take off during our alone, we imported vegetables worth term. Nu 3.5 billion. We must, at least, aim to Despite challenges, Puna-I serves us with substitute import of items that can be lessons valuable for future hydropower produced locally. projects. Efforts shall be doubled to promoting To diversify the economy and create cooperative farming by providing more jobs, the government will institute necessary support such as credit, logistics, measures to promote new business storage and transportation facilities, startups and strengthen existing ones and, the most important, by linking up through targeted interventions. with schools, colleges, technical training institutes, and hospitals. The government has approved a flagship program on Startup and CSI with an ࿇ Tourism outlay of Nu 1.2 billion. The sector is critical in promoting The program will target export of 20 CSI brand Bhutan. We will discourage mass products, support 1,050 business entities, tourism that not only strains our limited both new and existing, create 4,700 infrastructure but also compromises additional jobs, and establish a business quality of services and impedes startup center. enrichment of tourism experiences for visitors. We will also revise the Foreign Direct Investment Policy and CSI Policy to While initiatives to promote tourism enable investment and private sector throughout the country will be pursued, growth.

79 State of the Nation 2019

࿇ Employment ࿇ Governance With a small population, we accord high Consistent delivery of efficient importance to engaging every working governance with high degree of age Bhutanese productively. We will strive effectiveness, transparency, fairness and to reduce youth unemployment from the inclusiveness is what sets apart countries present 15 percent to less than 6.5 percent in their socio-economic development in the next five years. status. The government will initiate the following measures. Towards that, besides creating employment opportunities in different With the Throne as our beacon, we will sectors of the economy, education work to implementing the royal vision and skills will also be aligned to fit job through clear articulation of sectoral demands. strategies and plans. To this end, the Gross National Mines and minerals ࿇ Happiness Commission has been tasked The sector could have played a big to formulate a long term strategic road role in revenue generation and map. employment creation. However, going Within the confines of the roadmap, by the observations of the Royal Audit the five-year planning cycle shall Authority, much remains to be desired. be synchronised with incoming The government will streamline the government’s term. sector and ensure that its benefits are This will avoid economic slowdown shared equitably by all sections of the during the interim government phase society. Introduction of Mines and while also facilitating the incoming Minerals Bill in the second session of the government to formulate and implement Parliament is a step towards that. their own development plans for the next ࿇ Taxation five years. Having a robust taxation system is The role of the civil service is of utmost fundamental to a vibrant economy. The importance to achieving the plans the government will streamline the present government implements. taxation system in keeping with its The government will strengthen existing pledge of narrowing the gap. The present systems to ensure accountability and taxation system will be enhanced to delivery of public service agencies. ensure fairness and transparency with minimal administrative burden on the We will work closely with the Royal Civil tax payers. Service Commission (RCSC) to enhance performance and morale of our civil servants.

80 State of the Nation 2019

With limited financial resources to spend ࿇ Public service on numerous competing priorities, doing more with less is key. Services such as issue of licenses, permits, clearances, land transactions, tax and We will look into improving cost bills payment, census related services, effectiveness of public expenditure, and school admissions and hospital services especially look into issues of poor quality are points where citizens come into direct in public construction and procurement. contact with the government. ࿇ Legislation Today, to avail of any service from any Promotion of rule of law is singularly government agency, first thing that comes contingent upon having good laws to our mind is to find out if we know in the first place. We will ensure someone in that agency. It only shows quality legislations and their effective that we have no trust in our public service implementation. delivery system. There are 98 laws in operation today The government has, through the Digital in the country. These will be reviewed Drukyul Flagship Program, allocated for consistency and relevance and Nu 2.5 billion to make public services amendments will be proposed where convenient and easily accessible. necessary. The program will ensure that public We are aware that during the Opening service delivery mechanisms are Ceremony of the Third Session of the streamlined by enabling government Second Parliament on May16, 2014, His agencies to work together more efficiently Majesty cautioned the members about through a whole of government approach passing too many laws in haste. to reduce burden on the citizens. His Majesty cited examples of nations ࿇ Private sector where people have lost faith in law We keep saying private sector is the and confidence in democracy due to engine of growth but its importance is felt proliferation of laws which are hastily more now than ever, particularly in the enacted, poorly implemented causing context of our graduation from LDCs. social difficulties for the people. Following this concern, the government We have to aspire for a private sector will amend Regulatory Impact led economy, where the government Assessment (RIA) rules and regulations comes in not just to redefine conducive to ensure that only laws that are genuinely policies but remain a social sector that required are drafted by the concerned facilitates economy through services and government agencies. infrastructure. We will work with the private sector to help it flourish by providing clear avenues

81 State of the Nation 2019

for participation in building a strong ࿇ Environment economy. The CSI and FDI policies are being revised and we are looking at While the protection of our environment Bhutan Economic Forum for Innovative will always remain a priority of the Transformation (BEFIT) as an important government, we look towards all citizens forum to expand investment climate in to collectively share this responsibility. the country. The concentration of population in urban Private Sector Development Committee centers, rapid surge in consumption has been established with its secretariat of manufactured goods and influx of operating from BCCI in July. packaged products have led to escalation of economic activities resulting in ࿇ Foreign relations increased waste generation, giving rise to Bhutan will always be guided by the environmental and health concerns. foreign policy our Monarchs crafted with To address the growing waste so much wisdom. management problem in urban centers We offer our deepest appreciation and and the public threats that it can create, gratitude to His Majesty for tireless the government has approved a National engagement with foreign dignitaries from Waste Management Flagship Program around the world. under the 12th FYP. The government will further strengthen ࿇ Footprints of National Day Bhutan-India relations. The government has approved the With imminent graduation from the LDC implementation of a special “Footprints category in 2023, we will also pursue of National Day” program. economic diplomacy to explore mutually The program will support critical beneficial bilateral and multilateral high impact development projects in partnerships. dzongkhags chosen to host the National Efforts to nurture existing partnerships Day celebration each year. and establish new ties and diplomatic A total of five dzongkhags in the 12th relations shall be explored. FYP will receive support through this program.

࿇ ࿇ ࿇

82 State of the Nation 2019

If the government cannot create happiness for its people, then there is no purpose for “ government to exist.” Zhabdrung Ngawang Namgyel

83 State of the Nation 2019

84 State of the Nation 2019 Notes

85 State of the Nation 2019 Notes

86 State of the Nation 2019 Notes

87 Cabinet secretariat Gyalyong tshogkhang