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Country Presentation by the ROYAL GOVERNMENT of BHUTAN

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Country Presentation by the ROYAL GOVERNMENT of BHUTAN A/CONF.191/CP/16 THIRD UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED COUNTRIES Brussels, 14-20 May 2001 Country presentation by THE ROYAL GOVERNMENT OF BHUTAN NOTE The views expressed in this document are those of the Government concerned. The document is reproduced in the form and language in which it has been received. The designations employed and the presentation of the material do not imply expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or its authorities, or concerning the delimitation of its frontiers or boundaries. THIRD UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED COUNTRIES COUNTRY PRESENTATION BHUTAN 2001 THIRD UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED COUNTRIES Brussels, 14-20 May 2001 Presentation of the Royal Government of Bhutan ACTION PROGRAMME FOR THE DEVELOPMENT OF BHUTAN, 2001-2010 Note: This report has been prepared under the responsibility of the Department of Aid & Debt Management, Ministry of Finance, after consultation with members of the National Preparatory Committee consisting of all the agencies in the Royal Government. 1 CONTENTS Pages Abbreviations ........................................................................................................................4 Chapter 1: The Country Context ............................................................................................5 1.1 Introduction................................................................................................................5 1.2 Development Background..........................................................................................5 1.3 Development Philosophy and Outlook ......................................................................6 1.4 The Five Year Plans ...................................................................................................6 1.5 Overview of the Socio-Economic Situation and Constraints.....................................7 Chapter 2: Performance in the 1990s.....................................................................................9 2.1 Development Planning and Events of the 1990s........................................................9 2.2 Economic Growth......................................................................................................9 2.3 Fiscal and Monetary Developments.........................................................................11 2.3.1 Balance of Payments...............................................................................11 2.3.2 Monetary Developments.........................................................................12 2.4 Renewable Natural Resources..................................................................................12 2.4.1. Agriculture ..............................................................................................12 2.4.2. Livestock.................................................................................................13 2.4.3. Forestry....................................................................................................14 2.5 Industries..................................................................................................................15 2.5.1. Manufacturing and Mining......................................................................15 2.5.2. Energy.....................................................................................................15 2.5.3. Tourism...................................................................................................16 2.6 Trade and Commerce...............................................................................................17 2.7 Infrastructure............................................................................................................19 2.7.1 Transport and Communication................................................................19 2.8 Human Development................................................................................................20 2.8.1 Health......................................................................................................20 2.8.2 Education.................................................................................................22 Chapter 3: Development Opportunities and Challenges......................................................23 3.1 Overview of Development Opportunities and Challenges.......................................23 3.2 Domestic Factors......................................................................................................23 3.2.1 A Positive and Favourable Environment .....................................................23 3.2.1.1 Peace and Stability................................................................23 3.2.1.2 Social Equity.........................................................................23 3.2.1.3 Governance ...........................................................................24 3.2.2 Macro-economic Opportunities....................................................................25 3.2.2.1 Hydro-power generation.......................................................25 3.2.2.2 Industries...............................................................................26 3.2.2.3 Horticulture ...........................................................................27 2 3.2.4 Geographic Constraints.... ...........................................................................27 3.2.5 Environment, Culture and Human Development.........................................28 3.2.5.1 Environment..............................................................................28 3.2.5.2 Culture.......................................................................................29 3.2.5.3 Human Development Issues......................................................30 3.2.6 Private Sector Development.........................................................................31 3.2.7 Human Resource Development & Employment..........................................32 3.2.8 Domestic Resource Mobilization.................................................................32 3.2.8.1 Revenues ...................................................................................33 3.3 External Factors........................................................................................................34 3.3.1 Regional and International Trade.................................................................34 3.3.2 Official Development Assistance.................................................................34 3.3.3 Debt..............................................................................................................35 3.3.4 Foreign Direct Investment............................................................................36 3.4 Vulnerabilities..........................................................................................................37 Chapter 4: Programme of Action 2001-2010.......................................................................39 4.1 The Development Vision of Gross National Happiness ..........................................39 4.2 Guiding Principles....................................................................................................39 4.3 Overall Development Objectives.............................................................................40 4.4 The Broad Development Policy and Strategies........................................................41 4.5 A Perspective to 2010 ..............................................................................................41 4.6 Sectoral Objectives and Priorities............................................................................42 4.7 Human Resource Development................................................................................72 4.8 Culture and Heritage ................................................................................................74 4.9 General Public Services Priorities............................................................................76 4.10 Financing Development ...........................................................................................80 3 Abbreviations AAC Annual Allowable Cut ADB Asian Development Bank BOB Bank of Bhutan BHU Bhutan Health Unit BCCL Bhutan Carbide and Chemical Ltd. BCCI Bhutan Chamber of Commerce and Industries BBS Bhutan Broadcasting Service BDFC Bhutan Development Finance Corporation CSO Central Statistical Office DADM Department of Debt and Aid Management ESCAP Economic and Social Commission for Asia and the Pacific EU European Union FDI Foreign Direct Investment GATS General Agreement on Trade and Services GATT General Agreement on Tariffs and Trade GDI gross domestic investment GDP gross domestic product GDS gross domestic savings GNH gross national happiness GNP gross national product GoI Government of India IDA International Development Assistance IMF International Monetary Fund LDC least developed country MoA Ministry of Agriculture MTI Ministry of Trade and Industry NEC National Environment Commission NRTI National Resource Training Institute NTTA National Technical Training Authority ODA official development assistance PCAL Penden Cement Authority Ltd. PPP purchasing power parity RNR renewable natural resources RTM Round Table Meeting RGoB Royal Government of Bhutan RSPN Royal Society for Protection of Nature RCSC Royal Civil Service Commission
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