Final Report

NKRA 13 Gender friendly NKRA 15 NKRA 1 environment Safe Sustained for Society EcoNOMIC women’s Growth participation NKRA 12 NKRA 14 Democracy & Corruption Governance Reduced NKRA 2 strengthened Poverty Reduced NKRA 10 & MDG Plus Improved disaster achieved resilience and ELEVENTH FIVE YEAR PLAN management NKRA 16 mainstreamed Needs of Vulnerable Group addressed 2013-2018 NKRA 11 NKRA 3 Improved public Food secure and “Self Reliance and Inclusive Green Socio economic Development” service delivery sustained NKRA 9 Water NKRA 4 NKRA 5 Security Employment Final Report Strengthened Bhutanese Identity, social cohesion & NKRA 7 harmony NKRA 8 Carbon neutral Sustainable utilization Green and management of & climate resilient Gross National Happiness Commission Natural Resource NKRA 6 Royal Government of Bhutan Indigenous wisdom, June 2018 arts & crafts promoted

Infographic designed by yon10animation and Design Studio [email protected] ELEVENTH FIVE YEAR PLAN 2013-2018

“Self Reliance and Inclusive Green Socio economic -Development”

Final Report

Gross National Happiness Commission Royal Government of Bhutan June 2018

Executive Summary 1. Economy During the 11th FYP, Bhutan experienced an average growth rate of 5.59% over the period 2013 (2.14%) to 2016 (7.99%), and is projected to have a growth rate of 6.88% in 2018.The GDP per capita increased from USD 2,464 in 2013 to USD 2,879 in 2016 and it is projected to reach USD 3543 by the end of 11th FYP, which is one of the highest in the region. The total GDP increased from Nu.105.38 billion in 2013 to Nu.148.69 billion in 2016, and projected to reach Nu.182.82 billion in 2018. The foreign reserves position improved from USD 916.86 million an equivalent of 29.3 months of essential imports in 2013 to USD 1,140 million as of 14th June 2018 an equivalent of 30 months of essential imports, and by end of June it is forecasted to reach USD 1,240 million. The inflation rate has been reduced from 8.77 % in 2013 to 4.96% in 2017, wherein the prices for both food and non- food items remained stable compared to 10th five-year plan.

A total of Nu.211 billion was mobilized for development financing, of which Nu. 68.8 billion was mobilized as the external grants against an initial projection of Nu.58.638 billion. However, due to delay in the commissioning of hydropower projects the domestic revenue generation was Nu.140.833 billion against the projection of Nu. 150.689 billion. The external debt stands at Nu.170.32 billion as of 2018, out of which Nu. 133.37 billion (77.5%) was borrowed for hydropower projects.

Hydropower revenue generation increased to Nu. 18.58 billion in 2017 from Nu. 15.66 billion in 2013, while the sector employed 12,727 Bhutanese. Similarly, the mining contribution to domestic revenue increased from Nu. 238.62 million in 2013 to Nu. 329.471 million in 2017, while the sector employed 1,250 Bhutanese. The CSI sector employed the highest number of Bhutanese with 84,052 in 2017 as compared to 57,469 in 2013. The tourism sector remains the highest foreign currency earning sector. The royalty contribution from international tourist increased from Nu. 902.38 million in 2013 to Nu. 1,372.31 million in 2017, while the employment in the sector increased from 20,372 in 2013 to 29,827 as of 2017. Tourist arrivals increased from 116,224 (International:52,798; Regional:63,426)in 2013 to 254,704 (International:71,417; Regional:183,287)in 2017.

Ease of doing business ranking for Bhutan improved from 148th in 2013 to 75th in 2017, with improvements in 9 out of 10 indicators.

While the economy has experienced stable growth rates over the plan period, the growth has been driven largely by the hydropower sector, hence there is a need to broaden the economic base through diversification. Concerns also remain over the weak balance of payments situation and low productivity of labor.

2. Inclusive Social Development Bhutan has made significant achievements in reducing both income and multidimensional poverty during the plan period. Income and Multidimensional poverty have reduced remarkably from 12 % and 12.7 % in 2012 to 8.2% and 5.8 % respectively in 2017.

Several targeted programmes were initiated to reduce poverty. Under the National Rehabilitation Programme which was initiated on the command of His Majesty the King, 245 landless households were granted about 655 acres of land, in addition to support for housing, water supply, education, health, power supply, road connectivity, culture and income. Further 133,287.765 acres were granted to 123,265 beneficiaries as Land Kidu. Similarly, under the senior citizens programme, 850 senior citizens are provided a monthly allowance of Nu.1200 as kidu. 2675 children receive education support as Gyalpoi Tozey. Land Use Right System was launched in 2017 and 61 acres of land allotted to 58 youth for commercial farming in 8 sites in Mongar and Lhuenste Dzongkhag.

Rural Economy Advancement Programme (REAP) provided support for socio-economic development to 75 poorest villages comprising of about 1600 households. Under the programme, 837 houses were constructed or renovated, 777 improved toilets were constructed, 12 villages were supported with water supply and irrigation schemes, 259 agriculture machineries including power tillers were supplied, and 114 kms of electric fencing were installed. Efforts have also been undertaken to target the poor at the household level. A total of 2678 poorest households were identified and interventions to reduce their poverty have been developed.

Targeting the poorest of the poor and addressing last mile needs and securing adequate funds is expected to be a challenge in future poverty reduction programmes.

3. Gender Several initiatives were introduced during the plan period to improve gender equality and address other gender concerns. To support parenting and improve infant health and care the maternity leave has been increased from 3 months to 6 months, and paternity leave from 3 days to 10 days for civil servants. Similarly, 9 corporations and private firms have implemented 6-month maternity leave and 155 private firms and corporations have implemented 3-month maternity leave.

A total of 11 crèches were established in Thimphu to support working parents. Efforts are also underway to establish crèches in all other office premises. In terms of education, ratio of female to male in tertiary education improved from 71 % in 2013 to 83 % in 2017, however efforts still need to be made to address this inequality.

Despite various efforts to address gender issues, there is need to improve understanding on issues related to gender, and there is need improve the capacity and resources within sectors to implement gender related interventions. Interventions also need to be designed to address female unemployment.

4. Health The health sector focused on improving services through infrastructure development and strengthening health professionals. Jigme Dorji Wangchuck National Referral Hospital was delinked from the Ministry of Health to improve service delivery, and now operates as an autonomous body. A 20-bedded Haa hospital, 40-bedded Samtse hospital , 40-bedded Tsirang hospital and 150-bedded Central Regional Hospital in Gelephu have been completed.

150 bedded Gyaltsuen Jetsun Pema Mother and Child Hospital and 18 bedded Gyalyum Kesang Choeden Wangchuck National Eye Center, are under construction to provide specialized care and services for mother and child and eye care respectively.

The emergency medical evacuation service was introduced with purchase of two helicopters and about 368 patients were evacuated using helicopter services.

In terms of professional strengthening, number of doctors and drungtshos increased from 238 in 2013 to 421 in 2017 and number of doctors increased from 2.8 for every 10,000 Bhutanese in 2013 to 4.3 doctors for every 10,000 Bhutanese in 2017. Similarly, number of nurses increased from about 10.9 for every 10,000 Bhutanese in 2013 to about 15.4 for every 10,000 Bhutanese in 2017. The actual number of nurses increased from 799 in 2013 to 1352 in 2017.

In addition, several new services such as fertility clinic, renal clinic and epidural labour analgesia were introduced during the plan period.

With major investments in the facilities and services, the health indicators improved significantly during the plan period. Infant Mortality Rate (number of death before age of 1 per 1000 newborn) reduced from 40.1 in 2005 to 15.1 in 2017(PHCB) . Similarly, there are reductions in both under 5 mortality and maternal mortality rates. The institutional delivery has increased to 93.4% in 2017(PHCB 2017). The access to safe drinking water increased from 84.2% in 2005 (PHCB) to 98% in 2017 (PHCB 2017) . Similarly, access to improved sanitation increased from 54.8% in 2010 to 66.3% in 2016.

While the sector has made commendable progress in various areas, it continues to face new challenges. The sector will have to address rising trends in Non Communicable Diseases, issues related to retention of specialists and other health professionals, and increasing costs for delivering health service including for referrals outside Bhutan.

5. Education In the education sector, highest priority was accorded in strengthening school infrastructure and in improving access and quality of to education. During the plan period, four colleges were established in Gyalposhing, Paro, Trashiyangtse, and Yonphula and 63 Central schools were established across the country. Several reforms in curriculum and management were initiated to improve the quality of education and in strengthening the capacity of teachers. Similarly, an education blueprint was developed to bring about transformation in education through strategic road map from 2014 to 2024.

To promote inclusiveness a special education needs program was introduced in 14 schools across the country to provide education to the students with special needs. Recognizing the importance of nutrition to the school children, school feeding programme is implemented in 361 schools. In facilitating higher education for economically disadvantaged students, an interest free student loan scheme was also introduced in 2014.

With improved access to quality education, the adjusted net enrolment ratio increased during the plan period to 98.8 percent, with 98.9 percent for girls and 97.3 percent for boys. The literacy rate improved from 59.5 percent in 2005 to 71.4 percent in 2017 (PHCB).

In order to improve hygiene of girl students, a project for providing low-cost sanitary pads was launched, to date nine schools have been provided with sanitary pad-processing machines.

The sector faces various challenges some of which are related to enrolling out of school primary level children living in remote rural areas, attracting and retaining the best teachers, and improving the quality of education.

6. Culture In recognition of Culture as one of the pillars of Gross National Happiness and its importance to strengthening our identity, the 11th five-year plan focused on construction, reconstruction, renovation and conservation of intangible culture and tradition. Two new Dzongs are under construction in Sarpang and Pemagatshel Dzongkhags. The Wangduephodrang and Drugyel Dzongs are being reconstructed. Similarly, major renovations have been undertaken for Trashigang Dzong, Gasa Dzong, Paro Ta Dzong, Lingshi Dzong, Wangdicholing palace, and Phajoding Lhakhang. In addition to Dzongs and Lhakhangs, about 2008 chortens across the country were renovated. Three Hindu temples in have been constructed in Gelephu,Samtse, and Thimphu. In addition, Hindu temples in Thimphu and Gelephu are under construction.

Further annual Tshechus, Moenlam Chenmo and Kurims in 20 Dzongkhags continue to be conducted with financial support from the Government to promote and preserve our intangible culture.

Some of the challenges facing the culture sector is the possible extinction of some local dialects, songs, dances, lozeys, and festivals and rituals as there are very few people to keep theses heritages alive. In addition, many rich historical, cultural, and spiritual sites are under threat for natural and manmade disasters. The viability of cultural industries is a challenge that also needs to be addressed.

7. Human Settlement, Livable Cities, Towns and Communities To enhance living standards and ensure safety of the urban communities, facilities such as roads, waste management and sewerage system, drainage, landfill, bicycle paths, footpaths, street lights and water supply system were constructed and improved. In addition, recreational and learning facilities such as parks, public library were developed.

Access to safe and reliable drinking water has been improved in all the four Thromdes within the plan period. In addition, urban water supply projects in other towns are underway and will be completed by the end of 2018.

To enhance the safety of the urban communities, several CCTVs were installed at various locations around Thimphu. Similarly, several streetlights were installed in all the four Thromdes. This has contributed to a 28.4 percent drop in the crime rate in 2016 as compared to 2013.

A total of 644 units of low-income housing were constructed in Gasa, Lhuentse, Samdrup Jongkhar and Phuntsholing to address housing shortages.

Similarly, access to amenities and services in the rural areas were improved during the plan period. Several rural water supply schemes and irrigation facilities were constructed and renovated. As of 2017, 99 percent of rural households have access to electricity and 94 percent of rural households have access to mobile services.

The sector is in need of an overall policy and appropriate regulation to guide and provide strategic direction for human settlement in Bhutan. Other challenges facing the sector are the supply of 24/7 water supply and provision of affordable housing to low income families.

8. Financial Inclusion To promote rural enterprises and develop private sector, several initiatives to enhance financial access were introduced and implemented. Some of the major initiatives were the establishment of the Rural Enterprise Development Corporation Limited, providing collateral-free and low interest loans to the entrepreneurs. A total of Nu. 1.9 billion was allocated towards the scheme out of which Nu 1.1 billion has been allocated to support 3828 projects. In addition, priority sector lending scheme was introduced to promote and develop cottage and small industries in 2018. A total of 27 projects of worth Nu 43.95 million has been approved. To facilitate remittance from non-resident Bhutanese and improve convertible currency reserves, Remit Bhutan was launched in 21st September 2016 and as of December 2017 USD 3.23 million was remitted to Bhutan. Gewog banks were also established in 200 Gewogs to facilitate and promote rural savings.

Despite the various schemes and initiatives launched by the financial institutions, due to a lack of financial literacy among prospective clients, credit particularly those related to cottage and small scale industries were availed only in few Dzongkhags.

9. Disaster During the plan period, our country was hit by several forms of disaster. To mitigate impacts and risks associated with disasters and improve response, several institutions and systems are put in place.

His Majesty granted Nu. 975 million as Kidu and compensation in times of disaster. An Endowment Fund for Crop and Livestock established in 2017-2018. All 20 Dzongkhags and 4 Thromdes were supplied basic search and rescue equipment. The De-sung programme trained about 3495 volunteers who are capable of participating in disaster response and relief efforts. In addition, disaster contingency plans have been prepared for 15 Dzongkhags.

The efforts to reduce risks, mitigate impacts, and respond to disaster are constrained by the lack of adequate financial, human, and material resources.

10. Food and Nutrition Security The agriculture sector continued to receive priority and several initiatives were undertaken to enhance food and nutrition security in the country. With continued support to agriculture, agriculture production has increased during the plan period.

A total of 5,362.79 kms of farm roads have been built and 1,450.075 kms of farm roads have been maintained. About 12,782 acres of land were brought under farm mechanization and 1084 power tillers were distributed. In addressing human-wildlife conflict, a total of 1987 kms of electric fencing were installed.

The sector also saw increased production of paddy, egg, milk, poultry, vegetables, pork, chicken, chevon, fish, honey, and potatoes.

Initiatives such as setting up farm outlets, cooperatives and farmers’ group were supported to enhance agriculture marketing.

Some of the challenges that have to be addressed in the agriculture sector relate to loss of agricultural land, effects of climate change, improving value chain, expansion of storage and marketing facilities and inconsistency of data maintained by the ministry and dzongkhags.

11. Youth Recognizing the rising issues on youth, especially on youth unemployment and their gainful engagement, the 11th five-year plan initiated a number of scholarships, programmes and employment schemes. A total of 6,128 youths were employed through Direct Employment Scheme. Similarly, about 5402 youths were employed through Overseas Entrepreneurship scheme and another 1096 youths were employed through business start-ups. The Bhutan Children’s Parliament was introduced and held 2 Parliament sessions to educate youths on the governance system. A notable improvement was the significant reduction in youth-related crime from 231 cases in 2013 to 81 cases in 2017.

Youth unemployment increased from 9.6% in 2013 to 13.2% in 2016, this needs to be addressed with urgency.

12. Employment During the plan period, several measures were initiated in various sectors to boost employment opportunities in the country. Employment in the cottage and small industry (CSI) increased from 57,469 in 2013 to 84,052 in 2017. Similarly, employment in the tourism sector increased from 20,372 in 2013 to 29,827 in 2017.

Several employment generation schemes were initiated. About 5,402 Bhutanese were employed through overseas employment scheme and about 6,128 were employed through direct employment scheme in various private and corporate agencies. Youth start up created 419 jobs.

Consequently, unemployment rate reduced from 2.9 percent in 2013 to 2.1 percent in 2016. However, the youth employment rate increased to 13.2 percent in 2016 from 9.6 percent in 2013.

Various initiatives were also undertaken to create an enabling environment, such as the Bhutan Labor Market Information System, E-registration system, online Labor administration system, National Appreciation Award.

Youth unemployment still remains a major challenge, particularly due to a mismatch between expectation of the youth and labor market realities.

13. Access and Connectivity Recognizing the importance of access and connectivity in facilitating and delivering socio-economic services, the 11th five-year plan focused on improving both surface and air transport services.

To improve connectivity 180 Gewog Center (GC) roads were black topped, 11 new GC roads are under construction, and a total of 29 bridges were built during, and 147 gewogs have been connected with public transport. The construction of the 76 km Gyalposhing-Nganglam national highway has been completed and will significantly shorten the travel distance between the eastern Dzonkhags and border towns. Similarly the 24 km Damchu-Chukkha by-pass will be completed by July 2018.

Air transport was strengthened with the establishment of the Royal Bhutan Helicopter Services in 2015, and land has also been identified for helipads and emergency landing pads. Domestic Air travel passenger increased from 970 in 2012 to 12,000 in 2017. International Air travel passenger almost double from 182,000 in 2012 to 314,000 in 2017.

With regard to information and communication technology, all 20 Dzongkhags and 200 Gewogs are now connected to internet and all Government organizations now use Google applications. The financial sector has also made use of ICT to improve service delivery, with three out of five banks now providing e-payment services.

While massive investments have been made in expanding and improving road networks, their reliability is still dependent on the geographical and climatic conditions of the country. The sector also does not have adequate human resources, and this may be a major challenge for the local governments with the additional responsibilities undertaken by them. The growing number of vehicles also poses congestion and pollution problems.

14. Good Governance Good Governance is one of the four pillars to enhance Gross National Happiness. Being vital for sustainable and equitable socio-economic development, the 11th five-year plan continued to accord emphasis to good governance by strengthening democracy, improving public service delivery, promoting gender equality, curbing corruption, enhancing safety and addressing the needs of the vulnerable groups.

Out of Nu.92 billion of capital outlay, Nu.25 billion was allocated to the local government and a total of 699 local government officials were trained on various fields.

In making access to services easier and more efficient, a total of 123 services were made accessible online and 15 services were made accessible via mobile platforms. A total of 200 community centres were established in almost all gewogs across the 20 Dzongkhags, enabling citizens to avail most services such as banking services, postal services and government to citizen services from their respective gewogs.

Delivery and access to justice was strengthened though various initiatives. 4 Dzongkhag courts were constructed in Tsirang, Trongsa, Punakha and Wangduephodrang and 3 more Dzongkhag courts are under construction in Haa, Sarpang and Trashiyangtse. In addition, 11 judicial services are made accessible online.

With continued effort in addressing corruption in the country, Bhutan is ranked 26th out of 180 countries. Similarly, several reforms in the civil service were initiated for better service delivery such as the government performance management system.

Some of the challenges related to governance include reduction in voter turnout in both parliamentary and local government elections, low participation of women in politics and other spheres of governance, and inadequate capacity to plan, implement and monitor development by local governments.

15. Environment In line with the Constitution of the Kingdom of Bhutan, the current forest cover stands at 71 percent. In addition, Bhutan has committed in the international forums to remain carbon neutral. ‘Bhutan for life’ Fund was established during the plan period for sustainable funding of environmental conservation initiatives in the country. A total of USD 43 million was committed under the Fund.

Several green initiatives were introduced during the plan period. Free electricity up to 100 units are provided to rural households to reduce the use of firewood. Public transport has been improved with the introduction on additional buses, purchase of electric cars have also been promoted and subsidized. Initiatives have also been undertaken to replace incandescent bulbs used at home and in street lighting. Tax incentives are also provided on environment-friendly construction materials, waste management machineries, and other modern environment-friendly technologies.

Growth and development needs continue to increase pressure on the environment, through growth in demand for resources, pollution, and congestion. Urban centers frequently face problems related to water shortage and waste management. This calls for a need to integrate environmental concerns into all development policies and plans.

16. Sports and Recreation The government undertook development of various infrastructure and institutions to promote sports and recreation for healthy living. A total of six Astroturfs were laid around the country to promote professionalism in football and other sporting events. In promoting healthy living, open air gyms were installed in all 20 Dzongkhags. Similarly, four multi-sports halls were constructed in Punakha, Phuntsholing, Samdrup Jongkhar and Bumthang. In addition, two biking trails were developed in Punakha and Bumthang.

Several sporting committees and international partnerships were also established to promote and strengthen sporting activities in the country. Support was also provided for participation of Bhutanese athletes in international events.

17. Conclusion Overall the 11th FYP has witnessed commendable progress in all plans and programmes envisaged at the beginning of the plan. The plan has also implemented major activities that were not originally in the plan. It is also important to note that some key performance indicators for various National Key Result Areas show that while there has been commendable progress it has fallen short of the target that been set. For instance, while income poverty has been reduced form 12 % in 2012 to 8.2% in 2016, which by any measure is commendable, it has fallen short of the target 5% that had been set. Likewise, the ratio of females to male in tertiary education improved from 71% in 2013 to 83% as of 2017, however it has fallen short of the target 90% that has been set. In such cases this was mainly due to the fact that targets had been deliberately set very high given the importance of the key result areas. This issue was also compounded with poor baseline information. In some cases, unrealistic or irrelevant key performance indicators had been selected. However, these are still issues that need to be addressed in the 12th FYP.

A major challenge that also arose while measuring the progress of the 11th FYP was the inconsistency of data collected and maintained by various agencies in the government both at the local and central levels. This has raised doubts on the reliability of data that has been reported. During the course of the plan remedial measures wherever possible were undertaken to strengthen data collection and management. Feedback was also received on the need to improve collaboration and coordination between agencies in the government, private sector, and CSOs at local and central government levels. TABLE OF CONTENTS

1 Economy ��1 2 Inclusive Social Development �� 17 3 GENDER ��27 4 HEALTH ��35 5 EDUCATION �� 47 6 CULTURE �� 61 7 Human Settlement / Livable Cities / Towns / Communities �� 67 8 Financial inclusion ��77 9 Disaster �� 83 10 Food and nutrition security �� 87 11 Youth �� 95 12 Employment �� 99 13 Access and connectivity �� 107 14 Good governance ��115 15 Environment ��129 16 Sports and Recreation ��139 CHAPTER 1 1

ECONOMY Growth

2013 2018

1000 The GDP per capita increase from USD 2,464 in 2013 to USD 2879 in 2016, $ 2,464 projected to grow to USD 3,543 by 2018. $ 3,543

GDP grew at an average growth rate of 5.59% in the last 4 years from a low of 2.14% in 2013 to 7.99% in 2016, projected to grow to 6.8% by 2018. 2.14% Growth target not met due to delay in 6.8% commissioning of HPP.

Total GDP increased from Nu. 105.38 billion in 2013 to Nu.148.68 billion in 2016, and projected to Nu. 105.38 billion Nu. 182.82 billion reach Nu. 182.82 billion by 2018.

2018 figures are MoF/MFCC projections.

1 The total capital expenditure in the 11th FYP was Nu. 109.7 Billion, an increase of 17 Billion from an initial projection of Nu. 92 Billion. The capital expenditure in the 10th FYP was Nu. 74.1 Billion. Nu. 109.7 Billion for capital expenditure Total Expenditure of Nu. 2 24. 3 Billion in the 11th FYP The total expenditure in the 11th FYP was Nu. 2 24.3 Billion. 62.1% of the total expenditure was Þnanced through the domestic revenue. Nu. 21 1 .15 Billion Resources (Revenue+Grants) Mobilized Despite delays in commissioning Punatshangchu I & II, Mangdechu HPP in the 11th FYP, Nu. 21 1 .15 billion has been mobilized (revenue and grants) exceeding the target of Nu. 209 Billion. The total resource mobilized in the 10th FYP was Nu. 150 Billion Sustainable Fiscal Position was Nu. 7 3 . 5 Billion. the Domestic Revenue. Þscal deÞcit at 3% of GDP. Sustainable Fiscal Balance Nu. 68.8 Billion Mobilized as Grants external grants by more than Nu. 10 Billion. plan period achieving the target of maintaining Fiscal deÞcit maintained below 1% of GDP over the 114. 6 Billion, an increase of Nu. 40.202 Billion from The 11th FYP exceeded the target of mobilizing The total current expenditure in the 11th FYP was Nu. the 10th FYP. The current expenditure in FYP 100% of the current expenditure is Þnanced through is Þnanced through expenditure 100% of the current

2 Nu. Debt Position

2013

97% of Nu.94.90 Billion Nu.6.34 Billion Nu.101.24 Billion GDP

External Debt Domestic Debt Total Debt

Nu.54.00 Billion 51.7% of GDP

Hydro Debt

Nu.40.97 Billion 39.2% of GDP

Non-Hydro Debt 2018

99.2% Nu.170.32 Billion Nu. 11.04 Billion Nu.181.37 Billion of GDP

External Debt Domestic Debt Total Debt

Nu.133.37 Billion 72.95% of GDP

Hydro Debt

Nu.36.96 Billion 20.21% of GDP

Non-Hydro Debt

Although the external Debt has increased in 11FYP, 77.52% was incurred due to Hydro-Power Projects.

In the last four years Non-Hydro Debt was reduced by Nu. 4.02 Billion.

3 11 11 INFLATION 4 Annual Average Ination Rate 11 4 13.75 Annual Average Ination Rate 10.92 4 13.75 11 Annual Average Ination Rate 2013 2017 10.92 8.77 8.30 December 13.75 118.25 2013 2017 10.92 8.77 8.30 December 11 4.96 2013 2017 8.77 8.30 4.58 December 8.25 5.5 3.22 8.25 4.96 Year on year inflation rate has been Iniation Rate 4.58 5.5 4.58 4.96 5.52.75 3.22 reduced from 8.77% in 2013 to 3.22 Iniation Rate 4.96% in 2017. Iniation Rate 2.752.75 0

Compared to the 10FYP, consumer 00 2012 2013 2014 2015 2016 2017 experienced stable prices in both 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 food and non-food items.

37.537.5YEAR-ON-YEAR INDEX: GROUP LEVEL 37.5

25 25 25 12.5 12.5 12.5 0 Total Food and Alcoholic Clothing Housing, Furnishing, Health Transport Communication Recreational Education Restaurants Miscellaneous non-alcoholic Beverages and Water, Household and Culture and Hotels Goods and Beverages and Narcotics Footwear Electricity, Equipment Services 0 Gas and and Routine Other Fuels Maintenance of the House. 0 December 2013 December 2017 Total Food and Alcoholic Clothing Housing, Furnishing, Health Transport Communication Recreational Education Restaurants Miscellaneous non-alcoholic Beverages and Water, Household and Culture and Hotels Goods and Beverages and Narcotics Footwear Electricity, Equipment Services Gas and and Routine Total Food and Alcoholic Clothing Housing,Other FuelsFurnishing,Maintenance Health Transport Communication Recreational Education Restaurants Miscellaneous non-alcoholic Beverages and Water, Householdof the House. and Culture and Hotels Goods and Beverages and Narcotics Footwear Electricity, Equipment Services Gas and and Routine Other Fuels Maintenance of the House.December 2013 December 2017 December 2013 December 2017

4 $ InternationalINT$ ERNAT ReservesIONAL RESERVES $ International Reserves International Reserves THEN THEN NOW NOW 2013 2018 THEN2013 NOW2018 $916.86$916.862013 $1240$12012408 Million$916.86Million Million$1Million240 Million Million

Of which, Rupee reserve Of which, Rupee reserve was Nu. 11.35 billion is Nu. 16 billion 30 months Constitutional mandate of essential imports30 months of 12th months of of essential imports 30 months essential imports met. of essential imports

International reserves as of 14th June 2018 stood at USD 1.14 billion (CC USD 864.07 million, INR 18.8 billion), and is projected to reach USD 1.24 billion (CC USD 997 million and INR 16 billion) by 30th June 2018. BALANCEBALANCE OF TRADE OF TRADE (Nu.) (Nu.) Balance of trade EXPORT VALUE BALANCEIMPORT VALUE OF TRADEBALANCE (Nu.) OF TRADE EXPORT VALUE IMPORT VALUE BALANCE OF TRADE EXPORT VALUE IMPORT VALUE BALANCE OF TRADE

Rice Rice

2013 2017 2013 2017 Rice 2013 2017 2013 2013 2013 2017 2017 2017 -21.42 -29.69 31.85 37.302013 2017 53.27 66.992013 2017 -21.422013 -20129.697 Billion Billion31.85 37.30 Billion Billion53.27 66.99 Billion Billion 3Billion1.85 37.30Billion 53.27Billion 66.99Billion -21.42Billion -29.69Billion Billion Billion Billion Billion Billion Billion

Value of export of goods annually (Without Electricity) increased from Nu. 20.63 billion in 2013 to Nu. 25.31 Billion in 2016.

5 11731 business units benefited from the BIT exemption of Nu. 24.188 million given to small and micro businesses located in rural areas in 2017.

In addition to the above, the following initiatives launched: 1. Established Bhutan Economic Stabilization Fund with seed money of Nu. 100 million in 2017 - 2018. 2. Introduced priority sector lending scheme in 2017 to promote cottage and small industries.

6 Doing business becomes easier 2013 2017 Bhutan’s rank in the Ease of Doing 148 Business 75

7 FIVE JEWELS - HYDROPOWER

Hydropower revenue generation Hydropower contribution to GDP increased to Nu. 18.58 billion in increased to Nu. 19.85 billion 2017 from Nu. 15.66 billion in in 2016 from Nu. 15.2 billion in 2013. 2013. Nu.

126MW Dagachhu Hydroelectric 12,727 Bhutanese employed in plant commissioned. 1,200MW hydropower construction and Punatsangchhu-I HEP and power sector as of 2017 against 1,020MW Punatsangchhu-II HEP the target of 10,000 in 11th FYP. has achieved physical progress of 84.06% and 76.21% as of April 30th 2018 respectively. Construction of 600MW • Bhutan Hydropower Kholongchhu HEP started. Service limited started its Construction of 118MW commercial operation in Tangsibji HEP initiated on 25th October 2014. Capacity to April 2014. repair and maintain runners established in Bhutan. • Construction Development Tala and Kurichhu export tariffs Corporation Limited revised from Nu. 1.98 per unit constructing 3km tunnel to Nu. 2.12 per unit w.e.f 1st of 118MW Tangsibji December 2016. Hydropower project. Chhukha Export Tariff revised • Jigme Wangchuck Power from Nu. 2.25 per unit to Nu. Training Institute established 2.55 from January 2017 in Dekiling, Sarpang.

Detailed Project Reports (DPRs) of two hydropower projects viz. Sunkosh (2,585MW) and Dorjilung (1,125MW) completed. Domestic electricity tariff DPR preparation of nation’s revised for the period July largest project, 2,640MW Kuri- 2016-June 2019. Gongri HEP will be completed Domestic Electricity Tariff Policy by December 2018. approved on 1st March 2016. Conducted pre-feasibility studies of 8 projects (3,011MW) through NORAD, ADB (Energy+) and RGoB financing.

8 FIVE JEWELS - MINING

The contribution from mining • 1,250 Bhutanese to government revenue employed in mining sector increased from Nu. 238.62 in 2016. million in 2013 to Nu. • Total number of mines in 329.471 million in 2017. Bhutan; The royalty and mineral rent * 40 active quarries revised in 2016. * 36 active mines

The Mineral Development State Mining Corporation Policy was adopted in 2017. established in December 2014 The policy will promote to demonstrate best mining modern scien-tific mining; practices and technologies, in-country value addition; transparent allocation of improved environmental resources and to add value environment stewardship; and support the efforts of better mineral management; private sector and optimize progressive fiscal regime; and returns. benefit sharing.

9 FIVE JEWELS - Cottage and Small Industries

Number of Bhutanese employed by CSI increased 5661 licenses for new CSIs from 57,469 in 2013 to have been issued. 84,052 in 2017. No. of operational CSIs increased from 12,548 in 2013 to 19,328 in 2018. Number of craft clusters and bazaars established increased The Gakyed Gatoen- Festival from 2 in 2013 to 6 in 2018. of Happiness was launched with 117 entrepreneurs. Bhutan Enterprise Award (BEA) was instituted. • 730 CSI entrepreneurs were trained in baking, Through Rural Industries apparel designing, hair Development Scheme (RIDS), cutting, repair of home 34 CSIs were provided with appliances, natural dye, core ma-chinery worth Nu. milk processing technology 5.47 million as of January and business management 2018. skills. • 1597 participants attended Business Advocacy Workshops from 2013- Construction of Business January 2018. Incubation Centre (BIC) at Changzamtog inagurated in June 2018.

Nu.Nu.

• Credit extended to CSI through • Priority Sector Lending: 27 projects approved worth Nu. 43.95 million as of May 2018. • REDCL: 3,828 projects approved worth Nu. 1,117.49 million as of May 2018.

10 FIVE JEWELS - TOURISM

Visitor arrivals to Bhutan increased from 116,224 Royalty contribution (52,798 international visitors (convertible currency) from and 63,426 regional visitors) in international leisure tourists 2013 to over 254,704 in 2018 increased from Nu. 902.38 (71,417 international visitors million in 2013 to Nu. 1,372 and 183,287 regional visitors) million in 2017.

Gross earning increased from Employment in the Tourism Nu. 5.51 billion in 2013 to Nu. Sector increased from 20,372 8.39 billion in 2017. in 2013 to 29,827 as of 2017.

• 10 Trek routes developed. • 21 Road Amenities Special package offers developed in Haa initiated: Dzongkhags. • Bhutan-Thailand Friendship • Introduced Haa Summer offer 2014 Festival, Nomad Festival • Bhutan-Japan Friendship in Bumthang, Matsutake Offer 2016 festival in Ura and Genekha, • Bhutan-Korea Friendship Rhododendron Festival in Offer 2017 Lamperi, Birds festival in • Bhutan-Australia Friendship Zhemgang, Royal Highland Offer 2017 festival in Laya and Jomolhari Mountain festival.

11 FIVE JEWELS - AGRICULTURE

Employs about 57.2% of the Share to GDP in 2016 stands at total labour force. Number of 16.52% compared to 15.96% people employed increased in 2012. Nu. 24,565 million in from 189,245 in 2012 to absolute terms in 2016. 198,429 in 2016.

In 2017, about 333,299 MT RNR sector grew at 4.56% in of RNR related commodities, 2015 followed by 3.65% in worth Nu. 2,766 million were 2016 exported against the target of 125,484 MT.

State Owned enterprise 112,248 MT of cereal and established. 13,856 MT of vegetables • Bhutan Livestock imported in 2016 compared to Development Corporation 85,500 MT and 12,834 MT in Ltd. 2013 respectively. • Farm Machinery Corporation Ltd. • Green Bhutan Corporation Ltd.

12 Overview of National Key Result Area Indicators: Economy

National GNH Key Performance Key Result Baseline Target Achievement Remarks Pillars Indicators Areas Annual average GDP Risk (due 8-9% >10% 6.73% growth to delay in commissioning Percentage of domestic finance to 65% >85% 62.1% of Hydropower total expenditure projects Annual average fiscal Sustained deficit over plan 0.3% <3% 0.8% Achieved Economic period Growth Consumer Price 8.37% 7-8% 4.96% Achieved index Not

Sustainable and Equitable Priority sector lending Launched Launched Achieved launched Socio-Economic Development Exports (without 25.31 15 >28 electricity) Nu. In billion On Track (2012) (2017-18) billions (2016)

13 Issues and Challenges

Narrow economic base: the economy continues to be 1 less diversifed and driven primarily by hydropower sector.

2 Weak balance of payment situation

3 Small domestic market

4 Low productivity of labour

7 14 Recommendations

Diversify economy base

Increase and diversify exports and export markets

Promote industries through building Brand Bhutan Image

Promote domestic and foreign investment

Improve ease of doing business environment

15 CHAPTER 16 2 2

Inclusive Social Development

Income Income Poverty MPI 2017 Poverty reduced from 12 percent in 12% 8.2% 2012 to 8.2 percent in 2017. 2012

2017 Income Poverty 2195.95 MPI reduced from Bhutan has achieved commendable progress 12.7% 2000 2000 12.7 1704.84percent in 2012 in our socio-economic development goals, 5.8% 16.7 15 to 5.8 percent in however15 some sections of the population 12 remain under poverty. 2017 11.9 8.2 MPI 10 10 1.08 0.8 0 0 Incom2012 e Poverty 2017 2012 2017 Poverty Line Poverty Line Nu. 1704.84 Nu. 2195.95

National 12% Vs. 8.2% 8.2% (2017) of the population remain below the national poverty line.

Rural 16.7% Vs. 11.9% Poverty still remain a rural phenomena where 97% of the poor persons throughout the country remain in the rural Urban 1.8% Vs. 0.8% area.

17 2195.95 2000 2000 1704.84 16.7 15 15 12 11.9 8.2 10 10 1.08 0.8 0 0 2012 2017

Subsistence Poor

Persons belonging to households with per capita consumption below food requirements . Nu. 1154.74 in 2012 and Nu.1473.45 in 2017 12% Vs. 8.2%

National Level Rural Urban Subsistence Poor Subsistence Poor Subsistence Poor 2012 2017 2012 2017 2012 2017 2.8% 1.5% 3.9% 2.31% 0.3% 0.01% 16.7% Vs. 11.9%

1.5% of the population is estimated to be under the subsistence poverty in 2017 compared to 2.8% in 2012.

MPI 1.8% Vs. 0.8% National Rural Urban

20 17.8

15 12.7

8.1 10 5.8 1.3 1.2 0 2012 2017 2012 2017 2012 2017

Multi-dimensional poverty reduced by half in last five years (12.7% to 5.8%). MPI is measured through 3 dimensions of Health, Education and Living Standards using 13 indicators.

18 7.1 11.3 15.5 22.4 43.7

6.7 10.7 15.3 22.6 44.7

Per Capita Consumption by Quintiles

Q1 Q2 Q3 Q4 Q5

2012 7.1 11.3 15.5 22.4 43.7

2017 6.7 10.7 15.3 22.6 44.7

The per capita consumption of the 1st, 2nd and 3rd Quintiles have decreased and the shares of the 4th and 5th quintiles have increased.

The largest increase was in the share of the top 20 percent population with 1 percent, and the largest decrease was from 2nd quintiles with 0.6 percent.

Inequality 100% Perfect Equality

2012

2017

Gini-coefficient slightly 0.36 increase from 0.36 in 2012 to 0.38 in 2017 0.38 Top 20 percent of national population consumes 6.7 times more than a person in bottom 20.

19 0 Initiatives to Address Inequality During the 11th FYP many initiatives where undertaken to reduce the inequality ranging from revising the PIT slabs to providing free units of electricity to rural houses.

PIT tax exemption slab increased to Nu.200000 from Nu.100000

Nu.

ality Initiativesaddressu All Rural HHs were provided q 100 Units of Free ine Electricity.

TAX

Government has granted tax exemptions to about 12000 shops amounting to Nu. 68 million. Nu.Nu.

Distribution of LPG to National Minimum Wage Rate was revised from Rural Areas. About 5400 Nu.165 to Nu. 215. Amongst others, 3000 LGP Cylinders to be made members of National Workforce benefited from the available under scheme. rise.

20 His Majesty’s Kidu Programme 1. National Land Rehabilitation Program Five Projects were initiated under the National Land Re- habilitation Program. Under the program 245 HHs were granted about 655 acres of land.

In addition, beneficiaries 2. Land Kidu received support for housing, 133287.765 acres water supply, education, health, granted to 123265 power supply, road connectivity, beneficiaries. culture and income generating.

His Majesty’s Kidu Various Kidu programs were initiated under the command of His Majesty the King of Bhutan.

4. Gyalpoi Tozey 3. Senior Citizens Program 2675 number of Tshamkhang for Senior Citizens children receive entire is being constructed at Sisina in education expenses under Thimphu. umbrella of Gyalpoi Tozey

850 Senior citizens receive monthly allowance of Nu. 1200 5. Use Right System for Youth URS was launched in March 2017. Since then 61 acres of land were alloted to 58 youths for commercial farming in 8 sites under Mongar and Lhuntse.

21 44.7 22.4 15.5 11.3 7.1 7.1 11.3 15.5 22.4 44.7

44.7 22.6 15.3 10.7 6.7 6.7 10.7 15.3 22.6 44.7 7.1 11.3Rural Economy15.5 22.4 Advanc44.7ement Programme Targeted Poverty Intervention Program for Reaching the Unreached

6.7 10.7 15.3 22.6 44.7 Water Improve Toilet Supply (Pour Flush) Schemes water supply and irrigation supported in

Housing 837 777 houses constructed and improved toilets (PF) 14 renovated constructed villages

Self-Help Group 259 94 Agriculture Machines Self-help and post harvest group formed machines supplied

Human-Wildlife Conflict 114 kms of fencing which include electric, solar and barbed wire fencing.

About 1600 HHs households or about 8500 people benefited from the programme

Additional Plan Activities Narrowing The Targets from Village to Household 2678 poorest HHs have been identified as poor. Intervention have been developed to support 2678 HHs who have identified as poor. Rural Economy Advancement Targeted Household Poverty Programme (REAP) Programme (THPP)

Targeted poorest villages and covered 75 Targets at the household level and identified villages 2678 households 22 75 villages across 56 Gewogs covered under REAP II programme.

Overview of National Key Result Area Indicators: Poverty

GNH National Key Key Performance Indicators Baseline Target Achievement Remarks Pillars Result Areas 12% Not Income poverty reduced <5% 8.2% (2016) (2012) Achieved Multidimensional poverty 12.7% <10 5.8% (2016) Achieved reduced (2012) 0.36% Not Gini Coefficient reduced <0.3 0.38% (2016) (2012) Achieved

% of people with adequate housing quality sustained Poverty (corrugated galvanized iron Reduced & {CGI) or concrete brick or 74.2% MDG Plus stone for roofing, pit latrine >74.20% 95.6% (2015) On Track (2010) achieved with septic tank for toilet and two persons per room for overcrowding) GNH Sustainable and Equitable Index 2010 Socio-Economic Development

% of Household with per capita income per 53.40% >53.40% person per month of 1.5* 59% (2015) Achieved (2010) (2015) Nu.1096.94/- or more (GNH Index 2010)

23 Issues and Challenges

Targeting poorest of the poor. Last miles 1 becomes more challenging.

2 Marketing of Rural Products

3 Resource Constraint

4 Reducing the Gap between Rich and Poor

7 24 Recommendations

Explore innovative fiscal measures to reduce income inequality - taxes, social security benefits, etc...

Implement targeted poverty reduction programmes

Strengthen partnership between Government agencies and CSOs in implementing poverty interventions.

Strengthen RNR marketing, focusing on Rural products. MARKETING

25 CHAPTER 26 3 3

GENDER

The National Commission for Women and Children (NCWC) in keeping with Constitutional provisions is mandated to promote and protect the rights of women and children in Bhutan. In the Eleventh Five Year Plan (2013–2018) with the Government’s commitment towards the national goal of “Self reliance and inclusive green socio-economic development,” the NCWC strengthened its efforts in institutionalizing an effective and sustainable protection system and promoting the rights of women and children. The mandate of the NCWC has direct alignment with the National Key Result Area (NKRA) of Good Governance “Creating a gender friendly environment for women’s participation and leadership.” Similarly, ensuring the enhancement of children’s right to protection is a key strategy under the “Needs of Vulnerable Groups Addressed” NKRA. Maternity leave To provide an enabling and nurturing environment for parents and children in the country the following has been introduced:

Maternity Paternity 155 private/ 9 leave leave corporations corporations increased to increased have and private 6 months. to 10 days implemented firms have for civil 3 months implemented servants. maternity 6 months leave. maternity leave and other parental support initiatives. Childcare Creches

11 creches were established in Thimphu to support working parents, efforts are underway to establish it in all the office premises.

27 Women’s Participation

Total number Number Number of Total Candidate of women of women Year candidates contested candidate candidate elected contested elected

2008 57 8 20 4 National 2013 67 5 20 0 Council 2018 127 5 20 2

National 2008 94 10 47 4 Assembly 2013 94 41 47 4

Local 2008 2185 1104 113 Government 2013 3391 446 1439 174

Gender friendly environment for women’s participation Policy and legislation/gender mainstreaming

Child Adoption Rules and Regulation of Bhutan

Child Care and 2015 Protection Rules and Regulation of Bhutan

2015 Domestic Violence Prevention Rules and Regulation 2015

Domestic Violence 2013 Prevention Act of Bhutan (DVPA)

28 Strategic plan for promotion of gender equality The Gender Expert Group (GEG) was Gender and Child established in 2016 1 Protection Focal Points with the objective of (GFPs & CPFPs) were developing a pool of 2 instituted in all government gender experts in the agencies;Constitutional country. bodies;Parliamentary bodies; Local Governments; Gender Institutions; Civil Society 5 and Organizations; the corporate/ Child private sector; and others to National Gender ensure mainstreaming gender Equality Policy mainstreaming and children issues in the Drafted strategies legislations, policies, plans and programs of the country. 3

Gender Responsive Planning and 4 Budgeting (GRPB) was developed along with a training manual targeted at planning and budget Internal framework to address gender issues at officials. the workplace has been included as a mandatory indicator for all the ministries and agencies in the Annual Performance Agreement (APA). Some of the key areas of the framework

Provision of facilities like breastfeeding room for nursing mothers and customers (for office providing Mechanisms/procedures to report on harassment services to the public), at work place including sexual harassment separate toilets for male and (designating a focal person or Committee to female employees with basic facilitate reporting of such issues to higher amenities like sanitary bins in authorities) within the sector. the female toilets.

29 Inclusion of female Implementation of flexi-timing Establishment of child care representatives in the important for working mothers. crèche services. committees of the sector. Ratio of female to male in tertiary education

71% (2013) 83% (2017)

The ratio of female to male at tertiary level increasing from 71% in 2013 to 83% in 2017.

Employment opportunities • Created livelihood opportunities for 20 single parents through “BAOWE Baazar.” • Established 20 self-help group with 214 female members.

Research and studies • Study on situation of violence against women in Bhutan. • Study on violence against children 2016. • A desk review of womens political participation.

30 Overview of National Key Result Area Indicators: Gender

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators

Draft legislation to ensure quota for women in Legislation elected offices including Not drafted Drafted the parliament and local government bodies Gender friendly Ratio of female to male Not 71% >90% 83% (2017) environment in tertiary education Achieved of women’s participation Female youth Not 7.20% <2.5% 11.7% unemployment Achieved

Agencies with gender All agencies

Promotion of Good Governmance Promotion sensitive policies/gender N/A >20% (Required by Achieved mainstreaming strategies APA)

31 Issues and Challenges

Limited understanding on issues 1 related to gender.

Limited capacities of the sectors to 2 implement gender related interventions

Lack of services and institutional 3 mechanisms to implement the Acts

4 Female to male ratio in tertiary education.

5 High rate of female unemployment

7 32 Recommendations

Promote multi-sectorial coordination mechanism to understand issue of 1 gender and child and promote corporation and ownership.

Carry out awareness and sensitization in programs, capacity building initiatives and main streaming gender and child issues in legislation, 2 policies, plans and program

3 Promote/Strengthen gender friendly wellbeing and child wellbeing.

4 Promote job opportunities to reduce female unemployment

33 CHAPTER 34 4 4

HEALTH Infrastructure Development Infrastructure development was focus in 11th FYP and follwoing are the major infrastructure developed

35 Human Resource Doctors Drungtsho

2.8 4.3 35 55

2013 2017 2013 2017 Number of Doctors and density (per 10000 Number of Drungtsho increased to 56 in population) increased from 203 (2013) to 2017 from 35 in 2013 365 (2018)

Nurses Nurses: Bed Ratio

10.9 15.4 1:9 1:7

2013 2017 2013 2017 Number of nurses and density (per 10000 Nurses to Bed Ratio reduced from 1:9 in population) increased from 799 in 2013 to 2013 to 1:7 in 2017 against the target of 1352 in 2017. 1:6 in 11th FYP.

36 Health indicators improved significantly over the last decade IMR U5MR MMR

40.1 61.6 255 2005 2005 2005

15.1 34.1 89 2017 2017 2017

Infant mortality rates, Number U5MR, Number of death MMR, Number of death per of death before age 1 per before age 5 per 1000 every 100,000 live birth, 1000 newborn, reduced to newborn, reduced to 61.6 reduced to 89 in 2017 (PHCB 40.1 in 2005 from 15.1 in in 2005 from 34.1 in 2017 2017) from 255 in 2005. 2017 (PHCB 2005/2017). (PHCB 2005/2017).

institutional delivery

93.4% 2017

46% 2005

Institutional delivery rates increased to 93.4 percent in 2017 from 46 percent in 2005 (PHCB 2005/2017)

Life expectancy has increased from 66.3 years in 2005 (Male 65.7 yrs and Female 66.9 yrs) to 70.2 in 2017 (Male 68.8 yrs and Female 71.7 yrs)

37 Access to safe drinking water

Access to Sanitation

Proportion of population using an improved sanitation increased to 66.3 percent in 2016 from 58.4 percent in 2010. As per PHCB 2017, 74.8 percent have access to improved toilet facility.

38 An innovative sustainable health care financing

39 In an effort to strengthen and Three new vaccines provide best possible health launched: care services, various new health 1. Pneumococcal vaccine for services were introduced. children under 1 year of age 2. Rotavirus vaccine children under 1 year of age 3. Flu vaccine for high risk groups: pregnant woman, children aged Health under 5, elderly (+65 years), Bhutan Medical Emergency individuals with specific Supplies Inventory Operations Center chronic condition and System (eBMIS) established. health care worker.

Endoscopic Fertility Clinic New Retrograde Cholangial established at Services Pancreatography (ERCP) JDWNRH and Percutaneous Nephrolithotomy (PCNL) in uro- surgery.

Renal Clinic Epidural established at labour analgesia JDWNRH established at JDWNRH

Traditional medicine services

Number of health facilities providing TM services increased to 62 in 2017 from 50 in 2013. About 144306 patients TM services annually from 62 health facilities available around the country in 2016.

40 Reforms initiated in the health system

Granted autonomy to JDWNRH in 2014

Governance Bhutan Medical and Health Reforms in Council have been delinked from the Ministry of Health as Health an independent government System autonomous agency.

Bhutan Health Trust Fund delinked from Ministry of Health

41 additional plan activity

With introduced of Helicopter Services, about 368 patients were evacuated on emergency medical needs and saved their lives. 42 Overview of National Key Result Area Indicators: HEALTH

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators

IMR per 1000 live birth 47 < 20 15.1 (PHCB 2017) Achieved MMR per 100,000 live 255 <100 89 (PHCB 2017) Achieved births U5 MR per 1000 live 69 < 30 34.1 (PHCB 2017) On Track births Percentage of rural population with access Near 94.1% 95% At Risk Poverty to improve drinking 100% Reduced & water supply (%) MDG Plus Percentage of rural achieved pop with access to 51 > 80 66.3 At Risk improved sanitation (%)

Sustainable and Equitable Malaria incidence per 10 < 3.5 1.4 Achieved Socio-Economic Development 10,000 population TB treatment success 90% > 90% 90% (2016) On Track rate Severe mental distress 5% < 5% 3% Achieved (GNH Index) (2010)

43 Issues and Challenges

44 recommendation

45 CHAPTER 46 5 5

EDUCATION Major Infrastructure development

47 ON I UCAT ED TO

SS E ACC ED OV R MP I

48 quality

curriculum

Health and Physical Education (HPE) Curriculum developed for PP-VI be implemented from 2018 reforms in management and administration

49 Bhutan Education blueprint

MoE developed inclusive education standards in 2016 focusing on 3 dimensions 1. Inclusive Culture 2. Inclusive Policy 3. Inclusive Practice 16 To provide inclusive SCHOOLS WITH education to the students SEN PROGRAM with special needs across the country

50 quality Nutrition The Department of School Education (DSE) has made substantial achievement in providing school meals in 361 schools as of 2017 through boarding and day feeding program.

Initiated the supplementation programme of Iron, De-worming and Vitamin A in schools in collaboration with the Ministry of Health.

Number of students in day feeding increased from 19,818 in the 10th FYP to 33,051 in the 11th FYP. Full boarding increased from 33,481 in 10th FYP to 40,980 in 11th FYP. Student loan scheme for tertiary education

To facilitate higher education 323 (as of 2016) for economically students have availed the disadvantaged students, the interest free student loan loan scheme since 2014 to scheme was initiated in study in Bhutan and India 2014.

51 EDUCATION IN NUMBERs Literacy rate increased from 59.5% in 2005(M - 69.1%, F - 48.7%) to 71.4% in 2017 (M - 78.1%, F - 63.9%)

Female Male

52 Female Male

53 additional plan activity sherig endowment fund Seed money of Nu. 10 million to promote research 89 proposals among schools are approved • Each successful proposal will be eligible for a Objectives maximum grant of • Enhance the quality of Nu. 20,000. teaching and learning, • Ngultrum two million is to bring about positive available as grants to changes in the school management system and support 100 proposals. • Help address current • Ministry supported a total and emerging youth of 36 proposals in 2016, challenges at the school and 38 schools in 2017. level.

54 Read by Students 2,413,757 national reading program

Read by Teachers Read by Students, and Staffs Teachers and Staff 97,755 2,511,512

One Teacher One Child Initiative

55 sanitary pads

56 Overview of National Key Result Area Indicators: Education

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators i) APNER = i) APNER (M/F 98% (M 97% i) APNER -97.2%/98/.9%) Adjusted Primary & F 98%) 100% - M /F - 2017 Net Enrolment ii) NER – 94.8% On Track Ratio ii) NER 96% ii) NER 98% (M/F 93.7%/ (6-12 yr old) (M 95 & 96) - M/F 96%) - 2017 Poverty Basic Net 95.7 % (M/F – Reduced & 94% (F 96% & Enrolment Ratio > 96% (M/F) 92.5%/99.2%) On Track MDG Plus M 93%) achieved (13-16yrold) - 2017 Ratio of females to males in 71 % > 90% 83 (2017) At Risk

Sustainable and Equitable tertiary education Socio-Economic Development GER at tertiary level 19-23 yrs 18% > 35% 21.3% (2017) At Risk M/F

57 Issues and Challenges

58 recommendation

Implement decentralization of resources and responsibilities for 1 schools to LGs as per the Division of Responsibility Framework (DoRF).

Provide inclusive education to ensure that no child is left behind irrespective of circumstances such as disabilities, remoteness and 2 economic disadvantage, and that wholesome education is provided to all towards successful survival and completion rates.

3 Enchance access to ECCD for building strong foundation.

4 Strengthening the autonomy of schools for effective management.

5 Enhance relevancy, research and innovation in tertiary institutes.

Improve quality and inclusive education and address the last mile 6 challenges.

7 Strengthen and integrate ICT in teaching learning process.

59 CHAPTER 60 6 6

CULTURE

ulture is an important pillar of GNH and one that distinguishes Bhutan’s development. Historical, cultural and spiritual sites which existed for centuries were increasingly under threat Cfrom both natural and man made disasters such as earthquakes, windstorms, landslides, vandalism and fire. Culture was also accorded as priority not just for Thus, the main focus in 11th FYP strengthening our identity but also as an economic was on construction, reconstruction, imperative for tourism and to address poverty through the renovation and conservation of development of cultural industries. In 11th FYP, A total outlay tangible and intangible culture. of Nu. 1983.3 millions was allocated to department of culture under MoHCA.

Architecture Food Indigenous Sports

Tshechu Dress Language

61 Infrastructure The main focus in 11th FYP was on Construction, Development Reconstruction, Renovation and Conservation of tangible culture.

Dzong Mandir

4 Dzongs under constrution Construction of Hindu temples in ( Wangdiphodrang, Drugyel, Thimphu, Samtse and Gelephu Pemagatshel, and Sarpang.) completed.

Major renovation work for 7 Dzongs (Trashigang, Gasa, Paro Ta Dzong, Lingzhi, Wangdicholing palace Chorten and Phajoding Lhakhang) was carried out in 11th FYP with the total budget of About 2008 chortens were Nu.1,698.70 million renovated across the country. Monastic Body Tango Buddhist College construction completed on 2017. 10 chortens The construction were built as was allocated with Construction of of now with the Nu.215m. Anim Dratsang noble support in Yagpogang, from His Majesty Mongar is the King to the ongoing with retired armed budget of Nu. 50 Construction of force personal. million. Zhirim Lobdras in Gelephu and Sipsoo with the budget of Nu.135m is ongoing.

62 intangible The notable achievements have been made in the promotion of local arts and crafts, nurturing the film and culture music industry and diversifying cultural tourism.

Nu.239 million Moenlam Chenmo Funds for 19 Dzongkhags with Nu.51m from His Holiness the Je Khenpo.

KURIM DANCE His Holiness the Je Khenpo conducted The Royal Academy of 102 Kurims, Including Janachidoe, Performing Arts (RAPA) will Goenpai Tongtshog, Zhabdrung be upgraded to higher level. Danangmai Sungchoe and Moenlam Upgradation of curriculum has Chenmos in 19 Dzongkhags been completed and government is exploring land to build the infrastructure. Construction is set to begin in the 12th FYP.

FILM INDUSTRY TSHECHU In an effort to improve and promote the film 20 Dzongkhags are provided industry, The government with fund to conduct Tshechu provides Nu. 3 million annually. annually to Bhutan Film Association for National film award.

Culture Heritage Bill of Bhutan 2016 drafted.

63 Overview of National Key Result Area Indicators: Culture

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators Cultural diversity & resilience Index 0.074/0.11 0.074/0.11 0.083 Achieved Strengthened sustained (GNH 2010 Bhutanese Index) Identity, Community Vitality Index social cohesion and Sustained(GNH 2010 0.088/0.11 0.088/0.11 0.087 Risk harmony Index) GNH Index 2010 0.743 >0.743 0.76 Achieved

of Culture sustained Indigenous No. of rural households wisdom, arts engaged in cultural 208 2000 NA NA

Preservation and Promotion and Promotion Preservation and crafts industries promoted for No. of jobs created by sustainable 1200 2500 NA NA livelihood. culture industries

Issues and Challenges

Some of our local dialects, songs, dances, lozeys, 1 festivals and rituals are in danger of extinction as there are very few people to keep these traditions alive.

In terms of the tangible cultural heritage, many of the rich historical, cultural and spiritual sites which existed 2 for centuries are under threat from both natural and man made disasters.

Cultural industries have the potential to contribute to poverty alleviation by enhancing rural incomes. However, economies 3 of scale, quality and access to markets are among the challenges that need to be addressed to harness this potential.

4 64

7 Recommendations

The inventory and documentation of oral traditions, history, arts and objects, living expressions, and architectural knowledge will be done 1 as per the draft cultural heritage bill.

Performing arts, social practices, Tshechus, rituals and festivals will be preserved and promoted through Royal Academy for performing arts 2 and other forms will be explored.

Exhibitions and colloquiums on culture, religions, traditions and living expressions will be carried out by relevant governments, private and 3 civil societies.

Cultural heritage sites will be conserved and restored, with 4 management plans for important cultural sites.

Research and documentation of intangible cultural practices (Lozay, Zhungdra, Zhey, Tsangmo, social practices, Mask dance, etc) will be 5 promoted.

Capacity building for research and documentation on conservation and restoration measures will be carried out through trainings/ 6 workshops.

To promote cultural industries, access to finance, product development, raw material banks, craft clusters/craft bazaars and 7 business incubators will be facilitated.

65 CHAPTER 66 7 7

Human Settlement / Livable Cities / Towns / Communities Urban Development To enhance livability and safety, urban infrastructure facilities such as roads,waste management and sewerage system, drainage, landfill, bicycle paths,footpaths, street lights and water supply system constructed and improved. Recreational and learning facilities such as parks, public library developed.

Tsimasham/Tsimalakha and Paro have Water Safe 12 hours of drinking water supply and Reliable drinking water Thimphu, Phuntsholing, Damphu, Bajo have only 8 hours of drinking water supply. 80% 40% of HHs with access to safe of HHs with access and reliable drinking water to safe and reliable in Gelephu compared to drinking water in 70% in 10FYP Thimphu compared to 30% in 10FYP

85% % of HHs with 80% of HHs with access access to safe and of HHs with access to safe and reliable reliable drinking to safe and reliable drinking water in drinking water Samdrup Jongkhar water by in Phuntsholing compared to 4 compared to 60% in 68.12% in 10FYP Thomdes 10FYP

Urban water supply works are on-going for Paro, Phuntsholing, Tsirang, Mongar, Nganglam and Kanglung. The water supply works in Kanglung and Nganglam will be completed by end 2018.

67 Footpath Local Area Plans(LAPs) During the 11 FYP 37.22 1 LAP prepared for Thimphu kms of footpath constructed 3 LAPs prepared for in four thormdes Phuntsholing 22.1 kms of footpath 5 LAPs prepared for Gelephu constructed in Thimphu 5 LAPs prepared for Samdrup 3 kms of footpath Jongkhar constructed in Phuntsholing 9.5 kms of footpath constructed in Gelephu 2.62 kms of footpath constructed in Samdrupjongkhar

Road 41.7 km of road constructed in Thimphu Drainage 6.99 km of road 42 km of maintained in drainage Phuntsholing constructed in 5.5 km of road Thimphu constructed in Gelephu 4. 2 km 9.5 km of road of drainage constructed in Samdrup constructed in Jongkhar Phuntsholing 5. 12 km of drainage constructed in Sewer network Gelephu 27 km of sewer line 6. 3.3 km constructed in Thimphu of drainage 2 km of sewer constructed line constructed in in Samdrup Phuntsholing Jongkhar 17 km of sewer line constructed in Gelephu Sanitation 100% of HHs in Phuntsholing Thromde have access to improved sanitation facilities 98.6% of HHs in Gelephu Thromde have access to improved sanitation 98% of HHs in Thimphu Thromde have access to improved sanitation 91% of HHs in S/Jongkhar Thromde have access to improved sanitation

68 Safe Society Nation wide Crime Reported Not all crimes that occur are reported to the police or other government agencies. Therefore, there is a gap between the official level of crime and the amount of crime in the community known as dark figure of crime.

The crime rate in the country dropped by 28.4 percent in 2016. From 2,925 cases in 2013 the number decreased to 2,093 in 2016.

Data 2016 (Total Caases) Data 2013 (Total Caases) 100% 90% 20 80% 65 342 60 23 70% 37 172 122 1250 2925 10 25 120 42 60 209 62 54 153 14 60% 58 50% 40% 37 30% 84 53 22 20% 30 151 84 921 2093 6 15 66 25 32 108 32 21 61 16 10% 13 0 Haa Paro Gasa Bhutan Tsirang Samtse Trongsa Mongar Dagana Sarpang Punakha Lhuentse Thimphu Chhukha Wangdue Bumthang Zhemgang Trashigang Pema Gatshel Pema Trashi Yangtse Trashi Samdrup Jongkhar

Number of CCTV Installed Streetlight Coverage As part of the Royal Bhutan Police’s (RBP) ‘Safe City Thimphu Thomde achieved 30% Solutions’ project, 23 number of CCTV installed at streetlight coverage various locations in the capital to curb crime, traffic Phuntsholing Thomde achieved 70% offenses, and to make the capital city safer and streetlight coverage more secure. Gelephu Thomde achieved 60% streetlight coverage S/Jongkhar Thomde achieved 50% streetlight coverage

69 Percentage of people who feel safe (GNH index 2015)

Distribution of population by perceived level safety (%)

Completely Neither Safe Completely Unsafe Safe Unsafe nor Unsafe Safe Safety from human after 6.02 23.63 7.64 36.83 25.89 dark Safety from wild animals 5.22 20.28 7.78 39.67 27.04 after dark Safety from ghosts/spirits 4.58 19.91 11.63 37.11 26.77 after dark Safety from human harm 0.62 3.08 1.86 22.29 72.14 during day Safety from wild animals 0.82 4.06 2.10 77.78 70.25 during day

1. Victimization rates have almost doubled to 7.7 percent in 2015 from 3.5 percent in 2010 12 10.62 10 2. The proportion of people who are Rural 8 victims of crimes in rural areas has 6.54 Urban increased from 3.3 percent in 2010 6 3.3 4.22 4 to 6.54 percent in 2015 and in urban 2 areas has increased from 4.2 percent 0 to 10.6 percent. 2010 2015

3. But, the rate of victimization is substantially higher in urban areas (10.9% as compared to 6.7% in rural areas). The crime victimization rate is equal between both males and females in both 2010 (2.92%) and in 2015 (6.78%).

City Bus Services / Bus stop / Timetable / City Bus Services to Students / Prepaid Card System

1. Three thromdes have about 51 City buses • Thimphu - 46 city buses • Phuntsholing - 3 city buses • S/Jongkhar - 2 city buses 2. The city has about 140 bus sign posts erected 3. Two digital timetables erected at Changjiji 4. City bus services extended to cater students during morning and evening hours 5. Prepaid ticketing system introduced

70 Solid waste recycled

S/Jongkhar MT/day Waste collected Waste MT/day 2 50% nt e Solid waste recycled

Gelephu m MT/day Waste collected Waste MT/day 55% 5 ge ana M e Solid waste recycled ast MT/day Waste collected Waste MT/day W 12 50% Phuntsholing has implemented number of initiatives during the 11 plan period like Managing waste has become an emerging problem and the Government

outsourcing to Greener Way and recycling the solid waste as far possible. outsourcing to Greener Way Waste management system outsourced to private firm- greener way in Thimphu in way greener firm- private to outsourced system management Waste Solid waste recycled

MT/day Waste collected Waste MT/day Thimphu 44 18%

71 Housing Development In order to address the shortages of housing, the Government has constructed low-income buildings/ flats in four Dzongkhags.

506 units of special housing 20 24 24 72 project has A total of units of units units units been executed 644 units low-income low-income low-income low-income during the constructed housing housing housing housing 11th FYP in during the 11 constructed in constructed in constructed in constructed in Phuentsholing, which will be FYP Gasa Lhuntse S/Jongkhar Phuntsholing completed by June 2018

Number of Low Income Housing / Units Constructed 20 24 72

506

Gasa Lhuntse S/Jongkhar Phuntsholing Special Projects / Phuentsholing

72 Rural Development Rural Water Supply Schemes (RWSS):

581 number 1,092 number 95% of rural household have of new RWSS of existing RWSS access to improved water source constructed renovated in 2016

2,639.46 kms 17,107 households of irrigation channels benefited from 20,914 acres of land constructed/renovated Irrigation schemes irrigated

Restoration work of the longest irrigation canal (Taklai) in the country, worth Nu.500 M completed. It will benefit 398 households of Chhuzanggang and Sherzhong Gewogs under Sarpang Dzongkhag.

Taklai irrigation system is the largest irrigation system in the country. It can irrigate a gross area of over 2900 acres of paddy fields and was constructed in 1980s.

Electricity and Mobile Connectivity 99% of rural HHs have access to electricity. 92,043 households (90,490 households through grid extension and 1,553 households through off-grid options) were electrified. All rural residents enjoy 100 units of free electricity from October 2013 of worth Nu. 355.097 million till date.

94% of rural Bhutan has mobile connection. This will enable efficient communication. From 2013 to 2017, 126 villages have been connected with mobile services. 64 more villages will be connected by June 2018 achieving almost 100% cellular coverage in the country. 73 Issues and Challenges

The sector currently lacks an overall policy on human settlement and an Act to provide strategic direction and iron out implementation issues. The Development Control Regulations, which is an important tool to ensure 1 implementation of the approved plan in convivial manner that is in keeping with the overall policy and strategies, is confronted with the challenge of not having legal backup. This has posed difficulty in planning, coordinating and implementing human settlement plans and programs.

There is an acute shortage of human resources 2 like urban planners, designers, architects, infrastructure planner and engineers.

3 Supply of 24/7 water is still a challenge

Providing affordable housing particularly for 4 the low and middle income group. The high cost of financing and raw materials makes construction expensive resulting in higher rents.

74 Recommendations

To ensure sustainable development of human settlements, National Spatial Planning Act needs to be enacted and National Human 1 Settlement Policy and other related policies need to be implemented.

There needs to be a comprehensive programme focused solely on 2 ensuring 24/7 water supply.

Development of valley plans, regional hub plans and rural urban development plans should be accelerated in order to contain the rural 3 urban migration.

Capacity strengthening of engineers, architects and planners will be 4 given emphasis.

The Comprehensive National Development Plan (CNDP) should be 5 developed to guide human settlement plans in the country.

National Housing Development Corporation (NHDC) shall explore new technologies and design innovative strategies to reduce the cost 6 of construction while ensuring high quality.

75 CHAPTER 76 8 8

Financial inclusion INTRODUCED GEWOG BANKS

77 Collateral free concessional loan For rural entrepreneurs

78 enabling environment for financial inclusion

79 ed ov r app d un f d cts an je o r total p total

80 issues and challenges

1 Credit availed by only Few Dzongkhags.

2 Low levels of Financial Literacy.

Lack of capacity to develop Financially Viable 3 Proposals.

recommendation 4 1 Accelerate digital financial services program. 5 2 Ensure financial products are easily accessible and convenient. 6 3 Enhance financial literacy and capability of end-users. 7 Develop initiatives and strategies for advancing women’s financial 4 inclusion.

81 CHAPTER 82 9 9

disaster

83 response and relief

15 Dzongkhags 3,495 have disaster De-sung contingency plans trained

His Majesty granted Nu. 975 million as kidu and compensation 20 Endowment Fund dzongkhags and for crop and livestock 4 thromdes have established in search and rescue 2017-18 team with basic search and rescue equipments

84 issues and challenges

1 Lack of Capacities (Technical Expertise)

Lack of proper Multi- Sectoral 2 Coordination

3 Lack of Awareness and people’s attitude

4 Inadequate data and information

Recommendations 5

Continued advocacy and education at all level to understand the disaster 1 management. 6 DDM to strengthen coordination mechanism amongst various stake 2 holders. 7 3 DDM to have comprehensive disaster related system for better planning.

85 CHAPTER 1086 10

food and nutrition security

87 Policy and institution

Green Bhutan Corporation established in 2017 to promote clean and green environment.

Farm Machinery Corporation Limited (FMCL) was established in 2016 with a mandate to hire farm machineries to farmers, repair and maintain farm machineries and sale of spare parts.

1. RNR Marketing Policy 2018 2. Food and Nutrition Policy 2014 3. Access and Benefit Sharing Policy 2015

Bhutan Livestock Development Corporation Ltd. established in 2017 to compliment development needs of livestock sector and create job opportunities for youths and farmers in livestock enterprises.

88 technology and infrastructure

89 food safety

Established 39 National Food Testing Laboratory to prevent entry of pests and diseases, genetically modified plants and animals and other unauthorized or prohibited products in the country.

90 food production

91 Overview of National Key Result Area Indicators: food and nutrition security

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators

84,699 MT Rice Self-Sufficiency 78,730 MT 98,894 MT On Track ( 2017) 86,223 MT Maize Self-Sufficiency 79,826 MT 88,365 MT On Track ( 2017) Vegetable 55,869 MT 44,650 MT 63,456 MT On Track Food Self-Sufficiency ( 2014-16) secure and Meat (Chicken, 2,139 MT sustained pork and chevon ) 1,289 MT 2,350 MT On Track ( 2016) Self-Sufficiency 117 Million Egg Self-Sufficiency 57 Million 92 Million Achieved Sustainable and Equitable ( 2017) Socio-Economic Development 50,251 MT Milk Self-Sufficiency 29,625 MT 40,000 MT Achieved ( 2017)

92 issues and challenges

Data inconsistency- Data collected using different methods 1 resulting in different figures reported by ministries and dzongkhags.

2 Limited post-harvest facilities: Post Production losses and value chain development still a challenge.

Loss of agriculture land: 1. Net reduction of 13437 acres due to developmental activities and keeping 3 fallow lands from 201,930.53 acres(2012) to 188,493 acres (2016) 2. Net increase of 5333 acres of fallow land due to labor shortages, wild life and irrigration facilities

Effects of climate change on agriculture: Drying 4 of ground water sources for irrigation and pest and diseases outbreak.

Recommendations 5 1 Transition from subsistence to commercial agriculture. 6 Develop programs to add value and improve returns from organic 2 agriculture. 7 Promote value chain and enterprise development in collaboration with private sector to enhance production, market access and innovation in 3 agriculture sectors.

93 CHAPTER 1194 11

youth Recognizing the rising issues on youth, especially on youth unemployment and gainful engagement, the 11th five-year plan initiated a number of scholarships,programmes and employment schemes. Youth Employment

6128 Job seekers placed Scouts Youth-Crime through Direct Employment strengthened Reduced Scheme

231 5402 Youth placed through 81 Overseas Entrepreneurship 2013 2017 Scheme Youth in Conflict with 1091 Youth took part Law reduced from 231 1096 Youth employed in Leadership training cases in 2013 to 81 through business start-ups camps for scouts cases in 2017.

Youth Participation Enhanced Games and Sports promoted • All schools (primary to higher secondary schools) in the country take part in School Sports Program • 179 School Sports Instructors have been recruited in schools • Health and Physical Education (HPE) has been revived and a total of 233 teachers were trained. 205 Democracy clubs have been • School Sports Scholarship has been introduced in instituted in schools 2017

Support to Youth Additional Plan Education Activities

Bhutan Children’s Parliament was introduced and carried out 2 Parliament Sessions

95 Youth arrest for substance abuse Increased from 334 in 2013 to 972 in 2017

Suicide cases involving youth 25 cases in 2013 and 25 cases in 2017

Attempt to suicide Increased from 4 in 2013 to 17 in 2017 Overview of National Key Result Area Indicators: youth

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators

Gender friendly Female youth environment 7.20% <2.5% 11.7% At risk unemployment of women’s

Governance participation Promotion of Good Promotion

96 issues and challenges

Youth unemployment rate increased to 13.2 percent in 2016 from 9.6 percent in 2013. 1 Male: Increased from 9.2%in 2013 to 16.4%in 2016 Female: Increased from 9.9%in 2013 to 11%in 2016

Urban youth unemployment increased from 2 22.8% in 2013 to 23.3% in 2016 and Rural youth unemployment increased from 4% in 2013 to 9.9% in 2016.

Youth exposure to different types of substances or 3 drugs

Family environment of the youth (Divorces, exposure 4 to domestic violence and parenting issues)

Recommendations 5 1 Create opportunities for gainful employment of our youths. 6 Strengthen scouting and youth related programmes for meaningful 2 engagement of youths. 7 Equip the school councilors with skills to train youths on personal and social education, provide support to vulnerable children and strengthen 3 the existing parenting programme.

97 CHAPTER 1298 12

employment the labour market in bhutan

99 unemployment rate in the region

100 more jobs created

101 Employment generation schemes initiated Several schemes aimed at promoting employment were implemented in the 11th FYP such as follows

102 Overview of National Key Result Area Indicators: employment

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators

Full employment 97.9% >97.5% 97.9 % Achieved

Youth unemployment Not Employment 7.3% <2.5% 13.2% reduced Achieved

% of regular paid Not 23.9% >40% 23.9% Sustainable and Equitable employee Achieved Socio-Economic Development

103 Issues and Challenges

Growing youth unemployment: While the overall unemployment rate has been maintained 1 near full employment, rising youth unemployment continues to remain a challenge.

Mismatch between expectation of youth and labor market realities: 2 Many of the educated youths who constitute majority of the growing ranks of the unemployed do not have employable skills, knowledge, aptitude required by the labour market.

Low Labour productivity: Labor productivity measures the amount of goods and services produced by one hour of labor. In other words, labor 3 productivity measures the amount of real gross domestic product (GDP) produced by an hour of labor. Available studies indicate Bhutan’s labour productivity as one of the lowest in the region.

104 Recommendations

Enhance TVET system with particular focus on ensuring the quality and relevance of the vocational education and training program through enhancing 1 the training delivery, developing responsive curriculum, strengthening the capacity of the instructors and upgrading the training facilities.

Actively collaborate with the Local Government in enhancing local economy and creation of job opportunities in the Districts to reduce rural-urban 2 migration and achieve full and productive employment.

Improve value and dignity of the blue collared jobs by improving the working conditions in the private sectors through enforcement of key provision 3 of the Labour and Employment Act and relevant regulations

Link the entrepreneurship program with that of the priority sector lending initiative of the Royal Monetary Authority to provide platform for the graduates 4 establish business ventures.

5 Strengthen Startup Weekends to enhance innovation and creativity.

105 CHAPTER 13106 13

Access and connectivity

• 385 kms widening of Northern East-West highway worth Nu. 6 billion nearing completion. • 76 kms Gyalposhing-Nganglam highway completed. • 161 kms Haa-Samtse highway completed. • 24 kms Damchu-Chhukha bypass nearing completion. • Southern East-West highway (58 kms Langchenphu to Samrang in Samdrup Jongkhar and 68.3 kms Chhoekhorling in Pemagatshel to Dewathang in Samdrup Jongkhar) initiated. • 81 kms Dagapela-Dalbari ongoing.

107 108 roads and bridges 76 Km of Gyalposhing-Nganglam Highway (trace cutting, formation cutting, basecourse, permanent works, L-drain, blacktopping completed and construction of bailey bridge has started) widening. Construction of 44 km Gomphu - Panbang is completed. The widening of 65 km Semtokha - Wangdue has been completed. The widening of 82 Km Wangdue - Chuserbu is ongoing. The widening of 45 km Chuserbu - Trongsa is ongoing. The widening of 55 km Trongsa - Nangar is ongoing. The widening of 86 km Lingmethang - Yadi is ongoing. The widening of 52Km Trashigang - Yadi is implemented by Project DANTAK is on going. 2 bazams are completed, Lekpagangchhu Bazam under Gangzur gewog in Lhuentse, and Tshelungney Bazam under Mewang gewog, Thimphu. 29 Bridges are constructed.

A. Permanent Bridges Sl. Name of bridge Span Bridge Type Location No. 1 Sokporong Zam 119.5 m RCC arch Gyelposhing-Nganglam Highway 2 Pachu Zam 56.06 m Prestressed concrete continuous slab Near international airport in Paro 3 Woongthiri Zam 10.0 m RCC Slab Lauri GC road 4 Pangbang Zam 144.4 m Semi-through steel arch Gonphu-Pangbang Highway 5 Rindeygang Zam 55.6 m Truss arch Gonphu-Pangbang Highway 6 Pangtang Zam 97.8 m Prestressed concrete bridge Gonphu-Pangbang Highway 7 Tekiri Zam 12.0 m RCC Gonphu-Pangbang Highway 8 Dharang Zam 34.0 m RCC Gonphu-Pangbang Highway 9 Morangang Zam 34.0 m Steel composite Gonphu-Pangbang Highway 10 Gramlang Zam 24.0 m RCC Gonphu-Pangbang Highway 11 Nikachu Zam 45.0 m Prestressed concrete box girder Wangdue-Trongsa PNH 1 12 Zalamchu Zam 46.5 m Prestressed concrete box girder Wangdue-Trongsa PNH 1 13 Homakhola 35.0 m RCC box girder Dalbari-Dagapela Road 14 Khundrungay 10.0 m RCC box girder Dalbari-Dagapela Road 15 Diglai Zam 80.0 m Multi-span steel truss Samdrupcholing-Samrang SNH 16 Samrang Zam Samdrupcholing-Samrang SNH 17 Hyuri Zam 50.0 m Steel truss Tshebar-Mikuri-Darangri SNH 18 Kalikhola Zam 70.0 m Steel truss Raidak-Lhamoizhingkha SNH 19 Raidak Zam 100.0 m Steel truss Raidak-Lhamoizhingkha SNH 20 Wakha Zam 16.0 m RCC deck girder Wangdue-Trongsa PNH 1 21 Gazikha Zam 10.8 m RCC deck girder Wangdue-Trongsa PNH 1

B. Bailey and Bailey Suspension Bridges Sl. Name of bridge Span Bridge Type Location No. 1 Thotney Zam 160 ft. DDR Doban GC Road 2 Lauri Zam 140 ft. TSR Lauri GC Road 3 Desumri Zam 80 ft. DS Lauri GC Road 4 Warongkhola Zam 70 ft. SSR Phuntshothang -Pangthang GC Road 5 Sistey Zam 150 ft. TSR Singye GC Road 6 Wangchuk Zam 400 ft. BSB Yangbari-Daksha GC Road 7 Amochu Zam 400 ft. BSB Dorokha-Denchukha GC Road 8 Chubjarong Zam 120 ft. DSR Sakteng GC Road

109 Surface Transport The gewog center and farm roads are vital for rural development as they reduce the drudgery and cost of transportation. The rural connectivity contributes to balanced socio economic development and improve rural livelihood.

In the 11 FYP, effort has been put into construction, black topping and maintenance of gewog center roads and farm roads to connect the villages to the national Highways. Excavators and backhoes were distributed to the local government for the maintenance of the farm roads.

110 111 issues and challenges

112 recommendation

113 CHAPTER 14114 14

Good governance

Good Governance is recognized as one of the four pillars to enhance Gross National Happiness in Bhutan. Being vital for sustainable and equitable socio-economic development, the Eleventh Plan continued to give emphasis to good governance by strengthening democracy, improving public service delivery, promoting gender equality, curbing corruption, enhancing safety and addressing the needs of the vulnerable groups. Decentralization Resource Allocation to Local Government Nu. 109.7 billion

Nu. 84.7 billion Total Nu. 25 billion Capital Nu. billion for Outlay 15 annual grants is an increase of 25% over Central Local the 10th plan allocation agencies Government of Nu. 12 billion.

Nu. 5 billion Nu. 5 billion Nu. 15 billion

Local Government Dzongkhags Thromde As Empowerment and Gewogs Programme

Capacity Development Nu. 9 billion Nu. 6 billion of LG Functionaries Recognizing the importance of building capacity of the Local Government functionaries for delivering high quality services and in carrying out their roles, a total of 699 LG officials were Dzongkhags Gewogs trained. 115 Service Delivery Online services introduced Security Clearances are issued Audit Clearance Certificates are in ONE day issued in ONE day

New Passports are issued in THREE days

123 eServices Citizen Security Audit Business Details Clearance Clearance Services Get your personal details such as Apply and track police clearance Apply and track police clearance Apply and track micro trade house hold numbers, for jobs, school admission, for jobs, school admission, license, retail license, Thram number, Village details etc. passport etc. passport etc. industrial license etc. Educational Judiciary Thromde Passport Services Services Services Service Check your class 10 & 12 exam Apply for judicial services such as Apply and track Thromde Apply for passport grades, apply for scholarships, marriage certificates, document (Municipal) services in four services register BSA memberships etc. attestation etc. Class A Thromdes. G2C Payment eKaasel Make online payment Submit and track your feedback and for selective G2C grievances to improve services delivery Services 15 Mobile Services

116 Community Centres A Total of 200 community centres has been established in 20 dzongkhag. With community centres in gewogs, citizens are now able to avail most services such as banking services, postal services and government to citizen services from their respective gewogs. Justice Infrastructure

4 Dzongkhag 3 Dzongkhag Drangpon Courts constructed courts under residences in Tsirang, construction in under Trongsa, Punakha Haa, Sarpang construction in and Wangdue and Trashi Sarpang and Phodrang. Yangtse. Bumthang.

Drangpon Dorokha residence Dungkhag completed in Pema Court under Gatshel, Gasa, construction Lamoizingkhag and Punakha

11 e-Judicial/NOTARY PUBLIC Services Introduced Apply for Marriage Certificate

Apply for lost Documents

Apply for Attestation of Documents

Apply for Closing of Accounts and Transfer of Shares

Apply for Name Change

Apply for Single/Marital Status

Apply for Child Adoption

Apply for Attesting Agreement, Wills, Contracts and Testaments

Apply for Translation of Marriage Certificate

Apply for Child Travel Documents

Apply for Organ Transplant

117 Free and Fair Election Local Government Election Second Local Government Elections were successfully completed in 2016 in electing Gups, Gewog Tshogpas and Mangmis in all 205 Gewogs and 4 Thrompons for 4 Thromdes in Thimphu, Phuentsholing, Gelephug and Samdrup Jongkhar

Immigration Integrated Check-Post 3 integrated check posts in Samtse, Rinchending (Phuentsholing) and Nganglam are under construction. The checkposts will house the offices of the Royal Bhutan Police, Customs, Immigration, Bhutan Agriculture and Food Regulatory Authority, and the Forestry. Online - permit The online permit system was introduced for regional tourists in 2017, reducing the processing time.

118 Strengthening civil society organization

MUtual Benefit Organizations

119 Enabling Environment Legislation and Policies

16 Acts Enacted or Amended 14 Policies Approved 1. Bhutan Information Communications and 1. National Film Policy 2013 Media (Amendment) Act , 2006 2. National Employment Policy-2013 2. Contract Act of Bhutan,2013 3. Food & Nutrition Security Policy 2014 3. Road Act of the Kingdom of Bhutan, 2013 4. Telecom and Broadband Policy -2014 4. Disaster Management Act of Bhutan, 2013 5. Licensing Policy-2015 5. Domestic Violence Prevention Act, 2013 6. National Policy and Strategic 6. Local Government (Amendment) Act of Framework to Reduce Harmful Use of Bhutan, 2014 Alcohol-2015 7. National Assembly (Amendment) Act of 7. Public Private Partnership Policy-2015 the Kingdom of Bhutan, 2014 8. Access & Benefit Sharing Policy 2015 8. National Council (Amendment )Act of the 9. Social Media Policy-2016 Kingdom of Bhutan, 2014 10. Domestic Electricity Tariff Policy-2016 9. Tobacco Control (Amendment) Act of 11. Public Debt Policy 2016 Bhutan, 2014 12. Revised EDP Policy 2016 10. Parliamentary Entitlements (Amendment ) 13. Mineral Development Policy 2017 Act of the Kingdom of Bhutan, 2014 14. RNR Marketing Policy 2017 11. Biosafety Act of Bhutan, 2015 12. Entitlement & Service Conditions (Amendment) Act for the Holders, Members & Commissioners of Constitutional Offices of Bhutan, 2015 13. Local Governments Members Entitlement Act of Bhutan, 2015 14. Narcotic Drugs, Psychotropic Substances & Substance Abuse Act of Bhutan, 2015 15. Tenancy Act of the Kingdom of Bhutan, 2015 16. The Companies Act of Bhutan, 2016

Corruption Free Society Education and Prevention

Completed Corruption Risk Management Training of: 10 20 8 3 Ministries Dzongkhags Autonomous Thromdes

120 Corruption Reduced Transparency International-Corruption Perception Index Bhutan is the 26th least corrupt country out of 180 countries with a score of 67 in 2017.

Global No. of participat- Score Asia Pasific No. of Surveys Confidence Year Ranking ing countries (0-100) Ranking Used Range 2012 33 176 63 6 3 57-69 2013 31 177 63 6 4 59-67 2014 30 175 65 6 4 62-68 2015 27 168 65 6 4 61-69 2016 27 176 65 6 5 62-69 2017 26 180 67 6 5 64-70

HR Development 1 2 3

3.10.3.3 Professional Graduate Recruitment Recruitment and Development: • PGDPA - 108 Separation • Long-term training • PGDFM - 96 • Recruited - 4,154 • Total of 1689 LTT • PGDE - 367 • Separated - 1,650 processed in last three • Technical including PGDNL - 651 FY (2014-2017) • Training by level: • PhD - 13 • Masters - 833 • P.G Diploma - 120 • Bachelors - 603 • Diploma - 31 • Certificates - 81 • Specialization - 8

121 Additional Plan Activities

Dzongkhag Development Grant Gewog Development Grant Dzongkhag Development Grant of Gewog Development Grant of Nu.2 Nu.7 million per dzongkhag per year million per gewog per year was was introduced starting 2016/2017 introduced starting 2013/2014 to to supplement plan programmes and strengthen decentralization process funding activities that would strengthen and good governance at the grass roots the economy and generate employment, level. In total, Nu.410 million provided income and benefit communities. annually as GDG.

Increase in Entitlements for LG Functionaries LG entitlements including Travel Allowance and Daily Allowance, sitting fees, special allowances for DT Thrizin and Deputy DT Thrizin have been revised significantly. LG leaders are now paid as public servants as opposed to lump sum contract remuneration in the past. They will also receive gratuity, provident fund and annual increment on their salary.

• One utility vehicle provided to all 205 Gewogs. • One excavator and one backhoe provided to all 20 Dzongkhags.

Government Performance and Management Division established GPMD was established in 2013 to enhance government performance.

Annual Performance Agreements signed with Honb’le PM In order to promote performance-based culture at all levels of government, the Annual Performance Agreement system was introduced. All 10 Ministries, 6 Autonomous agencies, 20 Dzongkhags and 4 Thomdes signed the performance agreement with Hon’ble PM.

122 Grievance redressal established under Office of Prime Minister An online grievance redressal system was introduced to streamline the grievance component of service delivery.

Foreign Relation

Celebration of 50 Years of Indo-Bhutan Relationship 50 years of Indo-Bhutan relationship was celebrated in January 2018. Bhutanese consulate was opened in Guwahati, India.

Celebration of 30 Years of Bhutan-Japan Bhutan-Australia Relationship Relationship Bhutan-Australia celebrated 15 years of 30 years of Bhutan-Japan relationship was celebrated diplomatic relationship in 2017. in 2016.

Commemoration of Bhutan - South Korea Friendship Commemoration of Bhutan - Thai Friendship Bhutan and South Korea commemorated 30 years of Coinciding with the Birth Anniversary of His diplomatic relations between Bhutan and South Korea Majesty the King of Bhutan, “Bhutan-Thailand by launching the “Bhutan-Korea Friendship Offer” in Friendship Offer”, was launched on February February 2017, with special tourist packages offered 21st 2014, with special tourist packages to the people of Korea. offered to the people of Thailand.

Bhutan for the first time joined the fraternity of nations participating in UN peacekeeping operation in 2014.

123 Civil Service Reforms Civil Service Well-being Succession (CSW) initiatives to Planning and help attract, retain Leadership and motivate civil Performance Development for servants. Management System Great Leadership ( MaX)- Managing for Excellence to enhance performance and productivity Bhutan Civil Service System (BCSS) reforms for institutional strengthening of the civil servants: National - Launched BCSR 2018 Order of Merit - Civil Service Welfare Schemes- the CSWS was awarded to membership as on 30th June, 2017 is 93.11% about 76 outstanding of the total regular civil sevants. civil servants including - Civil Service Support Desk. teachers, medical - Future leader mentoring programme professionals and (FLMP) 32 members. others. - Counseling Services -Civil Service Retirement services.

Organizational Development (OD) Exercise: Royal Civil Service As of 30th June 2017, OD Exercise Awards: were successfully completed in 47 Royal Civil Service Awards- His Agencies: 10 Ministries; 13 Agencies; 20 Majesty for the first time during Dzongkhags; and 4 Thomdres. the 106th National Day Celebration - By 2016-17 it was linked to GPMS and in 2013 granted Royal Civil Service roll out in all minitries, agencies and LGs. Awards and as of 2016-2017, 23899 civil - MaX online system was also servants are awarded various category launched.- - Launching of of medals (Bronze - Serving more than leadership feedback System on 10 years, Silver - serving more than 26th August, 2016 20 Years and Gold- serving more than 30 years and Lifetime Service Awards)

124 Overview of National Key Result Area Indicators: Good Governance

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators

Avg Service Delivery TAT reduced for all Data Not <70% NA G2C,G2B and G2G Available Improved services public service delivery Average performance rating of government >90% >95% Achieved agencies >90 %

Political Participation Not 56.40% >70% 48% (GNH 2010 Index) Achieved

% of functional Community based groups (Water Data Not NA >90% NA Democracy User Groups, Available and Road Maintenance Governance Communities) strengthened No. of functional 100% 100% 100% Achieved registered CSOs

Promotion of Good Governance Promotion Parliament Parliament Parliament Voter Turnout Not 66.1%; LG 70 %; 50.2 %; sustained Achieved 56% LG 70 % LG 55.8 %

Corruption Perception 26/180 Index (Transparency 33/176(2012) < 20 On Track (2017) International Rank) Corruption Reduced All agencies Corruption strategy All (Required by Achieved APA)

125 Issues and Challenges

1 Lack of capacity to manage and administer plan activity at Local Government level.

2 Low participation of women in local and parliamentary elections.

Lack of coordination, collaboration between 3 government agencies, CSOs and private sectors at central and local levels.

Inconsistency of data collected and 4 maintained by government agencies at local and central levels.

126 Issues and Challenges

Strengthen capacity at the local government to plan, 1 implement, monitor development activities

Develop strategies to enhance and encourage participation 2 of women in politics and other spheres of governance.

Strengthen coordination and collaboration among the 3 government agencies, CSOs and private sectors.

Strengthen data collection, management and utilization 4 system.

127 CHAPTER 15128 15

Environment

129 Commitment to remain carbon neutral forever

130 greener Industries

131 conservation efforts

132 133 1675 Households

improved stoves

134 Overview of National Key Result Area Indicators:

GNH National Key Key Performance Baseline Target Achievement Remarks Pillars Result Areas Indicators

2253.33 Gg Green House Gas 1559.56 < 6309.6 Gg CO (BSE Achieved Emission controlled Gg CO CO2 2 2 2016) Ambient Carbon Ambient neutral/ Air Quality Air Quality Green Ambient air quality Standard s Not national NA & climate sustained or reduced revised as Achieved standard resilient per national 2010. development circumstances. Perception of Ecological issues 69% 69% 89% Achieved (GNH Index) sustained Proportion of forest area under sustainable 6.60% >12% 13.1 % Achieved forest management Sustainable Study to utilization establish and Under taken Ecological footprint N/A baseline Achieved management in 2014 of Natural & targets Resource conducted. Population Status of umbrella species 155 >155 103 (2016) Sustainable and Equitable

Socio-Economic Development (Tiger) 24 hour availability of N/A 100% NA drinking water Ambient Water Quality Bhutan Ambient Standards Water Ambient Water quality Water revised to Security Water maintained within Quality include new index Security national standards Standards 2010 parameters of developed in total hardness, 2015 grease and oil. Long term mean 73,000 73,000 million 70576.02 annual flow of the On Track million m3 m3 m3 entire country

135 Issues and Challenges

136 recommendation

Integrate climate change and environmental issues into 1 development policies, plans, and programmes.

Develop a comprehensive strategy/programmes to address 2 water security issues.

Strengthen monitoring of air quality and put mechanism to 3 control air pollution.

4 Focus on water security in the flagship program.

137 CHAPTER 16138 16

Sports and Recreation

To promote sports and recreation for healthy living, the government undertook development of various infrastructure and institutions.

6 Astroturf football field installed around the country

Open air gym Construction of established in 20 skate park initiated Dzongkhags & 4 Thromdes

Sports Facilities 4 Sport Center Multisports hall in Jungshina Strengthened constructed in four inaugurated. dzongkhags (Punakha, Phuntsholing, S/Jongkhar and Bumthang

Shooting Range at Rama Biking trails Thimphu, under 2 completed at Punakha construction and and Bumthang will completed by June 2018

139 FYP. FYP. th 8 11 Total of 625 (male- 478, Total female - 147) Bhutanese international events in the Athletes participated in the 7 studies in Japan to athletes pursue 5 Scholarships awarded 6 established for with SEISA, Japan Long-term partnership Long-term development of sports. 5 of the BOC athletes for established, for Exchange programmes and training the Tokyo 2020 Olympics. the Tokyo and Athlete Society, Japan and Athlete Society, Partnership with Yorii Town Town with Yorii Partnership Bhutan aquatics federation established. 3 Bhutan Paralympic Bhutan Paralympic Committee established 2 4 equality in sports plan for Gender and Sports Committee for Developed a strategic the promotion of gender 1 Athlete Information System (AIS) Developed

140 Issues and Challenges

Most sports infrastructure facilities are owned by 1 schools and institutions therefore limiting access to the general public.

2 Poor maintenance of sports infrastructure.

3 Lack of a comprehensive National Sports Policy.

4 Lack of professional trainers and coaches.

Recommendations 5 1 Develop a comprehensive sports policy.

6 Develop a strategy to improve access for general public to sports 2 infrastructure of schools and institutions.

7 141 Gross National Happiness Commission 02-325192/02-333230 Tashichhodzong [email protected] Thimphu, Bhutan ༄༅།། རྒྱལ་蝼ངས་དགའ་སྐྱིད་དཔལ་འ潼མས་辷ན་歼གས།། www.gnhc.gov.bt