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.