Bhutan: Updating and Improving the Social Protection Index (Cofinanced by the Republic of Korea E-Asia and Knowledge Partnership Fund)

Technical Assistance Consultant’s Report

Project Number: 44152 Regional — Capacity Development Technical Assistance (R–CDTA) August 2012

Kingdom of Bhutan: Updating and Improving the Social Protection Index (Cofinanced by the Republic of Korea e-Asia and Knowledge Partnership Fund)

Prepared by Chimmi Dolkar

For Asian Development Bank

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)

CURRENCY EQUIVALENTS

Currency Unit – Nu Nu1.00 = $0.02 $1.00 = Nu 48.41

ABBREVIATIONS

ADB – Asian Development Bank ATP – Apprenticeship Training Programme BDFCL – Bhutan Development Finance Corporation Limited BEC – Basic Entrepreneurship Course BHU – Basic Health Units BIMSTEC – Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation BNB – Bhutan National Bank BNHD – Bhutan National Human Development report BOB – Bank of Bhutan CEDAW – Convention on Elimination of All Forms of Discrimination Against Women CGS – Credit Guarantee Scheme CSO – civil society organization DADM – Department of Aid and Debt Management DHR – Department of Human Resources DMC – Developing member countries FDI – Foreign Direct Investment FYP – Five-Year Plans GDP – Gross Domestic Product GEPF – Government Employees Provident Fund GGLS – Group Guarantee and Lending Scheme GNH – Gross National Happiness GNI – Gross National income GPER – Gross Primary Enrolment Rate HALE – Health Adjusted Life Expectancy HDI – Human Development Indicators HPI – Human Poverty Index ILO – International Labour Organization INGO – international nongovernment organization LDC – Least Developed Countries LFPR – Labor Force Participation Rate MDG – Millennium Development Goals MOA – Ministry of Agriculture MOE – Ministry of Education MOF – Ministry of Finance MOH – Ministry of Health MOLHR – Ministry of Labor and Human Resources NCWC – National Commission for Women and Children NFE – nonformal education NGO – nongovernment organization NPPFP – National Pension and Provident Fund Plan

NSB – National Statistical Bureau Nu – Ngultrum NWAB – National Women’s Association of Bhutan OGTP – One Geog Three Products ORC – Outreach Clinics PAR – Poverty Analysis Report PEEP – Pre Employment Engagement Program PHCB – Population and Housing Census of Bhutan PPAs – Participatory Poverty Assessments RBP – Royal Bhutan Police RNR – Renewable Natural Resources SAARC – South Asian Association of Regional Countries SAFTA – South Asia Free Trade Association SBRC – Small Basic Resource Center SIL – Small Individual Loan SP – Social Protection SPI – Social Protection Index RGoB – Royal Government of Bhutan RICB – Royal Insurance Corporation of Bhutan UNDP – United Nations Development Program UN – United Nations WFP – World Food Program WTO – World Trade Organization YDF – Youth Development Fund

GLOSSARY

Dzongkhag – District Dzongda – District Magistrate Dungpa – Administrative Officer Geog – Village Gup – Village Head Je Khenpo – Spiritual Leader Dratshang – Monastery Ngalops – People from Western Region Sharchop – People from Eastern Region Lhotsampas – People from Southern Region Drungtsho – Physician Menpas – Compounders Tshogpa – Village/community groups Kidu – Welfare Fund

NOTE

In this report, "$" refers to US dollars

CONTENTS Page

I. INTRODUCTION 1 A. Background 1 B. Definition of Social Protection 1 C. Report Structure 3 II. COUNTRY OVERVIEW 4 A. The Economy 6 B. Poverty and Inequality 8 C. Employment and Labor Force 11 D. Education 13 E. Health and Disability 15 III. CURRENT SOCIAL PROTECTION PROGRAMS AND ACTIVITIES 18 A. Data Collection 18 B. Social Assistance Programs 18 C. Food or Cash for Education Program 18 D. School Feeding Programs 19 E. Disaster Relief Programs 20 F. Social Insurance Programs 21 G. National Pension and Provident Fund Plan 21 H. Group Insurance Scheme and Group Savings Link Insurance 22 I. Rural Insurance 23 J. Labor Market Programs 23 K. Pre Employment Engagement Program, Apprentice Training Program and Income Generation Start-up Program 24 IV. SOCIAL PROTECTION INDEX AND ITS DISAGGREGATION 25 A. Basic Statistics 25 B. Social Protection Expenditure and Beneficiaries 27 V. ANALYSIS OF COUNTRY RESULTS 29 A. Disaggregation by Social Protection Category 29 B. Disaggregation by Depth and Breadth 29 C. Disaggregation by Poverty 29 D. Disaggregation by Gender 30 VI. CONCLUSION AND RECOMMENDATIONS 31 VII. REFERENCES 33

I. INTRODUCTION

A. Background

1. Asian Development Bank’s (ADB) development of the social protection index contributed to the strengthening of social protection programs in developing member countries (DMCs). ADB continues its work on updating and improving the Social Protection Index (SPI). The SPI update addresses and incorporates lessons learned from two technical assistance projects1 that developed the SPI for 31 countries in Asia and the Pacific and introduces new components and institutional arrangements to sustain the effective use of social protection indicators in policy analysis and formulation in the DMCs.

2. These initiatives implemented under the ADB commissioned regional technical assistance project2 seeks to (i) improve the methodology in defining social protection for each DMC in order to ensure comparability among DMCs; (ii) improve data gathering for statistical analysis on social protection; and (iii) develop capacity of DMCs in monitoring the SPI and allow comparisons between countries and over time on implementation performance.

3. This country study provides updated information and data on social protection arrangements, legislation, and institutions and calculates the SPI for Bhutan in view of the revised SPI methodology. The SPI can be updated periodically to assess progress in social protection arrangements in the country and analyze deeper aspects of targeting, coverage and expenditures on various social protection programs; for example, on the breadth (coverage) of social insurance versus social assistance or labor market programs, or on the depth (size of benefit) of various categories of social protection. The revised SPI methodology also provides scope to measure the gender responsiveness of programs, and poverty targeting of programs.3

4. The primary objective of the Bhutan Country Report is to present the results of the research on social protection programs and policies in Bhutan from all related ministries; summarizing quantitative information on these activities to enable the formulation of a national Social Protection Index (SPI).

B. Definition of Social Protection

5. ADB’s revised definition of social protection is “the set of policies and programs that enable vulnerable groups to prevent, reduce and/or cope with risks, and that are targeted at the vulnerable groups; involve cash or in-kind transfers; and are not activities usually associated with other sectors such as rural development, basic infrastructure, health, and education4”.

6. This wide-ranging definition categorizes all programs under the traditional components of social protection as social insurance, social assistance or labor market programs under the revised SPI. Microfinance as a form of social protection is excluded from the calculation of SPI since it does not involve a transfer in cash or kind and beneficiaries incur loans or debt instead of transfers. Thus, by eliminating microfinance from the coverage of social protection programs,

1 ADB. 2003. Technical Assistance for Social Protection Index for Committed Poverty Reduction. Manila (TA 6120- REG); ADB. 2006. Technical Assistance for Scaling Up of the Social Protection Index for Committed Poverty Reduction. Manila (TA 6308-REG). 2 ADB. 2010. Technical Assistance for Updating and Improving the Social Protection Index. Manila (TA 7601-REG). 3 To be able to calculate with relative accuracy the poverty-targeting rate of programs, household surveys need to contain a social protection data. However, the data of the survey was not available at the time of writing this report. 4 ADB. 2008. Social Protection Index for Committed Poverty Reduction Volume 2: Asia. Manila.

2 three major programs are left: (i) social insurance (i.e., the categories of old-age insurance, programs for the disabled, and health expenditure on insurance and pensions; (ii) social assistance (i.e., the categories of non-contributory health insurance, conditional cash transfers, child protection, and unconditional cash transfers; and (iii) labor market programs as shown in Table 1.

Table 1: Social Protection Categories and Types of Programs

Social Protection Type of Program Category Social Insurance • Pensions Programs • Unemployment Benefits • Health Insurance - but not universal health insurance • Other social insurance (maternity, disability benefits) Social Assistance • Assistance for the elderly (e.g., non-contributory basic allowances for the elderly, old-age allowances) • Health assistance (e.g., reduced medical fees for vulnerable groups) • Child protection (school feeding, scholarships, fee waivers, allowances for orphans, street children initiatives) • Family allowances (e.g., in-kind or cash transfers to assist families with young children to meet part of their basic needs) – excluding any transfers through the tax system • Welfare and social services targeted at the sick, the poor, the disabled, and other vulnerable groups • Disaster relief and assistance • Cash/in-kind transfer (e.g., food stamps, food aid) • Temporary subsidies for utilities and staple foods - only if imposed in times of crisis and if targeted at particular vulnerable groups. General subsidies are excluded even if their rationale is to assist the poor • Land tax exemptions Labor Market • Direct employment generation through public works programs – including food Programs for work programs • Direct employment generation through loan-based programs – included if loans are subsidized and/or job creation is an explicit objective of the program • Labor exchanges and other employment services – if distinct from social insurance and including retrenchment programs • Unemployment benefits – if distinct from social insurance and including retrenchment programs • Skills development and training – included if targeted at particular groups (e.g., the unemployed or disadvantaged children. General vocational training is excluded). Source: ADB. 2011. The Revised Social Protection Index: Methodology and Handbook. Manila.

7. In the 10th Five Year Plan, Bhutan recognizes that “despite strong pro poor development policies and interventions, poverty continues to be a serious concern…a situation that is incompatible with our development of GNH”. In 1972, His Majesty, King Jigme Singye Wangchuck first instituted the concept of Gross National Happiness as a means of development for all activities in Bhutan. His Majesty believed development to be more than an outcome of economic growth, and sought to maximize happiness by putting people in the centre of all developmental effort, addressing their material, emotional and spiritual needs.

8. There is no explicit definition of social protection in Bhutan. However, policies are being introduced to protect the rights of every Bhutanese citizen. New laws are being initiated and old ones are being changed to adapt to the current environment. Currently at the draft stage are the National Occupational Health and Safety Policy and the Occupational Health and Safety in Construction, Manufacturing, Mining and Service Industries.

9. The Labor Act protects the right of the child against the worst forms of child labor, reserves the right for women by prohibiting sexual harassment at workplaces, and incorporates compensation and gratuity rights for employees working in either private or Government organizations. Insurance such as pensions and provident funds has been made mandatory for the private sector.

C. Report Structure

10. The Bhutan Country Report is structured as follows:

(i) Chapter II contains a brief overview of the social and economic development in Bhutan. (ii) Chapter III describes current social protection activities and programs in the country using ADB’s typology. (iii) Chapter IV provides an overview of the derivation of SPI and its disaggregation. (iv) Chapter V presents the analysis of the country results. (v) Chapter VI discusses the conclusion and recommendations.

II. COUNTRY OVERVIEW

11. This chapter presents an overview of Bhutan’s social and economic characteristics concentrating on those that are particularly relevant to social protection issues. A. Geography

12. Bhutan is a landlocked country with an area of approximately 38,394 km2, elevations extending from 160m of the southern foothills bordering India, to 7,500 meters in the north bordering China. Bhutan is divided into 20 dzongkhags or districts, each headed by the dzongda or district magistrate. These districts are divided into geogs or villages, headed by a gup or a locally elected leader. In 2002, the National Assembly created a new structure for local governance at the geog level with each local area responsible for creating and implementing its own development plan, in coordination with the district authority.

B. Demographic Profile

13. The Parliament of Bhutan comprising the King, National Assembly, and the National Council, governs the nation. The Cabinet Ministers in consultation with the heads of the Ministries oversees the formulation of national policies and other important decisions of national significance. The National Assembly is the highest decision-making authority while the National Council provides a check and balance to the Government.

14. The first Population and Housing Census conducted in 2005 reveals a population at 634,982, with an annual average growth rate of 1.3%. According to the Statistical Yearbook of Bhutan, the total population is 683,407 in 2009. There are 19 spoken dialects and three major ethnic groups – the Ngalops, Sharchops and the Lhotshampas. Table 2 features the demographic profile of Bhutan in 2008- 2010.

Table 2: Demographic Profile

Population 2008 2009 2010 Total 671,083 683,407 695,822 Male (%) 52.3% 52.3 % 52.2% Female (%) 47.7% 47.7 % 47.8% Population Growth rate 1.8% 1.8% 1.8%on Age Structure 0-14 210,855 211,747 213,072 15 – 64 428,300 439,045 449,431 65+ 31,189 32,615 33,219 Total dependency ratio Child dependency ratio5 49.2 48.2 47.4 Old age dependency ratio 7.5 7.4 7.4

5 Measures the number of dependents as a percentage of population aged 15 to 64. Child dependency refers to children aged 0 to 14 years, while old age dependency refers to persons aged 65 and above.

Health Population covered by healthcare 90% 90% 90% Total births NA 12,538 19,700 Births attended by trained personnel (%) 63.6 66.3 66 Access to safe drinking water (%) 82.3 83.2 83 Life expectancy at birth (years) 66 66 66 Infant Mortality Rate (per 1000 live births) 40.1 40.1 40.1 Education Number of students (includes schools, 184,124 162,654 NA tertiary education, vocational institutes, Government scholarship students studying abroad) Labor Unemployment rate 3.7% (2007) 4% 3.3% Labor Force Participation rate 67.3 (2007) 68.5 68.6 Sources: Statistical Yearbook, 2008, 2009 and 2010; Bhutan at a Glance, 2010.

15. Bhutan’s population density is among the lowest in South Asia. However, the population growth at 1.8% is one of the challenges facing Bhutan, especially with majority of the population still very young.

16. Only about 28% of the population lives in the urban areas, making Bhutan one of the world’s least urbanized countries. However, rural-urban migration is still a major concern for the Government. Over the last 25 years, there has been a sharp rise in migration patterns, which is greatly affecting the population pattern. If the current trends of urban migration continue, it is estimated that the urban population will quadruple, and nearly half the country’s population will live in urban areas by 2020.

17. A study conducted by the Ministry of Agriculture on Rural-Urban migration in 2005 shows that an estimated 72% of the urban populations are migrants from rural areas, and about 47% of all rural households have at least one member migrate (mostly to Thimphu, Phuentsholing, and Paro). Majority of the migrants are aged between 16 to 30 years and 63% have primary education or higher. The highest number of migrants is from the eastern region of Bhutan.

18. There are no present indications suggesting that rural-urban migration is contributing directly to growth in unemployment. However, this may change since rural-urban migration adds to the pressure of creating more employment opportunities for youth in urban areas. The Government is promoting both farm and off-farm enterprises, which include raising the standard of living of the rural people through improved access to social services; enhancing rural youth employment; creating awareness on the importance of the agriculture sector and other rural enterprise among the youth; and, developing and expanding small and cottage manufacturing enterprises.

A. The Economy

19. The economic growth for Bhutan during 2003-2008 was exceptionally high, almost at pace with the growth of the fastest growing economies. With an average economic growth of 9.6% over this period, it exceeded the targeted growth of 8.2%. Bhutan’s GDP is Nu 61,223 million in 2009. Annual average inflation reached a maximum of 8.3% in 2008. Currently, it stands at 4.4%. There are still concerns on this growth distribution since it is either in capital- intensive industries or concentrated in urban areas. An average growth rate of about 8% has been forecasted with services and construction, especially new hydropower projects, as the primary growth areas.

20. Although the Bhutanese economy was not seriously affected by the global economic crisis, annual data shows that revenues from tourism have decreased in 2009. Figures in the last quarter of 2009 reveal a decline of US$7 million in annual revenues from convertible currency tourism compared to approximately US$39 million in 2008. Earnings in the last quarter of 2009 are 33% below the corresponding 2008 figures, indicating that sector recovery is still underway.

21. Bhutan is an open trade economy with its exports and imports valued at approximately 90% of its GDP in 2006 or $780.42 million. Although the country’s trade volume has increased significantly, trade is still largely concentrated to the South Asian Association for Regional Cooperation countries with nearly 80% of its trade concentrated on India. Trade is expected to expand as the country’s economy develops.

22. Bhutan has been relatively isolated from the global financial and economic crisis and this is due to the limited financial and trade integration with other countries, except with India. Bhutan has been actively pursuing the promotion of a liberalized trade arrangement at the bilateral, regional and international levels while still reducing import tariffs and removing export taxes to lower trade barriers and restraints. Significant domestic reforms are introduced to facilitate domestic and foreign trade. Bhutan is a member of the South Asia Free Trade Association (SAFTA), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), World Tourism Organization, and has been an observer to the World Trade Organization since 1998. Bhutan has a bilateral agreement on free trade and commerce with India since 1972 and a Preferential Trading Arrangement (PTA) with Bangladesh. It is seeking to sign additional PTAs with other countries in the region including Nepal and Thailand.

23. Bhutan is an agrarian country with nearly 70% of the population living in rural areas and majority depending on subsistence farming and animal husbandry for employment and livelihood. Although Bhutan has progressed over the years from an agrarian economy to a more modern economy with the rise of the country’s industrial and service sectors, agriculture still remains an important sector of the national economy. However, traditional subsistence farming is slowly developing into commercial ventures as small-scale commercial agri-business ventures are emerging. In 2007, the agriculture livestock and forestry sector was surpassed by the electricity sector for the first time as the most important contributor to the national economy. According to Bhutan’s 10th Five-Year, the electricity sector contributes nearly a quarter of the GDP or 23.4%; agriculture, livestock and forestry sector about 18.6%; 13.5% for the construction sector; and 6.4% for the manufacturing sector in 2007.6

6 Gross National Happiness Commission. 2009. FYP 2008-2013. Vol. 1. Thimphu.

24. The Ministry of Agriculture (MoA) plays a major role in enhancing the living standards of the rural people through promotion of income generating agro-based enterprises; improvement of nutrition and health; and, ensuring access to services and market information. The Government has been constantly making efforts to strengthen the MoA in terms of technical and human resources although it was only in the early 1990’s the Ministry embarked on an internal restructuring.

25. The MoA also has a special role in poverty alleviation. This helped in formulating the Renewable Natural Resources (RNR) Tenth Plan under Vision 2020, the MDGs, and overall poverty alleviation strategies. The objectives under the RNR Tenth Plan is to enhance sustainable rural livelihood, conserve and promote sustainable utilization of forest and water resources, enhance food security, and promote sustainable utilization of arable agriculture and pasture land resources.

26. The Government believes youth employment problems can be tackled through the promotion of the RNR sector, which can help in alleviating rural poverty. Other concerns of the Government include rapid rural-urban migration, which impacts the limited employment absorption capacity in urban areas. Moreover, the availability of educated young farmers interested in farming activities have a significant effect on the sustainability and success of Bhutan’s agricultural base. However, this also depends on the ability of rural farming communities to retain a portion of their youth population as farming communities are already experiencing acute labor shortages, which could possibly only intensify over time.

27. In order to confront these challenges, the Government has been initiating various strategies to promote the RNR sector, and attain national food security, conserve and manage natural resources, enhance rural income, and generate employment opportunities.

28. In 2008-2009, the internal revenue recorded is about Nu 14.05 billion, an overall 14% increase from 2007-2008, which accounted for 24% of GDP. Approximately 13.1% of the revenue comes from non-tax sources such as dividends from various corporations, in which the Government has a major share. The tax revenue also increased by 24% which can be attributed to an increase in personal income tax (PIT) due to the salary revision (46%); increase in royalties from the tourism sector (32%); corporate income tax (CIT) from companies under Druk Holdings Investments (28%); and, excise duty refund from GoI (24%)7.

29. Government expenditures increased over the years from 39.7% of GDP in 2008-2009 to 44.9% in 2009-2010. Table 3 shows the Government Expenditure by Sector in 2008-2010.

7 Royal Government of Bhutan. 2009. Annual Financial Statements 2008-2009. p.5.Thimphu.

Table 3: Government Expenditure for the FY 2008 – 2010 by Sector

Expenditure (in millions Nu.) 2008-2009 2009-2010 Sectors Total % % of GDP Total % % of GDP Social Services 5,535.977 24.03 9.5 7,017.446 24.10 10.5 Health 1,930.484 8.38 3.3 2,151.789 7.39 3.2 Education 3,605.493 15.65 6.2 4,865.657 16.71 7.3 Economic Services 5,482.242 23.80 9.5 8,695.726 28.95 13.0 Agriculture 2,272.192 9.86 3.9 3,089.266 10.61 4.6 Mining and 182.138 0.79 0.3 206.455 0.71 0.3 Manufacturing Industries Transport and 2,050.090 8.9 3.5 4,104.415 13.66 6.1 Communication Energy 633.045 2.75 1.1 826.123 2.84 1.2 Other economic 344.777 1.50 0.6 469.467 1.61 0.7 services Public Order and 1,133.887 4.92 2.0 1,305.351 4.48 2.0 Safety Services Religion and 773.055 3.36 1.3 953.682 3.28 1.4 Culture Housing and Public 891.669 3.87 1.5 1,195.559 4.11 1.8 Amenities General Services 9,218.194 40.02 15.9 10,871.416 37.34 16.3 General Public 5,339.915 23.18 9.2 3,802.734 13.06 5.7 Services National Debt 3,878.279 16.84 6.7 7,068.682 24.28 10.6 Services Lending TOTAL 23,035.025 100 39.7 30,039.178 100 44.9 Source: Royal Government of Bhutan, Ministry of Finance. Annual Financial Statements 2008, 2009, and 2010. Thimphu.

B. Poverty and Inequality

30. Poverty is essentially a rural phenomenon in Bhutan and three out of every 10 persons in rural areas are poor. While the proportion of extremely poor persons in rural areas is relatively small at about 8%, it is considered large in relation to urban areas. Urban poverty is estimated at 1.7%, which is much lower than rural poverty, about 29% to 33%. Most of the extremely poor reside in rural areas.

31. Poverty reduction is the overall macro-strategy of the Tenth Five Year Plan (FYP) and all sector related plans are geared towards the broad strategy of reducing poverty from 23.2% to

15% by 2013. In addition, Bhutan is committed to the Millennium Development Goals (MDG) at a global level in reducing poverty, improving education, promoting gender equality, improving health, and achieving environmental sustainability by 2015.

32. Currently, the only program targeted solely towards the poor is the Rural Economic Advance Program or REAP. Implemented in different phases, the first phase covers 10 villages in the program. Although these villages are selected arbitrarily by His Majesty’s Secretariat, the villages for future project phases will be selected through the poverty index. The poverty index is calculated using 11 indicators. The REAP is targeted to the poorest segment of the population at the household level, and involves development plans at the village level.

33. An estimated 146,100 people belong to households with per capita real consumption below the total poverty line of Nu 1,096.94 per person per month. Nearly 23.2% of the population lives below the national poverty line (i.e., less than $1 a day). On the other hand, subsistence poor or extreme poverty is relatively small in the country with studies showing that about 37,300 persons are spending less than the food poverty line of Nu. 688.96.

Table 4: Poverty and Subsistence Incidence by Area, 2007

Poverty headcount Subsistence headcount Contribution Contribution Population Area Index to National Index to National Share National 23.2 (0.8) 100 5.9 100 100% Urban 1.7 (0.4) 1.9 0.16 (0.10) 0.7 26.4% Rural 30.9 (1.0) 98.1 8.0 (0.5) 99.3 73.6% Source: National Statistics Bureau. 2007. Poverty Analysis Report. Thimphu.

34. Rural poverty is characterized by limited access to roads, lack of farmland, and few productive skills. In general, living standards in rural areas are considerably lower than in urban areas. Poverty statistics indicate that poverty measures are larger in terms of population than households since poorer households on average, have larger household sizes than non-poor households. At the district level, poverty is highest in Zhemgang (52.9%), followed by Samtse (46.8%), Mongar (44.4%) and Lhuentse (43%).

Table 5: Poverty Prevalence, 2007

Poverty incidence Subsistence Incidence

Contribution Contribution Population Area Index to National Index to National share (%) National 16.9 100 3.8 100 100 Urban 1.1 (0.2) 1.9 0.11 (0.06) 0.8 30.1 Rural 23.8 (0.8) 98.1 5.4 (0.4) 99.2 69.9 Source: National Statistics Bureau. 2007. Poverty Analysis Report.

35. A poverty mapping study by the National Statistics Bureau and the World Bank in 2008 reveal vast differences in poverty across districts and villages. The main income of the poor is

10 wages and salaries (82%); in rural areas, the major source of income is ownership of farming enterprises (64%). Among the urban households, the proportion of non-poor whose main source of income is business or self-employment is about six times higher than the poor. In rural areas, this percentage of the non-poor is about twice more than the poor.

36. Although contribution from the private sector has increased, it is still minimal and the Government still plays a vital role in the development of the economy. The overall strategy of the Government’s Tenth FYP is to reduce poverty to 15% or below. All planned activities are linked to the Millennium Development Goals (MDG) and the SAARC Development Goals (SDG), both development activities at the international level.

37. The 10th FYP addressed poverty by enhancing food security through increasing food availability and securing access to food. The impact of rural-urban migration on the country’s ability to maintain national food security through agricultural production is seen in the acute labor shortages in farming villages. In addition, the diminishing economic viability of food grain cultivation resulted in less acreage being cultivated each year, loss of crops and livestock to wildlife predation, and devastation by natural calamities. This led to a continuous decline in the cultivation and production of cereals and a corresponding drop in their self-sufficiency levels.

38. The Government’s national food security policy includes a realistic perspective in maintaining broad national self-sufficiency through sustaining the cost of food imports, excluding processed food items, from the sale and export of cash crops; and, ensuring that the export of cash crops is adequate to cover food import costs. Bhutan’s reliable access to cheap food imports mainly from India for food security, and the rapidly growing local and external markets, necessitates the strategic focus to a greater degree of commercialization of agriculture; and, specialization in horticulture export, non-wood forest products, and niche organic products.

39. The Gross National Happiness Commission (GNHC) is entrusted with timely implementation of the country’s development plans according to Government specified objectives and priorities. GNHC’s development plans include reaching the poorest population at the household level, with decision-making decentralized to the district and block or county level. Annual grants are allocated according to district population size (70%), poverty level (25%) and geographical area (5%).

40. The Government constantly seeks to assess development beyond the income or economic growth dimension. In the current absence of a country specific and relevant development index that accounts for the core principles and dimensions of the Gross National Happiness and its measurement, the Human Development Index (HDI) has been a useful interim tool to assess the overall development of the country. The HDI is a composite index that seeks to capture holistic development progress of countries towards promoting a long and healthy life, knowledge, and a decent standard of living. It comprises the three indicators of life expectancy, educational attainment, and real GDP per capita in PPP terms.

41. Bhutan’s HDI improved from 0.583 in 2003 to 0.613 in 2006. In 2009, the HDI for Bhutan is 0.635 and 0.64 in 2010 according to the UNDP human Development indicators. In the 1980’s, HDI grew largely on account of improvements in life expectancy and real GDP per capita growth. There are also sustained improvements in educational attainment and real income growth. Life expectancy levels have stagnated for the past 66 years. Low adult literacy levels (below 53%) is a major reason obstacle in improving HDI values. The improved but still weak enrolment rates at the tertiary education level constitute another sub-indicator that slowed national HDI progress.

42. With improved trends in HDI value, Bhutan has effectively and rapidly scaled up its HDI, roughly doubling in value over the last two decades. This has resulted in the country’s movement from the low human development countries into the category of medium human development countries.

C. Employment and Labor Force

43. According to the Bhutan Labor Market Study in 2009, the increase in the number of workforce entering the market is much higher than the employment opportunities being generated. Projections also show that 38,588 graduates will join the labor force between 2009 and 2020. Even with increasing job opportunities, especially for the educated youth, the pace of new job creation may not match the increasing number of educated youth entering the labor force.

44. Bhutanese youth are now more ambitious, setting higher expectations on their work; many are very reluctant to take up manual labor or jobs under adverse working conditions. Another problem is with the limited number of appropriately skilled workers and industries believe this is not due to the lack of available manpower but the shortage of required skills.

45. The Labour Force Surveys conducted each year show an annual increase in the labor force as more youth, both educated and uneducated, enter the labor market. Latest figures from the Labour Force Survey 2010 reveal a 3.3% unemployment rate, which decreased from 4% in 2009. This is due to the Government’s commitment to lower unemployment rate to 2.5% and create 93,000 jobs by the end of the 10th FYP.

Table 6: Composition of Employment by Major Occupation

Labor Force by Occupation 2009 2010 Legislators, senior officials and managers 2.27 % 2% Professionals 5.69 % 7.8% Technicians and associated professionals 1.66 % 6.7% Clerks 2.05 % 2.0% Service workers, shop and market sales workers 7.80 % 8.9% Skilled agricultural and fishery workers 65.16 % 58.8% Craft and related workers 2.33 % 6.3% Plant and machine operators; and assemblers 6.42 % 3.1% Elementary occupations 4.83 % 2.8% Armed forces 1.79 % 1.6% Source: National Labour Force Survey, 2009; 2010

46. In Bhutan, a person is considered employed if some paid work was performed in cash or kind for at least one hour, or the person has a job or business although temporarily absent and set to resume work. Bhutan categorizes the nature of employment as regular paid employee, casual paid employee, unpaid family worker, own account worker or self-employed, and employer. On the other hand, unemployment in Bhutan is defined per international standards based on the three categories (i) without work; (ii) available for work; and (iii) seeking work.

47. As shown in Table 7, agriculture is not the highest contributor to the country’s GDP, although it is still a predominant sector employing nearly 180,200 persons or nearly approximately 57% of the working population in 2010. In 2009, agriculture’s share to GDP is only 18.2%.

Table 7: Number of Persons Employed by Type of Enterprise, 2010

Persons Public Private Armed Private Agriculture NGO/ Government employed Corporation Corporation forces Business Farming INGO 2010 49,00 10,500 8,500 4,900 66,000 180,200 1,000 Source: Statistical Yearbook, 2010

48. The Labour Force Participation Rates (LFPR) have gradually increased over the years from 67.3% to 68.6% in 2010. The male LFPR increased from 72.8% in 2009 to 73.6% in 2010. On the other hand, female LFPR slightly decreased from 64.5% in 2009 to 63.9% in 2010. The LFPR is higher across rural areas (69.3%) in comparison to urban areas (67.9%). In the rural livelihood system, there is a strong economic need for everyone to work. However, in urban areas, higher income enables support for dependants and better educational opportunities allow people to study longer.

Table 8: Labor Force Participation Rates

2007 Unemployment rate 2009 Unemployment rate 2010 Unemployment rate LFPR Rural Urban LFPR Rural Urban LFPR Rural Urban 67.3 2.8 6.8 68.5 3 7.5 68.6 2.6 5.1 Source: Royal Government of Bhutan. Statistical Yearbook of Bhutan 2007, 2009, and 2010. Thimphu.

49. Labour force participation for women is significantly lower in comparison to men (Table 9), especially in the urban areas. In workplaces, women hold lower paid and lower skilled jobs; and in the urban areas, many women work in the informal sector, often working from home. Women are under-represented in the Government (constituting less than one fourth of the civil service), and also in public decision-making. This is mostly attributed to the slow progress of educational opportunities in Bhutan, particularly for women. However, Bhutanese women now pursue professional careers and the number of women in the civil service increased over the years. Currently, women constitute about 23% of the total civil service employees. There has also been a tremendous increase in female school enrolment rates.

Table 9: Rural and Urban LFPR

2009 2010 Male 72.8 73.6 Female 64.6 63.9 Source: Ministry of Labor and Human Resources. Labor Force Survey 2009, and 2010.

50. Unemployment based on the standard ILO definition is a poor indicator of the employment situation in agrarian economies where significant levels of underemployment are

13 likely to occur. There is no standard way of measuring underemployment in Bhutan. Table 10 presents data on possible definitions of under-employment.

Table 10: Underemployment

Total As % of active population Underemployed 2009 2010 2009 2010 Unpaid family worker 161,900 133,200 53.6% 41.5% Casual paid employee 16,000 18,100 5.1% 5.6% Total 177,900 151,300 58.7% 47.2% Source: Labour Force Survey, 2009 and 2010. D. Education

51. Bhutan has achieved significant progress in advancing the general social conditions in the country because of the continuous investments in the social sectors. Enhancing access to the efficiency and quality of social services is a strategic focus of the Ninth FYP, with a significant scaling up of resources allocated for the social sector. The social sector received the largest share of the Ninth Plan budget with around a quarter of the total realized budget, including social sector expenditures at the central, district and village level. The education sector received nearly 39.2% of the total allocation, followed by health at 9.5%.

52. Progress in terms of education has been particularly notable and Bhutan is close to achieving universal primary education with virtual gender parity at primary and secondary school levels. Adult literacy levels have also increased from about 10% in 1970 to 53% in 2005. The Government has been striving to increase adult literacy rates to 70% by 2013.

53. The total enrolment of students increased from 129,160 in 2003 to 174,698 in 2009. There are 541 schools and 23 institutes spread across the country, excluding monastic schools and non-formal education centers.

Table 11: Number of Educational institutions, Teachers and Students

Infrastructure Teacher Student Other Other Other Year School inst.* Total School inst.* Total School inst.* Total 2005 458 18 476 4,604 566 5,170 141,388 4,429 145,817 2007 502 19 521 5,372 457 5,829 152,194 4,739 156,933 2009 541 23 564 6,668 934 7,602 164,262 19,862 184,124 Other inst.* does not include monastic schools, non-formal education or day-care centers Source: National Statistical Bureau, Statistical Yearbook of Bhutan, 2010.

54. There has been increased enrolment at the higher secondary level, averaging close to 20.9 % annually between 2002 and 2008. At the middle or lower secondary, and primary levels, enrolment growths have been more modest at 6.6%, and 2.7%, during the same period. While the growth in student enrolment numbers has placed an enormous burden on the educational system, efforts have been made to maintain and further improve the quality of education.

55. Maintaining the quality of education with unrelenting enrolment growth is a major challenge and likely to remain a significant one in the future. The Gross Primary Enrolment Rate (GPER) has increased from 81% in 2002, to 112 % in 2008. The Ninth FYP’s target to attain a GPER between 90-95% is achieved. With the enrolment rate for girls growing at a faster rate in both primary and secondary levels, the country achieved gender parity in primary and basic education.

56. Significant gains in girls’ enrolment rate at higher secondary level moved the country much closer in achieving gender parity from 0.61 in 2002 to 0.86 in 2008. Primary and secondary school completion rates have also improved significantly. It increased from 77% to 87% at the primary level and from 43% to 54% at the secondary level between 2006 and 2008. This improved efficiency within the primary and secondary education system is partly attributed to the improvements in the teacher-student ratio in schools. Most schools have achieved the Ninth Plan targeted teacher student ratio of one teacher for every 32 students.

Table 12: Education Indicators

No. Indicators Value 1 Education Expenditure as a % of GDP, 2008 5.1 2 EFA Development Index (EDI), 2007 (ranked 100) 0.795 3 Female Teachers at primary level, 2005 35 4 Children of primary school-age who are out-of-school, 2008 7% 5 Gross enrolment rate (GER) at tertiary level, 2007 5 6 Number of illiterate adults, 2007 (in 000) 201 Source: Annual Education Statistics, 2010. 57. The MDG-3 of ensuring that children will be able to complete a full course of primary schooling has been achieved with the Gross Primary Enrolment Rate (GPER) at 117%. The other indicators are also on track with the net primary enrollment ratio at 93% in 2010.

Table 13: Education Indicators

Education Indicators 2009 2010 Gross Primary Enrolment Rates 115.7% 117% Net Primary Enrolment Rates 91.8% 93.7% Ratio of girls to boys in primary schools 99% 99.4% Ratio of girls to boys in secondary schools 101.6% 103.5% Ratio of females to males in tertiary institutes 53.2% 60.8% Source: Ministry of Education. Annual Education Statistics, 2010.

58. With a literacy rate of 54%, the proportion of literate people is limited and computer literacy is lower with fewer than 10,000 computers in the country. Disparities persist in the literary level between the urban and rural areas. Less than half the poor in rural areas are literate, and slightly more than half of the non-poor is literate. On the other hand, in urban areas, literacy rate among the poor is 32%, and three-quarters of the non-poor are literate.

59. Non-formal education (NFE) programs are conducted for people above 15 years of age. The National Women’s Association of Bhutan and the Department of Education started this program targeted towards students not enrolled in school or early school dropouts. The program started with a pilot project of six centers in 1992. According to the National Education Statistics in 2010, there are 714 centers spread across 205 villages. Classes are conducted in the evenings and more than two-thirds of the students are females. Women who became parliamentarians at the National Assembly show the success of the program.

E. Health and Disability

60. The health sector has seen some of the most striking improvements in recent years, especially in primary health care coverage, as reflected in health indicator improvements across the board. Most of the health services are provided free of charge to the public, including referral services abroad. The MOH aims to cover 100% of the population with medical facilities. However, due to the country’s rugged terrains, it is impossible for every individual to have access to a proper health care system. Studies have shown that around 10% of the population is still not covered with majority of this 10% residing mostly in Thimphu and Phuentsholing.

61. MoH delivers equitable services to the public although there is no particular program targeted towards the poor. All sector-related plans are geared towards the reduction of poverty and the main health indicators shown in Table 14 contribute to these strategies.

Table 14: Health Indicators

No. Indicators 2008 2009 1 Infant mortality rate per 1,000 live births 40.10 40.10 2 Under 5 mortality rates per 1,000 live births 61.50 61.50 3 Deliveries attended by health professional 66% 66% 4 Immunization coverage 94.4% 90% 5 Access to safe drinking water 83% 83% 6 Access to safe excreta disposal 91% 91% 7 Malaria incidence per 10,000 population at risk 7 10 8 Tuberculosis prevalence per 10,000 population 15 15 Maternal mortality per 10,000 live births 255 255 Source: Annual Health Bulletin, 2009, 2010

62. Through decentralization, districts propose their own plans except for human resource and distribution of drugs. Since decentralization is fairly new, the technical division in the Ministry of Health assists the districts with their plans and jointly creates proposals. In order to reach the remote areas of the country, the Government established Basic Health Units (BHU) and Outreach Clinics (ORC). The minimum walking distance to a medical center is 3 hours.

63. Although Bhutan has developments in human resource, infrastructure, and preventive health care, it is the unique primary health care delivery system that is the backbone of the current health system. Significant improvements are shown in the health indicators such as increased life expectancy and lower under-five and infant mortality. Primary health care coverage is sustained above 90% and immunization coverage levels are maintained above 85%

16 in all districts. Bhutan remains on track in achieving the MDG target of reducing the under-five mortality rate by 29% from 84 per 1,000 live births to 60 per 1,000 live births over the planned period. The probability of Bhutan achieving the MDG target of reducing infant mortality rates (IMR) by two-thirds is also plausible since IMR was successfully scaled down by around one third from 60.5 per 1,000 live births to 40.1 over five years.

64. Maternal mortality rates also decreased by 16%, declining from 255 to about 215 per 100,000 live births, partly attributed to an increase in skilled birth attendance. The establishment of nine comprehensive and 20 Basic Emergency Obstetric Care centers during the 9th FYP also contributed to the further decline of maternal mortality in Bhutan.

Table 15: Summary of Health facilities and personnel

Facilities 2009 Number of hospitals 31 Number of basic health care units (BHU) 181 Number of outreach clinics/dispensaries (ORC) 518 Number of indigenous hospitals 1 Number of indigenous dispensaries 37 Persons per doctor 3,883 Doctors per 10,000 persons 2.6 Population covered by health care (%) 90 Population with access to safe drinking water (%) 83 Women attended by trained personnel during childbirth (%) 66 Source: National Statistical Bureau, Statistical Yearbook, 2010.

65. There is a substantial expansion in both human resources and infrastructure in the health infrastructure. The ratio of doctors to population for every 10,000 individuals improved from 2.3 in 2005, to 2.6 in 2009.

66. The general nutritional status of the people has improved over the decade due to focused interventions and the improved availability of food. The MDG target indicator of halving the rate of underweight under-five children has been achieved with this indicator decreasing from 19% in 2000 to 9.8% in 2007. There are similar achievements in reducing stunting and wasting among children. In addition, there is no major gender difference in the nutritional status of children. In cases wherein small differences exist, girls are usually better off.

67. The MoH, with the support of UNICEF, conducted a National Nutrition, Infant and Young Child Feeding and EPI coverage survey in 2009. The findings of the study revealed that Bhutan maintained a minimum of 95% traditional vaccine coverage for infants, although there is considerable difference between rural and urban areas in terms of wasting; stunting; and, underweight children.

68. The most notable achievement in health is in micronutrient deficiency. A major health achievement over the Ninth FYP is the elimination of iodine deficiency disorder (IDD) as a public health problem, with Bhutan becoming the first country in the region to achieve this elimination of IDD. The incidence of goiter is less than 5% compared to 65% two decades ago. The

17 micronutrient deficiency of Vitamin A is also no longer a public health problem although iron deficiency anemia among pregnant women is still a critical concern.

69. The provision of safe drinking water and sanitation is critical to improving the health status of Bhutan’s population given the close link between enhanced coverage levels of safe drinking water and sanitation, and the decreased incidence of infectious diseases such as diarrhea, typhoid, and cholera. The proportion of the population having access to safe drinking water increased from 78% in 2000 to 83% in 2009.

70. Improvements can be particularly noticeable in rural areas with around 75% of the country’s rural residents having access to safe drinking water sources. This reflects a sharp reduction in the rural-urban gap in terms of access to basic amenities; a factor attributed to the highly effective implementation of the Rural Water Supply (RWS) schemes all around the country. As the MDG target of reducing by half the number of people without access to safe drinking water achieved in advance, the future challenge is geared towards achieving and maintaining universal access to safe drinking water, particularly in rural areas. The proportion of the population without access to improved sanitation has decreased from 12% in 2000 to 10% in 2007.

71. The number of pregnant women attended by trained personnel during delivery increased from 10.9% in 1984 to 67.4% in 2009. However, nearly two-fifths of deliveries are still attended by medically untrained persons. Most of the maternal deaths are due to post-partum hemorrhage occurring either at home or during late arrival at the hospital. Life expectancy indirectly reflects certain aspects of an individual’s well being to live a longer and have a productive life. With the introduction of modern health services, life expectancy improved to 69 years. According to the Annual Health Bulletin in 2010, the Government expects this number to increase to 72 years by 2020.

72. There is no current information on disability in Bhutan. According to the Population and Housing Census of Bhutan in 2005, there are 3.4% of cases involving disabilities in terms of seeing, speaking, hearing, moving and mental disability. The study showed that Trongsa in Central Bhutan (5.6%) and Lhuentse, Eastern Bhutan (6.4) has the highest number of disabled population. The same study also shows that there is 6,476 persons with disability at birth and 15,867 persons develop disability later in life. Since 2005, there has been no study conducted to measure the actual number of disabled people in Bhutan.

Table 16: Disability

Disability Cases Percent Seeing 5,906 23.5 Speaking 4,479 17.8 Hearing 8,985 35.7 Moving 4,370 17.4 Mental 1,394 5.5 Total 100.0 Source: Annual Health Bulletin, 2006

III. CURRENT SOCIAL PROTECTION PROGRAMS AND ACTIVITIES

73. This chapter presents an overview of the data collection process, objectives, and current social protection activities in Bhutan including challenges and difficulties encountered during the course of the study. The two-fold objectives of this chapter is to present the main features of the social protection programs in the country and provide quantitative information that will serve as the basis for the formulation of the Social Protection Index.

A. Data Collection

74. Most of the information has been obtained from published reports of government and public organizations. Additional data was obtained through interviews with representatives from the implementing agencies. In certain cases, estimates had to be made by the consultants.

75. Some of the difficulties encountered during data collection are the challenges faced in categorizing the social protection programs. Also, there is no formal institution or agency operating or managing the Government’s social protection programs in Bhutan. Majority of the social protection programs in Kingdom of Bhutan are operated as Civil Society Organizations (CSO) or formerly known as non-governmental organizations or NGOs. There was no CSO Act prior to 2007 and the Government monitored the CSO’s. Most of the CSOs are currently still in their infant stages.

76. There is no Government institution or organization exclusively established for social protection programs because the Government is already providing two of the basic welfare needs for free - health and education. According to the Annual Financial Statement in 2009, the Government’s expenditure on these two services alone is more than 23% of the total expenditure and approximately 9.5% of the GDP.

B. Social Assistance Programs

77. The social assistance programs in Bhutan include the food or cash for education program, school feeding program, and disaster relief. Except for the social insurance program, many of the programs under social assistance and labor market programs are supported with assistance from donor agencies.

78. Most of the Government Ministries and Public Corporations have a welfare scheme program for their staff members. Members contribute a minimal amount ranging from Nu 100 to Nu 500 (about $2.3 to $11) on a monthly basis, an amount directly withdrawn from their salary. Contributing members are entitled to a lump sum of Nu 10,000 (about $ 222.2) during times of need such as the demise of a close family member. This is not a mandatory program and should the contributing member decide to resign or transfer to another organization, the member will receive the total contribution amount until the date of transfer or resignation.

C. Food or Cash for Education Program

79. Education is provided free of charge for all Bhutanese from the age of six. Although this is not a compulsory primary education policy, Bhutan ratified the Convention on the Rights of the Children, which enshrines this right. However, there are still certain segments of the population who could not afford to send their children to school. In order to overcome this problem and encourage families to send their children to school, the Government initiated the

Food for Education program. The World Food Programme (WFP) and the Ministry of Education supports this program.

80. The Tarayana Foundation is a CSO initiated by Her Majesty, Ashi Dorji Wangmo Wangchuck in 2003. It aims to help the vulnerable and supplement the nation’s efforts in poverty alleviation. Tarayana also implements the food-for-education program in some communities. They provide the mid-day meal to students to encourage young children to continue their education.

81. The food and cash for education program is under the responsibility of the respective head organizations as shown in Table 17. These programs are implemented at the district or school level.

Table 17: Food and Cash for Education Program

Implementing Agency or Schools or Institutions Lead Organization Person District Education Officers and All schools (Classes PP-XII) Ministry of Education Principals All tertiary Institutions Royal University of Bhutan Principals Ministry of Labour and Human Vocational Training Institutes Resources Principals Monastic schools Central Monastic Body Monastic Schools

D. School Feeding Programs

82. Prior to 2008, the World Food Programme (WFP) was also supporting students from classes PP-XII although currently, the WFP only targets school children from classes PP-VIII. In boarding schools, a stipend of Nu 240 per child per month is provided for one meal only, at 10 months per annum. Children from day schools do not receive any stipend from the Government. The Government provides the kitchen facilities and maintenance in all schools, also bearing the transportation costs from the road to the school.

83. As the WFP began to phase out school feeding programs, the Government gradually started to gain more responsibility. Since 2008, the Government provided Nu 700 per boarding child per month for all boarding students from classes XI and XII. In 2009, the Government started to provide Nu 700 per boarding child per month for all boarding students from classes IX and X. The Government also started providing a stipend of Nu. 700 per boarding child in all schools for boarding in classes IX-XII to cover all three meals in 2010. There is no stipend provided for day students.

84. Students and trainees in the Government’s tertiary and vocational training institutions are granted a monthly stipend of Nu 1,500 or approximately $33.3, including free accommodation. In some institutions, a certain percent is automatically deducted for the food provided. However, in some institutions the student is paid the full amount and expected to arrange for his or her own food. Stipend is given to both boarding and day students or trainees.

85. The Government also supports the monks under the Government Monastic schools and institutions. Each monk is given a stipend of Nu 1,705 per month and they are also provided

20 accommodation. The stipend is used to provide the monks with basic food, clothing and education. There are 7,240 monks registered with the Government who are benefiting from this program with data showing ages ranging from 5 years to 81 years. Currently, there are 1,396 monks between the ages 5 and 14 years; 5,751 monks between the ages 15 and 60 years; and, only 93 monks above 61 years.

E. Disaster Relief Programs

86. The Department of Disaster Management was initiated in 2008 under the Ministry of Home and Cultural Affairs. One of the department’s mandates is to coordinate relevant stakeholders during major disasters to raise relief funds.

87. Major disasters in recent years occurred between 2009 and 2010 with six earthquakes affecting Bhutan, of varied magnitudes, and two major fires in the Bumthang town. Immediate relief was provided by His Majesty’s Kidu Fund, which included food, temporary shelter, clothing and money.

88. Kidu is a Bhutanese State welfare grant provided only by His Majesty the King to the poor and vulnerable, usually to landless peasants, or the weak and destitute groups. Kidu can be in the form of free allotment of land to the landless, informal livelihood security grants such as cash endowments to families or individuals without any other means of survival, subsidized or free timber for house construction, education scholarships including monthly stipend, etc. At the community level, Kidu can be in the form of prioritized developmental activities (e.g. road construction, electrification, and drinking water infrastructure) through immediate implementation with prioritized financial guarantee.

89. Funds are raised through contribution from Bhutan and overseas. In 2010, the total contribution received amounted to Nu 77.022 million or approximately $1.71 million. Expenditures totaled Nu 53.881 million, with approximately Nu 10 million allotted for direct cash or in-kind transfers.

Table 18: Extent of Damages

Beyond Major Partial Minor Total Item Repair Repair Repair Repair Affected Rural Homes 462 884 1,335 2,269 4,950 Government Buildings and institutions 15 42 67 93 217 Cultural Properties 178 257 233 180 848 Source: Royal Government of Bhutan, World Bank, and UN Joint Rapid Assessment for Recovery, Reconstruction, and Risk Reduction. 2009.

90. There are no figures available on the actual number of persons affected by the earthquake or the flood. Calculations are made based on the number of households affected and the average household size of 5 persons. There is an estimated 24,750 people affected by the two natural disasters. Expenditures for the affected areas amounted to nearly Nu 2,192 million.

91. Bhutan received assistance in cash amounting to Nu 710.707 million from various donors to support the reconstruction of social infrastructures damaged by the earthquake and

Cyclone Aila in 2009. Of the total amount received, Nu 323.861 million was allocated for flood relief and Nu 386.846 million for earthquake relief. In addition, Bhutan received overseas development assistance from ADB, World Bank, JICA and IFAD for infrastructure support and disaster relief and assistance.

F. Social Insurance Programs

92. The social insurance programs in Kingdom of Bhutan include the National Pension and Provident Fund Plan (NPPFP) consisting of a Pension Plan and a Provident Fund Plan, the Group Insurance Scheme (GIS) and the Rural Insurance. The Royal Insurance Corporation of Bhutan (RICB) manages these programs.

G. National Pension and Provident Fund Plan

93. The National Pension and Provident Fund Plan (NPPFP) was established as a mandatory savings plan for employees of the civil service, public corporations, and the armed forces. Since its inception in 2002, the NPPF has grown into one of the single largest social insurance agency for civil servants in Bhutan.

94. Prior to the National Pension and Provident Fund (NPPF), the gratuity and Government Employees Provident Fund (GEPF) is the only retirement scheme for government employees paid as lump-sum amounts. The NPPFP was instituted by restructuring the GEPF since the lump-sum cash benefit was alleged to be a major cause of unsatisfactory post retirement security.

95. In 2009, the Plan had a total of 40,222 active members, which represents a growth rate of 5.27% compared to the previous year. Currently, this scheme covers about 6.32% of the population from the civil service, military and state-owned companies, with 42,393 contributing members as of 2009-2010.

96. The ratio of pensioners to the total number of contributing members reached 5.18% in 2009. Higher ratio indicates higher pension expenditure since more benefits have to be paid to the growing number of pensioners. As the pension matures, the ratio is expected to reach about 10% in the next 20 years.

97. The NPPF is seeking measures to expand coverage, as members constitute only about 6% of total population. The pension plan is currently in an advantageous position because the average age of the members is young. Most members fall within the age group of 25-30 years.

98. There are various insurance schemes which safeguards the loss of employment income in the event of old age, invalidity, or death by providing post-service retirement benefits to members; income security in the event of permanent disability of a member; and social support to surviving members of the deceased member’s family.

99. In the private sector and non-government entities, less then 1% of employees are covered separately under the provident fund scheme managed by the RICB. The Bank of Bhutan and Army Welfare Project are managing their own provident fund schemes.

100. The NPPF constitutes a two-tier plan: a (i) Pension Plan which is an annuity payment made on a monthly basis; and, a (ii) Provident Fund plan payable in lump-sum benefits with rates of return based on fund performance.

Table 19: Number of Pensioners and Pension Payments, 2008-2010

Type of Pension Number of Sl. No. Benefits Beneficiaries Pension Amounts (in millions) 2008/09 2009/10 2008-2009 2009-2010 Nu. USD Nu. USD 1 Normal Pensioners 240 313 18.64 0.385 24.97 0.516 2 Early Pensioners 65 89 4.25 0.087 5.62 0.116 3 Surviving Spouse 24 44 0.99 0.020 1.81 0.037 4 Surviving Children 429 520 6.12 0.126 7.24 0.149 5 Orphans 16 22 0.43 0.009 0.39 0.008 6 Dependent parent 2 1 0.08 0.002 0.06 0.001 7 Permanent Disability 6 6 0.23 0.005 0.25 0.005 Total 782 995 30.75 0.635 40.34 0.833 Source: National Pension and Provident Fund, Annual Report 2009 and 2010.

H. Group Insurance Scheme and Group Savings Link Insurance

101. The Group Insurance Scheme (GIS) is a mandatory scheme for all Government organizations, corporate bodies and the armed forces. For the private sector organizations and CSO’s, the Group Savings Link Insurance (GSLI) is compulsory. Both these schemes are similar in nature.

102. Both the employer and the employee contribute equal amounts depending on the grade or the pay scale of the employer under these two schemes. The groupings of members are shown in Table 20.

Table 20: Group Insurance Scheme

Group RGOB/Basic pay Subscription Rate Insurance Coverage Grade 1 – 3 or Group A Nu. 25,001 and above Nu 300 per month Nu 3,00,000.00 Grade 4-8 or Group B Nu. 12,001 to Nu. 25,000 Nu 200 per month Nu 2,00,000.00 Grade 9 and below or Group C Nu. 12,000 and below Nu 100 per month Nu 1,00,000.00

103. The risk recovered can range from Nu 1,00,000 to Nu 3,00,000 (approximately $ 2,222, $4,444, and $6,667) depending the severity of each case. For instance, death during service is equal to total risk recovered plus 60% of total savings with 7.5% interest; while death during retirement is 60% of total savings, with 7.5% interest. Claims made for the past three years are reflected in Table 21.

Table 21: Group Insurance Scheme Claims and Payments

Year Number of Deaths Claim Paid (in Nu) 2008 120 14,120,000 2009 114 14,230,000 2010 117 14,300,000 Source: Royal Insurance Corporation of Bhutan, Audit Report, 2010.

104. Provident funds for private sector organizations and CSO’s are collected and managed by the Royal Insurance Corporation of Bhutan. A minimum of 5% of the salary is collected from both the employer and employee. The claims are made one-time upon retirement or resignation from the organization. The claims are the total amount collected and accumulated with 6% interest per annum. The claims are payable per the organization’s service rules. Due to due the high frequency of employees leaving jobs in the private sector, an average of 60 claims are made on the Provident Fund from RICB each month. In 2009 a total amount of Nu 32,082,198 or US$ 712,938 was paid as provident fund.

105. Employers can insure individuals or groups under the Group Personal Insurance (GPI) against work-related accidents or illnesses. The premium is paid by the employer and there is no contribution from the group or the employee. The premium depends on the employer but the maximum payout to the employee or group is 3 years salary or Nu 1,08,000 (US$ 2,400) for laborers. If a death occurs, then the full amount insured is paid. Otherwise, payments are made depending on the severity of the illness or disability. Payments can be made against hospital lodging fees or purchase of medicines. In 2009, only one claim of Nu 2,00,000 or US$ 4,444 was made and in 2010, a total of 9 claims were made amounting to Nu 8,40,200 or US$ 18,667.

I. Rural Insurance

106. In 1985, the Government mandated the RICB to introduce the rural insurance scheme for rural households. According to RICB, it was difficult to convince rural people to insure their houses. It was only in 2010, that about 60,000 rural houses (both permanent and semi- permanent) are insured with the RICB. The premiums are collected by local village leaders and deposited with the RICB. Between 2009 and 2010, six earthquakes hit Bhutan, with varied magnitudes. The epicenter was mostly concentrated in the East of Bhutan. Over 7,000 rural houses were affected and compensation claims as insurance from RICB reached Nu 130 million.

107. The Ministry of Home and Cultural Affairs is responsible for the rural life insurance. Under this scheme, the annual premium contribution per person in the village is Nu 45 only. This is a mandatory contribution for any person after the age of eight years old. Upon the person’s death, the family of the deceased receives a compensation of Nu 15,000 from the Government. This rural life insurance is managed by the district head.

J. Labor Market Programs

108. There is only one labor market program in Kingdom of Bhutan implemented under the Ministry of Labour and Human Resources – the training component of the Urban Poor Development Program. UNDP supports various vocational training programs such as Pre Employment Engagement Program (PEEP), Apprentice Training Program (ATP), and the Income Generation Start-up Program (IGSP).

K. Pre Employment Engagement Program, Apprentice Training Program and Income Generation Start-up Program

109. One of the mandates of the Department of Human Resources under the Ministry of Labour and Human Resources (MoLHR) is to develop and implement vocational education and training to produce a skilled and productive workforce. Although there are no programs targeted solely to the poor in rural areas, there are comparable programs particularly focused on the poor and unemployed. The PEEP, ATP, and IGSP grant project, supported by the UNDP was mostly initiated in 2008-2009.

110. The PEEP, started in 2009, targets youth from the poorer and more disadvantaged family background. The program assists unemployed youth by providing employment in the private, corporate, or government organizations with a basic salary of Nu 3,000.00 per month or about $67 for three months. The Government solely supports this program. However, a part of the program is on cost-sharing basis with the Government paying 50% of the total amount of Nu 3,000.00, and the hiring organization paying the other 50% to the trainee. This is a six-month training program. Currently the pre-employment program has been suspended for lack of valid information on the applicants.

111. The MOLHR is associated with the Ministry of Health to conduct the Apprentice Training Program. This is a support program for job seekers with placement as helpers in hospitals. Under this program, the Ministry also sends people to India for training in information technology and hospitality.

112. The Ministry also receives support from UNDP in the form of the IGSP grant. This grant supports the entrepreneur promotion program, formerly under the responsibility of the Ministry of Economic Affairs. This grant supports the whole structure of the business. However, the grant is only provided to businesses started in the 3 poorest districts – Samtse, Zhemgang and Dagana.

IV. SOCIAL PROTECTION INDEX AND ITS DISAGGREGATION

113. The revised Social Protection Index (SPI) deviates from the original SPI with a composite index composed of 4 components of Social Protection Expenditure (SPEXP), Social Protection Coverage (SPCOV), Social Protection Distribution (SPDIST), and Social Protection Impact (SPIMP) to have a unitary indicator that can be disaggregated for analytical purposes.

114. The revised SPI is calculated by Total Social Protection Expenditures per Total Potential Beneficiaries by 25% of the GDP per capita (representing average poverty line expenditures). In other words, the total social-protection expenditures spread across all potential beneficiaries are compared to poverty-line expenditures in each country.

115. The revised SPI index can be disaggregated into two components, one for the ‘depth’ of coverage and the other for the ‘breadth’ of coverage of social protection programs. The first indicator is the Total Social Protection Expenditures divided by the Total Actual Beneficiaries (i.e., the average size of benefits actually received or ‘depth’). The second indicator is the Total Actual Beneficiaries divided by the Total Potential Beneficiaries (i.e., the proportion of potential beneficiaries actually reached or ‘breadth’).

116. The revised SPI can also be disaggregated by the major categories of social protection programs: social insurance, social assistance and labor market programs. When the total expenditures per total potential beneficiaries for each major program are weighted in population terms, the program SPIs add up to the total SPI.

117. Furthermore, the revised SPI can also be disaggregated by expenditures per potential poor and non-poor beneficiaries. Finally, gender-wise data allows the disaggregation of expenditure by gender.

118. The derivation of the SPI for poor and non-poor and the SPI women and men used poverty and gender targeting rates. The rates are based on the results of household surveys; administrative reports of social protection implementing agencies; and in some instances, on the professional judgment of the consultants.

A. Basic Statistics

119. The data presented in Table 22 is extracted from the SPI calculation spreadsheet for Bhutan. Most of the data relates to 2009. In cases when the 2009 data is not available, data for 2008 or 2010 is used.

Table 22: Bhutan Basic Statistics for 2009

Statistic Unit 2009 Value Source of Data Notes GDP National Accounts 2009, (current prices) Unit 61,223,460,000 Ministry of Finance Fiscal Year GDP per capita National Accounts 2009, (current prices) Unit 89,638 Ministry of Finance Fiscal Year GNI National Accounts 2009, (current prices) Unit 55,381,490,000 Ministry of Finance Fiscal Year Statistical Yearbook 2009, Total Population Unit 683,407 National Statistical Bureau Annual Estimates Including unemployed, seasonal and casual + 50% Number of of unpaid family workers unemployed/ Statistical Yearbook 2009, who will be targeted by the under-employed Unit 109,850 National Statistical Bureau food for work programs Population aged 60 years and Statistical Yearbook 2009, over Unit 47,173 National Statistical Bureau Annual Estimates Employed Statistical Yearbook 2009, Population Unit 312,800 National Statistical Bureau Annual Estimates Population living Bhutan Living Standard Survey below national 2007, National Statistical Estimated 23% of poverty line Unit 157,183.6 Bureau population Population and Housing Disabled Census 2005, Estimated 3.4% of population Unit 23,236 National Statistical Bureau population Children aged 0 Statistical Yearbook 2009, to 14 years Unit 211,747 National Statistical Bureau Annual Estimates Disaster Affected Population Unit 24,750 Beneficiaries Page Per capita poverty line Poverty Analysis Report 2007, income (annual) Unit 13,163 National Statistical Bureau Annual Estimates Average Statistical Yearbook 2009, household size persons 5 National Statistical Bureau Annual Estimates National Accounts 2009, Exchange rate US$1= 48 Ministry of Finance calendar year GDP = gross domestic product, GNI = gross national income Source: Country Sources, 2011

B. Social Protection Expenditure and Beneficiaries

Table 23: Social Protection Expenditure by Social Protection Category

2009 Annual Expenditure Percent Item (million Nu) (%) Pensions 60.6 8.4 Health Insurance 0.0 Unemployment Benefit 0.0 Other Social Insurance (e.g. maternity, disability benefits) 143.1 19.8 ALL Social Insurance 203.6 28.1 Assistance for Elderly 0.0 Health Assistance 0.0 Child Protection 426.0 58.9 Disaster Assistance and Relief 92.4 12.8 Other Social Assistance 0.0 ALL Social Assistance 518.4 71.7 Labor Market Programs 1.3 0.2 Total SP Expenditure 723 100 GDP (million Nu) 61,223 SP Expenditure Indicator (SPEXP) 1.2%

Source: Country Sources, 2011

120. Total expenditure on the social protection activities for 2009 is approximately Nu 723 million, about 1.2% of the total GDP. Expenditure on social assistance programs is the largest, accounting for at least 72% of the total social protection expenditure; followed by social insurance at 28%. Expenditure on labor market programs is insignificant, constituting a mere 0.2% of the total social protection expenditure. The social protection programs covered 103,752 beneficiaries.

Table 24: Expenditures and Beneficiaries of Social Protection Programs, 2009

Social Protection Detailed Expenditure Beneficiaries Program Implementing Agency Category (Million Nu) (000s)

Urban Poor Development Program – Ministry of Labour & Training Component Human Resources LMP 1.3 3.1 National Provident & Civil Service Pensions Pension Fund PEN 30.8 0.8 National Provident & Armed Forces Pensions Pension Fund PEN 29.8 1.3

National Provident & Provident Fund (Civil, Pension Fund, Royal Private, and Corporate) Insurance of Bhutan OSI 134.9 1.5

Social Protection Detailed Expenditure Beneficiaries Program Implementing Agency Category (Million Nu) (000s) Group Insurance (Private, Government, Royal Insurance and Corporate) Corporation of Bhutan OSI 1.6 0.1 Department of Disaster Disaster Relief Management DA 92.4 24.8

Food/Cash for Education RUB, Monastic body, MOE CP 314.7 35.8 School Feeding Program WFP CP 111.3 36.3 Total 717 103.8 Note: PEN-Pensions; OSI-Other Social Insurance; CP-Child Protection programs; DA-Disaster Assistance; LMP- Labor Market programs Source: Country Sources, 2011

121. The child protection programs in the form of food or cash for education under social assistance, account for 59% of the total social protection expenditure. The program coverage is approximately 70%. This is because more than 50% of school children are under the food or cash for education program supported by the Government and the World Food Program.

122. Health is practically free to all Bhutanese and there is no Government support for the elderly population. Social insurance programs such as provident funds for the civil, private, and corporate employees, and group insurance schemes consist of 28% of social protection expenditure.

123. Expenditure on labor market programs reaching 3,141 beneficiaries in 2009 is minimal. There are no Government supported programs under skills training for destitute women or employment programs through rural infrastructure development. There is also no support available for retrenchment programs.

124. The total expenditure on social protection programs is particularly high due to the natural disasters experienced in 2009. In Bhutan, approximately 20,000 people were affected by the disasters.

V. ANALYSIS OF COUNTRY RESULTS

125. This chapter presents the results of the SPI calculation and its disaggregation into the three categories of social insurance, social assistance, and labor market programs. Further disaggregation by depth and breadth of coverage, by poor or non-poor, and by women or men are also discussed.

A. Disaggregation by Social Protection Category

126. Bhutan’s SPI is calculated at 0.036 and the total expenditure on social protection programs is approximately Nu 723 million or about $14.9 million. This represents about 1.2% of Bhutan’s GDP. The SPI for social assistance is relatively high compared to social insurance and labor market programs.

Table 25: Disaggregation by Category Social Social Labor Market All SP Item Insurance Assistance Programs Programs Total SP Expenditure (Million Nu) 204 518 1 723 Beneficiaries (000s) 4 97 3 104 Reference Population (000s) 360 417 110 887 25% of GDP per capita 22,410 22,410 22,410 22,410 SPI 0.010 0.026 0.000 0.036 Source; Consultant estimates, 2011

B. Disaggregation by Depth and Breadth

127. The depth of coverage for labor market programs is very low since there were very few programs implemented by the Government in 2009. Many training programs are not included due to lack of correct information on the prospective participants.

128. The breadth of coverage is highest for social assistance, which includes the food or cash for education program for school going children, tertiary students and the Government monastic body. Social assistance also covers the disaster relief program in 2009, which affected nearly 5,000 households in Eastern Bhutan.

Table 26: Disaggregation by Depth and Breadth Labor Market Item Social Insurance Social Assistance Programs All SP Programs Depth 2.530 0.237 0.019 0.310 Breadth 0.004 0.110 0.004 0.117 SPI 0.010 0.026 0.000 0.036 Source; Consultant estimates, 2011

C. Disaggregation by Poverty

129. Social protection expenditure on the poor population is higher than the non-poor population, under the assumption that majority of the programs and beneficiaries of the programs are either from very disadvantaged families, are unemployed, or from rural areas. For

30 instance, urban training is only provided to unemployed youth from economically disadvantaged families who do not have the financial capabilities to continue studies after high school. At least 50% of the recipients of the Group Insurance Schemes are from the poorer working sections of the population since this insurance normally covers work accidents in factories and industries. For disaster relief programs, it is assumed that at least 50% of the houses affected during the natural disaster in 2009 belong to extremely poor people. In the food for education scheme under the WFP, 100% of the poor are considered in the selection of schools by the WFP.

Table 27: Disaggregation by Poverty Status Item Poor Non-Poor SP Expenditure (Million Nu) 124 599 Reference Population (000s) 887 887 25% of GDP per capita 22,410 22,410 SPI 0.006 0.030 Source: Consultant estimates, 2011

D. Disaggregation by Gender

130. As shown in Table 28, social protection expenditure for programs targeted to women is approximately 17% lower than the expenditure for men. There are no programs solely targeted towards men or women, and majority of the social protection programs have a high probability of having an equal number of women and men as beneficiaries. Table 28: Disaggregation by Gender Item Women Men SP Expenditure (Million Nu) 298 425 Reference Pop (000s) 887 887 25% of GDP per capita 22,410 22,410 SPI 0.015 0.021 Source: Consultant estimates, 2011

VI. CONCLUSION AND RECOMMENDATIONS

131. Abject poverty was not perceptible until the 1990’s but poverty reduction is still the main development priority and the Government allocates an average of 25% of the budget each year towards the social sectors. In 1972, His Majesty, King Jigme Singye Wangchuck first instituted the concept of Gross National Happiness as a means of development for all activities in Bhutan. Development in the country is perceived to be more than an outcome of economic growth; seeking to maximize happiness by placing people at the centre of all developmental effort by addressing their material, emotional, and spiritual needs.

132. There is no explicit definition of social protection in Bhutan and there is no national study on social protection prior to 2005. This report shows that the SPI for Bhutan is 0.036 in 2009. This relatively low value could be a result of non-inclusion of programs supported by the CSOs (NGOs). Since CSO’s have a major role in social protection in Bhutan, exclusion of CSO’s in the calculation of the index decreases the value of the SPI for Bhutan. There are also very limited Government supported programs that fit into the definition of social protection programs involving direct transfer of cash or kind used in this report. On the contrary, majority of Government supported programs are infrastructure developments, which are considered in the calculation of the SPI. Moreover, health and education, two of the biggest social programs have been excluded in the SPI calculations. Lastly, His Majesty’s welfare program, which is one of the biggest providers of social protection programs in Bhutan, is not considered in the calculation of the index. These programs are not fully supported by the Government and there is lack of data availability.

133. However, policies are being introduced to protect the rights of every Bhutanese citizen. New laws are being initiated and old ones changed to adapt to the current environment. Currently, at the draft stage, are the National Occupational Health and Safety Policy and the Occupational Health and Safety in Construction, Manufacturing, Mining and Service Industries. These new laws will be a comprehensive adjustment to the prior Acts.

134. Currently, there are no policy papers for the creation or generation of employment. The Labour Act protects the right of the child against the worst forms of child labor. However, the Labour Act does not incorporate compensation and gratuity rights for employees working in either private or Government organizations. Bills are being passed for childcare and protection and child adoption in Bhutan.

135. Insurance such as pension and provident funds has been made mandatory for the private sector. It was not mandatory prior to 2010 and thus, there was a high level of work insecurity among employees and employers in the private sector.

136. The GNHC as the main agency for development plans is trying to reach the poorest of households. Therefore, decision-making has been decentralized to the district and block or county level. Annual grants are allocated according to the district population size (70%), poverty (25%), and geographical area (5%). Geographical areas act as a proxy for remoteness and unit costs involved in the implementation of development activities.

137. The Government’s policy on balanced development refers to the necessity of supporting the disadvantaged and vulnerable groups, as well as ensuring development are regionally balanced. Since market access and connections to road networks are the main drivers of poverty reduction, the Government is engaged in infrastructure development. Efforts to improve access to markets and marketing facilities are implemented through the construction of farm

32 roads and other marketing infrastructure; such as post-harvest storage, primary processing facilities, and weekend markets. These efforts to improve the economic efficiency of production and marketing have facilitated the formation of cooperatives and farmer associations in many villages and communities.

138. Currently, there are very few programs that directly benefit the poor or vulnerable. The Government has initiated programs targeted to the poorest population, usually in the form community development. A few communities are currently being piloted by the GNHC with support from His Majesty’s Secretariat and UNDP. GNHC hopes to target a minimum of 100 villages by the end of Bhutan’s Tenth Five Year Plan.

VII. REFERENCES

Asian Development Bank (ADB). 2010. Technical Assistance for Updating and Improving the Social Protection Index. Manila (TA 7601-REG) ———. 2003. Technical Assistance for Social Protection Index for Committed Poverty Reduction. Manila (TA 6120-REG) ———. 2006. Technical Assistance for Scaling Up of the Social Protection Index for Committed Poverty Reduction. Manila (TA 6308-REG). ———. 2008. Social Protection Index for Committed Poverty Reduction Volume 2: Asia. Manila. National Commission for Women and Children. 2009. Situation of Child Labour in Bhutan. Thimphu. Office of the Census Commissioner of Bhutan. 2005. Population and Housing Census of Bhutan 2005. Thimphu. Office of the Gyalpoi Zimpon (Office for People’s Welfare and Wellbeing). 2010. His Majesty’s Kidu Fund. Thimphu. Royal Government of Bhutan. Gross National Happiness Commission. 2005. Bhutan National Human Development Report 2005. Thimphu. ———. 2007. Bhutan National Human Development Report 2007. Thimphu. ———. 2009. Tenth Five Year Plan: 2008-2013. Volume 1: Main Document. Thimphu. ———. 2009. Tenth Five Year Plan: 2008-2013. Volume 2: Programme Profile. Thimphu. Royal Government of Bhutan. Ministry of Agriculture and Forests. 2005. Rural Urban Migration Study. Thimphu. ———. 2009. RNR Sector Tenth Plan (2008 – 2013) Volume I: Main Document. Thimphu. Royal Government of Bhutan. Ministry of Education. 2009. Annual Education Bulletin 2009. Thimphu. ———.2010. Annual Education Bulletin 2010. Thimphu. ———. 2008. Annual Financial Statements of the Royal Government of Bhutan 2008. Thimphu. Royal Government of Bhutan. Ministry of Finance 2009. Annual Financial Statements of the Royal Government of Bhutan 2009. Thimphu. ———. 2010. Annual Financial Statements of the Royal Government of Bhutan 2010. Thimphu. ———. 2005. Millennium Development Goals Progress Report 2005. Thimphu. Royal Government of Bhutan. Ministry of Health. 2008. Annual Health Bulletin 2008. Thimphu. ———. 2009. Annual Health Bulletin 2009. Thimphu. ———. 2010. Annual Health Bulletin 2010. Thimphu. Royal Government of Bhutan. Ministry of Labour and Human Resources. 2007. Labour and Employment Act of Bhutan 2007. Thimphu. ———. Labour Market Information Bulletin 2009. Thimphu. ———. 2008. Labour Force Survey 2008. Thimphu. ———. 2009. Labour Force Survey 2009. Thimphu. ———. 2010. Labour Force Survey 2010. Thimphu. Royal Government of Bhutan. National Pension and Provident Fund. 2009. Ninth Annual Report 2008-2009. Thimphu. ———. 2010. Tenth Annual Report 2009-2010. Thimphu. Royal Government of Bhutan. National Statistics Bureau. 2007. Bhutan Living Standard Survey 2007 Report. Thimphu. ———. 2009. National Accounts Statistics 2000 – 2008. Thimphu. ———. Poverty Analysis of Bhutan. Thimphu. ———. 2010. Small Area Estimation of Poverty in Rural Bhutan. Thimphu. ———. 2008. Statistical Yearbook of Bhutan 2008. Thimphu. ———. 2009. Statistical Yearbook of Bhutan 2009. Thimphu.

———. 2010. Statistical Yearbook of Bhutan 2010. Thimphu. Royal Government of Bhutan. Planning Commission. 2007. Bhutan Millennium Development Goals Needs Assessment and Costing Report (2006-2015). Thimphu. ———. 1999. Bhutan 2020: A Vision of Peace, Prosperity and Happiness. Thimphu. ———. 2007. Rapid Impact Assessment of Rural Development. Thimphu. Save the Children Bhutan. http://www.savethechildren.org/countries/asia/bhutan.html S. Tobgay. 2008. Right to Food Assessment in Bhutan: Looking at Policies, Legal Framework and Institutions. Rome: FAO. UNICEF Bhutan. 2006. A Situation Analysis of Children and Women in Bhutan. Thimphu. UNICEF Bhutan. http://www.unicef.org/bhutan/unicefbh.htm UNDP Bhutan. http://www.undp.org.bt/ UNDP. International Human Development Indicators. http://hdr.undp.org/en/data/trends/ United Nations Bhutan. 2006. Common Country Assessment for Bhutan 2006. Thimphu. World Food Programme. 2005. Annual Report 2005 Bhutan. Thimphu. ———. 2009. Annual Report 2009 Bhutan. Thimphu.

Appendix 35

LIST OF PERSONS AND ORGANIZATIONS MET

Name Designation/Organization 1. Mr. Pema Wangda, Secretary Ministry of Labour & Human Resources 2. Ms. Kunzang Lhamu DCD, Gross National Happiness 3. Ms. Karma Hamu Programme Monitoring and Coordination Division, GNHC 4. Mr. Ugyen Tshering Planning Officer, Dratshang Lhentshog, Thimphu 5. Mr. Sonam Wangdi Dept. of Public Accounts, Ministry of Finance 6. Ms. Yangde Penjor Director, Youth Development Fund, Thimphu 7. Ms. Chimi Wangmo RENEW, Thimphu 8. Ms. Chimi Dem Tarayana, Thimphu 9. Dr. Meenaksh Tarayana, Thimphu 10. Ms. Karma Choden Head, Rural Credit, Bhutan Development Financial Corporation (BDFC), Thimphu 11. Mr. Kinley Penjore UNICEF 12. Ms. Dorji Head of Poverty Unit, UNDP, Thimphu 13. Mr. Dungkhar Drukpa National Program Officer, World Food Program, Thimphu 14. Ms. Tashi Chenzom Legal Officer, MoLHR 15. Mr. Phuntsho Dorji Planning Officer, Department of Labour, MoLHR 16. Mr. Sonam Yeshe National Provident and Pension Fund 17. Ms. Yangchen Pelden National Women’s Association of Bhutan 18. Ms. Nima Rural Insurance Scheme, Royal Insurance Scheme, Thimphu 19. Ms. Karma Choden GIS Unit, RICB 20. Mr. Ghalley PF Unit, RICB 21. Ms. Jigme Wangmo Draktsho Training Center, Thimphu 22. Ms. Karma Dyenka Save the Children, Thimphu 23. Mr. Kado Zangpo Dy. Chief, Policy and Planning Division, Ministry of Health 24. Ms. Dechen Zam Head, Policy and Planning Division, Ministry of Education 25. Mr. Ugyen Planning officer, Ministry of Education 26. Mr. Ugyen Tenzing Planning Officer, Department of Employment, Ministry of Labour and Human Resources 27. Mr. Tashi Jamtsho Information Management, Policy and Planning Division, Ministry of Agriculture