ROYAL GOVERNMENT OF

THIRD ANNUAL REPORT OF LYONCHHEN JIGMI YOESER THINLEY TO THE SEVENTH SESSION OF THE FIRST PARLIAMENT ON THE STATE OF THE NATION

1ST JULY 2011 Cabinet Secretariat Gyalyong Tshogkhang Thimphu Tel: +975-2-336667/321437 Fax: +975-2-336665/321438 URL: www.cabinet.gov.bt The Third Annual Report of the Prime Minister to the Seventh Session of the JULY 1, 2011 First Parliament on the State of the Nation

TABLE OF CONTENTS

INTRODUCTION 1 I. SIGNIFICANT EVENTS 4 1. Royal Announcement of the Engagement of His 4 Majesty the King 2. State Visits by His Majesty the King 4 3. Fourth Inducted to Kyoto Hall of Fame, 5 Japan 4. Local Government Elections 5 5. 10th FYP Mid-Term Review 6 II. FIRST PILLAR: ENHANCING SUSTAINABLE AND 8 EQUITABLE SOCIO-ECONOMIC DEVELOPMENT 1. Macro-Economic State of the Nation 8 2. Minimum Programme: Poverty Eradication towards 9 Social and Economic Empowerment i. Motorable Road to Every Gewog Centre 10 ii. Electricity for Every Home 11 iii. Universal Primary School Enrollment 12 iv. Minimum of Three Doctors and Two Ambulances for Every Dzongkhag Hospital and All 12 Communities to have Easy Access to Basic Health Facilities v. Safe Drinking Water Supply for Every Home 12 vi. Mobile Phone Connectivity for Every 13 Community 3. Sector Progress and Achievements 13 i. Health Service 13 ii. Education 21 iii. Agriculture and Livestock 28 iv. Trade, Industry and Mines 34 v. Information and Communications 44 vi. Employment, Labour and Human Resource 48 Development vii. Works and Human Settlement 53 III. SECOND PILLAR: REINFORCING 56 ENVIRONMENTAL CONSERVATION 1. Recognition for Environmental Conservation 56 2. Bhutan Environment Outlook Report 56

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3. Legislation and Policy Action 56 4. National Forest Inventory 57 5. Forest Cover: Indicator for the Health of Natural 57 Environment 6. Biodiversity Conservation: Natural Heritage Beyond 58 National Border 7. Mitigating Human-Wildlife Conflict 60 8. Sustainable Management of Natural/Forest Resources 60 9. Sustainable and Eco-Friendly Construction 62 10. Waste Management Regulation 64 11. Ambient Air and Water Quality Monitoring 64 12. Bhutan and Climate Change Initiatives 65 13. Disaster Management 66 14. Environmental Impact Assessment 69 15. Green Schools for Green Bhutan 70 16. Promotion of Bicycle Culture 70 IV. THIRD PILLAR: PRESERVATION AND PROMOTION 72 OF CULTURE A. Spiritual Growth and Nourishment 72 1. Contribution of His Holiness the Je and 72 Zhung Dratshang 2. Spiritual Growth and Interest in Religion 73 B. Traditions and Values 75 1. Driglam Namzha 75 2. GNH Infusion in Schools 75 3. Tobacco and Alcoholism 76 C. Preserving and Promoting Our Intangible Culture 77 1. Promotion of the National Language 78 2. Promotion of Literature 79 3. Preservation and Promotion of Traditional and 80 Sustainable Architecture 4. Coming of Age of the Film and Music Industry 81 D. Preservation and Promotion of Tangible Cultural 82 Property 1. Public and Private Support in Cultural 83 Preservation and Promotion 2. Restoration and Conservation of Historical 83 Monuments 3. Moveable Properties 84

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E. Sports 85 1. Leadership 85 2. Achievements and Recognition 86 3. Night Facility for Sports 87 F. His Majesty’s Recognition and Contributions 88 V. FOURTH PILLAR: CONSOLIDATING GOOD 89 GOVERNANCE 1. Mainstreaming GNH in Public Policies 89 2. Rule of Law: The Essence of Democracy 90 i. Laws Made and in the Making 90 ii. Legislative Plan 92 iii. Regulatory Reform to Promote Effective 93 Enforcement of Laws iv. Delivery of Justice 93 v. First Constitutional Case 94 vi. Maintenance of Law and Order 95 3. Transparency and Accountability 96 i. Public Instruments of Ac