Cooperatives in Bhutan - Status and Scope Dorji Dhradhul Sonam Wangmo Department of Agricultural Marketing and Cooperatives Ministry of Agriculture and Forest Bhutan

 Introduction  Historical aspects of Bhutanese community  Agencies involved in pre cooperatives phase  Prospects and Opportunities for Bhutanese Farmers through ICA, Asia Pacific Presentation outline:

 Bhutan is a land locked country bounded by two gigantic countries – India and China.  Total area – 38,394 sq.km with a total population of 650,000  Socio-economic development policy of country guided by “Gross National Happiness philosophy” Introduction:

Objective:  Mountains countries with altitude ranging from South to North  72 % covered by forest  Agriculture sector contributes to 19% of GDP  Employs 65% of working population, Industry (7%) and Services (28%) Cont’d….:

Historical aspects of Bhutanese community:  Strong collaboration between farmers  Working together in groups to maintain religious and social institution  Concept of FGs not alien to Bhutan  However, FGs a vehicle to development started in Govt. plans and programs only in early nineties.

 Involving and promoting people’s participation at grassroots level through FGs  Important role in socio-economic development  On the aspects of poverty in Bhutan, poverty reduction is the theme of Royal Government in its 10 th Five Year Plan (2008 – 2013).  Poverty reductions in Bhutan though cooperatives are viewed not only to contribute to national goals but also immensely contribute to global Millennium Developmental Goals. Cont’d….:

 As of June 2010, a total of 480 RNR based informal group  No rules and regulation in place to formalize the group, hence the informal group  Informal FGs envisioned as precursors towards formation of FGs  Need for legal entities Cont’d….:

 Enactment of Cooperative Act of Bhutan in July 18, 2001  Ministry of Home and Cultural Affairs (MoHCA) is mandated to implement the Act  Not much progress towards development of FGs and Cooperative  Dual custodian –MoHCA &MoAF CAB, 2001 laid foundation for registration of Coop as legal entity but limited the registration of small and informal FGs Cont’d….:

Agencies involved in pre coops. phase:  Within 10 th FYP CAB 2001 amended by 2 nd session of the parliament in Jan 2009  The Cooperative (Amendment) Act of Bhutan 2009  Includes the provision for registration of FGs and authorizes the MoAF to implement the act  Royal Government has recently instituted a Department of Agriculture Marketing and Cooperatives under Ministry of Agriculture and Forests.

 Cooperative Rule and Regulation 2010 launched by MoAF on 23 rd June 2010  With dedicated institution and amendment CAB 2009 era not far Bhutan to have its first ever Cooperatives registered.  DAMC is in the process of developing strategy as a master plan for implementing Cooperative Act and Regulation for developing FGs and Cooperatives  Strategies consists of series of road map mainly focusing on (1) Launching the regulation (2) Registering FGs and Cooperatives (3) Coordination and information system (4) Capacity building of all stakeholders Cont’d….:

 First group of FGs and primary cooperatives has been selected for registration in August  This marks a historic moment in Bhutanese developmental process towards Cooperatives movement  First 18 FGs and 5 primary cooperatives will be registered by September 2012 Cont’d….:

Prospects and Opportunities :  Cooperative movement is new and nascent in Bhutan  in addition many other factors challenge Cooperative development in Bhutan  Department as facilitating agencies foresee several opportunities to learn and benefit from ICA. Some of these opportunities and areas for collaboration for support from ICA are the followings:  Cooperatives institutional and organizational capacity development of the Cooperatives

 Creation of linkages between Bhutan and the relevant international and regional institutes and agencies (e.g. ICA and ICA Asia Pacific)  Establish a networking on information and knowledge for Cooperatives, especially trading at international levels.  Support in the establishment of the Cooperative Development Fund.  Specifically, we like to request the ICA Asia Pacific to help us in celebrating the International Year of Cooperatives 2012 with technical and financial assistance. Cont’d….:

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