1. BHUTAN COUNTRY REPORT ON SUSTAINABLE RURAL DEVELOPMENT Presented AT MEKONG INSTITUTE,KHON KAEN, THAILAND 16 th JUNE 2009 by Lobzang Dorji

2. The Map of Bhutan

3. Bhutan Settlements

6. Photos of the Bhutanese

7. INTRODUCTION: Bhutan located in the eastern Himalayas.Bhutan located in the eastern Himalayas. It is bordered by China in the North, the Indian states of Arunachal Pradesh in the East, West Bengal & Sikkim in the South –West and Assam in the South.It is bordered by China in the North, the Indian states of Arunachal Pradesh in the East, West Bengal & Sikkim in the South –West and Assam in the South. Its Area is 38,394 sq. kmIts Area is 38,394 sq. km It is divided into 20 Districts and 15 Sub- districts for Administrative and development purposes.It is divided into 20 Districts and 15 Sub- districts for Administrative and development purposes. Population is over 600,000 onlyPopulation is over 600,000 only Religion is Mahayana Buddhism & HinduismReligion is Mahayana Buddhism & Hinduism Altitude ranges from180 m to 7550 mAltitude ranges from180 m to 7550 m

8. GENERAL INFORMATION ON RURAL ECONOMIES: Agriculture & Animal rearing activities are the main sources of income for the rural people. These two sectors contribute about 45 % to GNP.Agriculture & Animal rearing activities are the main sources of income for the rural people. These two sectors contribute about 45 % to GNP. Though Agricultural land constitutes 7.7%,79% of the population depends on Agriculture for their livelihoods.Though Agricultural land constitutes 7.7%,79% of the population depends on Agriculture for their livelihoods. Forest is also one of the main natural resources in Bhutan. The forests cover about 72.5% of the total land.Forest is also one of the main natural resources in Bhutan. The forests cover about 72.5% of the total land. Most of the landholdings are small, highly fragmented and scattered over difficult terrain. Many farming communities live in isolation, often several days’ walk from the nearest road point.Most of the landholdings are small, highly fragmented and scattered over difficult terrain. Many farming communities live in isolation, often several days’ walk from the nearest road point. In most rural areas the mode of transportation are head load and mules transportation.In most rural areas the mode of transportation are head load and mules transportation.

9. GOVERNMENT INTERVENTION: The overall economy policy of the country is based on the term called “ Gross National Happiness" coined in 1972 by the 4 th King It defines the quality of life in more holistic and psychological terms than Gross National Product. It guides building an economy that would serve Bhutan’s unique culture based on Buddhist spiritual values while the conventional development models stress economic growth (GNP). GNH guides economic and development plansThe overall economy policy of the country is based on the term called “ Gross National Happiness" coined in 1972 by the 4 th King It defines the quality of life in more holistic and psychological terms than Gross National Product. It guides building an economy that would serve Bhutan’s unique culture based on Buddhist spiritual values while the conventional development models stress economic growth (GNP). GNH guides economic and development plans The concept of GNH is based on the premises that the true development of human society takes place when material and spiritual development occurs side by side to complement and reinforce each other. The policy of Gross National Happiness is mainly based on 4 pillars namely 1. Promotion of sustainable development. 2. Preservation & promotion of cultural values.3. Conservation of natural environment. 4. Establishment of good governance.The concept of GNH is based on the premises that the true development of human society takes place when material and spiritual development occurs side by side to complement and reinforce each other. The policy of Gross National Happiness is mainly based on 4 pillars namely 1. Promotion of sustainable development. 2. Preservation & promotion of cultural values.3. Conservation of natural environment. 4. Establishment of good governance.

10. Government Intervention Cont’d In 1981, the Government formed 20 District Development Committees. A forum where plans and programs are discussed and approved by the members elected from the Gewogs (Lowest administrative units)In 1981, the Government formed 20 District Development Committees. A forum where plans and programs are discussed and approved by the members elected from the Gewogs (Lowest administrative units) In 1991, Block Development Committee were formed in each Block further strengthening the rural communities. In this forum, all policies, plans and programs related rural developments are discussed and action taken as their needs.In 1991, Block Development Committee were formed in each Block further strengthening the rural communities. In this forum, all policies, plans and programs related rural developments are discussed and action taken as their needs.

11. Government Intervention Cont’d In 2008, with the introduction of Constitutional Democratic Monarchial system, these two forums are fully empowered to decide the plans and policies related to rural development works. In 2008, with the introduction of Constitutional Democratic Monarchial system, these two forums are fully empowered to decide the plans and policies related to rural development works. The Government provides administrative, technical and financial supports through its extension service centers such as Agriculture, Animal & Forest etc. The Government provides administrative, technical and financial supports through its extension service centers such as Agriculture, Animal & Forest etc. Several policy documents such as Foreign Investment Policy, Industrial Master Plan & Private Sector Development Policy are under draft and those draft policies will be tabled soon in the Parliament. Several policy documents such as Foreign Investment Policy, Industrial Master Plan & Private Sector Development Policy are under draft and those draft policies will be tabled soon in the Parliament.

12. BEST PRACTICES OF RURAL DEVELOPMENT IN BHUTAN: Decentralization of plans & programs with devolution of powers and authorities.Decentralization of plans & programs with devolution of powers and authorities. Community Participation in planning, implementing, monitoring and evaluation.Community Participation in planning, implementing, monitoring and evaluation. Cost -sharing practices in community works like construction of community schools, rural drinking water supply schemes, irrigation canals etc. Creating sense of ownerships in the community.Cost -sharing practices in community works like construction of community schools, rural drinking water supply schemes, irrigation canals etc. Creating sense of ownerships in the community. Formation of Associations such as Water User Associations and School Welfare Development Boards.Formation of Associations such as Water User Associations and School Welfare Development Boards.

13. PROBLEMS & PROSPECTS OF RURAL DEVELOPMENT IN BHUTAN: Problems and challenges: Small and fragmented landholdings scattered over difficult terrain.Small and fragmented landholdings scattered over difficult terrain. Ever increasing population & widely dispersed population & remoteness.Ever increasing population & widely dispersed population & remoteness. Food insecurity due to low yields. Majority of farmers live at or just above subsistence level. Many agricultural products including rice and oil are imported from India every year.Food insecurity due to low yields. Majority of farmers live at or just above subsistence level. Many agricultural products including rice and oil are imported from India every year. Low quality products.Low quality products.

14. Problems and challenges: Cont’d Post-harvest damages by wildlife (30-40%of the total production)Post-harvest damages by wildlife (30-40%of the total production) Lack of sufficient infrastructure facilities such as roads, schools, electricity etc. in rural areas.Lack of sufficient infrastructure facilities such as roads, schools, electricity etc. in rural areas. Rural to urban migration is very high due to lack of opportunities in the rural areas. Only old and disadvantage people are left behind in the villages. Sometime used lands become barren.Rural to urban migration is very high due to lack of opportunities in the rural areas. Only old and disadvantage people are left behind in the villages. Sometime used lands become barren. High transportation cost faced by the rural communities due to lack of road facilities.High transportation cost faced by the rural communities due to lack of road facilities. Unemployment & Youth problemsUnemployment & Youth problems Land less or small landings or unproductiveLand less or small landings or unproductive

15. Prospects and Opportunities: Provision of sufficient infrastructure facilities such as road, schools, health centers etc.Provision of sufficient infrastructure facilities such as road, schools, health centers etc. Diversification of agriculture activities Diversification of agriculture activities Creation of more agro-based industries and small and cottages industries in the rural areas. e,g handicraftsCreation of more agro-based industries and small and cottages industries in the rural areas. e,g handicrafts Creation of collective enterprises or groups. For example pooling of landholdings, cooperatives etc.Creation of collective enterprises or groups. For example pooling of landholdings, cooperatives etc. Privatization of government owned entities.Privatization of government owned entities. Provision of land to the landless peopleProvision of land to the landless people High potentiality in Hydro power generation. (10 Projects will be taken up within 2020 with capacity 10,000 MWHigh potentiality in Hydro power generation. (10 Projects will be taken up within 2020 with capacity 10,000 MW Rich in culture & environment preservation particularly forestRich in culture & environment preservation particularly forest

16. THANK YOU TRASHI DELEK END PRESENTED BY LOBZANG DORJI BHUTAN