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Training Course on Income Generation and Poverty Reduction Training Course on Income Generation and Poverty Reduction for Development 16 March-10 April 2009for Development 16 March-10 April 2009

Mekong Institute, Khon Kaen ThailandMekong Institute, Khon Kaen ThailandCountry Report Presentation for Kingdom of Bhutan by Pema, Country Report Presentation for Kingdom of Bhutan by Pema,

Dzongrab Dagana Dzongkhag and Karma Rinchen, Dzongrab Dzongrab Dagana Dzongkhag and Karma Rinchen, Dzongrab Gasa DzongkhagGasa Dzongkhag

1.1. BackgroundBackground

Kingdom of Bhutan lies on the Himalaya with China in the North Kingdom of Bhutan lies on the Himalaya with China in the North and India territories in the east, south and west.and India territories in the east, south and west.

Area 38,394 sqkm (source 9FYP document Bhutan)Area 38,394 sqkm (source 9FYP document Bhutan)

Bhutan is Constitutional Democratic Monarchy Country.Bhutan is Constitutional Democratic Monarchy Country.

Population : approx 0.734m (9FYP cover Note)Population : approx 0.734m (9FYP cover Note)

About 79% of the population live and depends on About 79% of the population live and depends on subsistence agriculture for living.subsistence agriculture for living.

GDP per capita income was US $ 1422 for 2006 (source GDP per capita income was US $ 1422 for 2006 (source UN stat Div 2006)UN stat Div 2006)

2004 Poverty Assessment Report-32% live below national 2004 Poverty Assessment Report-32% live below national Poverty line of Nu.740.36 per month ( US $ 16.30 )Poverty line of Nu.740.36 per month ( US $ 16.30 )

Poverty for Bhutan is more of rural seasonal phenomenon.Poverty for Bhutan is more of rural seasonal phenomenon.

Developmental Philosophy is Gross National HappinessDevelopmental Philosophy is Gross National Happiness

Developmental targets/goals are reflected in Bhutan 2020-Developmental targets/goals are reflected in Bhutan 2020-vision for peace, prosperity and happiness- where we want vision for peace, prosperity and happiness- where we want

to see after two decades-which guides Five Year Plansto see after two decades-which guides Five Year Plans

Five year plans (decentralised)Five year plans (decentralised)

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2 2 Factors Contributing to PovertyFactors Contributing to PovertyMountainous terrainMountainous terrain

Insufficient cultivable landInsufficient cultivable landShortage of farm manpowerShortage of farm manpower

Limited availability, accessibility and long distance to well established Limited availability, accessibility and long distance to well established marketsmarkets

Religious believesReligious believesGrowing extended familiesGrowing extended families

Less survival pressure (Buddhist sympathizer)Less survival pressure (Buddhist sympathizer)

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3. 3. Government and Non Government Organisation Interventions Government and Non Government Organisation Interventions to reduce Poverty and generate Incometo reduce Poverty and generate Income

Government PolicyGovernment Policy

-9 and 10 Five Year Plans (2009-2013) are guided by central theme of -9 and 10 Five Year Plans (2009-2013) are guided by central theme of Poverty reductionPoverty reduction

Non GovernmentNon Government-Tarayana Foundation-builds houses, petition money, community -Tarayana Foundation-builds houses, petition money, community income generating centers (bamboo and cane weaving)income generating centers (bamboo and cane weaving)

-Youth Development Fund-Scholarship for economic disadvantaged -Youth Development Fund-Scholarship for economic disadvantaged children, handicrafts for disable childrenschildren, handicrafts for disable childrens

-National Women Association of Bhutan-Traditional weaving centre and -National Women Association of Bhutan-Traditional weaving centre and trainings, shopstrainings, shops

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Bhutan Chamber of Commerce and Industries-Groups organisations Bhutan Chamber of Commerce and Industries-Groups organisations and frames business policies and strategies in line with Government and frames business policies and strategies in line with Government

Policies and Trains/impart skill development programs.Policies and Trains/impart skill development programs.

WWF-Nature Conservation and Socio-economic development WWF-Nature Conservation and Socio-economic development programsprograms

Bhutan Trust Fund For Environment Conservation-Nature Bhutan Trust Fund For Environment Conservation-Nature Conservation and Socio-economic development programsConservation and Socio-economic development programs

Religious and Monastic institutes/Colleges-impart education and Religious and Monastic institutes/Colleges-impart education and employmentemployment

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4. 4. Best practices concerning income generation Best practices concerning income generation and poverty reductionand poverty reduction

Central Government Agency which frames central Central Government Agency which frames central developmental themes, guides five year planning and monitor developmental themes, guides five year planning and monitor plan implantations (Gross National Happiness Commission)-plan implantations (Gross National Happiness Commission)-

UmbrellaUmbrellaStrategies by various MinistriesStrategies by various Ministries

Farm Road developmentFarm Road developmentIncrease Crop productionIncrease Crop production

Establish marketsEstablish markets

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Assist and development farmers business skillsAssist and development farmers business skills

Make every citizen accessible to natural resourcesMake every citizen accessible to natural resources

Subsidised on rural resourcesSubsidised on rural resources

Development partners Projects- ICDPs for subsidized or free roofing Development partners Projects- ICDPs for subsidized or free roofing materials, schools infrastructure, bridges, mule track development, materials, schools infrastructure, bridges, mule track development,

ecotourismecotourism

Subsidised crop seed, improved livestock breeds, develop pastures, Subsidised crop seed, improved livestock breeds, develop pastures, subsidized fisheries, poultry and piggery stocks.subsidized fisheries, poultry and piggery stocks.

Control and provide free disease mgt services.Control and provide free disease mgt services.

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Carry out research related to productivityCarry out research related to productivity

Financial institutes offering easy loansFinancial institutes offering easy loans

Government Salary (recent bottom up) increase and control housing Government Salary (recent bottom up) increase and control housing and commodity cost hikeand commodity cost hike

Donors coordinationDonors coordination

Allow equal business opportunity (trade and contract works)Allow equal business opportunity (trade and contract works)

Gear up Hydro power constructionGear up Hydro power construction

Free health services, greater coverage (infrastructure and workers)Free health services, greater coverage (infrastructure and workers)

Provide safe drinking water for all (78% in 2000, target 100% by Provide safe drinking water for all (78% in 2000, target 100% by 20072007

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Provide motorable road connectivity, including bridgesProvide motorable road connectivity, including bridges

Put accountable and responsible administrator (plans)Put accountable and responsible administrator (plans)

Establish vocational institutes to develop skillEstablish vocational institutes to develop skill

Build up diplomatic relations with other countriesBuild up diplomatic relations with other countries

Provide free basic education for all (present cl.10), NA has requested Provide free basic education for all (present cl.10), NA has requested till cl 12till cl 12

Provide cheap and easy transportation.Provide cheap and easy transportation.

Provide affordable and available housing facilityProvide affordable and available housing facility

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Make every family own land (His Majestys responsibility)-surveys in Make every family own land (His Majestys responsibility)-surveys in every Districtevery District

Develop tourism (Low vol high value, Bhutanese context)Develop tourism (Low vol high value, Bhutanese context)

Challenges and OpportunitiesChallenges and Opportunities

Mountainous terrain- small populationMountainous terrain- small population

More illiterate-education for all and NFEs and ECRsMore illiterate-education for all and NFEs and ECRs

Family dependence-becoming awareFamily dependence-becoming aware

Scattered Settlements, Households-small populationScattered Settlements, Households-small population

Small internal revenue-private sector development becoming a concern and Small internal revenue-private sector development becoming a concern and stable and committed governmentstable and committed government

Difficult to locate and identify poorDifficult to locate and identify poor

Difficult to identify the real causes of povertyDifficult to identify the real causes of poverty

Needs more detailed studyNeeds more detailed study

TASHI DELEKTASHI DELEK