Report of the Twelfth Round Table Meeting
11-12 December, 2013
Thimphu, Bhutan
ROYAL GOVERNMENT OF BHUTAN
1. INTRODUCTION
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1.1 Background
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1.2 Theme and Objective of the RTM
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2. PROCEEDINGS OF THE TWELFTH ROUND TABLE MEETING
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2.1 Opening Ceremony and Inaugural Address by H.E. Lyonchhen Tshering Tobgay, Prime Minister of Bhutan
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2.2 Opening Statement by H.E. Haoliang Xu, UN Assistant Secretary-General, UNDP Assistant Administrator
and Regional Director, Asia and the Pacific
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2.3 Opening Statement by H.E. Lyonpo Rinzin Dorje, Minister of Foreign Affairs of Bhutan
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2.4 Day One/Session One of the RTM
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2.4.1 (a) Presentation on “11th Five Year Plan: Challenges and Priorities"
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2.4.2 (a) Presentation on “Bhutan’s Macro-Economic Situation and Public Finance”
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2.5 Day One/Session Two of the RTM
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2.5.1 (a) Presentation on “Economic Development Policy Roadmap”
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2.5.2 (a). Presentation on “Graduation from the Group of LDCs: Prospects and Challenges for Bhutan”
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2.5.3 Launch of the "MDG Acceleration Framework (MAF) Report on Youth Unemployment"
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2.6 Day Two/Session Three of the RTM
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2.6.1 Summary of Statements by development partners
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2.7
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Day 2/Concluding Session of the RTM
2.7.1 Concluding statement by H.E. Haoliang Xu, UN Assistant Secretary General, UNDP Assistant
Administrator and Regional Director, Asia and the Pacific, Co-Chair of the RTM
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2.7.2
Concluding statement by H.E. Lyonpo Rinzin Dorje, Minister, Ministry of Foreign Affairs, CoChair of the RTM
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2.7.3 Launch of Situation Analysis Report of Children, Youth and Women in Bhutan 2012 (SiTAN)
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ANNEX 1: Agenda of the Twelfth Round Table Meeting
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ANNEX 2: Inaugural Statement by the Hon’ble Prime Minister of Bhutan, H.E. Lyonchhen Tshering Tobgay
during the 12th Round Table Meeting, Royal Banquet Hall, Thimphu, 11 December 2013
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ANNEX 3: Opening Statement by H.E. Haoliang Xu, UN Assistant Secretary-General, UNDP Assistant
Administrator and Regional Director, Asia and the Pacific and Co-Chair of the 12th RTM, 11-12 December
2013, Thimphu, Bhutan.
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ANNEX 4: Opening Statement by H.E. Lyonpo Rinzin Dorje, Minister of Foreign Affairs of Bhutan and CoChair of the 12th RTM.
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ANNEX 5: Presentation on “11th Five Year Plan (2013- 2018): Challenges & Priorities
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ANNEX 6: Presentation on “Bhutan’s Macro-Economic and Public Finance”
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ANNEX 7: Presentation on “Economic Development Policy Roadmap”
69
2
ANNEX 8: Presentation on “Graduation from the Group of LDCs: Prospects and Challenges for Bhutan”
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ANNEX 9: Statements by Representatives of Development Partners
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ANNEX 10: Closing Remarks H.E. Haoliang Xu, UN Assistant Secretary-General, UNDP Assistant
Administrator and Regional Director, Asia and the Pacific and Co-Chair of the 12th RTM, 12 December 2013,
Thimphu.
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ANNEX 11: Concluding Remarks by H.E. Lyonpo Rinzin Dorje, Minister of Foreign Affairs of Bhutan and CoChair of the 12th RTM, 12 December 2013.
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ANNEX 12: List of Participants
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ANNEX 13: Press Release on the Twelfth Round Table Meeting
133
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Participants at the Twelfth Round Table Meeting
(11-12 December 2013)
Thimphu
4
1. INTRODUCTION
The Twelfth Round Table Meeting (RTM) between the Royal Government
of Bhutan and its development partners was held in Thimphu on 11 -12
December 2013. The RTM was organized by the Gross National
Happiness Commission (GNHC) and the Ministry of Foreign Affairs with
support from UNDP Country Office. It was inaugurated by H.E.
Lyonchhen Tshering Tobgay , Prime Minister of Bhutan which reflects
the high importance that the Royal Government attaches to the RTM as
the highest forum for aid coordination between the Royal Government of
Bhutan (RGoB) and its development partners. The RTM was co-chaired
by H.E. Lyonpo Rinzin Dorje, Minister of Foreign Affairs of Bhutan and
H.E. Mr. Haoliang Xu, UN Assistant Secretary-General, UNDP Assistant
Administrator and Regional Director, Asia and the Pacific.
Over 80 delegates, representing 20 bilateral partners and 23 multilateral
partners and 2 non-government organizations participated in the RTM.
Participants from the Royal Government included Members of Parliament
and senior government officials from key ministries and agencies. The list
of the participants is included in Annex 12.
The background documents for the meeting included an executive
summary of the Eleventh Five Year Plan, a policy document outlining a
framework for development of a road map for the Economic Development
Policy 2010, and paper on the prospects and challenges of Bhutan’s
graduation from Least Developed Countries status.
1.1 Background
The Twelfth RTM took place shortly after Bhutan’s second Parliamentary
elections and the formation of a new government. It also coincided with
completion of the Tenth Five Year Plan and the launch of the Eleventh
Five Year Plan.
1.2 Theme and Objective of the RTM
The theme of the RTM was based on the Eleventh Plan goal of 'Selfreliance and Inclusive Green Socio-economic Development".
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The overall purpose of the RTM was to brief and constructively engage
development partners on the national development priorities,
programmes, activities and financing aspects of the Eleventh Five Year
Plan of Bhutan. The key objectives of the RTM was to secure the
commitment and support of development partners, ensure better
alignment of international development assistance with the national
priorities for improved aid-effectiveness, and foster policy dialogue to
strengthen development cooperation for implementation of the Eleventh
Five-Year Plan. The Agenda for the Meeting is provided in Annex 1.
2. PROCEEDINGS OF THE TWELFTH ROUND TABLE MEETING
2.1 Opening Ceremony and Inaugural Address by H.E. Lyonchhen
Tshering Tobgay, Prime Minister of Bhutan
The opening ceremony of the Twelfth RTM started with a Marchang
Ceremony and was inaugurated H.E. Lyonchhen Tshering Tobgay, Prime
Minster of Bhutan.
In his inaugural address, Lyonchhen extended the greetings of His
Majesty the King to the representatives of all development partners. He
provided a broad overview of the significant achievements in Bhutan's
socio-economic and political development process over the last five
decades under the leadership of the monarchs, the hard work of the
people, and the support and generosity of Bhutan's development
partners. To illustrate Bhutan's development success, he highlighted that
Bhutan had built from scratch more than 10,500 km of roads, a modern
telecommunications network of 27,000 telephones and more than
560,000 cell phones, 580 schools and colleges, a modern economy
poised towards economic self-reliance, a strong civil service manned by
25,000 capable and motivated people and a vibrant democracy. He
underscored that Bhutan's development successes were achieved in an
era of unprecedented peace and harmony, without destroying the
country's pristine environment and without undermining its unique
culture.
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While lauding past successes as a cause for celebration, he however
cautioned that Bhutan still had a long way to go to ensure the
sustainability of its development process. In this regard, and to illustrate
some of the key challenges that Bhutan continues to face, he pointed out
that Bhutan was still a poor country with a combined GDP of barely US$
1.6 billion; its small and fragile economy was also heavily dependent on
hydropower and suffered from low domestic production, spiraling
imports driven by growing consumption, severe trade imbalances and
extreme vulnerability to shocks; agriculture which employed 60% of the
population was still largely subsistence based; poverty and
malnourishment of children remained a stark reality; unemployment,
especially among the educated youth, was on the rise and leading to a
range of social problems; and in the area of governance much remained
to be done in terms of strengthening democracy through greater
transparency, efficiency and accountability in the political and
administrative processes.
Against this backdrop, he emphasized that Eleventh Plan period was
crucial as it provided the opportunity to build on the strong foundations
and address the challenges that would enable Bhutan to achieve
sustainable self-reliance and graduate from Least Developed Country
status. Failure to do so would mean that Bhutan will remain an LDC
mired in poverty in spite of the past achievements and the many
opportunities offered by the rule of law and political stability that prevails
in the country. In this regard, he pointed out that the Eleventh Plan
ushered in new plans, strategies and preparations that will allow us to
work towards “self-reliance and inclusive green socio-economic
development.” He stressed that the Eleventh Plan was not a political
document and belongs to the people of Bhutan as it was developed
through a bottoms-up consultation process with all stakeholders and
reflects the extensive work of civil servants across all sectors and
agencies. It builds on all past achievements, including the efforts of the
previous government, and draws upon the wisdom of His Majesty the
King that has been consistently articulated in Royal Addresses.
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With a total outlay of about Nu 213 billion (approximately USD 3.55
billion)1, he pointed out that the Eleventh Five Year Plan was by far
Bhutan's most ambitious plan. In terms of its financing, although
Bhutan will be able to meet the entire recurrent expenditure from
domestic revenue, he underscored that the continued support of
development partners, particularly in financing capital investments,
remained crucial for successful implementation of the Eleventh Plan. In
this regard, while acknowledging the Government of India’s commitment
to finance Nu 45 billion of the Plan and that of other partners, he pointed
out that significant resource gaps persist, and sought the support of
development partners to meet these shortfalls.
He expressed confidence that with the strong foundations that have been
laid, an unwavering faith in the country's future, an enduring belief in
the peoples' abilities, and the continued goodwill and support of
Bhutan's development partners, the Eleventh Plan would be a landmark
that lays new foundations for a future that is even more remarkable than
the country's past.
2.2 Opening Statement by H.E. Haoliang Xu, UN Assistant SecretaryGeneral, UNDP Assistant Administrator and Regional Director, Asia
and the Pacific
In his opening statement, Mr. Xu highlighted the progress that Bhutan
has made in its social, economic and political development process. As
one of the world’s fastest growing economies, Bhutan's impressive
annual per capita growth of about 10 per cent had enabled the
Government to pursue targeted poverty reduction and invest in human
development, keeping Bhutan on track to achieve most MDG targets by
2015. Poverty had declined from 36.3 per cent to 12 per cent over the
past 13 years, exceeding the 10th Five Year Plan target of 20 per cent.
The Gross Primary Enrolment Ratio had reached 100 per cent. Bhutan
was also one of ten countries in the world to reduce maternal mortality
by 75 per cent between 1990 and 2010.
Although still a young
democracy, he pointed out that country has a solid foundation for
ensuring inclusiveness, transparency, accountability, justice and the
1
With the exchange rate as of January 2014 (1USD = approximately 60 Nu)
8
rule of law. He referred to the 2012 Transparency International ranking
of Bhutan as the least corrupt country in South Asia, and 33rd least
corrupt out of 176 nations.
He however underscored that Bhutan continues to face significant
challenges and pointed out that 12 per cent of the population is still
under poverty; disparity in income and access to social services and
infrastructure, between and within regions and districts, continues to be
a persistent problem; there is a need for better nutrition and better
quality and access to prenatal and antenatal services and improved
participation in post-secondary education. The literacy rate lags behind
leading LDCs, and women’s participation in elected roles in governance
remains among the lowest in the region.
With regard to Bhutan's demographic opportunities and challenges, he
pointed out that more than half the population is under 25 years of age
and that the working-age population is expected to increase by over 40
per cent. In this context, he stated that limited employment
opportunities, high incidence of poverty in rural areas, and youth
migration to urban areas, have all contributed to growing youth
unemployment in cities, which could affect social stability over time.
Touching upon Bhutan's economic challenges, he pointed out that
Bhutan depends heavily on a single sector - hydropower for growth and
revenue, increasing economic vulnerability.
In this context he
underscored that diversification of the economy is a key challenge for
Bhutan.
With regard to the environment, he explained that climate change is
increasingly affecting Bhutan, with erratic precipitation and temperature
patterns affecting both farmers and the hydropower sector. He pointed
out that Bhutan is also prone to natural disasters which most severely
affect the poorest and can lead to losses in hard-earned development
gains.
In looking ahead and building on past efforts, he highlighted that Bhutan
needs to first continue investing in education, health and other
productive sectors of the economy to improve human assets and reduce
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economic vulnerabilities – two of the three criteria for graduation from
the ranks of LDCs.
Second, strengthen efforts to address regional disparities through
policies that promoted rural development, particularly in remote
communities, and through diverse strategies such as applying innovation
to create attractive livelihood opportunities and income generation
schemes.
Third, improve resilience of communities to natural disasters, in
particular adverse-effects of climate change through both adaptation and
mitigation measures, and creating new national climate financing
schemes. Fourth, pursue South–South cooperation including linking
with other graduating or recently graduated LDCs, to share experiences.
Fifth, leverage key strengths: a relatively well-educated workforce,
reliable access to electricity, and a unique natural environment - to
diversify the economy into service sectors, such as tourism, ICT,
education, and organic agricultural products. Bhutan needs to further
build its productive capacity by investing in productive resources,
entrepreneurial capabilities, and upgrading technology.
Sixth reap the ‘demographic dividend’ by 2040 by investing in creating
jobs for youth and concurrently plan for an ageing society by improving
social protection, health, and pension. In this regard, he emphasized the
need to expand the private sector and address the education and skills
mismatch.
Against the background of these challenges, he underscored that
considerable resources would be required to ensure Bhutan’s smooth
graduation from LDC status and called upon development partners to
continue supporting government efforts to scale up initiatives that reach
the poorest. Emphasizing that external finance remains critical for
Bhutan, he cautioned that a sudden decrease in assistance would
severely affect Bhutan’s efforts to address these challenges. He stated
that the United Nations is committed to providing even stronger support
for Bhutan through the new One UN Programme for the next five years.
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In conclusion, he thanked all development partners for their assistance
and expressed confidence on their continued support to help Bhutan
meet its 11th Five-Year Plan objective of “Self-reliance and Inclusive
Green Socio-Economic Development”.
2.3 Opening Statement by H.E. Lyonpo Rinzin Dorje, Minister of
Foreign Affairs of Bhutan
In his opening statement, the Foreign Minister underscored the vital
importance of the Eleventh Plan for achieving three key and related
national development milestones by the year 2020, which include the
Vision 2020, the objectives of the Economic Development Policy (EDP)
2010 and Bhutan’s aspiration to graduate from the list of Least
Developed Countries. He stressed that consolidation of the strong
foundations in Bhutan’s socio-economic and political development
process was dependent on the successful achievement of these three
milestones.
He provided a broad overview of the progress made and challenges that
remained in the realization of Vision 2020, encompassing political,
institutional, social, economic and environmental aspects of Bhutan's
development. Politically, he highlighted that while strong foundations
have been laid in the country's democratic process, Bhutan was mindful
of the many new challenges of a young democracy. He expressed
confidence that with time and experience, complemented by concerted
efforts in education and capacity building of key national and local
government institutions, the cornucopia of a well-functioning democracy
would be firmly established.
To illustrate the progress in the quality of life of the people, he pointed
out that poverty had been reduced to 12 percent, primary school
enrollment rate was nearly 100 percent, life expectancy had increased to
68 years and that Bhutan has already achieved most of the MDGs and
was on track to achieve the rest by 2015. He however pointed out that
ensuring equitable access to high quality social outcomes, malnutrition,
female enrollment in tertiary education, maternal and under-five
mortality rates, spread of HIV/AIDS and the challenges of youth
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unemployment remained key areas of concern that needed to be
addressed in the Eleventh Plan.
In terms of the economy, he highlighted that Bhutan had achieved
significant progress, which was evident from the structural
transformation of the economy with the secondary and tertiary sectors
contributing to more than 80% of GDP; robust growth rates averaging
about 8 percent over the last five years; a GDP per-capita of USD 2,590
in 2011; less than 3 percent unemployment rate; and domestic revenues
meeting 65 percent of annual budgetary requirement. He however
underscored that major challenges remained, which included building
resilience against exogenous shocks with Bhutan's inevitable integration
into the global economy and financial system; ensuring that structural
transformation and high growth rates resulted in a more diversified
economy that creates productive employment opportunities to ensure
inclusive and sustainable development.
In terms of the environment, while pointing out that Bhutan remained a
bastion for environmental conservation and firmly committed to its
strong environmental policies, he highlighted that the country was
confronted with many new challenges of balancing its environmental
aspirations against pressing developmental needs. He stressed that the
continued support and cooperation of development partners was crucial
to enable the Royal Government seek more innovative approaches to
address these challenges, especially in terms of urbanization,
industrialization and infrastructure development.
On the second milestone of EDP 2010, he pointed out that promoting a
green economy was a key attribute of the EDP and that it was related
and aligned to realize Vision 2020. He explained that the EDP had been
launched to enhance the productive capacity of Bhutan's economy and
usher economic diversification, both of which were crucial for Bhutan’s
sustainable development. To ensure successful implementation of EDP,
he pointed out the need to address structural bottlenecks, especially the
lack of infrastructure, trained manpower and access to finance, through
short, medium and long-term strategies, policies, and support systems.
In this regard, he underscored the need for effective engagement of the
private sector and development partners in the design and
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implementation of a clear roadmap to operationalize the EDP, which he
said will be accorded high priority in the Eleventh Plan.
On the third milestone concerning Bhutan’s graduation from the LDCs,
he highlighted that significant challenges remain in terms of achieving
graduation and more importantly in sustaining the process in the postgraduation period. In this regard, he drew attention to the UNDP report
on the prospects and challenges to Bhutan’s LDC graduation, which calls
for reorientation of Bhutan’s current structural transformation in a
manner that strengthens the contribution of the agriculture, nonhydropower, manufacturing and services sector to GDP. He emphasized
that this was critical for facilitating Bhutan’s graduation and ensuring
the sustainability of the graduation process. He explained that the
Eleventh Plan provided the framework for such a reorientation of
Bhutan’s economy, an integral aspect of which is the achievement of the
objectives in EDP 2010. In this regard, he called for strengthening
cooperation with development partners by deepening engagements into
new areas of economic and technical cooperation for the successful
implementation of the EDP 2010 to ensure graduation from the LDCs
and the long-term sustainability of Bhutan’s overall development.
He explained that it was against the above background that the
underlying objective of the Eleventh Plan to achieve “Self-reliance and
Inclusive Green Socio-Economic Development” had been formulated, and
pursuant to which the three key strategic thrust areas of inclusive social
development, green accelerated economic development; and strategic
infrastructure development had been identified. Against this background,
he provided an overview of the Eleventh Plan's Results Based Planning
framework to achieve the overall objective of the Plan.
In conclusion, he stressed that with less than 7 years remaining, the
Eleventh Plan period provided a unique opportunity to catalyze the
achievement of the three related development milestones which are
integrally linked to the Eleventh Plan objective of “Self-reliance and
Inclusive Green Socio-Economic Development”. While acknowledging that
there would be daunting challenges in implementing the clearly but
necessarily ambitious development agenda of the Eleventh Plan, he
expressed confidence that through the continued support, good will and
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cooperation from development partners, Bhutan will ably overcome these
challenges and ensure a smooth transition during this vital juncture of
its development.
2.4 Day One/Session One of the RTM (Chaired by H.E. Lyonpo Rinzin
Dorje, Minister, Ministry of Foreign Affairs)
2.4.1 (a) Presentation on “11th Five Year Plan: Challenges and
Priorities"
The presentation by Mr. Karma Tshiteem, Secretary, Gross National
Happiness Commission provided an overview of Bhutan's development
philosophy of Gross National Happiness, elaborating on its four pillars
and operational aspects to pursue happiness as a development objective,
which included the establishment of the GNH Commission, GNH Index
and Policy Screening Tool and GNH Survey.
He then provided a synopsis of Bhutan’s Eleventh Five Year Plan
explaining the overall goal of "self-reliance and inclusive green socioeconomic development"; the strategic results based planning framework
at the agency, sector and national level that was designed to collectively
contribute to the achievement of the overall Plan goal and GNH; the key
objectives and outputs of the Plan defined in terms of 16 National Key
Result Areas and 300+ Sector/Dzongkhag Key Result Areas and
corresponding Key Performance Indicators; and the three strategic thrust
areas of inclusive social development, accelerated green economic
development and infrastructure development that would be accorded
priority in order to achieve the NKRAs and the overall goal of the Plan.
Elaborating on the main strategies of the Plan he explained that inclusive
social development would be achieved through targeted poverty reduction
programmes such as REAP and NRP and continued investments in
health and education. Accelerated green economic development would be
pursued through a targeted economic stimulus plan, an end-to-end
Rapid Investment in Selected Enterprise (RISE) Programme to promote
economic diversification into specific non-hydro power sectors and
improving the climate for doing business with a focus on cottage, small
and medium industries, strengthening the financial sector and
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establishment of industrial estates and dry ports. The thrust areas for
infrastructure development would focus on urban development through
the establishment of regional hubs; transport with priority to the
expansion of the national highway and airport infrastructure for
domestic and international
air connectivity; communications with
priority accorded to last mile infrastructure; energy with priority to
achieving the target of 10,000 MW of installed hydropower, transmission
lines and completion of rural electrification; and social and cultural
infrastructure.
In conclusion, he highlighted that the successful implementation of the
Eleventh plan was critical for achieving the three key and related
milestones of Vision 2020, EDP 2010 goals of self-reliance and full
employment and LDC graduation.
2.4.1 (b) Summary of Discussions
Japan stated that their support would focus on agriculture,
infrastructure development and regional development; new areas of
support would be determined based on further consultations; and
recommended that economic diversification and promotion of inclusive
economic growth to different regions be given high priority.
UNDP Bhutan recommended that Japan’s support in the agriculture has
a great potential to be complemented by creation of employment and
income generation for youth. UNDP would be interested in supporting
the Government’s plan to conduct a comprehensive assessment on
vulnerable groups in line with the FYP’s KRA.
EU stated that they would gradually be moving towards budgetary
support instead of stand-alone projects. EU would continue their
support in the areas of governance and agriculture and for the 11th plan
total assistance would be around 35 to 40 million Euros. EU
recommended accelerating the pace of liberalization of the economy by
enhancing regional and global integration in terms of trade, education
etc.
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Thailand stated it would continue its support to HRD in Bhutan, which
was based on the critical role of human resources for sustainable
development. In response to Thailand's question on Bhutan’s priority
areas for HRD, it was explained there was a huge resource gap in terms
of financing HRD in the 11th plan and, donors support to fill up this gap
will be highly appreciated. RGOB’s priority in the 11th plan will be to
build the capacity in critical technical areas including doctors, teachers
and engineers.
In response to ADB’S question regarding RGOB's policy on borrowings
from the financial institutions to finance the resource gap of the 11th
Plan, it was explained that concessional borrowings would continue to be
explored during the 11th plan. Additionally, to meet the resource gap of
11th Plan, some major infrastructure projects such as land reclamation,
dry ports and industrial parks would be implemented based on a public
private partnership (PPP) model.
2.4.2 (a) Presentation on “Bhutan’s Macro-Economic Situation and
Public Finance”
The presentation by Mr. Nim Dorji, Joint Secretary, Ministry of Finance,
provided a broad overview of Bhutan’s macro-economic framework,
context and challenges that formed the basis for the formulation and
implementation of the Eleventh Plan. It covered the basis, principles and
process of Bhutan’s Macroeconomic Framework, the linkages between
the real, external, monetary and fiscal sectors; macroeconomic
performance during the Tenth Plan; and the economic outlook and public
finance situation and projections, including the key challenges, for the
Eleventh Plan.
With regard to the macroeconomic outlook for the 11th FYP, real GDP
growth rate was projected to average about 10% during the Plan period
driven mainly by the industry sector due to the commissioning of mega
hydropower projects towards the end of the Plan. Real GDP growth was
projected to reach as high as 17.4 per cent and 24 per cent in 2016-17
and 2017-18. On the external sector, while overall balance of payments
was expected to be positive, a widening current account deficit that is
expected to peak at 33 percent of GDP in 2015-2016 would pose a major
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challenge. The Rupee reserves is however expected to gradually improve
to a sustainable level while convertible currency reserves are expected to
fall slightly by the end of the Plan period.
Key fiscal initiatives include containing fiscal deficits below 5% of GDP in
any given year with a targeted average of 3% of GDP during the Plan
period; in addition to covering recurrent expenditure, domestic revenues
are expected to finance at least 15% of capital expenditure and an
average of 65% of total expenditure in the 11th Plan; rationalization of
non-productive expenditure; ensuring that public debt level is
maintained within a sustainable threshold; and limiting domestic
borrowings to avoid crowding out of private sector credit.
The total outlay for the 11th Plan was projected to be about Nu. 213
billion (approximately USD 3.55 billion) against a resource envelope of
Nu. 140 billion (approximately USD 2.34 billion) in domestic revenue and
Nu. 58 billion (approximately USD 970 million) in grants. This means a
resource deficit of about Nu. 15 billion (approximately USD 250 million)2
that would need to be met through borrowings. Total debt was expected
to reach 121 percent of GDP by the end of the Plan, of which about 97
percent would be for hydropower related debt. The debt-service ratio is
however projected to be within a sustainable level of about 17 per cent of
GDP.
The presentation highlighted key challenges that included impact of any
delay in ongoing hydropower projects on domestic revenue which was
merely able to cover recurrent expenditure; 66 percent of capital
expenditure is dependent on availability of external grants; growing
public debt is expected to increase the debt service component of budget;
and widening current account deficits due to rapid import growth. In
conclusion, the presentation underscored that external assistance
remains a vital development input to achieve 11th plan’s goal of “SelfReliance and Inclusive Green Socio-Economic Development”.
2
The exchange rate as of January 2014 (1USD = Approximately Nu. 60)
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2.4.2 (b) Summary of Discussions
In response to Norway's question on the key driver of projected expected
growth trends due to industrial sector, it was explained that the growth
would largely be driven by the power sector which is also expected to
stimulate the development of private sector through power intensive
industries. Growth is also expected to emanate from special economic
zones in Samtse, Gelephu and Samdrup Jongkhar.
The World Bank recommended diversification of the economy, enhancing
competitiveness and making effective use of the domestic revenue base to
finance socio-economic development. The World Bank cautioned that
while there were great economic opportunities there were also great risks
in managing the economy given Bhutan's fragile economy. In response, it
was explained that RGOB was exploring setting up of stabilization fund
to address macroeconomic challenges and sought donor’s technical
support in this regard. The World Bank appreciated the public financial
management initiatives in Bhutan. While commenting on the
opportunities and challenges, the World Bank offered to support Bhutan
in strengthening its revenue administration and management and
initiatives to strengthen public financial management.
Korea stated that it would continue to focus its support to Bhutan
mainly in HRD. In response to Korea's questions on the strategy for
development of the non-hydro-power sector and preparations in terms of
attracting FDI and promoting PPP, it was explained that the FDI policy
had been revised and included fiscal incentives and flexible equity
requirements to attract FDI. With regard to promoting PPP, it was
explained that a few projects have already been started under a PPP
model and a comprehensive policy on PPP is expected to be adopted
soon.
In response to IFC's recommendation on the possibility of promoting FDI
particularly in the hydropower sector, it was explained that the Royal
Government has gradually but progressively handed over most economic
activities to the private sector with the objective of ultimately playing the
role of regulator and facilitator. As far as hydropower is concerned, the
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Royal Government has an ongoing partnership with India which has
progressed smoothly without much issue.
In response to Norway's question on major sector that needed more
focus, it was explained that while hydropower sector needed the major
focus as it stimulates local economic growth, the Royal Government had
also initiated policies to promote special economic zones (SEZs) and IT
based industries to diversify the economy.
2.5 Day One/Session Two of the RTM (Chaired by H.E. Haoliang Xu,
UN Assistant Secretary-General, UNDP Assistant Administrator and
Regional Director, Asia and the Pacific)
2.5.1 (a) Presentation on “Economic Development Policy Roadmap”
The presentation by Dasho Sonam Tshering, Secretary, Ministry of
Economic Affairs provided an overview of the key development objectives
of EDP in terms of promoting equity; a green economy in keeping with
Bhutan's environmental policy to remain carbon neutral and maintain
60 percent of forest cover; and full employment. It highlighted critical
constraints in implementing the EDP, which included limited productive
capacity in terms of human capital, institutional, physical infrastructure
and business support services; lumpy investments that are concentrated
in short periods of time such as the ongoing hydropower projects and
which creates short to medium term problems in the economy;
vulnerability to external shocks due to heavy reliance on one industry for
growth and dependence on one dominant economic partner for trade
and labor; limited private sector participation; narrow industrial base
and economic activities; access to and cost of finance.
Key priorities and strategic interventions in the 11th Plan to implement
the EDP were outlined under the rubric of the Rapid Investment In
Selected Enterprises (RISE), a targeted programme that would seek end
to end results based on non-hydropower investments, employment
generation, revenues to the government, picking low hanging fruits,
current competitiveness and value addition.
19
Key aspects of RISE, including its focus areas and sectors such as
promoting SMEs, scaling up the value chain of existing industries,
sustainable development of the mining sector, commercialization of
agriculture and diversifying the service sector were highlighted.
The presentation explained the need for building of industrial capacity
for products through value chain analysis and review of product
competitiveness in terms of price, quality, reliability of supply, delivery
time, etc; for sectors through identification of growing sectors,
assessment of the linkages between primary, secondary and tertiary
sectors; for institutions by promoting appropriate and viable institutional
platforms to ensure conformity to standards, regulations, testing,
certification and accreditation as well as building of relevant skills
through
capacity
development;
and
for
enterprise
through
entrepreneurship and enterprise development, industrial cluster
development and transfer of appropriate technology.
It highlighted how Bhutan could leverage its competitiveness by turning
smallness into an advantage for effective and expedited reforms;
capitalizing on free trade and market access to India; tapping on its
existing pool of high skills and a disciplined labor market for business
development; capitalizing on the country's political stability and good
governance; harnessing the value of environmentalism; and scaling up
the critical mass of existing core sectors.
In conclusion, the presentation highlighted the need to strengthen
development partnerships by adopting a systematic approach for
development partners and the Royal Government to identify areas of
economic cooperation, including promotion of FDI and addressing other
key constraints of the EDP.
2.5.1 (b) Summary of Discussions
IFC stated that it had invested $US 30 million in a local bank which was
indicative of its strong support to Bhutan. In response to IFC's question
on RGoB’s divestment in State Owned Enterprises and having private
and FDI participation in these enterprises, it was explained that
historically due to capacity constraints many enterprises had been
20
initiated by the Government. However, beginning in late 1990s these
public owned enterprises like Bhutan National Bank, Bank of Bhutan,
Bhutan Tourism Council, Penden Cement Authority, etc., started
divesting shares to the private sector. The government will continue to
manage strategic sectors and provide an enabling environment.
On IFCs' question on the moratorium on new banks by Royal Monetary
Authority (RMA), it was explained that this would be lifted within the
next few years.
With regard to IFC's query on whether the hydropower sector was closed
to foreign investments it was explained that the power sector did not
create significant jobs and the focus of the EDP and related interventions
was on creation of jobs. The 10,000 MW power projects agreements with
the Government of India was also proceeding well. However, the Royal
Government has not closed private participation in the power projects
and such participation would be guided by the Bhutan Sustainable
Hydropower Development Policy.
Korea referred to the EDP's emphasis on the creation of jobs and stated
that good quality of labor supply was needed to sustain robust economic
growth. Korea sought clarification on whether Bhutan has plans to
utilize foreign workers in the long term and whether Bhutan intended to
join regional initiatives like the Bangladesh, Myanmar, India and China
connectivity. In response, it was explained that the FDI policy of Bhutan
provides access to certain number of foreign labor which would be
reduced over a period of time. The intent behind this was to create jobs
for the domestic work force. In case skills are not available locally, they
would be outsourced with some form of exit plan. With regard to regional
integration, it was explained that a trilateral grouping is being formed by
Bangladesh, India and Bhutan.
With regard to Korea's question on FTA with India, it was explained that
Bhutan already had an FTA in goods and that trade in services is also
being considered. Under the SAFTA, services agreement has already been
concluded.
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In response to the Czech Republic's query on reforms in the taxation
policy, it was explained that as a policy recurrent expenditure has to be
met from domestic resources (tax and non-tax revenues). The
government embarked on major tax reforms since 2000. As the tax base
is very narrow in Bhutan, the government has been working towards
broadening tax base and tax/revenue administration is being improved.
UN Women sought clarification on whether the EDP addresses the need
to increase employment of women from vulnerable sectors; with Bhutan’s
emphasis on the development of hydro power projects, what is being
done to mitigate environmental impacts from it; and whether Bhutan has
a policy on renewable energy.
In response it was explained that there are no specific provisions in the
EDP on women but there are wider government policies and programs
that address this aspect. With increased participation of women in
education the participation of women in the labor market has been
improving significantly. A comprehensive social protection policy in the
11th Five Year Plan complemented by the Labor Act of 2007 would
provide social protection for women, children and vulnerable groups.
With regard to environmental impacts of hydropower development, it was
explained that such projects were subject to stringent environmental
clearances or Environmental Impact Assessments (EIAs) from the
National Environment Commission (NEC). Before the government
embarks on any hydropower project development, a full environmental
assessment is done. Moreover, given the geographical attributes of our
rivers, the rivers are not used for irrigation and other purposes and so far
human displacement has been minimal. With regard renewable energy
policy, Bhutan has an Alternate Renewable Energy Policy which
addresses other forms of renewable energy generation. The emphasis is
on alternative renewable energy as Bhutan is looking at alternatives to
hydropower, which itself is renewable.
UNCDF stated that it has wide experience in this region like in Myanmar,
Nepal, and Laos on the issue of access to finance and would be happy to
assist in this.
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2.5.2 (a). Presentation on “Graduation from the Group of LDCs:
Prospects and Challenges for Bhutan”
The presentation by Mr. Richard Marshal, Economic Advisor, UNDP
provided an overview of the process for Bhutan’s graduation path; direct
implications in terms of ODA, trade and other resources; an analysis of
challenges to graduation by focusing on structural issues, poverty and
inequality; and possible policy responses in the short and long term
including elements for a smooth transition strategy.
With the rapid increase in Bhutan’s per capita Gross National Income
(GNI) and the significant progress it has made in key socioeconomic
indicators, the country is seemingly among those countries that are
poised to be targeted for graduation in the medium term. The
Government’s Eleventh Plan presents an opportunity to reflect more
deeply on the question of Bhutan’s graduation from the LDC category,
with the objective of strengthening and deepening cooperation with
development partners to facilitate as well as effectively prepare for
smooth transition.
The assessment of LDC status is undertaken by the UN’s Committee for
Development Policy, which reports to the UN Economic and Social
Council, on a rolling three year basis and employs three criteria for
inclusion in the list of LDCs. These are GNI per capita, Human Asset
Index (HAI), and Economic Vulnerability Index (EVI). While inclusion is
determined once and is effective immediately with the consent of the
government concerned, a graduation requires a preparatory period of
three years during which time UN institutions provide support and
graduating LDCs are assisted in developing a Smooth Transition Strategy.
Bhutan’s GNI per capita has more than doubled over the last ten years.
Assuming a similar growth trend, which is likely to be the case given that
two to three further hydropower projects are expected to be
commissioned over the Eleventh Plan period, Bhutan’s GNI per capita
could be around USD 2,415 by 2015 and USD 3,100 by 2018 (the next
two review years). Similarly, based on broad trends in its evolution, the
upper ceiling for the income threshold for graduation may rise to USD
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2,740 in 2015. In this case, Bhutan would continue to meet the income
criteria but not yet qualify under the income only rule.
The presentation underscored that Bhutan is in an advantageous
position of undertaking preliminary planning some eight or nine years
prior to final graduation. It was also pointed out that there are good
precedents for retaining trade concessions and ODA allocations in the
post-graduation period. With a view to informing the national policy
response to LDC graduation and help frame the contents of the Smooth
Transition Strategy, the presentation highlighted the key structural
constraints, which is further detailed with calculations and analyses in
the technical paper on LDC graduation distributed at the RTM.
By making comparisons against the group of LDCs judged most likely to
graduate, the assessment confirmed the challenge of adult literacy rate,
where Bhutan lags the most by some 33 index points. Improvement in
literacy rate would take longer time in general, than the secondary
enrolment rate where Bhutan outperforms.
As for the EVI criteria, it is unlikely that Bhutan will meet the EVI
graduation threshold for some time. The analysis confirmed the severest
challenges, aside from population size, such as the persistent narrow
economic base, volatility in exports and weak agricultural production.
Successful implementation of the EDP 2010 would go some way to
addressing these challenges and ensure a more sustained development
path in the longer term.
2.5.3 Launch of the "MDG Acceleration Framework (MAF) Report on
Youth Unemployment"
The Millennium Development Goals Acceleration Framework (MAF)
Report on Youth Unemployment was launched as a side event of the
RTM. Finding jobs for young people is a critical issue to accelerate the
progress of MDGs. Opening remarks were made by H.E. Haoliang Xu, UN
Assistant Secretary-General, UNDP Assistant Administrator and Regional
Director, Asia and the Pacific and a keynote address was made by H.E
Lyonpo Ngeema Sangay Tshempo, Ministry of Labour and Human
24
Resources. The launch of the Report was followed by the launch of the
UNiting for Youth website.
2.6 Day Two/Session Three of the RTM (Chaired by H.E. Lyonpo Rinzin
Dorje, Minister of Foreign Affairs)
2.6.1 Summary of Statements by development partners
Overall, most development partners commended Bhutan for the
achievements in its socio-economic and political development process
despite the many structural challenges it faced. However, there was wide
acknowledgement by most development partners that Bhutan continues
to face many challenges to sustain high growth and move toward upper
middle-income country status. As such, there was an overall consensus
on the need to continue supporting Bhutan in its development.
2.6.1.1 Asian Development Bank (ADB): ADB underscored the need for
Bhutan to take policy measures to avoid a potential middle income trap
situation by addressing key challenges of a narrow economic base,
limited private sector development, high inequality, and youth
unemployment. It committed to align ADB’s country strategy for Bhutan
with the 11th Five Year Plan and will continue its support in the energy
sector and in adapting to climate change.
Other areas of support would focus on technical assistance to enhance
the government’s capacity for macroeconomic and fiscal management;
accelerate regional cooperation and integration programme to enhance
cross-border connectivity and trade facilitation; diversification of
Bhutan’s economy by fostering a business-enabling environment;
assisting in financial sector development; improving urban infrastructure
and services; and support skills development to help address the growing
issues of youth unemployment and labor market mismatch.
2.6.1.2 Australia: Australia’s targeted assistance will focus on education
for capacity building of individuals in government, private sector and civil
society to participate in Bhutan’s development. In the 2012-13 financial
year, the Australian government provided around $A14 million in
development support. Approximately $A6 million of this was directed
25
towards the higher education sector and delivered mainly through the
Australia Awards programme.
Notably, in 2014, three Bhutanese
awardees out of a global total of 200 have been chosen to participate in
the Australia Awards Leadership Programme.
Australia will work closely with the RGOB on the arrangements for the
next phase of the Australia Awards programme (from 2015-2020) to
ensure the programme continues to flexibly and innovatively respond to
the needs of the country. Although unable to announce new
commitments until its parliament approves the development assistance
budget, Australia reaffirmed its commitment to assist Bhutan in
achieving its development goals.
2.6.1.3 Austria: Austria reaffirmed its continued partnership with
Bhutan during the 11th FYP through continued bilateral assistance as
well as through increased funding via the European Union and
continued funding via International Organizations. The Bhutan Country
Strategy paper for 2014-2018 that is currently under preparation lays
out Austria’s bilateral assistance in the sectors of Tourism, Energy, and
Governance with a gradual phasing out during the last two years of this
period. The indicative budget for bilateral development cooperation with
Bhutan amounts to at least 10 million Euros.
With regard to poverty eradication under the 11th Plan, while
commending RGOB's Results Based Planning framework, Austria hopes
that it will be accompanied by a well-elaborated implementation plan,
decisive enforcement of policies, close monitoring and a pertinent human
resources development plan at all implementation levels in order to
successfully yield tangible results. Austria will continue to support
capacity development in the tourism sector especially by training young
professionals at the Royal Institute for Tourism and Hospitality (RITH).
Austria’s assistance in providing electricity to far flung remote rural
areas (Soe and Lingzhi) will continue in the 11th plan.
Austria recognizes that both Tourism development and Hydropower
development may have repercussions on the pristine environment in
Bhutan. Although conservation of the environment is an integral part of
the GNH philosophy and the development strategy of Bhutan, there are
26
huge challenges lying ahead to ensure that socio-economic development
efforts are not at the cost of the natural environment. Austria greatly
appreciates the environment policy of Bhutan and would like to fully
support the initiative of 11th Five Year Plan objective of Green SocioEconomic Development by exploring opportunities of resource and
energy efficient construction technologies and strengthening capacities of
the National Environment Commission (NEC) with regard to the
preservation of aquatic systems in Bhutan.
With regard to democracy and good governance, Austria appreciated
RGOB's policies to increase the representation of women and the
impressive performance in strengthening the rule of law, controlling
corruption, and increasing transparency and accountability. In
particular, Austria commends the Anti-Corruption Commission (ACC)
and assured that assistance to the Royal Audit Authority (RAA) through
capacity development will continue until end of 2015. During the 11th
FYP period, Austria’s assistance will continue in the improvement of the
judiciary’s infrastructure as well human resources and capacity
development.
Austria seeks to further strengthen the existing bilateral relationship by
exploring many more opportunities and new cooperation instruments in
the areas of research, economy and culture.
2.6.1.4 European Union: EU fully supports Bhutan's 11th FYP and
noted that the plan coincides well with the EU's development priorities.
Good governance, sustainable growth and inclusive social development
are also at the heart of "Agenda for change", the EU's development
strategy for the years 2014-2020.
EU congratulated RGoB for the excellent results achieved under EU's
Country Strategy Paper for Bhutan (CSP) for the period 2007-2013,
particularly in the renewable natural resources sector as well as the local
governance area. With regard to EU's programming for Bhutan for the
future period of 2014-2020, based on the successful cooperation of the
past, EU will continue and expand its efforts to consolidate past
achievements and strengthen future programmes as agreed with RGoB
and in close cooperation with other donors including other EU countries.
27
EU will significantly increase its development assistance to Bhutan with
an envisaged amount of about 35 – 40 million Euros for the period 2014
to 2020, which is more than twice the current volume of assistance.
Besides this bilateral cooperation, Bhutan will continue to benefit under
the regional programme for Asia as well as under the thematic
programmes of the European Union.
EU's contribution to the implementation of the 11th FYP will focus on two
sectors: Local Authorities and Civil Society as well as Renewable Natural
Resources (Sustainable Agriculture and Forestry). Public Finance
Management will be another area for assistance.
2.6.1.5 European Investment Bank (EIB): EIB sees significant
prospects for enhanced co-operation with Bhutan, given the country’s
economic and financial performance in recent decade. The EIB is
committed to finance climate change mitigation and economic
infrastructure projects undertaken by public and private sector. Under
climate change mitigation, these projects in renewable energy, energy
efficiency, urban transport, reforestation and other investments that
reduce CO2 emissions or strengthen their climate change resilience.
Under economic infrastructure, potential projects include water,
wastewater, sanitation, urban transport, railways, communication,
power distribution and transmission and other sectors on a case by case
basis when there is a clear added value in doing so (e.g. alleviation of
poverty).
The EIB’s lending rates are competitive as it is a non-profit-motivated
institution that is able to raise funds at advantageous rates due to its
excellent AAA credit reputation and its position as a major international
borrower on the financial markets. Its lending rates are based on EIB's
borrowing cost with a small margin to cover administrative expenses and
other costs (grants or subsidies may be available for projects in Bhutan).
The EIB can offer large loan amounts over long maturities in practically
all major currencies. Although EIB does not finance more than 50% of
the total project, its involvement acts as a catalyst, encouraging other
financial institutions and the private sector to participate in an
investment. EIB funds can also offer distinct advantages to promoters
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such as longer maturity periods (up to 25 years) or the availability of
currencies (e.g. USD, EUR, JPY, GBP). The EIB also adds value by
assessing project viability, by ensuring financial sustainability and the
use of the appropriate technology and by assisting pilot project
preparation with upstream technical expertise.
2.6.1.6 Egypt: Egypt informed that the Minister of Foreign Affairs of
Egypt has approved for Bhutan to be included as a partner that is
eligible for Technical Assistance Programmes offered by the Egyptian
Agency for International Cooperation. Egypt will endeavor to provide
support focused on capacity building programmes and in the areas
identified by Bhutan, including in agriculture, irrigation, medical care
and water resource management. All programs are covered 100% by the
government of Egypt. Egypt welcomed the positive response from the
Royal Government to start collaboration between the “Bibliotheca
Alexandrina” and the National Library of Bhutan.
2.6.1.7 HELVETAS: HELVETAS stated that its support was aimed at
enhancing employment and income of rural people and youth. Such
programmes are challenged with facilitating access to market information
and markets, business services and financial services essential to
develop sustainable value chains and gainful employment opportunities.
The vocational training system lacks adequate financial and human
resources as well as a more substantial engagement of the private sector.
Strong labor markets institutions could play an important role in
bridging existing skills gaps. Such institutions are also essential to
improve working conditions and productivity. The growing prominence of
new actors from the civil society sector was welcomed, which is an area
where HELVETAS has extended the scope of its engagement in recent
years. In that spirit, HELVETAS assured that it would remain committed
for the 11th Plan period with its development expertise in the fields of
rural economic development, education and vocational training, and local
governance, and, most importantly, its “social capital” in terms of the
relationships and common plans and undertakings with local partners in
the public and private sectors. Financially, HELVETAS outlay for the 11 th
Plan period is projected to amount to USD 12 million.
29
2.6.1.8 Republic of Korea: Korea informed that the Korea International
Cooperation Agency (KOICA), which is responsible for Korea’s grant
assistance, has supported Bhutanese human capital development and
capacity building as these are essential elements in the national
development of Bhutan. This support has been provided mainly through
training programmes in Korea in various fields of specialization such as
economic development strategy, trade promotion, public administration,
vocational training, agricultural development, etc. As a good friend of
Bhutan, the Korean government will continue to support capacity
building of Bhutanese government officials in line with national
development strategy of Bhutan.
2.6.1.9 Norway: Norway informed that it places an increasingly large
emphasis on the importance of access to energy, development of
renewable energy sources, and energy efficiency as central parts of its
international cooperation. Norway hosted an international conference on
financing access to energy which marked the launch of its International
Energy and Climate Initiative, Energy+ which is in the process of being
implemented in Bhutan. As part of the ongoing cooperation between
Norway and Bhutan, hydropower is an area where Norway has both
competence and experience, developed over decades. Norway is
increasing its commitment substantially in the renewable energy sector
in Bhutan in the years to come. Through the Energy+ cooperation,
Norway plans to support Bhutan’s efforts to increase access to
sustainable energy and reduce greenhouse gas emissions through the
use and development of renewable energy and energy efficiency. The
expectation is that this framework could also serve as a model for
cooperation between Energy+ partners in other countries in the region.
However, in order to maximize the output of efforts, Norway underscored
that it was important that Bhutan coordinates well with its partners, and
that all partners keep each other well informed about their activities. An
open and transparent dialogue on different activities is crucial for
ensuring both good coordination and complementarities. Norway is not
only strongly in favor of energy access, but also depending on access to
information. Norway reaffirmed that it plans to remain a committed
partner in the coming years.
30
2.6.1.10 SAARC Development Fund (SDF): To support its objectives
the SDF has three financing windows: (i) Social; (ii) Economic; and (iii)
Infrastructure. Projects under Social Window are given grants and
technical assistance if they meet the following criteria: projects involving
all SAARC countries, projects involving more than two but not all SAARC
Member countries, projects located in one or more SAARC countries, of
significant economic interest for three or more SAARC countries, and
Projects with significant focus on poverty alleviation, as envisaged under
the social window, in any SAARC country having thematic linkage with
more than two SAARC Member States as part of a sub-regional project.
The Accumulated Reserve from the funds is USD 27,580,873.09. The
SDF project portfolio range from strengthening the livelihood of the home
based workers, addressing the needs of small farmers, reaching
connectivity and content of e-governance to rural folks, reducing the
infant mortality and steps at ending violence against children in South
Asia.
2.6.1.11 Singapore: Singapore pointed out that as small nations with
geographical and resource limitations, Bhutan and Singapore face
similar development challenges. By sharing developmental experiences
and best practices, both countries will be better placed to tackle the
challenges that lie ahead. In this regard, Singapore has participated in
the Round Table Meetings since the 7th round in 2000 and has worked
closely with the Royal Government to better understand Bhutan’s needs.
Through such interactions, Singapore has offered customised technical
assistance programmes, scholarships and study visits to train Bhutanese
officials under the Singapore Cooperation Programme (SCP). Since its
inception in 1992, 756 Bhutanese officials have benefited from training
in various fields such as finance, public administration, governance,
information and communications technology (ICT), urban development
and civil aviation. Singapore is working with Bhutan on the development
of its National ICT Master Plan to raise the standards of e-governance in
Bhutan. Singapore reiterated its commitment to helping Bhutan achieve
its development goals.
2.6.1.12 Switzerland: Switzerland appreciated Bhutan’s impressive
achievements under the 10th FYP, most notably the marked reduction in
poverty and the far-reaching realization of the Millennium Development
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Goal (MDG) targets. In recent years, democracy has been the central
theme in Swiss-Bhutanese bilateral cooperation, which will continue
under the 11th FYP. Switzerland is much encouraged by Bhutan’s
democratic development and expressed its full support to the new
Government in its plans to enhance democratic governance further and
reduce the distance between the people and those in power, among
others through greater decentralization, transparency and austerity in
Government.
Switzerland's technical cooperation in Bhutan has a budget of 11.4
million CHF (about 10 million USD) until 2016. Through this,
Switzerland wishes to contribute to an informed and engaged citizenry
and to a strong culture of public accountability. Switzerland reaffirmed
that it would maintain the present focus in bilateral cooperation with
Bhutan until 2016 and looked forward to strengthening economic and
diplomatic relations. In this regard, Switzerland is ready to sign with
Bhutan a visa exemption agreement for official passport holders, which is
an expression of its desire to intensify exchanges. Switzerland is also
intent on exploring more opportunities for private sector cooperation and
the expansion of bilateral trade, particularly in niche markets where the
brand Bhutan is well placed.
2.6.1.13 Thailand: Thailand stated that human resource development
has long been at the top of the development agenda in its international
cooperation programmes. Since 2005, about 210 Bhutanese have been
awarded scholarships to study master degree programmes in the field of
agriculture, education, public health, political science, social science,
and public administration at Thai Universities while 240 Bhutanese
officials have participated in short-term trainings and study visit
programmes in Thailand. Thailand commits to provide technical
cooperation to Bhutan in the next three years in the form of 150
scholarships for Bhutan to undertake Master’s degree levels at Thai
universities and 135 fellowships to participate in short-term trainings and
study visit programmes in Thailand in the fields to be proposed by the
Bhutanese side and for which Thailand has the capacity to provide.
Thailand also expressed interest to strengthen cooperation in enhancing
capacity and information sharing in the form of development projects in
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key sectors such as agriculture to increase productivity and food safety;
public health to encourage access to basic health care services;
sustainable development based on initiatives of His Majesty the King of
Thailand for a sufficiency economy that would ultimately lead to
sustainable development.
2.6.1.14 The Global Fund: The Global Fund stated that it had invested
more than USD $ 10.2 million over the last 8 years to support the
national response in the fight against the three pandemics. The Global
Fund is committed to continue to enhance its support to the RGOB in
the upcoming years. In 2014, the Global Fund will implement its new
funding model, which will allow for more strategic investments and more
effective implementers and partners engagement to achieve greater
impact. The new funding model is also intended to work in closer
partnership with vulnerable communities and community-based
organizations to affirm their role in the response to HIV, TB and malaria.
2.6.1.15 The Netherlands: Associating itself with all points raised in the
statement of the European Delegation, The Netherlands recapitulated its
assistance to Bhutan in the 10th Plan through direct budget support of
10 million Euros, which was aimed at giving the RGOB a maximum
degree of ownership and responsibility. Although the budget support to
Bhutan has ended due to a parliamentary motion against budget support
in all countries, The Netherlands remains committed to continuing its
partnership with Bhutan through other instruments at the multilateral
and bilateral levels.
The Netherlands highlighted infrastructural development as a vital
prerequisite for further economic development and reaffirmed its
continued support to Bhutan through new ORIO programmes, with a
project size between 2 and 60 million Euros. A second ORIO project, if
granted, could provide an important stimulus for the infrastructure
development in Bhutan. Apart from the ORIO programme, The
Netherlands highlighted human resource capacity development through
The Netherlands Fellowship programme as an area of continued support
to Bhutan.
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Other programmes that Bhutan is eligible for include: (1) the facility for
sustainable entrepreneurship and food security (FDOV), (2) loans from
the Netherlands Development Bank (FMO), (3) projects of the
Netherlands Centre for The Promotion of Import from Developing
Countries (CBI), and (4) technical assistance from Netherlands Senior
Experts to entrepreneurs for small and medium enterprises (PUM). A
mission of senior experts will be visiting Bhutan early 2014.
Other areas of current focus include agriculture, water, sanitation and
hygiene and renewable energy.
The Netherlands expressed optimism that the Royal Government will
achieve its ambitious goals for the 11th five year plan and reiterated that
it will continue to remain an interested, involved, cooperative and
supportive partner for the development of Bhutan.
2.6.1.16 UN Common Statement: Made on behalf of the 23 UN entities,
the UN system’s support to RGOB in the next 5-year cycle will focus on
building strong central institutions and well equipped local governments;
promoting inclusive economic growth; in conducting the 2015 Census; in
promoting climate and disaster resilience; in improving access to and
availability of weather and climate services; in mobilizing the potential of
youth; in leveraging ICT and other new technologies; and in promoting
increased access to and usage of essential social services.
The UN will also remain engaged in creating enabling conditions for a
food- and nutrition-secure economy; protect and empower vulnerable
groups—including institutionalizing social protection schemes especially
for women and children; fostering the emergence of an organized civil
society; improving data availability and usage for decision making
purposes; promoting innovation and creativity, including protection of
traditional knowledge and grassroots products; and provision of
upstream policy and technical expertise to tackle emerging issues which
accompany successful graduation.
2.6.1.17 World Bank and International Finance Corporation (IFC):
The World Bank highlighted that although Bhutan has achieved an
impressive record of poverty reduction, with poverty declining to 12
34
percent in 2012, many challenges remain. These include macroeconomic
imbalances and limited domestic financial resources which call for
careful fiscal, debt and foreign reserve management during the
implementation of the Plan, while deepening the fiscal base and
developing a sound financial sector. Second, limited opportunities in
rural areas associated with low agriculture productivity are encouraging
a fast-paced rural-urban transition that gives rise to new challenges,
including rural desertification, youth unemployment, and pockets of
persistent poverty. Third, Bhutan’s private sector development and
attractiveness lags significantly behind, as indicated in the World BankIFC’s Ease of Doing Business ranking which places Bhutan 141 out of
189 countries and in the World Bank’s trade logistics index where
Bhutan stands 107 out of 155 countries. In addition, the country’s
environment is particularly vulnerable to natural disasters and climate
change.
These achievements and challenges will shape the future engagement of
the World Bank Group in Bhutan. The Country Partnership Strategy
(CPS) will provide the blueprint for guiding the lending, knowledge
sharing and advisory services support from the World Bank Group over
the period 2014-2019. The World Bank Group will place the 11th FYP’s
overarching goal of achieving self-reliance and inclusive green socioeconomic development at the center of its strategic framework while
focusing on achieving the twin goals of ending extreme poverty and
promoting shared prosperity.
The Bank highlighted three key development objectives, namely finance
for development by strengthening Bhutan’s ability to meet national
development financial needs; diversified development through improved
rural and urban employment opportunities and enabling environment for
private sector; and sustainable utilization of environment through
mainstreaming of strong environment protection, climate change
adaptation and disaster management practices.
The World Bank, through a combination of concessional International
Development Association financing of approximately US$16 million per
year, trust funds and Institutional Development Grants, will support
fulfillment of the 10th and 11th Five-Year Plan in the areas of urban
35
development, rural access, education, health, public financial
management, fiscal policy and revenue management, procurement,
statistical capacity building, ICT, private sector development, wildlife
conservation, labor and employment, rural livelihoods and disaster risk
reduction.
IFC supports development of Bhutan’s private sector with particular
emphasis on the financial sector in which a 28.5M USD equity
participation in Bhutan National Bank (BNB) was concluded last year;
advisory assistance to help facilitate public private partnerships for
essential infrastructure; and advisory assistance for improving the
business regulatory framework and investment climate to foster job
growth through small and medium enterprises. Going forward IFC sees
its assistance being channeled in a few strategic sectors such as
agribusiness, tourism and hydropower.
2.7
Day 2/Concluding Session of the RTM
2.7.1 Concluding statement by H.E. Haoliang Xu, UN Assistant
Secretary General, UNDP Assistant Administrator and Regional
Director, Asia and the Pacific, Co-Chair of the RTM
In his concluding statement, Mr. Xu thanked the Royal Government for
the warm hospitality extended to participants and expressed
appreciation for organizing a very successful RTM. Referring to the four
presentations made, he recapitulated the key challenges and constraints
faced by Bhutan, including reliance on a single sector and economic and
environmental vulnerabilities, and the importance of smooth transition
from LDC status in the future. Acknowledging that the 11th FYP was
very ambitious he underscored the need for collective efforts by all to
achieve the targets in pursuance of gross national happiness.
While appreciating the open and substantive discussion of the meeting,
he called for concrete actions to follow up on this Round Table Meeting
among the government and all the development partners. He
underscored that the next few years will be vital to support Bhutan in
meeting its challenges, harnessing its potential and fully achieving its
aspirations. During this period, he emphasized that Bhutan will need
36
the continued and even scaled-up support, both financial and technical,
of its development partners. He reaffirmed the support of the United
Nations Development System to support the 11th Five Year Plan, and
help prepare its Smooth Transition Strategy by leveraging UN inputs to
the process and ensuring national ownership of the process.
In concluding, he thanked all the development partners for participating
in the RTM.
2.7.2 Concluding statement by H.E. Lyonpo Rinzin Dorje, Minister,
Ministry of Foreign Affairs, Co-Chair of the RTM
Lyonpo referred to the socio-economic and political transformation that
Bhutan has achieved, which he said had been illustrated in the Prime
Minister’s inaugural address and widely acknowledged in the various
statements made. He stated that these were achievements that the Royal
Government and development partners must take pride in. He however
pointed out that the rapid social, economic and political transformation,
while bringing in new opportunities and expectations, were also giving
rise to new challenges to Bhutan's long-term sustainable development.
He said that these challenges had been highlighted in the presentations
and various statements made, including those made by development
partners, which was reflective of the understanding for the need to
continue supporting Bhutan during this critical phase of its transition
towards greater self-reliance. In overcoming these challenges, he said
that the Royal Government recognized that new tools and approaches,
ideas and partnerships would be required and that the Eleventh 11th FYP
had been formulated keeping this in mind.
He recalled the key aspirations for the Eleventh Plan that were
exemplified in the three key national development milestones of Vision
2020, the Economic Development Policy 2010 and Bhutan’s aspiration to
achieve sustainable graduation from LDC status. On the issue of
Bhutan's graduation from the LDC group, he stated that while Bhutan is
proud to be on track towards our cherished goal of self-reliance the Royal
Government is cognizant of the significant challenges and constraints
that remain. He said that at an appropriate time, the Royal Government
would carefully undertake discussions on Bhutan’s graduation from LDC
37
status and would then look towards its development partners for their
support and cooperation in order to ensure a smooth transition process.
Against this background, he briefly recalled the presentations on the 11th
FYP, the macroeconomic framework, and operationalization of the EDP
2010. On the 11th FYP he explained that the Royal Government had
candidly presented a positive economic outlook and in a similar vein of
sincerity shared the new and complex macroeconomic challenges that
Bhutan faced. In this regard, he called for the continued support of
development partners to address the challenges and in meeting the
resource gap for the 11th FYP.
With regard to the EDP, he said that the Royal Government was keen on
engaging all partners to explore the strengthening of development
cooperation by deepening it into new areas of economic and technical
cooperation. These would include addressing key constraints of the EDP
that were related to strategic infrastructure; enhancing the productive
capacities of human resources; transfer of technologies and know how;
and access to FDI and alternate sources of financing. He stressed that
such cooperation was crucial for private sector development and our
effective transition to a green economy.
In concluding, he thanked the development partners for the clear
expressions of continued support and goodwill for Bhutan during this
challenging period of its development transition. He expressed special
thanks to H.E. Mr. Haoliang Xu for co-chairing the RTM and sharing his
wide experience and knowledge to bring this meeting to a successful
conclusion. He also expressed appreciation to the entire UN Country
Team for their contribution to the success of this RTM.
2.7.3 Launch of Situation Analysis Report of Children, Youth and
Women in Bhutan 2012 (SiTAN)
The Report “A Situation Analysis of Children, Youth and Women in
Bhutan 2012” (SiTAN) was launched by H.E. Lyonpo Dorji Choden,
Minister, Ministry of Works and Human Settlement (MOWHS). Opening
remarks at the launch were made by Eric Durpaire, UNICEF
Representative a.i and the keynote address was made by H.E. Lyonpo
38
Dorji Choden, Minister, Ministry of Works and Human Settlement
(MOWHS), Royal Government of Bhutan
39
ANNEX 1: Agenda of the Twelfth Round Table Meeting
40
41
42
ANNEX 2: Inaugural Statement by the Hon’ble Prime Minister of
Bhutan, H.E. Lyonchhen Tshering Tobgay during the 12th Round
Table Meeting, Royal Banquet Hall, Thimphu, 11 December 2013
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen.
I bring to you the greetings of His Majesty the King and His good wishes
for a fruitful visit.
It is a privilege to welcome each and every one of you to the Twelfth
Round Table Meeting here in Thimphu. Our meeting today is taking
place shortly after Bhutan’s second Parliamentary elections and the
formation of a new government. It also coincides with the launch of the
Eleventh Five Year Plan. Today’s event, therefore, is important. And your
presence here is most heartening. I thank you.
Special thanks are due to His Excellency Haoling Xu, UN Assistant
Secretary General, UNDP Assistant Administrator and Regional Director,
Asia and the Pacific, for kindly consenting to co-chair this important
event. I would also like to acknowledge with appreciation the UNDP
Country Office for organizing the Twelfth Round Table meeting.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen.
Bhutan launched its first five-year plan in 1961. That was more than 50
years ago. And that was before I was even born. Much has been achieved
during these past five decades.
Fifty years ago, we did not have a single motor road. Today more than
10,500 km of roads connect most of our villages to our cities and beyond
our borders. And at last count, we had about 84,000 licensed drivers in
country.
43
Fifty years ago, we did not have any telecommunication facility. Our first
wireless station was established only in 1965. Today, 27,000 telephones
and more than 560,000 cell phones keep most of our population
constantly connected.
Fifty years ago, we had just eleven schools with about 400 students.
Today, we have 580 schools and colleges. And we have no less than
200,000 students studying in them.
Fifty years ago, our economy consisted of subsistence farmers and a
handful of traders using barter as their main mode of transaction. Today,
we may still be a poor country, but our economy has recorded consistent
growth and has the potential to lead us to economic self-reliance.
Fifty years ago, we did not have a civil service to speak of.
A
“development wing” with no more than 20 Bhutanese officers had to be
established to implement our first five-year plan. Today, we have 25,000
bright, capable and motivated people forming our civil service.
And fifty years ago, we were an absolute monarchy. Today, at the behest
of His Majesty the King himself, we are a vibrant democracy.
Indeed, this small, landlocked country has enjoyed a great deal of
success since the start of planned modern development, some fifty years
ago. What’s more, these successes were achieved in an era of
unprecedented peace and harmony, without destroying our pristine
environment, and without undermining our unique culture.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen.
We have come a long way in the last 50 years. There’s no doubt about
that. The first 10 five-year plans have been largely successful. So we
must celebrate our successes, successes built on the leadership of our
monarchs, the hard work of our people, and the support and generosity
of our development partners.
44
But we still have a long way to go. There’s no doubt about that too.
We are still a poor country. Our combined GDP is just Nu 99 billion.
That’s barely US$ 1.6 billion. Our economy has a small base, but it could
grow by just 4.6% last year. We are still heavily dependent on a single
sector – hydropower. Domestic production remains low, and spiraling
imports driven by growing consumption, presents severe balance of trade
problems. Our economy is small and fragile, and we are still extremely
vulnerable to shocks, both from within the country and from the outside
world.
60% of our people depend on agriculture, but farming practices are still
largely subsistence. As such, poverty is still a stark reality. And many of
our children are malnourished and stunted. To make matters worse,
unemployment, especially among our educated youth, is on the rise and
is already leading to a range of social problems.
In the area of governance, even as we lay strong foundations in our
democratic process, much remains to be done in terms of strengthening
democracy through greater transparency, efficiency and accountability in
the political and administrative processes.
So the next five years will be crucial. We can build on the strong
foundations of the past five decades to address our immediate
challenges. We can improve our human capital and strengthen our
economy. We can achieve sustainable self-reliance and we can graduate,
with satisfaction and pride, from Least Developed Country status.
Or we can become overwhelmed by our problems, problems that are
complex, numerous and daunting. If so, we will remain mired in poverty
in spite of our past achievements. We will remain an LDC in spite of the
many opportunities offered by the rule of law and political stability.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen.
45
The Eleventh Five Year Plan gives us the opportunity to take stock of the
state of our nation, to recognize our constraints, and to build on our past
achievements by ushering in new plans, strategies and preparations that
will allow us to work towards “self-reliance and inclusive green socioeconomic development.”
The Eleventh Plan is not a political document. It was developed by and
belongs to the people of Bhutan. It is a blueprint for development that is
characterized by bottom-up planning approach. It was prepared by local
governments in consultation with individual households. It reflects the
extensive work of civil servants across all sectors and agencies. It builds
on all our past achievements, including the efforts of the previous
government. And most importantly, it draws upon the wisdom of His
Majesty the King, consistently articulated in Royal Addresses to all
sections of our people.
At about Nu 213 billion, the Eleventh Five Year Plan is by far our most
ambitious plan. We will be able to meet the entire recurrent expenditure
from our own resources. But we will need the support of our
development partners to finance most of the capital investments. In this
connection, I would like to acknowledge, with deep thanks, the
Government of India’s commitment to finance Nu 45 billion of the Plan.
Similarly, other partners – bilateral, multilateral and international
financial institutions and NGOs – have also made generous
commitments. And I thank them all. But we continue to face significant
resource gaps, and I look forward to working closely with our
development partners to overcoming these shortfalls.
The Eleventh Five Year Plan sets clear outcomes and targets that the
government must achieve over the next five years in order to realize the
objective of “Self Reliance and Inclusive Green Socio-Economic
Development.” These outcomes and targets have been packaged as 16
National Key Result Areas and are supported by a range of key
performance indicators to assist the government. More importantly, these
easily identifiable indicators will allow the people of Bhutan to monitor
and measure the performance of their government.
46
The Eleventh Plan is ambitious. It sets out a development agenda that is
necessarily ambitious. But with the strong foundations of our past, an
unwavering faith in our future, an enduring belief in our abilities, and
the continued goodwill and support of our time-tested friends, I have no
doubt that the Eleventh Plan will be a success – a landmark that lays
new foundations for a future that is even more remarkable than our past.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen.
The Royal Government of Bhutan is committed to implementing the
principles of Gross National Happiness. Though the second elected
government has been in office for barely four months, we have already
embarked on several initiatives aimed at operationalizing GNH.
To make quality education more inclusive, for example, we have decided
to pilot a bold project that will use video conferencing to carry lessons, in
real time, from our best teachers to classrooms in distant parts of our
country. To foster a vibrant private sector and to support small
businesses throughout the country, we have launched, with assistance of
the Government of India, an Economic Stimulus Plan. And to make doing
business easier and more enjoyable, we have committed to improve our
Ease of Doing Business ranking from 141 to the top 100 within the next
year.
To lower greenhouse gas emissions, we have decided to take sustainable
transport and electric vehicles very seriously. To protect our forests, we
are taking measures to encourage farmers to use more electric power and
less firewood. And to reduce garbage, we are preparing to launch Clean
Bhutan, a national programme to clean our cities, our rivers and our
countryside.
To improve good governance, we have empowered local governments with
additional financial and administrative powers. To improve efficiency in
the public service, we have decided to go fully electronic by using Google
Apps, a cloud-based productivity suite. To increase accountability in the
civil service, we are developing a performance management system. And
47
to improve transparency in the government, we have tabled a Right to
Information legislation.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen.
In conclusion, I would like to thank the distinguished representatives
gathered here for taking part in this Round Table Meeting. Your presence
bears testimony of your goodwill, friendship and solidarity at this crucial
juncture of our development.
I take this opportunity to thank all our development partners for their
exemplary support and cooperation, and look forward to continuing our
friendship and cooperation.
I wish the meeting every success.
Thank you. Tashi Delek!
48
ANNEX 3: Opening Statement by H.E. Haoliang Xu, UN Assistant
Secretary-General, UNDP Assistant Administrator and Regional
Director, Asia and the Pacific and Co-Chair of the 12th RTM, 11-12
December 2013, Thimphu, Bhutan.
Your Excellency, Honourable Prime Minister, Lyonchhen Tshering
Tobgay;
Your Excellency, Lyonpo Rinzin Dorji, Minister of Foreign Affairs and CoChair of the Round Table Meeting.
Excellencies, Distinguished Participants, Ladies and Gentlemen:
It is a pleasure and privilege to be in the Kingdom of Bhutan and to cochair the 12th Round Table Meeting with H.E. Lyonpo Rinzin Dorji,
Minister of Foreign Affairs. I am deeply grateful to the Royal Government
and People of Bhutan for the warm reception and gracious hospitality.
I am honoured to address this important and timely Round Table
Meeting to discuss the challenges and priorities under the 11th Five-Year
Plan (2013-18).
Over the last three decades, Bhutan has experienced significant
development, but dramatic change has come in the last 10 years, making
Bhutan one of the world’s fastest growing economies. During this period,
Bhutan’s annual per capita growth averaged about 10 per cent, resulting
in income levels higher than most of its neighbours.
This impressive growth allowed the Government to pursue targeted
poverty reduction and invest in human development, keeping Bhutan on
track to achieve most MDG targets by 2015.
The national poverty
headcount ratio declined from 36.3 per cent to 12 per cent over the past
13 years, exceeding the 10th Five Year Plan target of 20 per cent. The
Gross Primary Enrolment Ratio has reached 100 per cent. According to
a recent UN and WB study, Bhutan is one of 10 countries in the world to
reduce maternal mortality by 75 per cent between 1990 and 2010.
49
Although still a young democracy, Bhutan is one of a few countries to
enjoy relative peace and stability in South Asia.
The country’s
democratic institutions have taken firm root and provide a solid
foundation for ensuring inclusiveness, transparency, accountability,
justice and the rule of law. According to the 2012 Transparency
International index, Bhutan ranks as the least corrupt country in South
Asia, and 33rd least corrupt out of 176 nations.
While much progress has been made, significant challenges remain.
About 12 per cent of the population still lives in poverty. Disparity in
income and access to social services and infrastructure, between and
within regions and districts, continues to be a persistent problem. And
there is need for better nutrition, and better quality and access to
prenatal and antenatal services.
In education, Bhutan has achieved the target for gender parity at
primary and secondary levels, but the ratio of females to males in postsecondary education remains low and the literacy rate lags behind
leading LDCs.
In politics, women’s participation in elected offices
remains among the lowest in the region.
Bhutan also faces stark demographic opportunities and challenges in the
coming decades. More than half the population is under 25 years of age
and in the next three decades, Bhutan’s working-age population (those
between 15 and 64 years of age) is expected to increase by over 40 per
cent. Limited employment opportunities, high incidence of poverty in
rural areas, and youth migration to urban areas, have all contributed to
growing youth unemployment in cities. This could, over time, affect social
stability.
Similar to many other LDCs, Bhutan depends heavily on a single
commodity and market for growth and revenue, increasing economic
vulnerability. In the last decade, hydropower has been the engine for
growth, contributing about two-fifths of government revenues and export
earnings, and a third of GDP. Bhutan’s challenge is to diversify its
economy to reduce dependence on this single sector and achieve more
balanced and stable growth.
50
Increasingly, climate change is affecting Bhutan. Erratic precipitation
and temperature patterns affect farmers and the hydropower sector.
Bhutan is also prone to natural disasters including earthquakes, forest
fires, windstorms, landslides, and glacial lake outbursts. These natural
shocks most severely affect the poorest and can lead to losses in hardearned development gains.
Looking ahead and building on past efforts, Bhutan needs to:
First, continue investing in education and health. While expenditure on
public education increased from 5.8 to 7.2 per cent between 2000 and
2005, it declined to 4 per cent in 2010. The share of public health
expenditure in the total budget also declined from 12.2 per cent in 2000
to 10.5 percent in 2010. Increasing funding for education, health and
other productive sectors of the economy is critical to improve human
assets and reduce economic vulnerabilities – two of the three criteria for
graduation from the ranks of LDCs.
Second, step up efforts to address regional disparities through policies
promoting rural development, which also reach remote communities.
Explore more diverse strategies and policies such as: targeting
investments to link farms to markets…improving the supply and
lowering the cost of credit to key sectors…applying innovation to create
attractive
livelihood
opportunities
and
income
generation
schemes…improving micro-credit and business grants…and supporting
more vocational training, targeting especially women and youth.
Third, improve resilience of communities through enhanced
preparedness and response to natural disasters, in particular adverseeffects of climate change. This can be done by addressing risks and
vulnerabilities through both adaptation and mitigation measures, and
creating new national climate financing schemes.
Fourth, pursue South–South cooperation and explore economic relations
with countries capable of purchasing exports and supplying needed
imports. This could include linking with other graduating or recently
graduated LDCs, to share experiences.
51
Fifth, leverage key strengths: a relatively well-educated workforce,
reliable access to electricity, and a unique natural environment -- to
diversify the economy into service sectors, such as tourism, ICT,
education, and organic agricultural products. Bhutan needs to further
build its productive capacity by investing in productive resources,
entrepreneurial capabilities, and upgrading technology.
Sixth reap the ‘demographic dividend’ by 2040. Bhutan needs to invest in
creating jobs for youth, at the same time it must prepare for an ageing
society by improving social protection, health, and pension. In Bhutan,
7 out of 10 persons are employed in vulnerable jobs. To create decent,
productive, well-paying jobs, Bhutan needs to expand its private sector
and address the education and skills mismatch.
These challenges require considerable resources to ensure Bhutan’s
smooth graduation from LDC status, while also maintaining Gross
National Happiness.
Therefore Bhutan’s development partners,
including, CSOs must continue supporting government efforts, including
prototyping and pilot testing innovate approaches to scale up initiatives
that reach the poorest. External assistance significantly finances the
budget and while the country has begun to increase domestic resource
mobilization, the need for external finance remains critical. A sudden
decrease in assistance would severely affect Bhutan’s efforts to address
challenges. The United Nations is committed to providing even stronger
support for Bhutan to meet those challenges through the new One UN
Programme for the next five years.
I would like to close by thanking all development partners for their
assistance in helping bring about impressive gains in recent years. I
count on your continued support to help Bhutan meet its 11th Five-Year
Plan objective of “Self-reliance and Inclusive Green Socio-Economic
Development”.
Thank you and Tashi Delek
52
ANNEX 4: Opening Statement by H.E. Lyonpo Rinzin Dorje, Minister
of Foreign Affairs of Bhutan and Co-Chair of the 12th RTM.
Excellencies, Distinguished Delegates, Ladies and Gentlemen,
It gives me great pleasure to join the Hon’ble Prime Minister in extending
a very warm welcome to all the distinguished representatives of our
development partners. I would like to acknowledge the presence of H.E.
Haoliang Xu, UN Assistant Secretary-General, UNDP Assistant
Administrator and Regional Director, Asia and Pacific, with whom I have
the privilege of Co-chairing this important meeting, the outcome of which
will play an instrumental role in the successful implementation of the
Eleventh Plan. I thank you for being here in Bhutan to facilitate our
discussions over the next two days, which will benefit greatly from your
vast experience.
At the outset, on behalf of the Royal Government and the people of
Bhutan, I would also like to express our deepest gratitude to all our
development partners for the unstinting assistance, support and
cooperation rendered to Bhutan, without which the tremendous progress
that we have made over the last five decades of planned development
would not have been possible.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,
The Twelfth Round Table is being held at a crucial period for Bhutan as
it coincides with the launch of the Eleventh Plan, which serves as a vital
platform for achieving three key and related national development
milestones by the year 2020. These are namely the goals and objectives
envisaged in “Bhutan 2020 – A Vision for Peace, Prosperity and
Happiness”, which has served as our national development strategy and
guided the formulation and implementation of our Five Year Plans, the
objectives of the Economic Development Policy 2010 and our aspiration
to graduate from the list of Least Developed Countries. As we move
forward to consolidate the strong foundations we have laid in our socio-
53
economic and political development process, much depends on the
successful achievement of these three milestones.
Firstly, as we approach 2020, I am happy to state that under the wise
and farsighted leadership of our Kings we have made significant progress
in the five thematic areas Vision 2020, encompassing our nation, our
people, our economy, our environment and our institutions.
The peace, security and prosperity of our nation have been strengthened
with the establishment of a Democratic Constitutional Monarchy in
2008, under which two elections to install a democratically elected
parliament and government have been successfully held. While strong
foundations have been laid in our democratic process, we are mindful of
the many new challenges that we face as a young democracy. We are,
however, confident that with time and experience, complemented by
concerted efforts in education and capacity building to strengthen our
institutions, including the media, the abundant processes, interactions
and systems of a well functioning democracy will be firmly established.
Our people today enjoy a quality of life far removed from the harsh
realities that prevailed prior to years of planned development. Most
notably, poverty has been reduced from 31 percent in 2003 to 12 percent
in 2012. Today, our primary school enrollment rate is nearly 100 percent
and life expectancy has increased to 68 years. With regard to the MDGs,
I am pleased to inform that Bhutan has already achieved most of the
targets and is currently on track to achieve the rest by 2015.
Notwithstanding the progress made, ensuring equitable access to high
quality social outcomes evidently remains a challenge with more than
half of the 20 Dzongkhags having poverty levels above the national
average. With regard to the MDGs, malnutrition, female enrollment in
tertiary education, maternal and under five mortality rates, spread of
HIV/AIDS and the challenges of youth unemployment remain key areas
of concern. We are, however, confident that with the continued support
of our development partners these challenges will be effectively
addressed in the Eleventh Plan.
54
Our economy has undergone major structural transformation. The
secondary and tertiary sectors contribute to more than 80% of GDP.
Growth has been robust averaging at about 8 percent per annum over
the last five years. Our GDP per-capita has increased from USD 1,387 in
2006 to USD 2,590 in 2011. Unemployment rates are below 3 percent.
Today domestic revenues cover about 65 percent of our annual
budgetary requirements. By 2020, the second transnational highway will
be completed and 10,000 MW of hydropower generation capacity, far
exceeding the Vision 2020 target of 3,000 MW, will be installed.
Despite the positive outlook, major challenges remain in strengthening
our economy and building resilience against exogenous shocks as we
inevitably integrate into the global economy and financial system.
Ensuring that the structural transformation and high growth rates result
in a more diversified economy that creates productive employment
opportunities for a growing and educated work force and more than 60
percent of the population currently dependent on agriculture that is
largely subsistence based has now become crucial if we are to ensure
inclusive and sustainable development. Of particular significance and a
key consideration of the Eleventh Plan is that 56 percent of our
population is below the age of 24 years. Timely investments to ensure
that our youth are equipped with relevant education and life skills and
reorienting our economy to provide them corresponding employment
opportunities will be crucial to reap the potential “demographic
dividends” that our current demographic architecture offers.
In terms of our environment, with 70.46 percent of land under forest
coverage we remain a bastion for environmental conservation. Our efforts
in this regard have been further reinforced by a constitutional mandate
of maintaining a minimum of 60 percent forest coverage at all times as
well as our commitment to the global community to maintain our status
as a net sink for green house gases. Although we remain firmly
committed to our strong environmental policies, we are, however,
confronted with many new challenges arising from pressing demands as
well as outcomes of our development. The support and cooperation of our
development partners will be crucial as we strive to seek more innovative
approaches to balancing our environmental aspirations and pressing
55
developmental needs, especially in addressing the challenges
urbanization, industrialization and infrastructure development.
to
In terms of institutions, key national and local government institutions
that are vital for a vibrant democracy and good governance have been
established. Given the nascent stage of development of most of these
institutions, we are currently in the process of addressing infrastructure
and human resource constraints to strengthen their effectiveness.
Related and aligned to realize Vision 2020, the Economic Development
Policy 2010 was launched to enhance the productive capacity of our
economy and provide a strategic direction for economic diversification
that has become crucial for Bhutan’s sustainable development.
Promoting a green economy is a key attribute of the EDP. Since its
launch in 2010, our efforts have been focused on creating an enabling
environment, preparatory works for infrastructure expansion and
promotion of Bhutan as a potential destination for foreign direct
investments. The Eleventh Plan recognizes that while an enabling policy
and regulatory environment are important, they cannot compensate for
structural bottlenecks, especially the lack of infrastructure, trained
manpower and access to finance. It therefore underscores that the
successful implementation of EDP will depend on ensuring that its
objectives are supported by clear-cut short, medium and long-term
strategies, policies, and support systems that harness our competitive
advantages and address our constraints. All this will require the effective
engagement of the private sector and development partners in the design
and implementation of a clear roadmap to operationalize the EDP, which
will be accorded a high priority in the Eleventh Plan.
On the third milestone concerning Bhutan’s graduation from the LDC
category, while we are strongly committed to fulfilling this aspiration by
2020, significant challenges remain in terms of achieving graduation and
more importantly in sustaining the process in the post-graduation
period. In this regard, I would like to draw your attention to the report by
UNDP, which highlights key challenges to Bhutan’s graduation,
especially in addressing its high economic vulnerability. The report calls
for a reorientation of Bhutan’s current structural transformation path in
56
a manner that strengthens the contribution of the agriculture, nonhydropower manufacturing and services sector to GDP, which are critical
for facilitating Bhutan’s graduation and ensuring the sustainability of the
graduation process. The Eleventh Plan provides the framework for such a
reorientation of Bhutan’s economy, an integral aspect of which is the
achievement of the objectives in EDP 2010. In this regard, the Royal
Government seeks to strengthen cooperation with its development
partners by deepening engagements into new areas of economic and
technical cooperation for the successful implementation of the EDP
2010.This will ensure Bhutan remains firmly on track towards
graduation from the LDC category as well as in the interest of the longterm sustainability of our overall development.
It is against this background, that the underlying objective of the
Eleventh Plan to achieve “Self-reliance and Inclusive Green SocioEconomic Development” has been formulated.
Pursuant to its objective, the Eleventh Plan will focus on three key
strategic thrust areas: firstly, inclusive social development to further
reduce income and multidimensional poverty through targeted poverty
intervention programmes; secondly, green accelerated economic
development to promote economic diversification by fostering the growth
of a dynamic private sector that catalyzes a transition to a green
economy. The flagship programme for which will be the Rapid Investment
in Selected Enterprises (RISE); and thirdly, strategic infrastructure
development which will focus on economic (transport, ICT, industrial
parks, dry ports etc), social (schools, hospitals and educational
institutions) and cultural (Dzong, monasteries and monastic schools)
infrastructure which are critical for achieving the Eleventh Plan
objective.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,
Pursuant to Article 9-2 of the Constitution, which directs the State “to
promote those conditions that will enable the pursuit of Gross National
Happiness”, our development efforts continue to be guided by the
57
development philosophy of Gross National Happiness (GNH), which
encompasses the four pillars of sustainable and equitable socio-economic
development; preservation and promotion of culture; conservation and
sustainable utilization and management of the environment; and
promotion of good governance. The operational aspects of GNH have been
further strengthened with the introduction of the GNH Index in 2008 and
GNH Policy Screening tool in 2009.
Furthermore a key innovation of the Eleventh Plan is the adoption of a
Results Based Planning (RBP) framework that articulates clear outcomes
and outputs that need to be achieved in order to realize the Eleventh
Plan objective. These outcomes are defined as Key Results Areas (KRAs)
at the national, sectoral, and local government (Dzongkhag, Thromde
and Gewog) levels and categorized under each of the four pillars of GNH.
At the national level, 16 National Key Result Areas (NKRAs) have been
identified. At the sector and Dzongkhag level, more than 150 Sector Key
Results Areas (SKRAs) and Dzongkhag (DKRAs), Thromde and Gewog
Key Results Areas that are aligned to meet the 16 NKRAs have been
identified. Furthermore, the performance of all government agencies
towards the delivery of the key result areas are measured through
corresponding outputs defined as Key Performance Indicators consisting
of a baseline and targets. These have also been formulated based on the
four pillars of GNH to ensure that all sectors contribute towards
strengthening the GNH pillars.
To further strengthen our commitment to promote decentralization and
participatory development that dates back to the inception of the Fifth
Five Year Plan in 1981, the Eleventh Plan places special emphasis on
achieving results at the community level and their integral role in
achieving the overall objective of the Eleventh Plan. The structure of the
local government plans, and strategies are firmly anchored to the
circumstances of each Dzongkhag, underscoring the need for a common
but differentiated approach to development. The Nu.25 billion capital
outlay for local government plans in the Eleventh Plan is an increase of
25 percent over that of the Tenth Plan. This demonstrates the high
priority accorded to local government plans to fulfill the Government's
pledge of ensuring “Prosperity for All” through effective empowerment of
the people.
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With less than 7 years remaining, the Eleventh Plan period provides a
unique opportunity to catalyze the achievement of the three related
development milestones of Bhutan by 2020 which are integrally linked to
the Eleventh Plan objective of “Self-reliance and Inclusive Green SocioEconomic Development”. There will no doubt be daunting challenges over
the next few years in implementing what is clearly but necessarily an
ambitious development agenda.
We however remain confident that through the continued support, good
will and cooperation from our development partners, the Royal
Government and the people of Bhutan will ably overcome these
challenges to ensure a smooth transition during this vital juncture of our
development.
We look forward to candidly engaging with you over the next two days on
the development agenda of our Eleventh Plan and the ways and means
with which we can ensure its successful implementation.
Tashi Delek!
59
ANNEX 5: Presentation on “11th Five Year Plan (2013- 2018):
Challenges & Priorities
60
61
62
63
64
ANNEX 6: Presentation on “Bhutan’s Macro-Economic and Public
Finance”
65
66
67
68
ANNEX 7: Presentation on “Economic Development Policy
Roadmap”
69
70
ANNEX 8: Presentation on “Graduation from the Group of LDCs:
Prospects and Challenges for Bhutan”
71
72
73
74
75
ANNEX 9: Statements by Representatives of Development Partners
Annex 9.1 STATEMENT BY ASIAN DEVELOPMENT BANK
Excellencies, distinguished guests, ladies and gentlemen.
On behalf of ADB Management, I would like to extend my gratitude to the
Government of Bhutan and the United Nations Development Program for
hosting this successful 12th Round Table Meeting.
Bhutan and ADB have been development partners since 1982 and built a
strong partnership over the past three decades. Despite its difficult
terrain and landlocked constraints, Bhutan has managed to sustain high
economic growth through unrelenting efforts of its dedicated people and
the government. Good governance and unwavering commitment of all
stakeholders have led to remarkable progress in reducing poverty and
achieving the Millennium Development Goals.
However, development challenges still remain. Bhutan needs to sustain
high growth and move toward upper middle income country status. It
also needs to take policy measures to avoid middle income trap that has
plagued a number of Latin American countries, but was largely overcome
by the East Asian tigers. Key challenges include, among other things, the
narrow economic base, limited private sector development, high
inequality, and youth unemployment. ADB welcomes the 11th Five Year
Plan that aims to address these challenges with concrete objectives and
strategies.
ADB is currently preparing its next country partnership strategy for
Bhutan, which will cover the period of the 11th Five Year Plan. By
aligning ADB’s strategy with the 11th Five Year Plan, we commit to
assisting the government in achieving the objective of self-reliance and
inclusive, green socio-economic development.
ADB will continue its support for Bhutan’s energy sector and will assist
Bhutan in adapting to climate change by strengthening integrated water
resources management and diversifying the energy mix to include
renewable energy sources. ADB will also continue providing technical
76
assistance support to enhance the government’s capacity for
macroeconomic and fiscal management. ADB will also accelerate its
regional cooperation and integration program in Bhutan under the South
Asia Sub-regional Economic Cooperation (SASEC) program and other
related initiatives. Our support for enhancing cross-border connectivity
and trade facilitation will help Bhutan benefit from improved trade and
exploit opportunities arising from the development of economic corridors
between South Asia and Southeast Asia.
To help Bhutan diversify its economy, ADB will continue to foster a
business-enabling
environment
by
assisting
financial
sector
development, enhancing national and cross-border connectivity, and
improving urban infrastructure and services. We will also support skills
development to help address the growing issue of youth unemployment
and labor market mismatch.
We are confident that Bhutan will successfully implement the 11th Five
Year Plan and overcome its development challenges. ADB is strongly
committed to helping Bhutan achieve inclusive, green, and sustainable
growth and further reduce poverty and inequality. ADB looks forward to
building on its three-decade old development partnership to help Bhutan
further in the years to come.
Thank you all.
77
Annex 9.2 STATEMENT BY AUSTRALIA
Australia is pleased to participate in the 12th RTM for Bhutan and thanks
the RGOB for its hospitality and warm welcome.
Australia and Bhutan have enjoyed a long and productive relationship,
dating back to the early days of the Colombo Plan in the 1960s. In January
2012, our countries signed a Memorandum of Understanding on
Development Cooperation and held inaugural whole-of-government talks.
As agreed by the Australian Government and the Royal Government of
Bhutan during the second annual consultation in July 2013 in Canberra,
Australia’s targeted assistance will be used to improve the capacity of
individuals and organisations in government, private sector and civil society
to participate in Bhutan’s development. Discussions between the Australian
Ambassador to Bhutan and the Royal Government of Bhutan in Thimphu in
November 2013 reflected the span of engagement between the two countries
and the momentum that has been built in our relationship over the years.
In the 2012-13 financial year, the Australian government provided around
$A14 million in development support. Approximately $A6 million of this
was directed towards the higher education sector and delivered mainly
through the Australia Awards program. This program plays a key role in the
Australia-Bhutan partnership, and in 2014, 46 Bhutanese students will
commence Masters-level Scholarships at Australian universities. The study
and research opportunities provided by the Australia Awards Scholarships
develop skills and knowledge of individuals to drive change and contribute
to the development outcomes in the recipients’ respective countries.
Currently, 110 Bhutanese are undertaking study in Australia under the
Australia Awards Program.
Notably, in 2014, three Bhutanese awardees out of a global total of 200 have
been chosen to participate in the Australia Awards Leadership Program.
This suggests that we will continue to see Bhutanese leaders emerge from
the Australia Awards program in future years. Australia will work closely
with the Royal Government of Bhutan and other stakeholders on the
arrangements for the next phase of the Australia Awards program (from
2015-2020) to ensure the program continues to flexibly and innovatively
responds to the needs of the country.
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Assistance from Australia has enabled Bhutanese institutions to build
capacity by establishing long-term relationships with Australian
institutions. Exchange of knowledge and experience between the Royal
Institute of Management (RIM) in Thimphu, Bhutan, and the University of
Canberra in Australia has resulted in RIM launching accredited Masterslevel courses in 2012. Australia is also helping to build capacity in
education, health, agriculture and forestry through the Australian
Volunteers Program which commenced in 2012.
World Food Program Australia has been contributing to a school feeding
program, which improves access to primary education, since 2001-02. In
2012-13, around 10,000 children were provided with two meals per day at
school.
The Australian Ambassador’s visit identified opportunities for potential
further cooperation in the education, skills and governance sectors.
Australia would welcome visits by officials from the Royal Government of
Bhutan to build capacity and help consolidate democracy through
undertaking short periods of study and training in strategic management,
high level public policy, and parliamentary strengthening. As geographical
distance is a challenge that both our countries face, Australia may be able
to share our experiences in distance education, use of ICT in education, and
multi-grade teaching with visiting Bhutanese counterparts. There may also
be opportunities for Australian undergraduate students to undertake study
or internships in Bhutan from 2015, under the Australian Government’s
recently launched New Colombo Plan. This initiative is intended to improve
knowledge of the Indo-Pacific in Australia by generating a genuine, two-way
flow of students between participating countries.
Australia is unable to announce new commitments for the coming financial
year – commencing on 1 July 2014 – until the Australian parliament
approves the development assistance budget in the context of the national
budget approval process. While this prevents us from being able to pledge
funds to development partners at this juncture, Australia is pleased to
reaffirm an ongoing and sincere commitment to assist Bhutan in achieving
its development goals.
Thank you
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Annex 9.3 STATEMENT BY AUSTRIA
At the outset, I would like thank the Royal Government of Bhutan for
convening this 12th Round Table Meeting. It is an important forum to take
stock of past achievements and future challenges of Bhutan in pursuing its
development goals under the 11th Five Year Plan. It is also an appreciated
opportunity for discussion and coordination between the Royal Government
of Bhutan and the International Donor Community.
Austria and Bhutan look back to a long-standing partnership: 2014 we will
celebrate the 25th anniversary of diplomatic relations and development
cooperation. We are very proud about this excellent cooperation and we
congratulate Bhutan for significant achievements made during this time.
Austria is ready to continue this fruitful partnership during the coming 5
Year Plan Period, through continued bilateral assistance as well as through
increased funding via the European Union and continued funding via
International Organizations.
A final Bhutan Country strategy 2014-2018 is currently under preparation,
laying out Austria’s bilateral assistance in the sectors of Tourism, Energy,
and Governance with a gradual phasing out during the last two years of this
period. The indicative budget for the bilateral development cooperation
amounts to at least 10 million Euros.
I.
Poverty eradication under the 11th Plan
Bhutan’s achievements in curbing poverty under the 10th Plan were very
impressive. We encourage the Royal Government of Bhutan in tackling
multidimensional poverty under the 11th Plan with even more
comprehensive efforts.
We especially like to commend the Royal Government of Bhutan for the
endeavours of developing a comprehensive Results Based Planning
framework through a process of extensive consultation involving all relevant
stakeholders, both at the central and local levels. However, while the 11 th
plan is well defined and comprehensive, we hope that it will be accompanied
by a well-elaborated implementation plan, decisive enforcement of policies,
close monitoring and a pertinent human resources development plan at all
implementation levels in order to successfully yield tangible results.
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II.
Tourism:
We believe that sustainable and high-quality tourism has a high potential
for revenue generation and employment and can thus be one of the major
contributors to poverty reduction also in rural areas. In line with the priority
given to tourism in the 11th plan, Austria will continue to support capacity
development in the tourism sector especially by training young professionals
at the Royal Institute for Tourism and Hospitality. We are looking forward to
rapid decisions on the institutional setup of RITH to assure high quality and
sustainability of this institute.
III.
Energy:
Similarly, providing safe, reliable and affordable electric energy is
instrumental in addressing both income and multi-dimensional poverty
reductions. In the 11th plan the Energy sector is considered the lynchpin of
the economy. Austria’s assistance in providing electricity to far flung remote
rural areas will continue (Soe and Lingzhi) in the 11 th plan. On the other
hand, we would like to encourage the Royal Government of Bhutan to make
more efforts in promoting energy efficiency both in private households as
well as in industries.
Its unique culture and the beautiful nature are among Bhutan’s greatest
assets. We recognize that both Tourism Development and Hydropower
development may have repercussions on the pristine environment in
Bhutan. We are aware that balancing development efforts and conservation
of the environment requires careful decisions and even prudent trade-offs.
Although the conservation of the environment is an integral part of the GNH
philosophy and the development strategy of Bhutan, there are huge
challenges lying ahead to ensure that socio-economic development efforts
are not at the cost of the natural environment.
Austria greatly appreciates the environment policy of Bhutan and would like
to fully support the initiative of 11th plan objective of a Green SocioEconomic Development by exploring opportunities of resource and energy
efficient construction technologies and strengthening capacities of the
National Environment Commission with regard to the preservation of
aquatic systems in Bhutan.
IV.
Democracy and Good Governance:
We would like to congratulate the Bhutanese people for their democratic
engagement during the 2nd general elections which took place in July this
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year. The participation of 4 political parties, the peaceful manner, in which
the elections were conducted and the smooth transfer of political power as
a result of the elections are a clear indication of an emerging vibrant
democratic society.
We note, however, that very few women are represented in the new
parliament. We thus very much appreciate the intention of Royal
Government of Bhutan to adopt policies to increase the representation of
women on both a political as well as the administrative level. We are
convinced that Bhutan will stand a better chance to negotiate the challenges
of the 21st century successfully, if it can draw on the combined resources of
women and men.
The last years have seen an impressive performance of constitutional
democratic institutions in strengthening the rule of law, controlling
corruption, and increasing transparency and accountability. In particular,
we would like to commend the Anti-Corruption Commission for its
outstanding performance in curbing corruption and strengthening integrity.
In the same way the Royal Audit Authority has given an outstanding
performance in ensuring efficiency, transparency and effectiveness in the
use of public resources. Austria has had the privilege to assist the Royal
Audit Authority through capacity development. Our support will continue
until end of 2015 and will focus on further strengthening the quality of
audit reports.
We highly value the high standards and efforts of the Judiciary of Bhutan in
protecting the constitution, rights of citizens and in enforcing the rule of law
in the country. Through this, the judiciary has been able to build public
confidence and respect. During the 11th Five Year Plan period, Austria’s
assistance will continue in the improvement of the judiciary’s infrastructure
as well human resources and capacity development. Well-functioning courts
are important. However, there is still a dire need to strengthen awareness
among people in Bhutan of their legal rights and obligations. In this regard
we would like to commend the valuable work of the Bhutan National Legal
Institute in educating people in the rural communities on relevant laws and
for the promotion of alternative dispute resolution.
Austria is also pleased to observe a gradually increasing number of Civil
Society Organisations. Austria is contributing to the Civil Society Fund
Facility which aims at strengthening capacities of the young organisations
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both in terms of management as well as in carrying out their specific
activities. We are looking forward to see a more active involvement of
existing and new civil society organizations in policy debates.
V.
Outlook
We would like to thank the Royal Government of Bhutan for the
presentation of this very particular 11th Five Year Plan that aims to lead
Bhutan to self-reliance and the graduation from the list of Least Developed
Countries through an inclusive and green socio-economic development.
We are certain that the longstanding friendship between Austria and
Bhutan will continue once Bhutan reaches its aim of self-reliance and
traditional grant aid is being phased-out. There are still many more
opportunities and new cooperation instruments to further strengthen the
existing excellent bilateral relationship between our two countries in the
areas of research, economy and culture.
We would like to conclude with our thanks for the excellent preparation of
this Round Table Meeting and with sincere wishes to the Government and
the people of Bhutan for the successful performance of the challenging tasks
that lie ahead.
Thank you and Tashi Delek!
83
Annex 9.4 STATEMENT BY EUROPEAN UNION
H.E. Honourable Minister of Foreign Affairs, Mr. Rinzin Dorji
H.E. Assistant-Secretary General of the United Nations, Mr Haoliang Xu
Excellencies,
Colleagues development partners,
Ladies and gentlemen,
We are very happy to be with you in Thimphu today to attend the 12 th
Round Table Meeting and to enjoy the warm hospitality and the excellent
organisation of this crucial event.
But firstly let me express my best wishes to the country's new leadership
further to the second general elections held in July. The success of this
democratisation process, the smooth transition of power and the
commitment by the people of Bhutan towards democratisation augur well
for Bhutan's future. From a development perspective the country has
performed remarkably well and has made major economic, social and
political progress, despite its geographical constraints.
I would also like to congratulate the RGoB for the adoption of its 11th Five
Year Plan which responds to Bhutan's political, social and economic
challenges. It is an ambitious plan which the European Union fully
supports. And we are pleased to note that the plan coincides well with the
EU's development priorities. Good governance, sustainable growth and
inclusive social development are also at the heart of our "Agenda for
change", the EU's development strategy for the years 2014-2020.
We recently had our biennial consultations with the Bhutan Government
where development cooperation together with political dialogue were the key
elements of our discussion.
The EU development cooperation with Bhutan started some time back in
1982 with a "Plant Protection Project" and has provided some 80 million
euro in assistance since then.
Under the first Country Strategy Paper (CSP) 2002-2006, the EU allocated
15 million euro to Bhutan. The programme was in line with the 9 th Five
Year Plan (2002-2007) and the planning policy document "Bhutan 2020: A
Vision for Peace, Prosperity and Happiness" released in May 1999". At that
84
time, focus was on supporting the renewable natural resources sector,
health programmes that incorporated traditional medicine, and on
promoting trade development and export diversification, working
particularly towards Bhutan's accession to the WTO.
The current Country Strategy Paper (CSP) covers the period 2007-2013 and
allocates 14 million euro. It coincides with Bhutan's 10th Five Year Plan
(2008-2013) and addresses the overarching objective of poverty alleviation,
taking into account the other donors' interventions.
Before speaking about the status of the programming 2014-2020 I would
like to congratulate the RGoB for the excellent results achieved so far under
the CSP 2007-2013 in the renewable natural resources sector as well as the
local governance area.
The RNR sector was supported by the EU even before the present CSP 20072013 with programmes encouraging small local enterprises using medicinal
plants, more sustainable agricultural production and increased selfsufficiency in the farming sector. All these programs, in EU's assessment,
contributed to poverty alleviation, economic diversification and inclusive
growth.
The current ongoing RNR Sector Programme which will end in April 2015
has already met its main objectives. This programme will be complemented
by a Technical Cooperation programme aiming at reinforcing the technical
and institutional capacity of the Ministry of Agriculture and Forests (MoAF)
that will start implementation in the coming months.
I would also like to congratulate the RGoB for the progress made in the area
of local governance. With the recent completion of the 2.8 MEUR "Support to
Local Governance Programme", special acknowledgement should be made
regarding the achievement of all targets covered by the programme. In
particular, we appreciate the substantial progress of the Annual Capital
Grant scheme in terms of disbursement of funds to local entities and the
absorption rates of the latter.
Besides this bilateral cooperation, another important programme is being
implemented under the Global Climate Change Alliance (GCCA) facility and
focusing on the RNR Sector. Climate change is one of the issues at the core
of the development agenda of both EU and Bhutan and this GCCA
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Programme complements EU's past, present and future support to the RNR
sector. It also contributes to the implementation of the 11 th Five Year Plan
earlier presented by Honourable Secretary Karma Tshiteem with its crosscutting theme of green development.
But let me now turn to the future. Based on our successful cooperation we
will continue and expand our efforts in order to consolidate past
achievements and strengthen future programmes as agreed with RGoB and
in close cooperation with other donors including other EU countries. We will
significantly increase our development assistance to Bhutan. We envisage
an amount of about 35 – 40 million euros for the period 2014 – 2020 which
is more than twice the current assistance volume. Besides this bilateral
cooperation Bhutan will continue to benefit under the regional programme
for Asia as well as under the thematic programmes of the European Union.
Based on the consultations which started in 2012, as well as recent
missions of the EU Delegation in New Delhi, the EU's contribution to the
implementation of the 11th Five Year Plan will focus on two sectors: Local
Authorities and Civil Society as well as Renewable Natural Resources
(Sustainable Agriculture and Forestry).
Public Finance Management will be another area for assistance, together
with other donors. Bhutan made substantial progress in addressing
weaknesses identified in the last Public Expenditure and Financial
Accountability Report. We are to continue accompanying this process.
Let me also mention a few areas where, as we see it, particular attention is
required in the future. There is the increasing debt volume as well as
serious balance of payment problems. We are aware that there is a strong
link with the heavy investments in hydropower projects the revenue of
which may eventually iron out the macro-economic imbalances. But we
should not take these concerns lightly. Gender equality is another area
where further improvements would be most welcome as its multi-faceted
nature has major implication as regards economic, social and human rights
issues. Bhutan has a high degree of economic vulnerability which could be
reduced by a strengthening of the private sector as well as through
economic diversification.
These are import challenges. But we are convinced and optimistic that they
can be addressed. Our significantly increased cooperation volume reflects
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our commitment and our confidence in Bhutan's democratic and
developmental processes. We are looking forward to continued close
cooperation with the Royal Government of Bhutan.
Thank you.
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Annex 9.5 STATEMENT BY EUROPEAN INVESTMENT BANK
The European Investment Bank (EIB) is an institution held by the Member
States of the European Union, whose mission is to contribute to the
economic development and social cohesion of the EU. Outside the EU, EIB
operates under lending mandates entrusted to it under EU development and
cooperation policy. Under the current lending mandate, the EIB is
authorised to lend for financing operations supporting the EU co-operation
strategies and complementing other EU development and cooperation
programmes and instruments in Asia. This could open significant prospects
for an enhanced co-operation with Bhutan, given the country’s economic
and financial performance in recent decade. The EIB is committed to finance
climate change mitigation and economic infrastructure projects undertaken
by public and private sector, as follows:

climate change mitigation and adaptation: renewable energy, energy
efficiency, urban transport, reforestation, other investments that reduce
CO2 emissions or strengthen their climate change resilience;

economic infrastructure: water/wastewater/sanitation, urban transport,
railways, communication, power distribution/transmission, other sectors
on a case by case basis when there is a clear added value in doing so
(e.g. alleviation of poverty).
The EIB’s lending rates are competitive for two reasons:

the EIB is able to raise funds at advantageous rates due to its excellent
AAA credit reputation and its position as a major international borrower
on the financial markets;

the EIB is a non-profit-motivated institution.
The EIB’s lending rates are based on EIB's borrowing cost with a small
margin to cover administrative expenses and other costs (grants or
subsidies may be available for projects in Bhutan). The EIB can offer large
loan amounts over long maturities in practically all major currencies. The
EIB never finances more than 50% of the total project, but the involvement
of the EIB can act as a catalyst, encouraging other financial institutions and
the private sector to participate in an investment. EIB funds can also offer
88
distinct advantages to promoters, for example, longer maturity periods (up
to 25 years) or the availability of currencies (e.g. USD, EUR, JPY, GBP). The
EIB also adds value by assessing project viability, by ensuring financial
sustainability and the use of the appropriate technology and by assisting
pilot project preparation with upstream technical expertise.
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Annex 9.6 STATEMENT BY EGYPT
H.E Mr. Rinzin Dorje, Minister of Foreign Affairs of Bhutan
H.E Mr. Haoliang Xu. United Nations Assistant Secretary General &
UNDP Assistant Administrator,
Excellencies, Ladies & Gentlemen,
It is with great pleasure that Egypt is invited to participate , for the first
time, to this round table meeting between the Kingdom of Bhutan and its
development Partners. Egypt’s participation comes after the two
countries have established diplomatic relations in November 2012.
Over the last one day and a half we have followed with interest the
presentation of the 5 year development plan by the top officials from The
Royal Government of Bhutan. They have explained the challenges they
face in the implementation, seeking International support and solidarity.
Excellencies,
It is a welcome note that among this august gathering we see a mix
between representatives of the donor community, representatives of
developing countries, as well as united nations specialized
agencies/development funds and programmes. It is a welcome note
because International Cooperation is not limited to ODA, but also
includes technical assistance, best practices & lessons learned by other
developing countries through South- South Cooperation.
Amongst the challenges cited yesterday by the government
representatives , is the issues of “Malnutrition”, and we are ready to
share with you a success story implemented in Egypt, where the
collective efforts of the Political Leadership, together with the government
with the support of IFAD and a number of Donor countries came
together for what is known as “The School Feeding Program” it
guaranteed targeted and balanced dietry programmes for school children
between 4-6 years old where the brain is in need for nutrition to grow
contributing to a healthy society.
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Excellencies,
Last September, during the high level segment of the UNGA, H.E The
Minister of Foreign Affairs of Egypt announced the establishment of the
Egyptian Agency for International Cooperation which will become the
umbrella under which all our technical assistance programmes will fall.
Your Excellency, Minister Dorje,
It gives me great pleasure to inform you that H.E The Minister of Foreign
Affairs of Egypt has approved for Bhutan to become one of our partners
benefitting from the Technical Assistance Programmes offered by the
Agency.
It will be our earnest endeavour to provide the support requirements
from us, focussed on capacity building programmes and in the areas you
have identified over the meeting, be it Agriculture, Irrigation, Medical
care, Water resource management. Our programmes are covered 100%
by the government of Egypt.
Lastly, I am happy to have come to know from H.E The Prime Minister of
Bhutan that very soon we will receive your positive reply to start
collaboration between the “Bibliotecha Alexandrina” and the National
library of Bhutan.
I wish you all success, and thank you once again for the invitation, and
kind hospitality.
I Thank you.
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Annex 9.7 STATEMENT BY HELVETAS SWISS INTERCOOPERATION
Honorable Minister, Mr. Chairman, distinguished delegates,
HELVETAS has been a development partner to Bhutan for nearly 40
years. The partnership is built on deep personal relationships and
mutual respect. It has included substantial part-funding by the
Government of Switzerland. We take pride in having contributed to the
country’s significant achievements in the fields of education and culture,
infrastructure, rural economic development and decentralisation and
local governance.
Bhutan is committed to achieving the Millennium Development Goals
(MDGs) by 2015, the consolidation of decentralized democracy (following
successful elections in 2008, 2011and 2013) and a growing role of the
civil society and the private sector. Progress in these fields is impressive.
However, rural-urban differences in poverty rates, internal migration, the
quality of education (education for what?), youth unemployment and the
strength of public, civil society and private sector institutions at the local
and regional levels are concerns of growing importance. The 11th. Plan
recognizes the significance of these concerns. They deserve high
attention at a time Bhutan aspires for self-reliance.
By focusing on poor rural districts, rural livelihoods and stronger,
complementary roles of public, civil society and private sector
institutions, HELVETAS aims to align its support activities with priorities
of the 11th. Plan.
Several development initiatives implemented under the overall guidance
of the Royal Government of Bhutan with the support of HELVETAS aim
at enhancing employment and income of rural people and youth. Such
programmes are challenged with facilitating access to market information
and markets, business services and financial services essential to
develop sustainable value chains and gainful employment opportunities.
The vocational training system lacks adequate financial and human
resources as well as a more substantial engagement of the private sector.
Strong labor markets institutions could play an important role in
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bridging existing skills gaps. Such institutions are also essential to
improve working conditions and productivity.
The otherwise growing prominence of new actors from the civil society
sector is welcomed. This is an area where we have extended the scope of
our engagement in recent years. It includes cooperation with the Civil
Society Organizations Authority. The capacities of civil society
organizations to advance the interests of vulnerable groups and their
engagement in decisions and policy processes needs strengthening.
HELVETAS welcomes the objective of the 11th. Plan for Bhutan to become
self-reliant. We also appreciate the country’s role in shaping the post
2015 development agenda with its development philosophy and
experience of promoting Gross National Happiness. For a small and
mountainous, land-locked country like Bhutan – and Switzerland we
may add – self-reliance does not mean development without international
partnerships. In that spirit, HELVETAS stays committed for the 11th.
Plan period with its development expertise in the fields of rural economic
development, education and vocational training, and local governance,
and, most importantly, its “social capital”: That is the relationships and
common plans and undertakings with local partners in the public and
private sectors. Financially, our outlays for the 11th. Plan period are
projected to amount to 12 million US$.
HELVETAS Swiss Intercooperation thanks the Royal Government of
Bhutan for the excellent preparation and arrangements for this Round
Table Meeting. We wish all the people of Bhutan, His Majesty the King
and the Government a peaceful and prosperous future.
Thank you and Tashi Delek.
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Annex 9.8 STATEMENT BY NORWAY
Mr Chairman, Co-chair, Excellencies, Ladies and Gentlemen
I am thrilled to be in Bhutan for the 12th Round Table Meeting. This is
my first visit to Bhutan, but I can already see why my colleagues speak
with so warm feelings about the country and the people.
At the outset, I am pleased to note that Bhutan has presented an
ambitious and impressive five-year plan. I congratulate the Government
of Bhutan on both its recent elections and its comprehensive plans for
achieving sustainable economic growth over the years to come.
Norway is a longstanding friend and development partner of Bhutan,
going back to the Norwegian missionaries’ work on leprosy in the 1970s.
From that early starting point, our cooperation has developed and is now
focused on energy and climate change issues.
Norway places an increasingly large emphasis on the importance of
access to energy, development of renewable energy sources, and energy
efficiency as central parts of our international cooperation. These efforts
form the backbone of many of Norway’s initiatives on poverty reduction,
sustainable development and climate change mitigation. We also believe
that lack of energy access is a barrier to economic growth.
Our commitment to energy development was highlighted in October
2011, when Norway hosted an international conference on financing
access to energy – a conference project I had the privilege of coordinating.
This conference marked the launch of Norway’s International Energy and
Climate Initiative, Energy+, which is in the process of being implemented
here in Bhutan.
Mr. Chairman,
Bhutan has made impressive achievements in the energy sector. You
have provided nearly all citizens with access to electricity and developed
several large-scale hydropower projects to serve your goals.
94
I am also proud to note that for a long period we have supported your
efforts to develop and harness your potential in the energy sector. As part
of the ongoing cooperation between Norway and Bhutan, hydropower is
an area where Norway has both competence and experience, developed
over decades.
Our bilateral technical cooperation started in 1997 and continued in
2001 through the institutional cooperation between the Norwegian Water
Resource & Energy Directorate (NVE) and the Department of Energy.
A smaller part of our cooperation has been on the prevention of natural
hazards like landslides, a cooperation between the Norwegian
Geotechnical Institute (NGI) and the Department of Geology and Mines
(DGM). This, of course, also ties in with the increased focus on climate
change adaptation, and the new and increased threats arising from both
climate change and land degradation.
I am happy to announce that the cooperation between NVE and the
Department of Hydropower and Power Systems is in its fourth phase.
Also in its fourth phase, the collaboration between NGI and DGM is
focusing on managing geohazards in the hydropower sector. This ensures
an even greater coherence with the larger NVE-DHPS project, just
referred to. I would also like to inform you that the feasibility study for
Bhutan’s first road tunnel is under way as we speak, financed under the
NGI-DGM project.
Mr. Chairman,
All these projects have been going on successfully for several years. I am
very happy to announce that we are increasing our commitment
substantially in the renewable energy sector in Bhutan in the years to
come.
In February 2012, we signed the Energy+ framework document together
with the Asian Development Bank (ADB). Through the Energy+
cooperation we plan to support Bhutan’s efforts to increase access to
sustainable energy and reduce greenhouse gas emissions through the
use and development of renewable energy and energy efficiency. The
expectation is that this framework could also serve as a model for
cooperation between Energy+ partners in other countries in the region.
95
Mr Chairman,
We hope and believe that our cooperation has contributed to the
development of Bhutan’s very important energy sector. We believe that
the Energy+ partnership will contribute to Bhutan meeting its ambitions
in a number of important sectors, including Bhutan’s efforts to achieve
targets in the UN’s “Sustainable Energy for All” (SE4ALL) initiative, as
well as Bhutan’s Five-year Development Plan and the implementation of
the “National Strategy and Action Plan for Low Carbon Development.”
However, in order for all of us here to maximize the output of our efforts,
it is important that Bhutan coordinates well with its partners, and that
all partners keep each other well informed about their activities.
An open and transparent dialogue on our different activities is crucial for
ensuring both good coordination and complementarity, be it by the
Government of Bhutan, or by the international agencies whose job it is to
coordinate multilateral activities.
Not only are we strongly in favour of energy access, but we are also
depending on access to information.
In conclusion, let me add that we are a proud partner of Bhutan and that
we are pleased with the results of the Royal Government’s impressive
development efforts.
We are happy to announce that Norway plans to remain a committed
partner in the coming years.
Thank you.
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Annex 9.9 STATEMENT BY REPUBLIC OF KOREA
Thank you, Mr. Chairmen,
Excellencies, Distinguished delegates,
Ladies and gentlemen,
Very good morning to you all!
It is a great pleasure for me to be here today to attend the 12th Round
Table Meeting with its development partners. This was a very good
opportunity for me to understand the Bhutanese development situation
as well as the future tasks to be addressed for the next five years through
the 11th Five Year Plan for 2013 to 2018. I would like to express my deep
gratitude to Royal government of Bhutan for organizing this conference &
its hospitalities.
First of all, I would like to congratulate that Bhutan has made significant
economic progress and a stable transition towards a democratic society,
and I believe that this was made possible with the continuous pursuit of
the overarching development philosophy of Gross National Happiness
(GNH) of Bhutan. I appreciate that Bhutan has been keeping on the right
path of development and democratization towards happiness of the
nation and people of Bhutan despite the challenges along the way.
I am certain that the 11th Five Year Plan, which is aligned with the longterm vision of Bhutan 2020 and Millennium Development Goals (MDGs),
is both timely and meaningful. This is largely based on the fact that
Bhutan stands at the very critical point in achieving inclusive social
development as well as accelerated green economic development within
the time framework of the 11th FYP, ultimately contributing to achieving
the goal of the GNH.
The importance of the Bhutanese government leadership associated with
Bhutan’s own development priorities, close collaboration with
development partners, concrete action plans and tireless implementation
can’t be emphasized enough, particularly when I look back on Korea’s
experience in the course of economic development. In addition, human
97
resource development is essential to sustainable development, and it is
long-term investment that is fundamental to all other policies.
In this context, the Korean government, through the Korea International
Cooperation Agency (KOICA) which is responsible for Korea’s grant
assistance, has supported Bhutanese human capital development and
capacity building, which are essential elements in the national
development of Bhutan. This support has been provided mainly through
training programmes in Korea regarding various fields of specialization
such as economic development strategy, trade promotion, public
administration, vocational training, agricultural development, etc. As a
good friend of Bhutan, the Korean government will continue to support
capacity building of Bhutanese government officials in line with national
development strategy of Bhutan.
In closing, on behalf of the Korean government, I would like to express
my earnest hope that the Royal government of Bhutan will continue to
make steady economic progress by implementing the 11th Five Year Plan
in a timely manner to achieve the graduation from the Group of LDCs
and the ultimate the goal of Gross National Happiness in the years to
come.
I am confident that the friendly relationship between our two countries
will be strengthened through development cooperation programmes more
than ever before.
Thank you! Kadinchey!
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Annex 9.10 STATEMENT BY THE REPUBLIC OF SINGAPORE
His Excellency Lyonpo Rinzin Dorje, Minister for Foreign Affairs and CoChairman of the 12th Round Table Meeting
Mr Xu Haoliang, Assistant Secretary General of the United Nations and
Assistant Administrator and Director of the Regional Bureau for Asia and
the Pacific of the United Nations Development Programme (UNDP)
Excellencies
Distinguished participants
Ladies and gentlemen
At the outset, let me join the previous speakers in thanking the
government of Bhutan for the excellent arrangements and warm
hospitality. I would also like to thank the distinguished speakers for their
informative and comprehensive presentations which were delivered
yesterday.
As evidenced from yesterday’s discussions, Bhutan has made significant
progress towards achieving the Millennium Development Goals, as well
as its long-term national goals as laid out in its “Vision 2020” and
Economic Development Policy of 2010. While challenges lie ahead for the
country, we are pleased to note that the 11th Five-Year Plan is a
hardnosed assessment of what needs to be done to ensure Bhutan
achieves its ambitious development goals of “self-reliance and inclusive
green socio-economic development”. That Bhutan continues to adopt a
holistic approach that places its people and their happiness at the heart
of development is truly commendable.
As small nations with geographical and resource limitations, Bhutan and
Singapore face similar challenges in our socio-economic development. By
sharing our developmental experiences and best practices, our countries
will be better placed to tackle the challenges that lie ahead. In this
regard, Singapore has participated in the Round Table Meetings since the
7th round in 2000. We have worked closely with Bhutanese authorities to
better understand Bhutan’s needs. Through such interactions, we have
offered customised technical assistance programmes, scholarships and
99
study visits to train Bhutanese officials under the Singapore Cooperation
Programme (SCP). Since 1992 when we started the Programme, 756
Bhutanese officials have benefited from training in various fields such as
finance,
public
administration,
governance,
information
and
communications technology (ICT), urban development and civil aviation.
In the last two years since the 11th Round Table Meeting, almost 100
Bhutanese officials have been trained in Singapore.
I am also pleased to note that Singapore is working with Bhutan on the
development of its National ICT Masterplan which aims to raise the
standards of e-governance in Bhutan. Singapore’s Infocomm
Development Authority, together with significant co-funding by the
Temasek Foundation, had recently completed the second phase of the
programme, which focussed on the building of ICT capacity in the key
sectors of education, finance, health care and tourism.
In addition, the Immigration and Checkpoints Authority of Singapore
conducted training on Passenger Clearance for officers from the Bhutan
Department of Immigration in April 2013. Our Land Transport Authority
Academy is also working with their Bhutanese counterparts on a project
to ensure the long-term sustainability of Bhutan’s taxi industry.
It gives me great satisfaction to note that our bilateral cooperation is
indeed multi-faceted. I would like to take this opportunity to reiterate
Singapore’s commitment to helping Bhutan achieve its development
goals.
Thank you.
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Annex 9.11 STATEMENT BY SOUTH ASIAN DEVELOPMENT FUND
The SAARC Development Fund (SDF) Secretariat has been inaugurated
by the Heads of State/Governments of SAARC Member States in April
2010 during the 16th SAARC Summit in Thimphu.
The primary objective of the SDF is:
(i)
(ii)
(iii)
to promote the welfare of the people of SAARC Region,
to improve the quality of life, and
to accelerate economic growth, social progress and poverty
alleviation in the SAARC Region.
To support the above objectives the SDF Secretariat will, amongst other,
(i) identify, study prospect and approve projects, (ii) finance approved
projects in the SAARC Member States, (iii) Leverage funding i.e arrange
and mobilize financing and/or co-financing projects, (iv) provide grants
for projects of strategic importance to SAARC, (v) provide financial and
technical assistance, and (vi) manage the Fund. The SDF has three
financing windows: (i) Social; (ii) Economic; and (iii) Infrastructure.
Projects under Social Window are given grants and technical assistance if
they meet the following criteria:
(i)
(ii)
(iii)
(iv)
projects involving all SAARC countries,
projects involving more than two but not all SAARC Member
countries,
projects located in one or more SAARC countries, of significant
economic interest for three or more SAARC countries, and
Projects with significant focus on poverty alleviation, as envisaged
under the social window, in any SAARC country having thematic
linkage with more than two SAARC Member States as part of a
sub-regional project.
Status of SDF Fund
As of November 30, 2013 SDF has received USD 345,272,389.32 which
consist of Capital Subscription of Member States of USD
209,668,124.19, the Voluntary Contribution from the Government of
India of USD 100,000,000.00, transfer from SADF of USD 7,095,000.00,
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Voluntary Contribution from People’s Republic of China of USD
600,000.00 and Contribution of USD 328,392.04(in kind) from the Royal
Government of Bhutan. The Accumulated Reserve from the funds is USD
27,580,873.09.
SDF Funded Projects
The SDF Social Window projects are aligned with SAARC Development
Goals that include livelihood, health, education and environment SAARC
Development Goals. The projects that SDF has funded so far are
designed to meet important and crucial social and economic needs of the
SAARC member states. The SDF project portfolio range from
strengthening the livelihood of the home based workers, addressing the
needs of small farmers, reaching connectivity and content of egovernance to rural folks, reducing the infant mortality and steps at
ending violence against children in South Asia.
Funding Position in Bhutan:
SL.
No.
Name of Project
Approval Date
Start Date
End Date
Total
Bhutan
Budget
Budget
US $
US $
On-Going Projects:
1
2
3
4
5
Strengthening the livelihood initiative for homebased
workers in SAARC Region
Strengthening Maternal and Child Health Including
Immunization
Scaling up of Zero Energy Cold Storage (ZECS)
technology for the horticultural commodities in the
high hills of SAARC countries
Empowering Rural Communities : Reaching the
Unreached
South Asia Initiative to End Violence Against
Children (SAIEVAC)
6
Post Harvest Management and Value Addition of
Fruits in Production Catchments in SAARC Countries
7
Master’s Program in Rehabilitation Science (Note-1)
8
9
Toll Free Helplines for Women and Children in
SAARC Member States
Strengthening of Water, Sanitation and Hygiene
(WASH) services in selected areas of SAARC
Countries
Sub-Total
21-May-2008
1-Aug-2008 31-Dec-2014
16,775,821
1,774,057
29-Apr-2009
19-Jun-2009 31-Dec-2013
15,039,229
1,172,875
1-Dec-2010
1-Dec-2010 31-May-2014
3,380,931
517,459
16-Mar-2011
1-Apr-2011 31-Mar-2014
7,938,335
2,533,371
23-Dec-2011
1-Jan-2012 31-Dec-2014
2,600,000
197,500
20-Dec-2012
1-Jan-2013 31-Dec-2015
4,979,075
582,000
29-May-2013
1-Jun-2013 31-May-2018
1,500,000
29-May-2013
1-Jun-2013 31-May-2016
4,000,000
328,700
27-Aug-2013
16-Oct-2013 15-Oct-2016
6,299,437
566,885
62,512,828
7,672,847
2,988,925
575,623
-
Pipeline Projects:
10
11
Promoting Integrated Bamboo Based Enterprise
Development among SAARC Countries
SAARC Handicraft Development Centre (SHDC)
Sub-Total
Grand-Total
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4,452,000
530,000
7,440,925
1,105,623
69,953,753
8,778,470
Annex 9.12 STATEMENT BY THAILAND
Mr. Chairman, Hon’bel Lyonpo Rinzin Dorje, Minister, Ministry of
Foreign Affairs, the Royal Government of the Kingdom of Bhutan ,
H. E. Mr. Haoliang Xu, UN Assistant Secretary-General, UNDP Assistant
Administrator and Regional Director, Asia and the Pacific,
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,
It is an honor for me to be invited to participate in the Twelfth Round
Table Meeting for Bhutan.
I would like to express our sincere
appreciation to the Royal Government of Bhutan for the efforts made in
organizing this meeting. This meeting of minds is an opportunity for
constructive and open dialogue between the Royal Government of
Bhutan and cooperating partners toward the Sixth Five- Year Plan of
which an ambitious agenda is Self-reliance and Inclusive Green SocioEconomic Development.
I strongly believe that the contribution from cooperating partners will
provide pragmatic ideas in moving development cooperation forward for
benefit of the Royal Government of Bhutan in implementing the Eleventh
Plan.
In recognition with the rich document, the Eleventh Five-Year Plan
document provides us with three strategic thrust areas, targeted
programmes, national key result areas & key performance indicators,
sectoral plans, local government plan, and monitoring and evaluation
arrangements as well. The strategic framework and measures addressed
will provides clearly direction of the cooperation between the Royal
Government of Bhutan and cooperating partners for sustainable
development in the next five years.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,
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Thailand had learnt as a recipient country for forty years that sense of
ownership, alignment of aid, and absorptive capacity are the key factors
to make cooperation programme effective and achieved. Therefore, our
cooperation programme with Bhutan is based on
Demand–driven
approach to ensure that our support meet the real needs of the Royal
Bhutan government and consistent with the National Development Plan
of Bhutan. We strongly support and encourage Bhutanese government
to participate at all stage of cooperation programmes or projects starting
from planning, implementation and monitoring and evaluation these
processes are to build up capacity of Bhutanese and for sustainable
development.
Thailand is of the view that people as national assets are the
fundamental key to success in national development, the sharing of
knowledge, experience and best practices to build up capacity and
competency of human capital be a mean of achieving sustainable
development, therefore, human resource development has long been at
the top of development agenda in Thailand Cooperation programmes.
During 2005 to 2013, two hundred and ten Bhutanese have been
awarded to study master degree programmes in the field of agriculture,
education, public health, political science, social science, and public
administration etc. at Thai Universities. And also two hundred and forty
Bhutanese officials have participated in short-term trainings and study
visit programmes in Thailand.
I am very pleased to learn that Thailand and Bhutan Technical
Cooperation Programme is still in line with policy framework of
Bhutanese government and response to the implementation measures for
the Eleventh National Plan.
The Annual Consultation on technical cooperation between Thailand and
Bhutan in September 2013, Thailand commits to provide technical
cooperation to Bhutan in the next three years in the form of one hundred
and fifty scholarships for Bhutan to undertake Master’s degree levels at
Thai universities, and one hundred thirty five fellowships to participate
in short-term trainings and study visit programmes in Thailand in the
fields that will be proposed by Bhutanese side and Thai side has capacity
104
to provide. And also dispatching Thai volunteers to work side by side
with Bhutanese as requested.
Thailand’s efforts to reach out and share development experiences are
not limited to fellowships and scholarships, we would like to strengthen
cooperation in enhancing capacity and information sharing in the form of
development projects in the key sectors which Thailand considers as the
foundation for national development which are:
Agriculture: to increase productivity and food safety to ensure that all
Bhutanese have access to sufficient, safe and nutritional foods to meet
their basic needs.
Public Health: to encourage the access to basic health care service of the
people to have healthy life.
Sustainable Development: based on his majesty’s the King of Thailand’s
initiative on sufficiency economy, the philosophy encourages people to be
self-reliant and actively participate in the family, community, and
national level that ultimately lead to a sustainable development.
Excellencies,
As an upper middle income aid provider, Thailand realizes the need to
respond to the changing realities and international development policies.
It is also our responsibility to participate vigorously in the process of
international standard setting and globally thinking to address the
concern of Aid Effectiveness.
I believe that there are many pathways towards improved aid
effectiveness, and that countries need to determine their own priorities,
pace and sequencing, building on their development achievement and
learning from other success in the region.
As I said from the beginning, sense of ownership is the foundational
principle for aid effectiveness. The importance of demand – driven
cooperation must be emphasize to the national development process in
the country context, of which Thailand has stimulated through the
105
involvement of the recipient country from the beginning of the
programme to ensure its Ownership as well as mutual understanding.
The efforts are needed to ensure that the ODA is aligned with national
development needs and priorities of cooperating countries, and be
implemented with full national ownership and in coordination with
cooperating partners.
We also want to get more involved from all partners gathering here, in
the spirit of partnership on a balance approach to address the issue of
undeniable Harmonization. We believe in coherent plan for cooperation
by increasing use of programme-based aid which will contribute
significantly in term of complementarity. The concept of harmonization
should be implemented with vigor among cooperating partners. We also
realize the need
of partnership cooperation with other developed
countries which have been our key modality to extend our technical
cooperation to others.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,
Indeed, we encouraged the Royal Government of Bhutan in preparing
‘Development Cooperation Plan’ to support the Eleventh Five Years Plan.
The development cooperation plan should reflect development
cooperation programme, and also provide us the background and general
guidelines for decisions-making and planning processes.
Moreover, this Development Cooperation Plan could be a framework for
channeling cooperation in response to the Five Years Plan. This plan
should identify sectoral cooperation requirements and help to promote
coordinated of cooperation. It is clear that cooperating partners’ view
this document as an expression of policy needs by the Royal Government
of Bhutan since it indicates priority areas in which cooperating partners
may direct their resources. Undoubtedly, the Royal Government of
Bhutan agencies should be encouraged to utilize this document as a
point of reference in the preparation of development project proposals. I
hope that this document will bring aid effectiveness to our partner
development.
106
While recognizing that the task ahead is tremendous, Thailand will work
closely with our partners and with international community to attain our
common endeavour in aid effectiveness. I also believe that the concerted
efforts and cooperative spirit of our partners will help to guide our
development cooperation programme towards sustainable growth and
development. Let me reaffirm here that we are more ready to discuss
every possible means in promoting a closer cooperation for mutual
benefits of our two countries and a closer relationship of our people in
the future.
Thank you.
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Annex 9.13 STATEMENT BY THE SWISS CONFEDERATION
Hon’ble Minister, Distinguished Delegates,
I wish to convey on the occasion of this 12th Round Table Meeting the
warm greetings of the Government of Switzerland.
1. Bhutan and Switzerland share many similarities. We have a long
history of successful cooperation and deeply value the friendship of our
two nations and people. The Royal Government is a close and trusted
partner of Switzerland.
2.We applaud Bhutan’s impressive achievements under the 10th FYP,
most notably the marked reduction in poverty and the far-reaching
realization of the Millennium Development Goal targets.
3. In recent years, democracy has been the central theme in our SwissBhutanese bilateral cooperation. This will continue under the 11th FYP.
Switzerland is much encouraged by Bhutan’s democratic development.
We congratulate Their Majesties the Kings and the first elected
Government for putting in place a robust foundation for democracy. We
also express our full support to the new Government in its plans to
enhance democratic governance further and reduce the distance between
the people and those in power, among others through greater
decentralization, transparency and austerity in Government.
4.Switzerland works with the Royal Government of Bhutan in a variety of
projects to build essential public institutions, most importantly the
Judiciary and the Anti-Corruption Commission. SDC extends support to
the independent media, to G2C services, to rural civil society and for
youth engagement. Our technical cooperation in Bhutan has a budget of
11.4 Mio. CHF (about 10 Mio. USD) until 2016. Through this, we wish to
contribute to an informed and engaged citizenry and to a strong culture
of public accountability.
5. We welcome the ongoing debate in Bhutan and by the Bhutanese
about the inclusiveness of politics. The requirement for Hon’ble
Parliament Members to hold university degrees or for Civil Society
108
Organizations to abstain from politics puts limitations on democratic
pluralism. Its pro’s and con’s merit reconsideration in the light of the
first five years experience with democracy. As Swiss, we believe politics
should be a mirror of all society.
6.Bhutan’s democracy clearly has an empowering effect on the regions
and on the minorities, and we note the positive national integration. To
protect all ethnic, cultural and religious groups before the law,
Switzerland would like to invite Bhutan to ratify the core human rights
treaties, including the international covenants on:



Civil and Political Rights (ICCPR)
Economic, Social, and Cultural Rights (ICESCR)
On the Elimination of all Forms of Racial discrimination” (ICERD),
which Bhutan signed 35 years ago.
7.We also offer encouragement to the Royal Government to realize its
plans for increasing women’s political representation through affirmative
action. And we welcome the attention to creating new perspectives for
Bhutan’s youth. Through our projects, SDC supports the engagement of
youth in sports, in youth-led civil society organizations, as entrepreneurs
and generally, as young citizens in the political debate.
8.Switzerland sincerely applauds the substantial contribution of the
United States and other countries towards a resolution of the refugee
problem, but we remain concerned about the future of the people still
living in the camps in Nepal, including many elderly. We encourage the
new Government and Parliament to seek a constructive solution, which
respects the rights of those concerned, and to step up the engagement
with the international community and the UN’s humanitarian agencies.
9. Hon’ble Minister, the Government of Switzerland reiterates its
appreciation for the development results Bhutan achieved. In our
bilateral cooperation, we will maintain the present focus until 2016. We
also look forward to strengthening our economic and diplomatic
relations. Switzerland is ready to sign with Bhutan a visa exemption
agreement for official passport holders, which is an expression of our
desire to intensify exchanges. We are also intent on exploring more
109
opportunities for private sector cooperation and the expansion of
bilateral trade, particularly in niche markets where the brand Bhutan is
well placed.
10.In closing, we thank you for the excellent arrangements and
presentations at this 12th Roundtable Meeting.
We wish the Royal Government, His Majesty the King and all the People
of Bhutan a peaceful, prosperous and happy future.
Thank you and Tashi Delek.
110
Annex 9.14STATEMENT BY THE GLOBAL FUND
111
112
Annex 9.15 STATEMENT BY THE NETHERLANDS
Mr. Chairman, Your Excellencies, Distinguished Delegates, Ladies and
Gentlemen,
I would like to start by congratulating the people of Bhutan on the
peaceful and successful election of a new Parliament and the formation
of a new government, led by H.E. Prime Minister Tobgay. Bhutan’s
second parliamentary elections in July 2013 have helped to further
strengthen Parliamentary Democracy in Bhutan.
I am pleased to announce that his year, the SNV Netherlands
development organization celebrates its silver jubilee of 25 years of
collaboration in Bhutan. The Netherlands is proud to have a longstanding and constructive relationship with Bhutan and is looking
forward to continuing the excellent relationship with Bhutan in the
future.
Mr. Chairman,
I would like to associate with all points raised in the statement of the
European Delegation.
Bhutan has started implementing its 11th five year plan, 2013-2018,
focused on self-reliance and inclusive green socio-economic development.
In its plan, Bhutan is working towards self-reliance by 2020. The
Netherlands is pleased to see that activities are picked up with many
efforts and willingness to make things happen.
Mr. Chairman,
As most at this table are aware, The Netherlands has supported Bhutan
in achieving the goals of the 10th plan, through direct budget support of
10 million Euro, aimed at giving the Bhutanese government a maximum
degree of ownership and responsibility. Due to a parliamentary motion
against the instrument of budget support in all countries, the budget
support to Bhutan has ended, but The Netherlands remains committed
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to continuing its partnership with Bhutan through a range of other
instruments. Not only though its important contributions at the
multilateral level (through the EU and the UN – in particular to UNDP),
but also at the bilateral level.
Firstly,
The Netherlands views infrastructural development as a vital prerequisite
for further economic development. We currently support Bhutan through
our facility for infrastructure development ORIO. In a joint effort with the
Royal Government of Bhutan, we support the building of a 80km stretch
of road to connect some of the most remote areas in central south
Bhutan, thereby allowing the people living there also to receive the
benefits of increased connectivity.
The Netherlands continues to offer Bhutan eligibility for new ORIO
programmes, with a project size between 2 and 60 mln euros. Bhutan
has been invited to submit proposals for a second ORIO project, which, if
granted, could provide an important stimulus for the infrastructure
development in Bhutan.
Secondly,
Apart from the ORIO programme, The Netherlands supports Bhutan with
developing its human resource capacity through The Netherlands
Fellowship programme. Since 2002, more than 700 Bhutanese citizens
and government officials have participated in this programme. The
Netherlands continues to offer the NFP and Tailor Made Training
programmes for Bhutan.
Thirdly,
Bhutan is eligible for a number of other instruments aimed at the
economic development of Bhutan: (1) the facility for sustainable
entrepreneurship and food security (FDOV), (2) loans from the
Netherlands Development Bank (FMO), (3) projects of the Netherlands
Centre for The Promotion of Import from Developing Countries (CBI), and
(4) technical assistance from Netherlands Senior Experts to
entrepreneurs for small and medium enterprises (PUM). A mission of
senior experts will be visiting Bhutan early 2014.
114
Fourthly,
As I mentioned earlier, SNV Netherlands development organization has
been active in Bhutan for 25 years. Their current focus is on (1)
agriculture – by strengthening the position of smallholder farmers,
supporting them to access markets with better crops and products, (2)
water, sanitation and hygiene – focusing on access to improved
sanitation facilities in rural areas, and service delivery in urban areas,
and (3) renewable energy – focusing on the increased access to
sustainable energy, most notably domestic biogas. SNV Bhutan supports
the development agenda of the Royal Government of Bhutan as
enshrined in its vision 2020 document and the respective 5 year plans
with core funding amounting currently to more than 1.3 mln euro, as
well as with additional voluntary funding and its 24 committed staff
members.
I am very pleased by the discussions on the achievements made in the
10th plan and highly impressed by the drive and innovative ideas
expressed by the Royal Government of Bhutan in its 11th plan.
In conclusion, I would like to express my gratitude to the Royal
Government of Bhutan for the organization of this Round Table Meeting
and their impeccable hospitality. Given the high levels of commitment,
dedication and passion, we are optimistic that the Royal Government of
Bhutan will achieve its ambitious goals set for the 11th five year plan and
more. On our part, The Netherlands as a long-standing development
partner will continue to remain an interested, involved, cooperative and
supportive partner for the development ambitions of Bhutan.
Thank you.
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Annex 9.16 JOINT UNITED NATIONS STATEMENT
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117
118
119
Annex 9.17 WORLD BANK GROUP STATEMENT
Your Excellencies, Distinguished Delegates, Ladies and Gentlemen,
thank you and good morning. As World Bank Country Director for
Bhutan, on behalf of the World Bank Group -- including present today,
Mr. Kyle Kelhofer, International Finance Corporation (IFC) Regional
Manager, Ms. Genevieve Boyreau, World Bank Representative to Bhutan,
Mr. Om Bhandari, IFC Country Coordinator and Mr. Savinay Grover,
Financial Management Specialist-- it is my pleasure to share some
reflections on the partnership between the World Bank Group and Royal
Government and people of Bhutan.
Ending extreme poverty and sharing prosperity remains at the core of the
World Bank Group’s support in Bhutan. Bhutan has achieved an
impressive record of poverty reduction, with poverty declining to 12
percent in 2012. Similarly, the bottom half households enjoyed greater
prosperity between 2007 and 2012 than the rest of households (except
the very richest decile).
Yet there is no space for complacency:
notwithstanding these significant achievements,
many challenges
remain: First, macroeconomic imbalances and limited domestic financial
resources call for careful fiscal, debt and foreign reserve management
during the implementation of the Plan, while deepening the fiscal base
and developing a sound financial sector. Second, limited opportunities in
rural areas associated with low agriculture productivity are encouraging
a fast-paced rural-urban transition that gives rise to new challenges,
including rural desertification, youth unemployment, and pockets of
persistent poverty. Third, Bhutan’s private sector development and
attractiveness lags significantly behind, as indicated the World BankIFC’s Ease of Doing Business ranking which places Bhutan141 out of
189 countries and in the World Bank’s trade logistics index where
Bhutan stands 107 out of 155 countries. In addition, the country’s
environment is particularly vulnerable to natural disasters and climate
change.
These achievements and challenges will shape the future engagement of
the World Bank Group in Bhutan. Over the course of this fiscal year, a
new Country Partnership Strategy (CPS) will be prepared and approved
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by the World Bank Group’s Board of Executive Directors. The CPS
provides a blueprint for guiding the lending, knowledge sharing and
advisory services support from the World Bank Group over the period
FY14-19. The World Bank Group will place the 11th Five-Year Plan’s
overarching goal of achieving self-reliance and inclusive green socioeconomic development at the center of its strategic framework while
focusing on achieving the twin goals of ending extreme poverty and
promoting shared prosperity. It also will follow the principles of
engagement of (i) having the greatest sustainable impact in areas where
we have a comparative advantage, where our resources can be leveraged,
and where there is space for engagement. That may mean emphasizing
three key development objectives: Finance for development: Strengthen
Bhutan’s ability to meet national development financial needs; Diversified
development: Improve rural and urban employment opportunities and
enabling environment for private sector; and Sustainable utilization of
environment: Mainstream strong environment protection, climate change
adaptation and disaster management practices.
The World Bank, through a combination of concessional International
Development Association financing of approximately US$16 million per
year, trust funds and Institutional Development Grants, has been and
will support fulfillment of the 10th and 11th Five-Year Plan in the areas of
urban development, rural access, education, health, public financial
management, fiscal policy and revenue management, procurement,
statistical capacity building, ICT, private sector development, wildlife
conservation, labour and employment, rural livelihoods and disaster risk
reduction. Approximately 60 percent of IDA financing is now channeled
through development policy operations which provide direct budget
support to the Ministry of Finance. This reflects the World Bank’s high
level of confidence in the capacity of the Royal Government to plan,
implement and oversee its development activities and the robustness of
its systems of financial management and procurement, while reducing
transaction costs associated with project financing.
IFC supports development of Bhutan’s private sector with particular
emphasis on: (1) the financial sector in which a 28.5M USD equity
participation in Bhutan National Bank (BNB) was concluded last year.
This landmark partnership is IFC’s largest investment in Bhutan and the
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largest FDI in Bhutan thus far. While our partnership with the bank will
allow us to help improve sustainable banking and increase access to
finance for the private sector, we continue our efforts to improve trade
finance for small and medium businesses (2) advisory assistance to help
facilitate public private partnerships for essential infrastructure; and (3)
advisory assistance for improving the business regulatory framework and
investment climate to foster job growth through small and medium
enterprises. Going forward IFC sees its assistance being channeled in a
few strategic sectors such as agribusiness, tourism and hydropower.
The World Bank Group extends its sincere thanks and appreciation to
the Gross National Happiness Commission and the United Nations
Development Programme for organizing the 12th Round Table Meeting
between the Royal Government of Bhutan and its development partners.
The informative presentations and rich dialogue over the course of the
past two days are indicative of the commitment of the Royal Government
to achieving its development agenda for increasing levels of Gross
National Happiness for the people of Bhutan. The World Bank Group
reiterates its steadfast support to the Royal Government and people of
Bhutan in this effort.
Thank you and “Tashi Delek”
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ANNEX 10: Closing Remarks H.E. Haoliang Xu, UN Assistant
Secretary-General, UNDP Assistant Administrator and Regional
Director, Asia and the Pacific and Co-Chair of the 12th RTM, 12
December 2013, Thimphu.
Your Excellency, Lyonpo Rinzin Dorji, Minister of Foreign Affairs and CoChair of the Round Table Meeting.
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen
It has been an honor and privilege for me to co-chair the Twelfth Round
Table meeting in Bhutan. As other delegates noted, I would also like to
thank the Royal Government for warm welcome and hospitalities. I also
appreciate all the dedicated efforts to organize this very successful Round
Table Meeting that coincides with the launch of the Eleventh Five Year
Plan (2013 – 2018).
The four presentations yesterday gave us the opportunity to take stock of
the significant progress that Bhutan has achieved in particular MDGs.
The presentations also highlighted the remaining challenges and
constraints, including reliance on a single sector and economic and
environmental vulnerabilities, and underscored the importance of
smooth transition from LDC status in the future. The 11th Five Year Plan
is very ambitious and everyone’s efforts are needed to achieve the targets
in pursuance of gross national happiness.
Bhutan’s economy is still small and heavily dependent on one sector for
growth and its development, as we heard yesterday, it must be
rebalanced. The economy needs to be diversified through greater private
sector participation, focusing on high value-added and higher
productivity.
While poverty rate has fallen significantly to 12 per cent of the
population, regional disparities remain a challenge. To ensure inclusive
development, there is a need to reach out to remote communities with
services and livelihood opportunities to improve their productive
capacities and resilience to vulnerabilities. There is also an urgent need
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to generate decent jobs especially for youths as this could tear at
Bhutan’s social fabric.
We must not forget the ever-present risk of natural disasters. Despite
Bhutan’s impressive environmental record, it is vulnerable to the impacts
of climate change.
Bhutan must continue to invest in building
resilience, through mitigation and adaptation measures, including
innovative and sustainable farming practices, strengthening institutions
and community capacity to plan for and respond to disasters, and
introducing affordable insurance schemes to protect against climaterelated losses.
I find that discussions during the meeting were open and substantive.
Now, concrete actions are needed to follow up on this Round Table
Meeting among the government and all the development partners. It is
clear that Bhutan needs resources and partnerships to achieve 16 key
results areas of 11th Five Year Plan and ensure a smooth transition from
LDC status. The country is in an advantageous position, since there are
some years to go to prepare for graduation without having adverse effects
of graduating in a rush. The Government should be commended for its
forward thinking and early preparations. Indeed, this is an example of
global best-practice.
The next few years will be vital to help Bhutan rise to meet its challenges,
tap its potential and fully achieve its aspirations.
During this period,
Bhutan will need the continued and even scaled-up support, both
financial and technical, of its development partners, including southsouth cooperation.
The Government of Bhutan can count on the support of the United
Nations Development System to support the 11th Five Year Plan, and
help prepare its Smooth Transition Strategy by leveraging UN inputs to
the process and ensuring national ownership of the process. And I must
also underline to development partners, that more and targeted
resources would be required to tackle some of the deep seated remaining
constraints and ensure sustainable graduation.
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In closing, I would like to thank the Government again for hosting this
important Round Table Meeting and the high quality preparations that
allowed for a very substantive, engaging and candid exchange about
Bhutan’s development challenges and opportunities, as well as the
priorities of the Eleventh Five Year Plan. On behalf of my colleagues at
the United Nations, I would like to acknowledge the leadership and
immense time and effort of the Royal Government of Bhutan that went
into making this meeting so successful.
And finally, I thank all the development partners for participating in this
Round Table Meeting, especially those of who have traveled long
distances to join us in Bhutan.
Thank you and Tashi Delek!
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ANNEX 11: Concluding Remarks by H.E. Lyonpo Rinzin Dorje,
Minister of Foreign Affairs of Bhutan and Co-Chair of the 12th RTM,
12 December 2013.
Your Excellencies,
Distinguished delegates,
Ladies and gentlemen.
As we come to the successful conclusion of the 12th Round table Meeting,
which has provided us a strong platform for the launch of our 11th Five
Year Plan, I take this opportunity to firstly thank you all for your active
participation in our discussions.
Over the last two days of our meeting, we have reviewed with a sense of
deep satisfaction the tremendous socio-economic and political
transformation that Bhutan has achieved over the last six decades of
development – key aspects of which were illustratively highlighted in the
Hon’ble Prime Minister’s inaugural address and widely acknowledged in
your statements. Whether it is in the social and economic sectors, or in
the promotion of good governance; whether it is in the conservation of
our environment or our cultural heritage; or in the pursuit of
internationally agreed development goals, including the MDGs, there is
much that Bhutan has achieved through the exemplary partnerships
with all our development partners. These are achievements that we can
and must jointly take pride in.
However, to borrow a phrase from Robert Frost:
“The woods are lovely, dark and deep,
But I have promises to keep,
And miles to go before I sleep”.
The Hon’ble Prime Minister succinctly echoed this spirit in which the
Royal Government looks to the future of Bhutan when he stated in his
inaugural address that, "We still have a long way to go”.
Your Excellencies,
Distinguished delegates,
Ladies and gentlemen,
126
The rapid social, economic and political transformation, while bringing in
new opportunities and expectations, are also giving rise to new
challenges to our long-term sustainable development. We have shared
with you some of these key challenges encompassing the four pillars of
GNH in our statements and presentations made. Many of these
challenges have been highlighted in your statements, which is reflective
of your understanding for the need to continue supporting Bhutan
during this critical phase of its transition towards greater self-reliance.
We are cognizant that overcoming many of these new and emerging
challenges will require strengthening our foundations with new tools and
approaches, ideas and partnerships as underscored by the Hon’ble Prime
Minister in his address. The Eleventh Five Year Plan provides us such a
framework to jointly build on our past achievements as it ushers in new
plans, strategies and preparations to work towards “self-reliance and
inclusive green socio-economic development”.
In this regard, we have shared and discussed our aspirations for the
Eleventh Plan, which are exemplified in the realization of three key
national development milestones of Vision 2020, the Economic
Development Policy 2010 and Bhutan’s aspiration to achieve sustainable
graduation from LDC status.
Allow me to note here that Bhutan appreciates the opportunity we have
had at the RTM for rich discussion on the important issue of the process
of graduation from the LDC group. As Secretary GNHC noted yesterday,
we consider such an occasion should represent the crowning glory of
over 50 years of successful cooperation between Bhutan and her
development partners. While proud to be on track towards our cherished
goal of self-reliance, we note that significant challenges and constraints
remain. We are not there yet. At the appropriate time, the Royal
Government will carefully undertake discussions on Bhutan’s graduation
from LDC status. When we do, we look towards our development
partners for their support and cooperation in order to ensure a smooth
transition process.
Against this background, we have presented and discussed the
underlying objective of the 11th Plan to achieve “Self-reliance and
127
Inclusive Green Economic Development”. To realize this objective, we
have adopted a results-based strategic framework comprising of 16
NKRAs that need to be achieved. The key thrust areas of the Eleventh
Plan, which include inclusive social development; accelerated green
economic development; and strategic infrastructure development were
also presented and discussed in some detail.
We have shared and discussed the macroeconomic framework, context
and challenges under which the Eleventh Plan will be implemented. In
this regard, we have candidly presented to you that the future economic
outlook appears to be very good. Growth is projected to average at about
12 percent over the 11th Plan, contingent of course on the commissioning
of three ongoing hydropower projects. In a similar vein of sincerity, we
have shared with you the new and complex macroeconomic challenges
that we face - particularly related to the persistently high current
account deficits that is expected to spike to 30% of our GDP in 2015-16.
Your continued support in the meantime, to address the lingering
economic downturn and meet our resource gap for the Eleventh Plan is
therefore most critical.
We also reviewed and discussed the operationalization of the EDP 2010,
which underscored the critical need for economic diversification and
greater participation of the private sector in our economy if we to ensure
inclusive growth and sustainable development. In this regard, we look
forward to engaging with all partners to explore how we can further
strengthen our development cooperation by deepening it into new areas
of economic and technical cooperation. These would include addressing
key constraints related to strategic infrastructure; enhancing the
productive capacities of our human resources; transfer of technologies
and know how; and access to FDI and alternate sources of financing - all
of which are crucial for private sector development and our effective
transition to a green economy.
Your Excellencies,
Distinguished delegates,
Ladies and gentlemen,
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As we come to the conclusion of our meeting, on behalf of the people and
the Royal Government of Bhutan, I would firstly like to thank you, and
the respective governments and organizations that you represent, for the
clear expressions of continued support and goodwill for the people of
Bhutan during this challenging period of our development transition.
This is indeed most heartening. We have taken note of the many valuable
comments and suggestions that you have made on a number of
important issues, which will be accorded due attention in the course of
implementing the Eleventh Plan.
I would like to express our special thanks to His Excellency Mr. Haoliang
Xu for co-chairing this important meeting and sharing his wide
experience and knowledge to bring this meeting to a successful
conclusion. Our sincere appreciation is also extended to the entire UN
Country Team for their contribution to the success of this meeting.
I would also like to express my deepest appreciation to all for
participating in this 12th RTM. I would like to encourage you to join the
field trip that we have arranged to get a better glimpse of Bhutan, and
hope you take back with you fond memories of our country and its
people. Please take back as well my personal wishes of happiness. I take
this opportunity to express my personal wishes of happiness and success
in the New Year to all present.
Thank you and Tashi Delek!
129
ANNEX 12: List of Participants
No.
Name of participant
Organization/
Country
Designation
Asst. Administrator and Director, Regional
Bureau for Asia and the Pacific, UNDP
1
H.E. Mr. Haoliang Xu
2
Ms. Christina Carlson
3
Dr.Young-woo Park
4
Dr. Ruben F. del Prado
5
Ms. Shalina Miah
Regional Office Manager
6
Mr. Richard Marshall
Economic Advisor for RTM (Bhutan) UNDP,
Bangladesh
7
Ms Hideko Hadzialic
Deputy Resident Representative, UNDP
Bhutan
8
Ms. Tam Pham
Country Programme Manager, Regional
Bureau for Asia and the Pacific, UNDP
7
8
9
Mr.Cedric Monteiro
Ms. Frederika Meijer
Mr. Eric Durpaire
10
Dr.Shreyasi Jha
11
Ms. Tiziana Bonapace
12
Ms. Susanna Wolf
13
Mr.Somsak Pipoppinyo
14
15
16
17
18
Mr. Padma Sundar Joshi
Mr. Dungkar Drukpa
Dr. Nani Nair
Mr. Hun Kim
Mrs. Yoko Nimmi
19
Mr. Sekhar Bonu,
20
Mr. Robert J. Saum
21
Mr. Savinay Grover
22
Ms. Geneviève Boyreau
UN Resident Coordinator
Regional Director and Representative for Asia
and the Pacific, United Nations Environment
Programme
Country Coordinator to the Federal Democratic
Republic of Nepal and the Kingdom of Bhutan
Regional Communications Advisor
Country Director for UNFPA CO, Bhutan
Deputy Representative
Monitoring and Evaluation Specialist, UN
Women Office for India, Bhutan, Maldives &
Sri Lanka
Chief, ICT & Development Section, ICT &
Disaster Risk Reduction Division, UNESCAP,
Bangkok
Senior Programme Officer LDC Unit UNOHRLLS
FAO Representative in Nepal and Bhutan, UN
house, Kathmandu
UN-Habitat Programme Manager, Kathmandu
Officer-in-Charge in Bhutan
WHO CR
Dy. Director-General, South Asia Department
Economist
Director
Country Director for Afghanistan & Bhutan,
The World Bank
Financial Management Specialist, the World
Bank
Resident Representative, the World Bank
Country Office in Bhutan
23
Mr. Kyle Kelhofer
Country Manager Bangladesh, Nepal & Bhutan
24
Mr.Om.Bhandari
Country Coordinator for Bhutan
25
Dr. Vincent Darlong
Country Programme Officers, Asia and Pacific
Division
130
UN
UNEP
UNAIDS
UNCDF
UNDP
UNFPA
UNICEF
UN Women
UN ESCAP
OHRLLS
FAO
UN HABITAT
WFP
WHO
Asian
Development
Bank (ADB)
World Bank
IFC
IFAD
ANNEX 12: List of Participants contd...
26
27
28
Mr. Denis Croze
Dr. P.R. Sinha
Ms. Sonam Y. Rabgye
Director, WIPO Singapore Office
CR, India
Programme Officer (Bhutan)
IUCN
The Bhutan
Foundation
29
Ms. Tandin Pem
30
Mr. Al-Hamndou
Dorsouma
31
Mr. Karma
32
Dechen Dorji
Country Representative, WWF Bhutan Program
Office, Kawajangsa, Thimphu-11001, Bhutan
WWF
32
H.E. Ambassador in
Thimphu
Embassy of India to Bhutan
India
33
Mr. Akira Fukushima
34
Mr. Nobuhiro Kikuchi
Programme Officer
WIPO
Senior Programme Manager, Office for Resource
Mobilization and Development Partnerships
(RMDP)
CEO
WMO
SAARC dev. fund
Deputy Director-General, International
Cooperation Bureau, Ministry of Foreign Affairs
Country Assistance Planning Division II,
International Cooperation Bureau, Ministry of
Foreign Affairs
Japan
35
Mr. Shoichiro.yuyama
36
Mr. Bancha
Yuenyongchongcharoen
Ministry of Foreign Affairs
37
Miss Suchada
Thaibunthao
Government officer, TICA
Thailand
38
39
40
Mrs.Charintip Yosthasan
Miss Panitee Srisawang
Mrs.Caroline Jane Mills
Government officer
Government Officer
Australia High Commission
Australia
41
42
43
H.E. Mr. Lim Thuan Kuan
Hong Ying Quan, Lucien
H.E. Mr. Lee Yun-young
First Secretary, Embassy of Japan in India
Singapore Ambassador to Bhutan
Singapore
First Secretary
Ambassador of the Republic of Korea to Bhutan
44
Mr. Hyun-Joo KIM
Counsellor & DCM
45
46
47
48
49
50
Ms. Kim Bok-Hee
Mr. Junho Choi
Mr. Hur Jin Hak
Mr. Park Do Kee
Mr. Hang Jin Kim
Mr. Yang Sung Hwan
Resident Representative, KOICA
Dy. Resident Representative, KOICA
Trade Representative, KOTRA
President, Ssangyong Associates Ltd.
President, Kim Corp. Ltd.
President, Swanlon Co. Ltd.
51
Mr. Yung Seung Jun
Managing Director, Heerim Architects &
Planners Co. Ltd.
52
Mr. Jeon Sang Chul
Managing Director, Hanjin Shipping
131
Republic of Korea
ANNEX 12: List of Participants contd...
53
54
55
Mr. Mohamed Al-Hadidi
H.E. Rizali W.
Indrakaesuma
H.E. Mr. Prasad
Kariyawasam
56
Mr. Raimund Magis,
57
58
Mr. Matthias Meier
Mr. Kinzang Tobgay
59
Mr. Sigvald Hauge
60
Mr.Tek B.Chhetri
61
Mr Bjorn Forde
62
63
Mr.Robert Zimmerman
H.E. Mr. Miloslav Stašek
Engineering Adviser of Kuwait Fund
Kuwait
Ambassador of Indonesia to India
Indonesia
High Commissioner, Embassy of Sri Lanka in New
Delhi
Sri Lanka
Minister and Deputy Head of Mission, Austrian
Embassy based in New Delhi
Austria
Director, SDC Office, Thimphu,
Deputy Chief of Mission and Minister Counsellor,
Norwegian Embassy in New Delhi
Norway
Head of Representation office of Denmark
Director Danish Institute for Parties and
democracy
Denmark
Second Secretary, Political Affirs,Cultural Affairs
and Public Diplomacy, Embassy of the kingdom of
Netherlands, New Delhi, India
Netherlands
Ambassador of the Czech Republic to Bhutan in
New Delhi Deputy Chief of Mission
64
Mrs. Andrea Kucerova
Deputy Chief of Mission
65
H.E.Khaled Ali El Bakly
Ambassador, Embassy of the Arab Republic of
Egypt, New Delhi, India.
66
Ms. Maria CastilloFernandez
Head of Division (India, Nepal, Bhutan), European
External Action Service, Brussels, Belgium
67
68
69
70
71
72
73
74
75
76
77
Mr. Ubaldo Lorenzini
Mr.Frank Hess
Mr. Albert Arno Schaefer
Mr. Katsuo Matsumoto
Ms. Yumiko Asakuma
Mr. Hidetaka Sakabe
Ms. Miharu Furukawa
Mr. Masanori Sunada
Mr. Kinley Dorji
Mr. Krishna Subba
Mr. Kencho Wangdi
EC, Brussels
EC, Brussels
Head, EU Mission to Bhutan, New Delhi
Director, South Asia Division
Chief Representative, JICA, Bhutan Office
Representative, JICA, Bhutan Office
Project Formulation Adviser, JICA, Bhutan Office
Project Formulation Adviser, JICA Bhutan Office
Sr. Chief Programme Officer, JICA Bhutan Office
programme Officer, JICA Bhutan Office
SNV Country Representative
78
79
80
81
Mr. Franz Gahwiler
Mr. Hansruedi Pfeiffer
Mr. Franz Josef Vetter
Mr. Ari Tapio
Switzerland
Programme Coordinator Bhutan, Head Office in
Zurich
Country Director Bhutan, Thimphu
Head of EIB Lending activities in Asia
Dty. Head of EIB Lending activities in Asia
132
Czech Republic
Egypt
EU
JICA
SNV
Helvetas
European
Investment Bank
ANNEX 13: Press Release on the Twelfth Round Table Meeting
(To be obtained from Foreign Ministry and inserted )
133