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Bhutan: Environmental Overview
Taking “the Middle Path”:
The Government and people of Bhutan have been committed to the
conservation of natural resources and the balance between economic
development and environmental conservation - “the Middle Path”. In 1974,
the Bhutanese government passed legislation requiring the country to have
a forest cover of more than 60% at all times. 1 As the country struggles to
develop and provide wealth for its people, it continues to stand by its belief
that development shouldn’t take place at the expense of the environment.
Demographics:
 Bhutan is a small country, with an estimated population of 2,279,723.
 Bhutan has two main ethnic groups: 50% of the population is Bhote, 35%
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is Nepalese. 15% of the population consists of indigenous or migrant
tribes. 2
75% of the population is Lamaistic Buddhist, while 25% practice either
Indian or Nepalese form of Hinduism.3
Bhutan has a predominantly rural population, with 92% of the total
population living in rural areas.4
Life expectancy at birth is 55 years for males and 54 for females. The
population growth rate is 2.1%.5
The age composition of the population is as follows: 0-14 years: 38.9%,
15-64 years: 57.1.8%, and 65 years and over: 4%.6
Rural poverty is a major problem in Bhutan, as 38.3% of the Bhutan rural
population lives below the poverty line. In comparison, only 4.2% of the
urban population falls below the line.7
In 2003, Bhutan spent 3.1% of its GDP on health. Its total health
expenditure per capita was $59.8
“Brief State of Environment” National Environment Commission of the Royal Government of Bhutan. <http://www.nec.gov.bt/about_us.asp>
“Bhutan.” 2006 CIA World Factbook. <https://www.cia.gov/cia/publications/factbook/geos/bt.html>
Ibid
4
“Food and Agriculture Indicators: Bhutan.” Food and Agricultural Organization of the United Nations.
<http://www.fao.org/es/ess/compendium_2005/pdf/ESS_BHU.pdf>
5
Ibid
6
Ibid
7
“Annual Report 2005.” UNDP Bhutan. <http://www.bt.undp.org/info/a_report05.pdf>
8
“Core Health Indicators: Bhutan.” World Health Organization.
1
2
3
Education
 Although some private institutions do exist, the Bhutan education system
is mostly public. For the 2005-2006 academic year total budget for
education was 2.6 billion Ngultrum. 9 Its education spending is
approximately $63.4 million-- 2.1% of its GDP.10
 Basic Education in Bhutan consists of 7 years of Primary Education, and 4
years of Secondary Education. After completing their Basic Education,
students either enroll in vocational education or higher secondary
education. Tertiary education consists of a three or four year degree
program at the Royal University of Bhutan.11
 School enrollment in Bhutan has experienced a rapid growth. In 2004,
total school enrollment in Bhutan was 155,234 students, a 5.3% increase
over the past academic year. In the 2005, 3,553 students were enrolled in
Tertiary education. 12
Geography/Natural Resources:
 Located in South Asia, Bhutan borders China and
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India.
“The country is covered with high mountains and
valleys with the exception of the lowlands in the
southern and south-eastern regions. The
northern half of the country is formed by a series
of valleys separated by mountain ranges that are
accessible only through high passes. There are
four main rivers: Torsa, Wong, Sankosh and
Manas, that flow from the Himalayas to join the Brahamaputra River in
India.”13
Bhutan maintains a land area of 47,000 square kilometers—about half the
size of Indiana. This makes it the 141st country in the world in terms of
land area.14
Bhutan has 72.5% of its land under forest cover, 26.23% of which are
protected areas. It has the highest fraction of forest cover and protected
land of any Asian country.15
Bhutan is also in the top ten percent of the world in terms of species
density.16
“2006 General Statistics.” Bhutan Ministry of Education. < http://www.education.gov.bt/>
Exchange Rate taken from Yahoo! Finance. GDP statistic taken from the Royal Monetary Authority of Bhutan
11
“Education System in Bhutan.” Bhutan Ministry of Education. <http://www.education.gov.bt/>
12
Ibid.
13
“State of the Environment: Bhutan.” United Nations Environment Programme. <http://countryprofiles.unep.org/profiles/BT>
14
“Bhutan.” 2006 CIA World Factbook.
15
“Brief State of Environment.”
16
Ibid.
9
10
 Bhutan’s
main natural resource is
hydropower. Its other main resources
include timber, gypsum, and calcium
carbonate.17
 Bhutan has a very high share of hydroelectric power (82%) in its energy
consumption.
Agriculture
 Agriculture employs over 63% of the workforce, it accounts for 28% of
Bhutan’s GDP. In 2004, oranges accounted for 2.7% of total exports.18
 Permanent crops compose 0.43% of the land, and arable land accounts for
only 2.3%. Only 400 square km of land is irrigated.19
 Key crops include: citrus, rice, corn, root crops, and foodgrains.20
 More specifically, in 2004, Bhutan exported 10,000 metric tons of oranges,
4,599 metric tons of flour of wheat, and 4,813 metric tons of potatoes.
Bhutan’s top agricultural export in 2004 was in Non-alcoholic beverages,
totaling $2.4 million.21
Relevant Environmental Laws and Regulations:
Kyoto Protocol
 An international agreement in which adherents voluntarily sign up to limit
their carbon emissions in an effort to reduce global warming. Additionally,
nations can buy and sell emission credits in order to fulfill their pledge.
 Bhutan is a non-Annex I country, so it is not required to lower its carbon
emissions. However, it ratified the Kyoto Protocol in 2002.
The National Environmental Strategy
 Finalized in 1998 to guide conservation efforts.
 Initiated an Environment Sector Program Support which focuses on
environmental management.
 Called for a National Environmental Action Plan and a National
Environmental Protection Plan, both of which are still being formulated.
The Environment Assessment Act
 Enacted in 2000 to monitor how development programs affect the
environment.
 Requires development programs to receive environmental clearance from
the National Environment Commission.
“Bhutan.” 2006 CIA World Factbook.
“Annual Report 2004-2005.” The Royal Monetary Authority of Bhutan. <http://www.rma.org.bt/Documents/RSD/Annual%20Report%2020042005.pdf>
19
“Bhutan.” 2006 CIA World Factbook.
20
Ibid.
21
“Bhutan: Key Statistics of Food and Agriculture External Trade.” Food and Agricultural Organization of the United Nations.
<http://www.fao.org/es/ess/toptrade/trade.asp>
17
18
Current Funding Projects:
 Due to its small economy, outstanding debts and the need to spend money
to develop its industries, the Bhutanese government has found it
challenging to allocate money from its budget to conservation efforts.
These financial constraints have led Bhutan to turn to other countries for
assistance in protecting their environment.
The Bhutan Trust Fund for Environmental Conservation
 Created in 1991 as a collaborative venture between the Royal Government
of Bhutan, the United Nations Development Program and the World
Wildlife Fund, it is the world’s first environmental trust fund.22
 The Fund started with an original endowment of $20 million, and received
additional funding from the governments
of Denmark, Finland, the Netherlands,
Norway, and Switzerland.23
 The Fund helps to finance conservation
activities by governmental organizations
and NGOs.
Acknowledgements:
Research and Data Development Provided by: Koki Mori, Research Assistant
Under the Supervision and Coordination of: Dr. Samuel Lee Hancock, CM, Executive
Director
“Video: Bhutan Trust Fund for Environmental Conservation” The World Bank Group.
<http://info.worldbank.org/etools/bSPAN/PresentationView.asp?PID=505&EID=243>
23
Ibid
22