Report of the Twelfth Round Table Meeting 11-12 December, 2013 Thimphu, Bhutan ROYAL GOVERNMENT OF BHUTAN 1. INTRODUCTION 5 1.1 Background 5 1.2 Theme and Objective of the RTM 5 2. PROCEEDINGS OF THE TWELFTH ROUND TABLE MEETING 6 2.1 Opening Ceremony and Inaugural Address by H.E. Lyonchhen Tshering Tobgay, Prime Minister of Bhutan 6 2.2 Opening Statement by H.E. Haoliang Xu, UN Assistant Secretary-General, UNDP Assistant Administrator and Regional Director, Asia and the Pacific 8 2.3 Opening Statement by H.E. Lyonpo Rinzin Dorje, Minister of Foreign Affairs of Bhutan 11 2.4 Day One/Session One of the RTM 14 2.4.1 (a) Presentation on “11th Five Year Plan: Challenges and Priorities" 14 2.4.2 (a) Presentation on “Bhutan’s Macro-Economic Situation and Public Finance” 16 2.5 Day One/Session Two of the RTM 19 2.5.1 (a) Presentation on “Economic Development Policy Roadmap” 19 2.5.2 (a). Presentation on “Graduation from the Group of LDCs: Prospects and Challenges for Bhutan” 23 2.5.3 Launch of the "MDG Acceleration Framework (MAF) Report on Youth Unemployment" 24 2.6 Day Two/Session Three of the RTM 25 2.6.1 Summary of Statements by development partners 25 2.7 36 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 36 2.7.2 Concluding statement by H.E. Lyonpo Rinzin Dorje, Minister, Ministry of Foreign Affairs, CoChair of the RTM 37 2.7.3 Launch of Situation Analysis Report of Children, Youth and Women in Bhutan 2012 (SiTAN) 38 ANNEX 1: Agenda of the Twelfth Round Table Meeting 40 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 43 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. 49 ANNEX 4: Opening Statement by H.E. Lyonpo Rinzin Dorje, Minister of Foreign Affairs of Bhutan and CoChair of the 12th RTM. 53 ANNEX 5: Presentation on “11th Five Year Plan (2013- 2018): Challenges & Priorities 60 ANNEX 6: Presentation on “Bhutan’s Macro-Economic and Public Finance” 65 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” 71 ANNEX 9: Statements by Representatives of Development Partners 76 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. 123 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. 126 ANNEX 12: List of Participants 130 ANNEX 13: Press Release on the Twelfth Round Table Meeting 133 3 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". 5 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. 6 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. 7 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 9 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. 10 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 11 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 12 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 13 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 14 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. 15 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 16 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) 17 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 18 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. 21 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. 22 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 23 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 28 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 31 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 32 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. 33 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. 58 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. 78 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 79 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. 80 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 81 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 82 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 85 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 86 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. 87 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. 89 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. 90 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. 91 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 92 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. 93 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. 96 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! 98 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. 100 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, 101 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 102 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, 103 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. 107 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 113 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. 115 Annex 9.16 JOINT UNITED NATIONS STATEMENT 116 117 118 119 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 120 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 121 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” 122 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 123 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. 124 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! 125 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, 128 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