(Source http://www.bhutantoday.bt/index.php?option=com_content&view=article&id=2025:bhutan-the-emerging-economy-of-south-asia&catid=1:latest-news )
Bhutan the Emerging Economy of South Asia
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| Written by Administrator | |
| Wednesday, 18 July 2012 19:24 | |
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By Dr Srimal Fernando
July 19, 2012: Bhutan is not just
admired for its beauty but also know for its remarkable development
story among the South Asian countries. People of Bhutan play a leading
role in the engine of prosperity of their country and has been fueled by
pragmatism, hard work and a flood of individual enterprises.
It is a land locked country located at the eastern
end of the Himalayan Mountains. The country enjoys historic ties with
her neighboring Asian countries and is a member of SAARC (South Asian
Association for Regional Cooperation). The country’s sound economic
policies maintained consistently during the past decades, have
contributed to steady economic growth. This economic stability
experienced a sharp decline in measured head count of poverty,
inequality and unemployment. The concept of Gross National Happiness
(GNH) with 72 indicators has its origin in Bhutan. The per capita income
of the country had increased to USD 2000 in the year 2011. The “Ease of
doing business index” created by the World Bank lists Bhutan at 142nd
position. It is four positions above last year’s World Bank rankings.
The Bhutan Government implemented economic reforms,
beginning in 1999 and took an active role in guiding the nation's
economic development. It is one of the fastest-growing economies in the
region with an average annual gross domestic product (GDP ) growth rate
of 5 percent .The country's economy remains strong as a result of
public- private partnership that played a significant role in economic
stability of the country. At present sectors such as agriculture,
live-stock, timber, tourism, telecommunication, banking, construction
and hydro-electricity are expanding rapidly.
Agriculture in Bhutan has been recently growing in
quality and quantity. Currently agriculture and allied sectors such as
forestry and logging employs nearly 60 percent of the population but
accounted for about 35 percent of GDP. The country’s main agricultural
products are rice, maize and wheat. Other major food crops are barley,
oil seeds, potato, fruits and vegetables. In recent years area of
cultivation has increased dramatically in all parts of the country
especially in valleys such as Paro, Punakha-Wangdi, Tashigang-Mongar,
Chirang and in Geylegphug. They are the principal growing regions of the
country. The agricultural sector of the country offers opportunities
for significant expansion.
The private sector plays a vital role in the agro
processing industry. To improve the quality and quantity of agriculture
products and to expand production levels “Bhutan
Agro Industries Limited” (BAIL) was started in1993
with financial and technical assistance from the “Danish International
Development Agency” (DANIDA). The company manufactures thirty five
different types of products which include fruit juices, jams, marmalade,
pickles and vegetables in cans. The company has processed more than
4000 metric tones (MT) of fruits and vegetables. As one of the most
dominant import and export trading institutions of Bhutan with a
turnover of USD 25 million (Nu 1 billion) the State Trading Corporation
of Bhutan Limited contributed immensely to the development of
agriculture production of the country.
On the development side, the energy policy of
Bhutan is steered towards increasing the production of hydro-electricity
in the country. Bhutan’s principal source of electricity generation
comes from hydro electricity generation. The Government of Bhutan has
ambitious plans to develop 10,000 Mega Watts (MW )of hydro-power by
2020. Bhutan’s state owned energy giant Bhutan Power Corporation Limited
(BPC) has been an enormous source of strength for the economy of the
country.
Throughout its work in developing hydroelectric
potential of the country, Bhutan Power Corporation Limited (BPC) remains
the principal player in the field with a total of over 90,000 consumer
accounts. The BPC in 2009 sold more than 1300 GWhs of energy to more
than ninety thousand residential and rural consumers. In the same year
BPC exported more than 500 GWhs of power to neighboring India.
Out of the five mega hydro-electricity generating
plants, the Chukha Hydropower Project or Chukha Hydral was Bhutan's
first mega hydro-electricity generating power project. The hydro-power
related construction activities recorded an 11 percent growth in 2010.
The communication between people is the central
pillar upon which community and understanding are based. In 2006 the
media of the country was privatized. At present there are six news
papers, two dailies and four weeklies. With the introduction of
television in 1999, the “Bhutan Broadcasting Service” (BBS) is the main
television service in the country .
The tradition of Bhutanese postal service can be
traced back to 1962 when the first regular postal service was set up
under the department of Post and Telegraph and under the Ministry of
Communications in Phuentsholing .Later in the same year the postal
service of the country was linked to two other cities Paro and Thimpu.
The Bhutanese postal service was transformed into an efficient service
in 1996 with the establishment of Bhutan Postal Corporation Limited.
Since then Bhutan Postal
Corporation Limited with more than forty post
officers and thirty community mail officers had been one of the success
stories of the country. Nowadays the economic and social value of
telecommunication is widely recognized as an individual commodity for
industrial and domestic purposes. It is an important factor in the
quality of life.
Bhutan Telecom Limited has played a major role in
the country’s telecommunication sector development. As of February 2007,
all twenty districts in Bhutan were connected with cellular mobiles.
Today Bhutan Telecom Limited ensures its customers with cost effective
and efficient service.
Tourism in Bhutan is experiencing sustainable
growth for the last three decades due to the country’s natural and
historical attractions, which appeal to visitors from all parts of the
world. In 2011, tourism made a significant gain, with 65,000 highend
foreign visitors coming to discover this beautiful country and its rich
historical heritage. According to the Tourism Council of Bhutan (TCB),
the revenue earned from tourism last year was estimated to be around USD
105 million.
Bhutan is already showing the results of its trade
reforms and other liberalization measures taken. It also shows efforts
aimed at promoting the country’s untapped resources for growth by
International financing and donor organizations. In view of the facts
given above Bhutan is the most recent emerging economy of South Asia.
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