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

Training Course on Income Generation and Poverty Reduction for Development 16 March-10 April 2009 Mekong Institute, Khon Kaen Thailand Country Report Presentation for Kingdom of Bhutan by Pema, Dzongrab Dagana Dzongkhag and Karma Rinchen, Dzongrab Gasa Dzongkhag Background

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

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  1. Training Course on Income Generation and Poverty Reduction for Development 16 March-10 April 2009 Mekong Institute, Khon Kaen Thailand Country Report Presentation for Kingdom of Bhutan by Pema, Dzongrab Dagana Dzongkhag and Karma Rinchen, Dzongrab Gasa Dzongkhag Background Kingdom of Bhutan lies on the Himalaya with China in the North and India territories in the east, south and west. Area 38,394 sqkm (source 9FYP document Bhutan) Bhutan is Constitutional Democratic Monarchy Country. Population : approx 0.734m (9FYP cover Note)

  2. About 79% of the population live and depends on subsistence agriculture for living. • GDP per capita income was US $ 1422 for 2006 (source UN stat Div 2006) • 2004 Poverty Assessment Report-32% live below national Poverty line of Nu.740.36 per month ( US $ 16.30 ) • Poverty for Bhutan is more of rural seasonal phenomenon. • Developmental Philosophy is Gross National Happiness • Developmental targets/goals are reflected in Bhutan 2020-vision for peace, prosperity and happiness- where we want to see after two decades-which guides Five Year Plans • Five year plans (decentralised)

  3. 2 Factors Contributing to Poverty Mountainous terrain Insufficient cultivable land Shortage of farm manpower Limited availability, accessibility and long distance to well established markets Religious believes Growing extended families Less survival pressure (Buddhist sympathizer)

  4. 3. Government and Non Government Organisation Interventions to reduce Poverty and generate Income Government Policy -9 and 10 Five Year Plans (2009-2013) are guided by central theme of Poverty reduction Non Government -Tarayana Foundation-builds houses, petition money, community income generating centers (bamboo and cane weaving) -Youth Development Fund-Scholarship for economic disadvantaged children, handicrafts for disable childrens -National Women Association of Bhutan-Traditional weaving centre and trainings, shops -

  5. Bhutan Chamber of Commerce and Industries-Groups organisations and frames business policies and strategies in line with Government • Policies and Trains/impart skill development programs. • WWF-Nature Conservation and Socio-economic development programs • Bhutan Trust Fund For Environment Conservation-Nature Conservation and Socio-economic development programs • Religious and Monastic institutes/Colleges-impart education and employment

  6. 4. Best practices concerning income generation and poverty reduction Central Government Agency which frames central developmental themes, guides five year planning and monitor plan implantations (Gross National Happiness Commission)-Umbrella Strategies by various Ministries Farm Road development Increase Crop production Establish markets

  7. Assist and development farmers business skills • Make every citizen accessible to natural resources • Subsidised on rural resources • Development partners Projects- ICDPs for subsidized or free roofing materials, schools infrastructure, bridges, mule track development, ecotourism • Subsidised crop seed, improved livestock breeds, develop pastures, subsidized fisheries, poultry and piggery stocks. • Control and provide free disease mgt services.

  8. Carry out research related to productivity • Financial institutes offering easy loans • Government Salary (recent bottom up) increase and control housing and commodity cost hike • Donors coordination • Allow equal business opportunity (trade and contract works) • Gear up Hydro power construction • Free health services, greater coverage (infrastructure and workers) • Provide safe drinking water for all (78% in 2000, target 100% by 2007

  9. Provide motorable road connectivity, including bridges Put accountable and responsible administrator (plans) Establish vocational institutes to develop skill Build up diplomatic relations with other countries Provide free basic education for all (present cl.10), NA has requested till cl 12 Provide cheap and easy transportation. Provide affordable and available housing facility

  10. Make every family own land (His Majestys responsibility)-surveys in every District Develop tourism (Low vol high value, Bhutanese context)

  11. Challenges and Opportunities • Mountainous terrain- small population • More illiterate-education for all and NFEs and ECRs • Family dependence-becoming aware • Scattered Settlements, Households-small population • Small internal revenue-private sector development becoming a concern and stable and committed government • Difficult to locate and identify poor • Difficult to identify the real causes of poverty • Needs more detailed study TASHI DELEK

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