Five Jewels Supporting The Development Of Bhutan

The economy of Bhutan, one of the world’s smallest and least developed countries, is based on agriculture and forestry, which provide the main livelihood of more than 60% of the population. Agriculture consist largely of subsistence farmaing and animal husbandry. The economy is closely aligned with Indians through strong trade and monetary links and dependence on Indians financial assistance. Most production in the industrial sector is of the cottage industry type. Most development project, such as road constructions, rely on Indian migrant labor. Detailed controls and uncertain policies in areas such as industrial licensing, trade, labor and finance continue to hamper foreign investment. Hydropower exports to India have boosted Bhutan’s overall growth, even though GDP fell in 2008 as a result of a slowdown in India, its predominant export market.

Hydropower Sector

Bhutan’s potential to produce 30000 Mega Watt power from all hydro projects. But Bhutan produces only 1615 Mega Watt. Which 1542 are being exported to India, 1020 Mega Watt from Tala Hydro Power Project, 336 Mega Watt from Chukha Hydro Power Project and 186 Mega Watt from Kurichhu and Dagachhu Hydro Power Project. From these import by Indian Government, Hydro power contributes about 19% of total income earned from exporting for development of our country. With the introduction of Hydro project in our country, Problems of unemployment are being solved with employment of workers and office clerk to the hydro projects. Expansion of other economic sectors inevitably requires adequate power system capacity. The cheap and availability of electricity in our country makes easier to develop economic activities.

Without the mega hydropower project like 1020 MW Tala project online, ambitious ruler electrification won’t happen in such speedy pace. Cottage and small industriesThe Department of cottage and small industries (DCSI) was established under Ministry of Economic Affairs (MOEA) in July 2010. Guided by the philosophy of GNH, to become premier agency promoting growth of the vibrant and sustainable cottage and small industries contributing to the overall social economic development of the country by enabling environment to facilitate and support sustainable growth and development of cottage and small industries. With growth of cottage and small industries, equitable income distribution, Employment generation and balance regional development are occurred positively.

Tourism Sector

The tourism policy shall continue to be guided by the principle of ‘High Value, Low Volume’. Tourism has helped promote Bhutan’s culture and traditions to the outside world, and interactions with tourist have contributed to a sense of national identity, At the same time further enhancing the needs to conserve the country’s natural and cultural assets. Promotion of tourism has develop our country by growth of service sector, foreign exchange earnings, opportunities for recreation, economic growth, cultural exchange, better international relations, enjoyment, better health and wellness. And even these create local jobs and business opportunities. These include those jobs directly related to tourism (hotel and tour services) and those that indirectly support tourism (Food production and housing construction. These sectors involve in development of our countries economy.

Agriculture Sector

Agriculture in Bhutan has a dominant role in the Bhutan’s economy. Agriculture sector provided 38. 5% of GDP in 1997 and 55% in 1985. The 1997 GDP consisted of a total production of 18. 1% crops, 11. 4% of economic activity in the forestry sector and 9% livestock production.

Agriculture helps our country to develop by

1. Providing food and raw material to the non agricultural sectors of the economy
2. Creating demand for goods produced in non agriculture sectors, by the ruler people on the strength of the purchasing power, earned by them on selling the marketable surplus.
3. Providing investable surplus in the form of savings and taxes to be invested in non agriculture sector.
4. Earning valuable foreign exchange thought the export of agricultural products.

Mining Sector

Mining of industrial minerals was insignificant to Bhutan’s economy except for the production of ferrosilicon. The country’s rugged terrain provides sites to harvest hydropower which have driven a rapid growth in the transport and construction sector, including the start up of number of local cement operations. As the developed society we are fortunate to in enjoy the many benefits that lignite, uranium and industrial minerals help provide. These benefits include low cost, reliable electricity and the materials necessary to build our homes, schools, hospitals, roads, high ways, bridges and airport. Example: Development on the cement manufacturer (Gomut) by the extraction of lime stone at Samtse and Pema Gatshel (Ngalam).