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Bhutan — Round Table Meeting
Thimphu, November 7—9,2000
Statement of the Austrian Delegation
Highly esteemed Lyonpos, dear Colleagues from other Agencies,
Ladies and Gentlemen,
The Austrian Development Cooperation greatly appreciates the initiative that RGOB has taken to invite
the Donor Community for the Round Table Meeting to Bhutan. It is a clear indication of ownership
and also an effort to actually show the achievements and the problems that this country is facing within the
limits of a few days. I mention only the handicap of having only one plane available to fly so many
participants into Paro and to bring them out again as their busy schedule requires. Many governments
would not have taken such a risk, but Bhutan does it, puts in extra flights with Druk Air, does not complain
and manages.
The second thing I would like to commend on is the brochure on Development towards Gross National
Happiness prepared by RGOB as background for the Seventh Round Table Meeting. It is a very
comprehensive paper which touches on the spectrum of development efforts, the
challenges and
achievements. The only ‘v~eak point is that the statistical data base is rather old in some parts and
subsequent analysis could be misleading. We appreciate the process of political transformation since 1998
introducing more democratic elements into the political system of Bhutan. Given the existing structure of
public administration it will certainly take time for the reforms to materialize in distant Dzongkhaks and to
bear fruit, but we highly endorse the commitment towards decentralization and are willing to assist with
implementation if called upon.
Austria is presently executing all the bilateral projects and programs following the principles of National
Execution. This is possible because in the day to day reality of cooperation the demanding principles of
efficiency, transparency and accountability are actually observed. Even our very strict internal rules
concerning accountability can be accommodated. We have not turned to program assistance yet because we
believe that presently it is also part of our task in cooperation to apply these principles and observe their
implementation together with the national project managers and national executing agencies in a process of
reinforcement.
Bhutan is the only priority country of the Austrian Development Cooperation in Asia and we are
prepared to continue the assistance within the commonly agreed framework also in the coming years. Our
main areas of intervention are the energy sector, here mainly hydropower, special cooperation in high
mountain ecology, the preservation of cultural heritage and the development of an environmentally and
socially sound tourism.
The main objectives of the Austrian cooperation are poverty alleviation, strengthening of democracy and
peace, economic growth for all and partnership.
We all know that it is very hard to establish reliable data on the poverty
alleviation effect of interventions
but we ask our Bhutanese partners to help with data and reliable measurement of indicators. We are of
the opinion that in the case of data requirements international statistical
standards as set Out by the DAC, donor cooperation and the use of modern technologies could be extremely helpful. It would avoid data being
collected for some specific requirements only, ease the burden on the administration, save money and add
credibility on the reports of achievements. This credibility is needed more than ever to strengthen the case
for further assistance as times are getting tougher and the allotment of future funds has to be well justified
at headquarters.
The question of reliable data applies certainly also to the population of Bhutan and its regional
distribution. Anything from 600.000 to 1,9 million is quoted in international papers on Bhutan. This great
discrepancy opens the door for various speculations and we feel that these should not be allowed to blur the
picture of Bhutan. Also in this area the policy of transparency followed by RGOB in so many other sectors
seems much more appropriate and an early census is welcomed. Equal participation of women and men in
the development process is an important cross-cutting issue for the Austrian Development Cooperation.
Also in this area data — e.g. on the representation of women on different levels of the decision making
process (Geog, Dzongkhag, National Assembly or central administration) — is a prerequisite for addressing
the issue.
As I mentioned a little earlier one of the basic concerns of Austrian development assistance is also the
equitable participation of all parts of the population in the development, a prerequisite of maintaining
inner peace on the long run.
This poses the question of the future of Bhutan. Indeed, we believe that only a policy
of inclusion, that is of participation of all groups in the development of Bhutan will produce long term
sustainability in the economic, social and political field that you are seeking. Equally such an approach of
equitable development will be a contribution to a lessening of frustration, of tension, of conflict.
These are important issues. And there is our dilemma: whereas we as outsiders can make more or less
well informed comments on the situation and might even offer some advice, for you, the people of Bhutan,
these are existential questions. So it is for you to take decisions, but such decisions if they are to meet with
support have to be preceded by discussions that are transparent, inclusive, open to dissenting opinion. In a
sense this RTM could already be considered as part of such a national debate on where Bhutan should go..
We deeply respect the way Bhutan is choosing to deal with an extremely difficult situation being a small
country with relatively high standard of social services as compared with its neighbors and the fear of
uncontrolled inflow of non-nationals. Also the European Union is protecting herself very strictly against the
inflow of "commercial” refugees, but this should not be confused with the status of minorities residing in
the country for many years and respecting fully its leadership and government. As Bhutan moves towards
more written laws the status of being a legal citizen and obtaining a NOC (non objection certificate) means
not only access to land, property, education, passport but also to economic activities in the private sector.
These are the consequences for the individual, the consequences for the
community on the long run should
be the one of a multiethnic society without the explosive situation that has lead to the exodus of so many
residents ten years ago.
This leads me to the open ,issue of people still residing in Nepalese refugee camps. Austria shares the
concern that a solution should be found soon and we very much regret the apparent set back that took place
recently after the proposal by UNHCR. Although we know that some questions in terms of verification and
harmonization need further bilateral discussion, Austria would, highly appreciate if Bhutan and Nepal could
agree on first and visible steps towards a solution of the refugee problem as soon as possible, showing
the
commitment of both countries to find a durable and mutually acceptable solution.
Let me conclude expressing the strong belief that also this problem will be
resolved in a wise way by His
Majesty and RGOB. Austria is dedicated towards assisting in the careful and unique development process
in which Bhutan is engaged and we hope to continue our cooperation in a open and mutually beneficial way.
Ambassador Dr. Georg Lennkh
Director General of the Austrian
Development Cooperation
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