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Royal Government of Bhutan
Inaugural Address by Lyonpo Yeshey Zimba
Chairman of the Council of Ministers and Head of Government
Seventh Round Table Meeting
Thimphu, 7th November 2000
Hon'ble co-Chair Eimi Watababe,
Hon’ble Lyonpos,
Excellencies,
Distinguished delegates,
Ladies and Gentlemen
l have the pleasure and honor to extend a very warm welcome to all our development
partners who have come from very afar to participate in the Seventh Round Table
Meeting for Bhutan. Your presence here today is a testimony to the good will and
friendship that your governments or organizations have for the people of Bhutan.
I would like to thank Madam Watanabe, UN Assistant Secretary General, for
co-chairing the Seventh RTM. I would also like to take this opportunity to thank the
UNDP, in particular, the Resident Coordinator Mr. Shun-ichi Murata and his staff in
the Thimphu field office, for their contribution to the arrangement of this meeting.
This RTM differs from the previous ones in several ways. This is the first RTM ever
held in the country. It is our hope that hosting the meeting in the country would
enable our development partners to see for themselves the progress that Bhutan has
made as a result of their support. We want to demonstrate that their assistance has
been used effectively to improve the well being of the Bhutanese people. We also
wanted you to feel a sense of the natural environment within which the developmental
activities are implemented in this country. In addition, we want to have an opportunity
to demonstrate our gratitude and good will towards our friends.
This RTM covering a period of three days is also the longest so far. It was felt that a
three-day meeting was more justifiable considering the time, cost and effort necessary
to be here in Bhutan. During this RTM, we would like our development partners to
reinforce their perceptions and understandings of Bhutan — to understand the peculiar
circumstances within which Bhutan must develop.
Another reason why this RTM differs from the past is that, i is not strictly a resource
mobilization exercise. We are already aware of the resource available for the
remaining one and half years of the 8th Plan. This is not to say that the Royal
Government would not be approaching individual donors to meet the resource gap for
specific projects or programs.
The generous technical and financial support of our development partners has enabled
Bhutan to make rapid all-round progress, towards maximization of Gross National
Happiness. The Royal Government is most grateful for your continued support The
GDP growth rate averaged over 6% per annum for the last one and half decades. This
resulted in greatly enhancing the per capita income to US$ 645 and has also
strengthened the economy in terms of balance of payments as well as national
revenue. The rate of inflation has been moderate without creating any serious
problems of instability. The rapid and balanced development approach has resulted in
an impressive economic performance as well as successes in social development.
Primary education coverage in the country is now 72% and the literacy rate stands at
54%. Primary health care coverage is well over 90% and life expectancy has reached
66 years. Bhutan continues to spend well over 22% of its annual budget on the social
sector.
lnspite of the mountainous terrain and difficult climatic conditions, every district
headquarter, (except for one) is connected by motor roads. Major efforts are also
under way to reach electricity and telephones to remote villages. Such developmental
efforts have resulted in improving the well being of the Bhutanese people. While
agricultural income, especially from cash crops like fruits and vegetables have grown
significantly, its share in the over all GDP has now declined to 37% reflecting rapid
modernization of the economy. There is no abject poverty and the Bhutanese people
today enjoy a quality of life that is far better than what existed even ten years back.
In addition to socio-economic development, the government has also made great
efforts to strengthen governance through institution building measures such as
legislations, Human Resource Development and enhancing transparency in
management practices. It is the priority of the Royal Government to ensure a
government that is effective, inclusive and honest. No efforts are being spared to
‘correct lapses and necessary initiatives have been taken in this important endeavor as
borne out by the recently concluded Government restructuring exercise. Numerous
steps have also been taken to enhance efficiency, curb corruption and generally
improve public administration.
Development in Bhutan has been achieved without damaging the natural environment
or the cultural heritage of the people. It is our hope that the environment and the
unique cultural heritage will not only enable the people of Bhutan to maximize Gross
National Happiness, but also contribute to global sustainability and cultural diversity.
While, the RTM discussions will mainly focus on emerging challenges, the Royal
Government would like to clarify that the priorities given to Sectors like health,
education, agriculture, environment, gender and HRD will continue, so that the
foundation of development in Bhutan is further strengthened.
During this RTM, the Royal Government would like to invite the views and
comments of our development partners on some selected issues that challenge
Bhutan’s development. These new challenges have emerged as a result of changes
within the country as well as changes in the external environment. Issues like poverty,
youth employment, urbanization, globalization and information technology, which
will be discussed during the course of the next two days, will have serious impact on
the future of this country. Therefore, it is necessary to address these issues with the
right policies and programs. We value your advice and support in tackling such
issues.
One of our greatest concerns today is the rising number of young people entering the
job market as a result of our success in education. Like elsewhere in the world, most
of the school leavers do not go back to the villages and seek employment in urban
areas. Creating the conditions for gainful employment for these people is a serious
challenge for the government.
Closely related to the issue of employment is the challenge posed by globalization and
the weakness of the private sector in Bhutan. Globalization not only has a bearing on
our culture but also on the development of domestic industries. Given the low level of
technology, lack of capital, and the small size of the market, the private sector in
Bhutan, continues to remain weak and vulnerable. It is necessary now to seek ways to
strengthen the private Sector and enable it to take advantages of the opportunities
presented by globalization.
The thrust of Bhutan’s Five Year Plans have been to improve the well being of the
Bhutanese people. As a result, there is no abject poverty, but the people of Bhutan still
have very low levels of income. Added efforts are necessary to promote income-
generating activities particularly in the rural areas. The experience of the Royal
Government is that income generation and poverty reduction is possible only with
good infrastructure, especially access to motor roads.
The most exciting challenge for Bhutan is perhaps the possibilities now presented by
developments in the area of Information Technology, and the introduction of Internet
services in the country. New avenues have been opened up for more effective and
quicker communication, making distance no longer a barrier. Given the rising literacy
rate and the use of the English language, IT presents unprecedented opportunities for
development as well as employment of educated people. This is perhaps an area
where Bhutan could benefit greatly from globalization.
The rapid economic progress that Bhutan has achieved without damaging its natural
environment or compromising its cultural heritage is without doubt the result of the
enlightened and dynamic leadership provided by His Majesty the King. It was His
Majesty’s vision and hard work that has enabled Bhutan to achieve all round
development under a Government that is effective, responsive and caring. Hence, His
.Majesty the King enjoys the full trust and confidence of the Bhutanese people. His
Majesty, however, surprised the nation during the 76th session of the National
Assembly in June 1998 by devolving executive powers from the throne to an elected
Council of Ministers, and instituting a system of a vote of confidence in the monarch
himself. The move towards greater participation of the people in the governance of
the nation, which started in the 1980’s, continues and will receive additional boost
with the framing of the next plan on the basis of Geogs — thus enabling communities
to assume greater roles and responsibilities in matters of local governance.
Today we have a large gathering of our development partners, here in Thimphu, to see
how they can help Bhutan develop and enable it to stand on its own
feet. It is the responsibility of Bhutan to make the best use of the their support and strive towards
self-reliance and sustainability. We are aware of, and appreciate the concerns of our
development partners regarding Bhutan’s ability to raise enough resources to finance
the recurrent costs of the Government. In this regard, I am happy to inform our
development partners that over the last seven years, Bhutan has been able to largely
meet the recurring costs of the Government from its internal revenues. Much effort is
still in motion to further enhance domestic revenue through the strengthening of tax
administration, expansion of tax base and the levy of user charges among others. In
particular, the Royal Government, in a landmark decision, has submitted a draft
Income Tax Act to the National Assembly for discussion and approval in a
subsequent session. We are confident that with the efforts being made to educate the
people, the Income Tax Act will be appreciated by all and passed in the near future. In
the meantime, all necessary measures are being taken to strengthen the administrative
mechanism for implementing such a complex policy matter as the Personal Income
Tax.
While Bhutan continues to make significant socio-economic progress, we are
unfortunately facing two very serious problems, which not only threatens our future
development, but also the very security of the country. The presence of militant
groups from the Indian state of Assam in Southern areas of Bhutan and the issue of
the people in the camps in Nepal, are matters of grave concern for the Bhutanese.
Each of these complex problems presents a dilemma for Bhutan, and each must be
understood in their proper political context. It will be a daunting task for the Royal
Government to address both these problems at the same time. We appreciate the
concerns of our development partners in these issues and would like to assure you that
Bhutan, more than anybody else, is most keen to find a solution. The Hon’ble Foreign
Minister will brief this august gathering later in the day on these issues.
During the course of the next two days, you will have the opportunity to meet and
exchange views with officials of the Royal Government. I am confident that the
proceedings of the RTM will facilitate better understanding among the participants
and greatly benefit the Royal Government.
I would like to inform this meeting that the ingoing Eight
Five Year Plan ends in another year and a half. We are
already in the process of preparing the Ninth Five Year Plan
and hope to start the dialogue with our development partners
to determine the areas of cooperation. The Royal Government
would like to request for your kind support as in the past.
On the occasion of the Seventh RTM, I would like to
express Bhutan's commitment to upholding the principles and
purposes of the United Nations, and reaffirm our support for
strengthening the UN as conveyed at the Millennium Summit.
In conclusion, on behalf of the Royal Government and the
people of Bhutan, I would like to thank all our development
partners for their generous support and friendship towards
Bhutan. I wish you a pleasant and fruitful stay in our
country.
Tashi Delek.
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