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Round Table Meeting for Bhutan
Thimphu, 7-8 November 2000
Statement by the Dutch Delegation
Speaking notes Dutch delegation for the thematic discussions during Round Table
Meeting Bhutan, 8 November 2000, Thimphu
ad. Poverty and Infrastructure
Poverty alleviation is at the core of Dutch development cooperation efforts. It is
acknowledged that poverty in many ways is linked with the establishment of infrastructure. The infrastructural problems in Bhutan and their negative consequences for the development process -as also emphasized in the document for this Meeting- are taken seriously. Unbalanced development between gewogs (village blocks) and migration from rural to urban areas result to a large extent from the limited infrastructure in the country.
In this respect the Dutch government, through SNV and co-financing with the
Worldbank, is supporting the Department of Roads to establish practices and techniques for environmental friendly road construction (RAP-TA project). Also, rural electrification through grid extension and
photovoltaic systems has been identified as a key area of our bilateral cooperation under the Sustainable Development Agreement and is another example to establish infrastructure in the rural areas (SDA Rural Energy programme). Improved donorcoordination by the government of Bhutan is urgently required in order to achieve more efficient planning and implementation in this area of rural energy.
ad. Urbanisation and Youth Employment
The employment problems facing the youth in Bhutan are (indeed) a considerable challenge for Bhutan as mentioned in the documentation for this Meeting. At the same time, employment issues should not only be looked ac from the angle of youth
(un)employment. Aspects such as the existing mismatch between the education/skills offered and the actual demand and the employment of expatriates without a proper policy to gradually replace them with local experts need to be addressed as well.
Under the Sustainable Development Agreement with Bhutan, the Dutch government supports Bhutan in the field of human resource development and institutional capacity development.
Improved employability is one of the goals. However, in- order to balance supply and demand, the government of Bhutan should provide for an enabling environment in order to allow the private sector to further develop and to enhance its absorption capacity for the educated/skilled Bhutanese people (see also thematic discussion on Globalisation and Private
Sector Development).
ad. Globalisation and Private Sector Development
The government of Bhutan is advised to create a firmer and more diversified basis for its financial budget inter alia by creating more internal revenues (such as Personal Income Tax and service charges in various areas). The diversification of the economy is an absolute necessity, both in terms of goods and services provided as well as markets served. In this respect the development of the private sector is of utmost importance. A serious effort should be made with a withdrawal of the government towards a facilitating role and the development
of export capacities. Private sector development should not be overlooked in our cooperation in the field of human resource development and institutional capacity development.
ad. Media and Information Technology
Diversified and independent media play a vital role in the process of
modernisation. Bhutan and the Netherlands have identified culture as one the key areas of cooperation under the Sustainable Development Agreement. We hope that in that context issues such as the promotion of a more diversified media and the creation of a national platform for
discussion within the society and for direct dialogue between the people and the government, will also be addressed (see also thematic discussion on Good Governance)
ad. Good Governance
Enhancing good governance is, next to poverty alleviation, at the core of Dutch development cooperation. Bhutan deserves praise for its efforts to improve the efficiency, effectiveness and transparancy of the government, as reflected inter alia in the document Vision 2020. The commitment of the government of Bhutan to decentralisation is equally welcomed. In this context, strengthening capacities at district level deserves appropriate attention. The Netherlands via SNV supports this aspect through the Integrated Sustainable Development Programme in Zhemgang district.
The modernisation of legislation and the judicial system is another positive process. This process should continue to receive priority from the government of Bhutan. At the same time the traditional system of mediation should not be overlooked and deserves to be kept in tact as much as possible. Integrating both systems, the modern and the traditional one, seems an interesting option.
It is regrettable that our offer to support the High Court in its modernisation efforts, has been declined.
A few critical observations are to be made:
The lack of Statistics concerning almost all aspects of society is a serious constraint in the development process in Bhutan. Without statistics or even the availability of up-to-date basic data about the country, the development of effective assistance strategies including their impact assessment becomes very difficult. Research on for example gender or population would facilitate the identification of areas where development interventions are most needed.
To the extent that statistics, research and general dátŕ are
available, more transparency is called for in order to enable donors to better assist the government of Bhutan in its development efforts.
Bhutan is facing realistic external and internal threats. These threats relate inter alia to the Ulfa’s and Bodo's
on its territory, increased unemployment and the alienation of the Southern Bhutanese within society. These issues may cause social instability between groups within the country along differing dividing lines. Active policies are required in the field of conflict prevention and managing diversity in order to prevent social exclusion of some parts of the population. Encouraging freedom of speech, of press and of organisation does not necessarily imply violating the consensus-culture of Bhutan. On the contrary, it could support a broader based consensus-model to the benefit of Bhutan as a whole.
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