Month: December 2018

Sangay’s Story – an Anecdote

Winter Edition , December 8th, 2018 A few months after the launch of the Priority Sector Lending (PSL) initiative on 1 January 2018, the Governor of the Royal Monetary Authority (RMA) received a cry for help from a PSL client, 24-year-old Sangay Gempo. Sangay, who had completed his BBA in India in 2016, had returned...

Matching Skills and Jobs

Winter Edition , December 8th, 2018 There are jobs, and there are people, and they need to be brought together. They need financial support. After learning about the mismatch of jobs that were available in the market, and the skills that technical graduates possess, a fibre optic specialist at Bhutan Telecom left his comfort zone...

Women Entrepreneurship in Bhutan – the Scenario and the Way Forward

Winter Edition , December 8th, 2018 Introduction In 2016, the Department of Cottage and Small Industries (DCSI) reported that only 35.53 percent of the total registered micro, small and medium enterprises in the country were owned by women. Women mostly operate cottage and small enterprises and function in the informal economy with very small probability...

Promoting Bhutanese Products to Build Rural Economy

Winter Edition , December 8th, 2018 Introduction To use a provocative pun, this article looks at the “real” Bhutan and “real people”. The writer believes that, beyond the snow clad peaks and lush valleys, rich biodiversity and spiritual monuments-all the wondrous things that we like to talk about-there are colours and flavours of a real...

Establishing a Bhutanese Creative Community: The Salient Driver for Bhutan’s Cultural Industries

Winter Edition , December 8th, 2018 Background and Introduction The focus in 2019’s Bhutan Economic Forum for Innovative Transformation (BEFIT) will be on Bhutan’s small and medium enterprise sector (SMEs), also known locally as the cottage and small industries (CSI) sector. The aim of the forum is to review the Cottage, Small and Medium Industry...

How Not to Miss the Boat

Winter Edition , December 8th, 2018 Across the world, cultural export, through film and music, had always been used by governments to create a positive image of their countries. For decades westerners knew about Thailand from the old musical, The King and I. James Hilton’s Lost Horizon built the image of Shangrila as the world...

Transport to Facilitate the Economy

Winter Edition , December 8th, 2018 Introduction The purpose of transport is the movement of people and goods. It is critical for Bhutan’s economic development, like tourism, which should include scenic drives and cultural tours and treks. The effort to diversify the economy by encouraging Cottage and Small Industries (CSIs) also faces a major problem...

Transforming the Economy Through Tourism

Winter Edition , December 8th, 2018 A High Value Low Impact Dilemma For international tourists, Bhutan has long been a much sought after “global hotspot”, a rare destination. A veteran American tour operator who has been a promoter of high-end tours to Bhutan since the 1980s, now disagrees: “Bhutan used to be a high value,...

Towards Food Sovereignty and Organic Farming

Winter Edition , December 8th, 2018 State of Play: Farming and Food Security in Bhutan Bhutan’s ambition to become wholly organic has drawn much attention among experts and policy makers worldwide. Conventional farming practices are increasingly facing scrutiny, especially in the light of climate change, shrinking wild habitats and agricultural biodiversity, reduced soil fertility, and...

Priority Sector Lending — Redirecting the Course of the Economy

Winter Edition , December 7th, 2018 “Our nation has seen great socio-economic growth but it is more important that we have growth with equity. We must raise, with all our effort, the less fortunate so that they may, at the earliest, begin to partake in the opportunities brought by modernisation and progress.” His Majesty The...

How Much Should Bhutan Worry About its Public Debt?

Winter Edition , December 7th, 2018 Financing for Development Investment is key for high and sustainable growth. The Commission on Growth and Development1 concluded that high levels of investment (25 percent of GDP and above) are needed for strong and sustained growth.2 Investment requires financing from domestic and foreign savings. In Bhutan, investment as a...

Fiscal Support for Cottage and Small Industries

Winter Edition , December 7th, 2018 Fiscal Incentives Bhutan, like all developing countries, offers fiscal incentive packages that reduce direct as well as indirect taxes in various forms of tax incentives and exemptions, like general exemptions and sector-specific exemptions, with the intention of attracting investors and fostering economic growth. Fiscal incentive means slashing taxes legally...

Harnessing the Power of IT for Development and Nation-building

Winter Edition , December 7th, 2018 The so-called Industrial Revolution 4.0 has arrived and it is being driven by advances in technology, such as artificial intelligence, Internet of Things, blockchain, virtual reality, augmented reality, 3D printing, robots and drones. The trend shows that we will be able to create systems and robots which are as...

The Entrepreneurship Culture

Winter Edition , December 7th, 2018 Defining Entrepreneurship Entrepreneurship is the act of being an entrepreneur, which is a French word meaning “to undertake”. Entrepreneurs find resources and apply innovation, finance and business acumen to transform innovation into economic goods. This may result in new organisations, or it may revitalise mature organisations to seize a...

Doing Business Bhutan

Winter Edition , December 7th, 2018 Past — What and Why? Whilst 4,500km apart, from Tashichho Dzong in Thimphu to Parliament House in Singapore, the Land of Thunder Dragon and the Lion City are both small countries sandwiched between the geopolitical realities of large neighbours (one landlocked, one sea-locked; one known for prosperity, one for...

How can Bhutan Become a Global Player in the Fourth Industrial Revolution?

Winter Edition , December 7th, 2018 Introduction The current rise of populism in many countries is a clear sign that many people are not happy with their lives. They want a better and happier life but successive governments have failed to meet their expectations. Will populist governments succeed to meet their expectations? Most likely not,...

Bhutan’s Journey to Economic Transformation

Winter Edition , December 6th, 2018 Path of Economic Progress in Bhutan: Retrospection Our development philosophy has never considered economic growth as an end in itself, nor has it been viewed as a panacea for any ills that may threaten the holistic socio-economic progress of the country and well-being of its people. It is nevertheless...

What is a GNH Economy?

Winter Edition , December 6th, 2018 A group of people found themselves at the intersection of many paths, deep in a valley named “Economy”. After a night spent in pursuit of delights other than the knowledge that derived from study, or the Enlightenment that may result from meditation, they looked around and saw many signs...

Editorial: Are We Talking GNH and Doing GDP?

Winter Edition , December 6th, 2018 With the theme “Transforming the Bhutanese Economy” this issue of The Druk Journal will be a comprehensive analysis of Bhutan’s economic aspirations, policies, and realities. In the absence of adequate thinking and discourse in the formulation of our national economic vision we will take a macro economics perspective to...