Bhutan Maintains Consistent Foreign and Economic Policy Preferences
Dr. Srimal Fernando
Bhutan is a landlocked country located at the eastern end of the Himalayas. It is bordered to the south, east, and west by India and to the north by China. In the study of international relations, a frequent topic is the power of small States. The small States in the South Asian Region, such as Bhutan, are becoming important and visible players in international politics. Bhutan can be proven to be effective in numerous ways. Geography matters when it comes to the Himalayan Kingdom. With the amalgamation of military, economic and political power along with geographic reach, this small state will remain the central player in maintaining the balance of power in the South Asian Region. Bhutan in the South Asian region needs to invest in improving diplomatic, economic, and defense capacities due to its small size and vulnerability to external shocks. Moreover, health and education levels have dramatically improved over the last two decades. Primary, secondary, and tertiary education plays a significant part in the country’s overall literacy rate.
Gross National Happiness (GNH)
The concept of Gross National Happiness (GNH) with 72 indicators originates in Bhutan. While still evolving in a dynamic world, GNH is a more holistic and balanced development model that recognizes the importance of physical and psychological well-being. One of the four pillars of GNH is the preservation and promotion of cultural values. The Centre for Bhutan Studies (CBS), in collaboration with International Development Research Centre (IDRC), launched a report titled “An Extensive Analysis of GNH Index,” a single-digit GNH Index that was constructed based on results from the GNH 2010 survey. The new index provides summary statistics of the well-being of individuals in nine domains which are gauged by 33 indicators and 124 variables. The GNH Index incorporates relevant aspects from the United Nations Human Development Index (HDI)
Bhutan, a democratic constitutional monarchy, was ruled by five Kings. The South Asian nation saw its transition to democracy. The fourth King of Bhutan, Jigme Singye Wangchuck, introduced significant political reforms. The current King of Bhutan is Jigme Khesar Namgyel, one of the world’s youngest monarchs.
Bhutan’s Economic Reforms
The Bhutan Government implemented economic reforms beginning in 1999 and actively guided the nation’s economic development. The country’s economy remains strong due to public-private partnerships that play a significant role in the country’s economic stability. Currently, sectors such as agriculture, livestock, timber, tourism, telecommunication, banking, construction, and hydroelectricity are expanding rapidly.
Over 70% of the total population depends on agriculture in its various forms for economic activity and living. One significant contributor to the development of the country’s economy is forestry. It is about 15 percent of the GNP. In recent years area of cultivation has increased dramatically in all parts of the country, especially in valleys. The agricultural sector of the country offers opportunities for significant expansion. The private sector plays a vital role in the agro-processing industry to improve the quality and quantity of agricultural products.
Hydroelectricity
Out of the five mega hydroelectricity-generating plants, the Chukha Hydropower Project, popularly known as Chukha Hydral, was Bhutan’s first mega hydroelectricity-generating power project. On the development side, the energy policy of Bhutan is steered towards increasing the production of hydroelectricity in the country. Bhutan’s principal source of electricity generation comes from hydroelectricity generation. Bhutan’s state-owned energy giant, Bhutan Power Corporation Limited (BPC), has been an enormous source of strength for the country’s economy. Tourism in Bhutan has been experiencing sustainable growth for the last three decades due to the country’s natural and historical attractions, which appeal to visitors from all parts of the world.
Regional Integration
Bhutan shares deep-rooted cultural and neighborly links and share a common history. Bhutan hosted the 16th South Asian Association for Regional Cooperation (SAARC) summit in 2010. The financial umbrella of the SAARC, known as the SAARC Development Fund (SDF) Secretariat, is based in Thimpu. Economic diplomacy is undoubtedly an essential part of this foreign interface. To summarize, Bhutan is already showing the results of its trade reforms, and other liberalization measures are being taken.
About the Author:
Dr. Srimal Fernando received his Ph.D. in International Affairs. He was the recipient of the prestigious O.P. Jindal Doctoral Fellowship and SAU Scholarship under the SAARC umbrella. As a Lecturer, he focuses on the comparative politics of Small Island Developing States (SIDS). Dr. Fernando is a specialist in International Relations and an adviser on New Regional Diplomacy. He has received accolades such as the 2018/2019 ‘Best Journalist of the Year’ in South Africa (GCA) Media Award for 2016 and the Indian Council of World Affairs (ICWA) accolade. He is the author of ‘Politics, Economics and Connectivity: In Search of the South Asian Union’.