THIMPHU, Bhutan — The recent improvements in Bhutan’s poverty levels have not come without notable setbacks. According to the World Bank, the small, landlocked country in Southern Asia reduced its poverty level from 23 percent to 12 percent between 2007 and 2012. While this reduction is a triumph for Bhutan, the rural poor continue to face many obstacles. For every two families that escape poverty, one falls back into dire circumstances.
The rural poor face the biggest risk of long-term poverty despite the country’s 10th Five Year Plan. The plan, which led to the 2012 reduction, was predominately based on economic development. In rural areas, most people work as subsistence farmers or day laborers. These jobs only provide workers with enough food and money to survive, which leads to frequent fluctuations above and below the poverty line.
In addition to the nature of labor in rural areas, the topography of Bhutan has been a major factor contributing to high poverty rates. The region is mountainous, with rugged, uneven terrain. In the past, these conditions made it incredibly difficult for inhabitants of remote villages to access healthcare and education. However, The Bhutan Poverty Assessment Report 2014 states that the development of highways and roads has led to increased school enrollment and more efficient travel.
Some of Bhutan’s natural resources have proven to be of economic value. According to the Central Intelligence Agency, timber, hydropower, gypsum and calcium carbonate are all abundant in the region. The World Bank’s report notes that commercialized agriculture and hydropower ventures are beginning to flourish in rural Bhutan. Although Bhutan is a landlocked country, trade with neighboring India has upped crop production by eight percent.
The CIA anticipates that hydropower will play a major role in Bhutan’s future economic development. Although 95 percent of Bhutan’s hydropower potential remains untouched, the manpower and equipment needed to accommodate it will increase available jobs and trade.
The United Nations Development Program has been working with local Bhutanese government to improve public services. In 2008, the Rural Economy Advancement Program (REAP) was launched in an effort to reduce rural poverty. Two targeted districts, Zhemgang and Mongar, received REAP’s assistance in improving agricultural ventures, expanding sources of income via development of non-agricultural skills, and establishing community programs to boost forward economic thinking.
Poverty reduction still remains a key goal for Bhutan’s government. While international assistance has helped some villages prosper, it is crucial that the government establish state systems for protecting its citizens from poverty. The World Bank proposes that social and financial programs would help stabilize poverty-stricken regions. Farmers would be able to attain crop insurance and receive financial assistance in the event of an emergency.
Bhutan should continue to take advantage of its abundant natural resources. The hydropower industry will continue to grow; providing jobs for locals and earning the country valuable trade revenue. Additionally, the report suggests that Bhutan consider growing its private sector. Rural farmers, if given access to markets or distributors, could earn the income needed to escape poverty in the long term.
The rural poor face the biggest risk of long-term poverty despite the country’s 10th Five Year Plan. The plan, which led to the 2012 reduction, was predominately based on economic development. In rural areas, most people work as subsistence farmers or day laborers. These jobs only provide workers with enough food and money to survive, which leads to frequent fluctuations above and below the poverty line.
In addition to the nature of labor in rural areas, the topography of Bhutan has been a major factor contributing to high poverty rates. The region is mountainous, with rugged, uneven terrain. In the past, these conditions made it incredibly difficult for inhabitants of remote villages to access healthcare and education. However, The Bhutan Poverty Assessment Report 2014 states that the development of highways and roads has led to increased school enrollment and more efficient travel.
Some of Bhutan’s natural resources have proven to be of economic value. According to the Central Intelligence Agency, timber, hydropower, gypsum and calcium carbonate are all abundant in the region. The World Bank’s report notes that commercialized agriculture and hydropower ventures are beginning to flourish in rural Bhutan. Although Bhutan is a landlocked country, trade with neighboring India has upped crop production by eight percent.
The CIA anticipates that hydropower will play a major role in Bhutan’s future economic development. Although 95 percent of Bhutan’s hydropower potential remains untouched, the manpower and equipment needed to accommodate it will increase available jobs and trade.
The United Nations Development Program has been working with local Bhutanese government to improve public services. In 2008, the Rural Economy Advancement Program (REAP) was launched in an effort to reduce rural poverty. Two targeted districts, Zhemgang and Mongar, received REAP’s assistance in improving agricultural ventures, expanding sources of income via development of non-agricultural skills, and establishing community programs to boost forward economic thinking.
Poverty reduction still remains a key goal for Bhutan’s government. While international assistance has helped some villages prosper, it is crucial that the government establish state systems for protecting its citizens from poverty. The World Bank proposes that social and financial programs would help stabilize poverty-stricken regions. Farmers would be able to attain crop insurance and receive financial assistance in the event of an emergency.
Bhutan should continue to take advantage of its abundant natural resources. The hydropower industry will continue to grow; providing jobs for locals and earning the country valuable trade revenue. Additionally, the report suggests that Bhutan consider growing its private sector. Rural farmers, if given access to markets or distributors, could earn the income needed to escape poverty in the long term.
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