Contribution of Forestry to Poverty Alleviation - APFNet

Poverty in Bhutan
The first poverty index statistics showed that 31.7% of the population was below the poverty line in 2004
(PAR 2004). This was reduced to 23.2% in 2007 (PAR 2007), indicating that Bhutan is well on its way
to halving the proportion of the population below the poverty line by 2015. Based on the 2007 report,
the national poverty line was Nu 1,097 1 (US$ 24.6) per person per month. This figure does not take into
account recent inflation and current market prices. The poverty analysis report (PAR) in 2004 noted
that despite the progress made in good governance and economic development in the country, poverty
persists, mostly in the rural areas (PAR 2007). Poverty reduction strategies developed over the years
for improving the living standards of the poor allocated resources for developmental activities such as
rural electrification, farm roads, basic health units, rural drinking water schemes, telecommunication
facilities, and environmental conservation through the promotion of community and private forestry.
However, the RGoB recognizes that much more needs to be done to reduce poverty in the country; thus,
the RGoB and international donors emphasize support on assisting poor and vulnerable groups through
special projects.
About 69% of the Bhutanese people are living on subsistence farming, livestock raising, and forestry
practices. In general, farmers own very minimal landholdings and these are in many cases highly
scattered and fragmented. These make it difficult for them to farm and guard their agricultural crops
from destruction by wild boars, elephants, and other wild animals, a common problem throughout the
country. Most of the farmers, especially those most vulnerable, depend on forest resources for their
needs and cash generation. Thus, forests are an integral part of the farmers’ livelihood. For the people
of Bhutan, forests are an important natural renewable resource.
Poverty Reduction and Forestry Policy in National
Poverty Alleviation
National Poverty Reduction Strategy
In the 10 th Five Year Plan (FYP 2009-2013), poverty reduction is an overarching goal and this has
major consequences for medium-term policy orientation in the forest sector. The plan emphasizes
the importance of mainstreaming environmental issues into the development planning process to
maximize both sustainable utilization and conservation of natural resources. It also recognizes the
growing challenge of balancing development and livelihood opportunities with the need to conserve
the environment. One of the five specific policy objectives of the 10 th FYP is to conserve and promote
sustainable commercial utilization of forest and water resources. It also noted that, more than any
other sector, the RNR sector has the deepest linkage to the 10th Plan’s theme and objective of poverty
reduction and the best prospects to address it. Among the strategic measures included is one related
to the establishment of community forests and expansion of commercial harvesting of NWFPs. This
measure is clearly aimed at making progress in both devolution and poverty reduction within a broader
sustainable development framework.
Among the districts (dzongkhags) in Bhutan, Samtse, Zhemgang, and Samdrup Jongkhar have
the highest poverty incidence of 52-69%, followed by Mongar and Trashi Yangtse with an average
poverty incidence of 44%. Lack of access roads and electricity are among the main factors impeding
development in the rural areas (Kuensel 2011). Thus, accelerating rural farm road and electrification
should be among the key measures for poverty alleviation in the country (Ibid.).
1 The national poverty line, Nu 1,096.94 (US$ 24.6) per person per month, is below the international standard
of US$ 1.25 per person per day. Nu 1,096.94 is broken down into Nu 867 for food needs and Nu 229.94 for
non-food expenditure (Kuensel 2010).
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