Bhutan Road from Rio - National Environment Commission

B H U T A N : T H ER O A D F R O M R I OCHAPTER 1 As it prepared for the UnitedNations Conference on Environmentand Development(UNCED), the Royal Government ofBhutan in 1990 organized the firstnationwide workshop on sustainabledevelopment to fashion the broad criteriaof the country's sustainable developmentagenda. The tangible result of thatworkshop, attended by senior Governmentofficials, local government representatives,private sector and non-Governmentalorganizations, was the Paro Resolution onEnvironment and Sustainable Development,a holistic statement of principlesand beliefs. Its preamble clearly articulatedthe challenge that the country had chosento meet head-on:Two years later, Bhutan's attendance atUNCED in Rio de Janeiro marked theincreasing participation of the nation inglobal environmental fora and its continuedcommitment to environmental conservationand sustainable development.Bhutan strongly supported the principlesof the Rio Declaration and theconservation of biodiversity, as well as theimportance of combating the negativeeffects of climate change.In the decade following the Rio summit,developments have been significant inBhutan's environment sector. These haveincluded establishment of a stronginstitutional framework, including the"This is the challenge of sustainable development: to raise the materialwell being of all our citizens and to meet their spiritual aspirations, withoutimpoverishing our children and grandchildren. The key is to find a developmentpath that will allow the country to meet the pressing needs of the people,particularly in terms of food, health care and education, without underminingthe resource base of the economy. New industries, new agricultural marketsand new forestry products need to be carefully developed with respect to theirbroader environmental ramifications."B H U T A N : T H E R O A D F R O M R I O3

B H U T A N : T H ER O A D F R O M R I ONational Environment Commission;preparation and passage of criticalenvironmental legislation; and adoption ofinnovative funding mechanisms.Development of the policy frameworkand national capacity building led toformulation of the National EnvironmentStrategy in 1998, which guidesenvironmental conservation, as well as theEnvironmental Assessment Act 2000,which ensures that such assessments willbe undertaken for all activities withsignificant environmental impact.In the global arena, Bhutan ratified theUnited Nations Framework Conventionfor Climate Change and established a highlevelNational Climate Change Committee;likewise, it has ratified the Convention onBiological Diversity and formulated aBiodiversity Action Plan. In addition,Bhutan established a partnership withBenin, Costa Rica and the Netherlandsthrough the Sustainable DevelopmentAgreement and developed it into agroundbreaking program that has as itscenterpiece the idea that sustainabledevelopment is a two-way exchangebetween donors and recipients ofenvironmental aid.Regionally, Bhutan works actively topromote environmental causes. Within theSouth Asian Association for RegionalCooperation (SAARC), four MinisterialMeetings on the Environment have beenheld; Bhutan is hosting the fifth meetingjust before the World Summit onSustainable Development, which isexpected to formulate a common SAARCplatform for the summit.Throughout Bhutan, large areas ofpristine ecosystems with extensivebiodiversity have been maintained.Preservation of the country's naturalendowment has been largely possible giventhe enlightened leadership of the countryand the strong conservation ethic of theBhutanese people. The Bhutanese attitudeand policy regarding the environment hasbeen aptly summarized by His Majesty theKing Jigme Singye Wangchuck when hestated: "Throughout the centuries, theBhutanese have treasured their naturalenvironment and have looked upon it asthe source of all life. This traditionalreverence for nature has delivered us intothe twentieth century with our environmentstill richly intact. We wish to continue livingin harmony with nature and to pass onthis rich heritage to our future generations."Although much emphasis has beenaccorded to low-lying coastal states, whichface their own alarming challenges -particularly from climate change - littleattention has yet been paid to at-riskmountain environments, which also containmany specialized ecosystems.For example, by virtue of Bhutan'slocation in the heart of the easternHimalayas, the highest and most active ofthe Earth's major mountain ranges, thelarge-scale tectonic movements that pushB H U T A N : T H E R O A D F R O M R I O4

B H U T A N : T H ER O A D F R O M R I Othe Himalayas a few centimeters higher eachcentury crush the underlying rock, thusincreasing its penetrability and absorptivecapacity. When soaked by the relativelyheavy monsoon rains and exposed to thecorresponding high runoff volumes andvelocities, the land becomes particularlysusceptible to erosion. Likewise, climatechange in mountain ecosystems is resultingin the receding of many Himalayan glaciers,and dangerous glacial lake outbursts,resulting in flash floods that have causedfatalities and significant damage in deeplower valleys, already have occurred inBhutan.Thus, the utmost importanceand international assistance alsomust be given to complex, extremelyvulnerable mountain environments,which are vast storehouses ofhydropower, fuelwood, medicinalplants, minerals and water.Amid this inherent fragility, Bhutan hasensured that economic development andenvironmental and cultural integrity are notmutually exclusive. As eloquentlysummarized by His Majesty himself:"Gross National Happiness is moreimportant than Gross National Product."This, then, has been the principal forcebehind Bhutan's sustainable developmentstrategy.In a particularly notable example ofhow conservation of natural resourcesremains a priority for the RoyalGovernment, 72.5% of the land area isunder forest cover, as well as 26.23%included as protected areas. As early as1974, the National Assembly mandatedthat a forest cover of more than 60% bemaintained in perpetuity. Biologicalcorridors, meanwhile, comprise 9% of theland area. More broadly, environmentalissues have been fundamentallyrepositioned in the policy-making processand fully integrated into mainstreameconomic policy.Although the country is committed toensuring a future where the naturalenvironment is still intact, pressures areincreasing. A complex array of forcesencompasses not only rapid populationgrowth, agricultural modernization andhydropower exploitation but also mineral,industrial and infrastructure development.There is, therefore, no room forcomplacency; although the NationalEnvironment Strategy recommendsbroad development choices that Bhutancan make in its own unique context, thetask is in no way complete. A NationalEnvironment Action Plan is being drawnup, with the overarching goal of providingBhutan with a combination of regulatorymechanisms, widespread awareness andfiscal incentives that will encourage boththe private and public sectors to growwithout compromising the Kingdom'senvironment and rich natural resources.B H U T A N : T H E R O A D F R O M R I O5

B H U T A N : T H ER O A D F R O M R I OIt should be noted that thissurpassing emphasis on theenvironment benefits not onlyBhutan, but also the world atlarge. As a small Least DevelopedCountry, Bhutan has madeenormous economic sacrifices toconserve forests, biodiversity andother natural resources. In return,this extraordinary commitmentshould be compensated by theinternational community, both infinancial and technical terms. Theoccasion of the World Summit forSustainable Development providesan excellent opportunity for theglobal community to begin to giveserious consideration to compensatecountries like Bhutan for theremarkable sacrifices made inpreserving its natural heritage.The SettingThe Kingdom of Bhutan is a small,landlocked country situated on thesouthern slopes of the eastern Himalayas,bordering the Tibetan AutonomousRegion of China in the north and India inthe west, south and east. It covers about46,500 square kilometers in area, roughly150 kilometers north to south and 300kilometers east to west.TerrainBhutan is a country of dramaticcontrasts, rising almost vertically from thewarm, tropical plains of India to the crisp,rarefied atmosphere of the Himalayas. Thecountry has three major landform features:the southern foothills, comprised of steephills and dense forests; the inner Himalayas,with broad river valleys where rice iscultivated; and the high Himalayas,featuring snow-capped mountains andalpine slopes covered with rhododendronsand magnolias.These three landforms have distinctiveclimates. Heat and humidity characterizethe southern foothills, with annual rainfallof 2500-5000 millimeters. In contrast, theinner Himalayas have a cool, temperateclimate, with annual rainfall of 1000millimeters; the high Himalayas feature asevere alpine climate and annual rainfall ofonly 400 millimeters. Rainfall isconcentrated in the summer months, withthe southwest monsoon accounting for60% to 90% of total rain. Great diversityexists both between and within the regions,as climatic and rainfall characteristicschange rapidly from one valley to the next,with consequent changes in flora, fauna andcultivated crops. This has bequeathed thecountry with a diversity of plant andanimal life rarely seen anywhere and led toBhutan's inclusion as one of the Earth's10 biodiversity "hot spots."B H U T A N : T H E R O A D F R O M R I O6

B H U T A N : T H ER O A D F R O M R I OPeople, Religion andEnvironmentBhutan's population is currentlyestimated at 698,950 people, the majorityof whom practice the Vajrayana form ofMahayana Buddhism, which is a mix ofthe historical teachings of the Buddha andBon animistic beliefs. Buddhism believesin universal respect for all forms of lifeand the importance of protecting naturein all its manifestations. This belief is deeplyembedded in Bhutanese society and culture.While Buddhism teaches preservation andprohibits killing, Bon inculcates a deeprespect for the environment and the beliefthat all natural phenomena - mountains,rivers, lakes, rocks and the Earth itself -are imbued with powerful spirits that caninfluence the general well being of a village,community or society. According totraditional beliefs, to disturb and pollutethese aspects of the natural world are toincur punishments from the deities rangingfrom disease to death. Consequently, theBhutanese have always treasured the naturalenvironment and looked upon it as asource of all life. This reverence for naturehas enabled Bhutan's environment toremain largely intact.Political Emergence ofBhutanWhile no conclusive archeologicalstudies have been carried out, some stoneimplements found in Bhutan suggest thatthe country was inhabited as early as 2000-1500 B.C.E. Bhutan has existed as anindependent nation throughout its historyand was never colonized. Buddhism wasintroduced in the 7th Century and ispracticed by the majority of thepopulation. Until the beginning of the 20thCentury, Bhutan was ruled by the dualsystem of administration established byZhabdrung Ngawang Namgyal in 1651.Before the 17th Century, Bhutan had beendivided into different factions, withfrequent wars. The Zhabdrung unifiedBhutan and established a theocratic systemof government, including the distinctiveadministrative system and a code of law.In so doing, he created the office of theDruk Desi to look after the temporaladministration of the country and the JeKhenpo to look after the religious matters.While his successors lacked his stature andvision, this system provided a workableform of government for more than twocenturies. However, the elective nature ofthe post of Druk Desi and frequentdisputes over the issue of succession tothe office of the Zhabdrung resulted ininternal strife and instability. The desire ofthe clergy officials and the people forpolitical stability and internal peace led tothe establishment of the hereditarymonarchy. Consequently, the theocracyestablished by Zhabdrung NgawangNamgyal came to an end in 1907 whenUgyen Wangchuck (1862-1926) wasunanimously elected as the first King ofBhutan by popular consensus.After centuries of self-imposedisolation, Bhutan opened its doors to theoutside world in 1961. The WangchuckB H U T A N : T H E R O A D F R O M R I O7

B H U T A N : T H ER O A D F R O M R I Odynasty led Bhutan into an era of peace,stability and order. Under the monarchy,sweeping reforms were initiated abolishingserfdom, creating an independent judiciary,building the social and economicinfrastructure of a modern state andestablishing representative institutions at alllevels of Government to enable popularparticipation in the governance of theKingdom. The most profound changestook place in 1998 when His Majesty theKing dissolved his Cabinet and devolvedall executive authority and power to anelected Council of Ministers who wouldserve for five-year terms. He alsoestablished a mechanism for a vote ofconfidence in the King whereby theNational Assembly can remove a Monarchby a two-thirds majority vote. Theinstitution of monarchy thus has beeninstrumental in modernizing the Kingdomwithin a remarkably short span of timewithout undermining its rich religious andcultural heritage and has enabled Bhutanto occupy its rightful place in the comityof nations.renewable natural resources, with 79% ofthe population engaged in farming, animalhusbandry and agro-forestry.Under His Majesty'sdistinctively Bhutanese concept ofGross National Happiness,environmental conservation is oneof the four pillars for steering theprocess of change. This approachgauges development not simply interms of income growth but alsoviews it in terms of happiness,contentment and the spiritual andemotional wellbeing of the people.It exemplifies a holistic approachto development through equitablesocioeconomic development,environmental conservation,preservation and promotion ofculture, and the strengthening andexercise of good governance.Modernization of the economy beganin the late 1950s with the establishment ofa communications infrastructure, togetherwith the social infrastructure of schoolsand hospitals. The per-capita GDP in 2000was US$712.8 (Statistical Yearbook ofBhutan 2001), even though economicgrowth fell to a still-robust 5.7% from7.4% in 1999. Despite the growth of"modern" sectors, particularly hydropowergeneration and manufacturing, theBhutanese economy remains based onB H U T A N : T H E R O A D F R O M R I O8

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYCHAPTER 2 2a.International cooperationworldto accelerate sustainabledevelopment in developingcountries and relateddomestic policiesBhutan's rare and significantsacrifices on behalf of conservingthe environment overimmediate economic gains must beacknowledged by the internationalcommunity through increasingfinancial supportThe decade after Rio has seen theforging of new global partnerships topromote sustainable development.Sustainable development, it has beenrecognized, can be furthered through tradeliberalization; making trade andenvironment mutually supportive;providing adequate financial resources todeveloping countries and dealing withinternational debt; and encouragingmacroeconomic policies conducive toenvironment and development. During thepast 100 years, we know that the naturalenvironment has borne the stressesimposed by a fourfold increase in humannumbers and an eighteenfold growth ineconomic output. One of two jobsworldwide - in agriculture, forestry andfisheries - depends directly on thesustainability of ecosystems. Even moreimportant, so does the planet's health - andour own.In line with its commitment to preventoverexploitation of the country's naturalresources, Bhutan has deliberately forgoneimmediate economic gains fromindiscriminate development of sectorssuch as tourism and mineral quarrying. Inorder to encourage investment to stimulateeconomic growth - which will help to meetthe basic needs of Bhutanese in a sustainablemanner - the Royal Government has a firmpolicy against corruption and in favor ofensuring effective, efficient, honest,equitable and accountable publicadministration. Indeed, it can be fairly saidthat the Kingdom would rank among the"honorable exceptions" cited by the UnitedNations Secretary-General that haveinstituted adequate responses to thechallenge of sustainability before itbecomes too overwhelming. This judiciousapproach to growth is bound to paydividends in the long run.B H U T A N : T H E R O A D F R O M R I O11

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYHaving noted that, it should beunderscored that these opportunitycosts and sacrifices involved inconserving the environment aresignificant. International acknowledgmentof Bhutanese endeavorsthrough financial and technicalsupport would provide not onlyuseful encouragement for continuationof such progressive policiesbut also could expose the Bhutanesemodel to a wider audience.Within the context of internationalcooperation, the Bhutan Trust Fund forEnvironmental Conservation has provena strong, innovative financing mechanismto help Bhutan continue long-termconservation activities and to ensure aguaranteed source of funding despiteshifting priorities of donor organizations.With an endowment of US$20 million(now $30 million), the Trust Fund waslegally incorporated in 1996 as the world'sfirst environment trust fund with donorassistance from the Global EnvironmentFacility, World Wildlife Fund and theGovernments of Bhutan, Denmark,Finland, the Netherlands, Norway andSwitzerland. Globally, 40 such trust fundshave been modeled on the successfulBhutanese experience. Project grants haveranged from human resourcesdevelopment and capacity building in keyGovernment and non-Governmentorganizations to enhancement of environmentalawareness through primaryeducation and other media. Several grantsalso have been awarded to Bhutaneseresearchers. Nevertheless, the resources ofthe Trust Fund cover only a fraction ofthe financing needs for sustainabledevelopment in the country.As noted in Section I, the SustainableDevelopment Agreement between theGovernments of Bhutan, the Netherlands,Costa Rica and Benin also has provenunique in scope in forging a new form ofNorth-South cooperation based on theprinciples of reciprocity, equity andparticipation. In line with Agenda 21 andother instruments, the Agreement aims tocontribute to efforts in halting furtherdegradation of the global environment.The Agreement is implemented nationallythrough an autonomous body, the Boardof Sustainable Development and itsSustainable Development Secretariat.Under the Agreement, the foursignatory countries, including Bhutan, alsohave recently established a United Air Fund.It aims to raise resources for the protectionof the global climate system as well as topersuade developed nations to financiallycompensate developing nations forunequal access to environmental space.On the bilateral front, theGovernments of Denmark and Indiahave provided particularly significantsupport in the environment sector. Indiaand Bhutan have especially closecollaboration because of the long commonborder and have worked jointly topreserve the area of Royal Manas NationalPark - Bhutan's premier protected area andhome to numerous endangered species -B H U T A N : T H E R O A D F R O M R I O12

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYwhich is adjacent to India's own Manasreserve. Moreover, additional cooperationon trans-boundary issues is expected toexpand. Other donors with which Bhutancollaborates include the United NationsSystem, Global Environment Facility,World Bank, World Wildlife Fund, AsianDevelopment Bank, European Union,Austria, Finland, Germany, Norway andSwitzerland.Nonetheless, it is increasingly difficultfor Bhutan to receive continued andcomprehensive support in the field ofenvironment and natural resources, giventhe generally declining levels of ODA andchanges in donor priorities. As noted inAgenda 21, it is imperative that countriessuch as Bhutan continue to receive financialresources to conserve large natural areas,since they face many of the constraints ofa Least Developed Country and haveimminent needs in social and infrastructuraldevelopment as well.2b.Combating PovertyPoverty and vulnerability inrural Bhutan are inextricably linkedto access to resources, while urbanpoverty and unemployment aresharply on the riseThe first National Human DevelopmentReport, published in 2000, rankedBhutan 130 among 174 countries, the resultof constant and impressive improvementsin overall human deve-lopment.Considering that the Kingdom has ahistory of only four decades of moderndevelopment, this is no small achievement.Unlike many other countries, Bhutan doesnot present the picture of a hungry, destitutepopulation that is normally associated withabject poverty. Nevertheless, poverty is areality in contemporary Bhutan. Althoughthe lack of quantitative information makesit difficult to analyze poverty's scope,causes and consequences, it is possible todiscern trends and patterns qualitatively.Since Bhutan's First Five Year Plan in1961, the implicit goal of the RoyalGovernment has been poverty reduction.Indeed, poverty viewed from theperspective of Gross National Happinesshas to be analyzed more holistically thanthe traditional concept of increasingeconomic growth and must include accessto resources and services as well asprovision of opportunities, empowermentand security for the poor. To thatend, Bhutan has endorsed the UnitedNations' Millennium Declaration, whichcommitted world leaders to attaining eightpoverty-related goals by 2015. Among theMillennium Development Goals, it isrecognized that environmental degradation,resource depletion and naturaldisasters have a disproportionate impacton the poor.Thus far, the nation's overalldevelopment and economic policy aimsat combating poverty by: Controlling demographic trendsthrough voluntary family planningprograms to reduce the highpopulation growth rate Ensuring that health services areB H U T A N : T H E R O A D F R O M R I O13

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYavailable to people nationwide in anequitable and regionally balancedmanner, through 29 hospitals, 160Basic Health Units, 18 indigenoushospitals and 447 outreach clinics Providing free education for allthrough 151 community schools,110 primary schools, 59 junior highschools and 26 high schools Providing rural credit in an equitableand regionally balanced mannerthrough the Bhutan DevelopmentFinance Corporation, a financialinstitution that targets the poor,particularly those who individuallycannot provide the collateralrequired to obtain loansIn rural Bhutan, poverty andvulnerability are perhaps most cruciallyrelated to lack of physical access toinfrastructure and social services. With asparse population widely scattered acrossextremely rugged terrain, this is particularlylinked to expansion of road infrastructure,a priority for Bhutan's Ninth Five Year Plan(2002-2007). However, it is very costly todevelop roads - especially environmentfriendlyroads - and costs of maintenanceare high, bringing the capacity of muchof the country's road system into question.Notably, donors have been reluctant toprovide grant assistance for additional roadinfrastructure, and resource mobilizationis very difficult. The current total roadlength of more than 3,746 kilometresleaves wide parts of the country cut offfrom income-generating and otherdevelopment activities. Because there areno incentives for farmers to produce forthe market, they remain entirely dependenton subsistence agriculture, withoutalternative livelihoods in times of cropfailure.At the macroeconomic level, theapproach to economic policy, privatesector development and industrializationtakes into consideration the importance ofagriculture in the economic structure ofBhutan. This is not only because the vastmajority of the people depend on it, butalso because the domestic marketeventually will rely on raising real incomein this part of the population. Becausecultivable land is close to fully exploitedalready and is highly limited at only about7.7% of Bhutan's total land area, iteventually will constrain developmentunless agricultural productivity increases ornon-agricultural activities can beestablished, in rural as well as urban areas.Moreover, Gross National Happinessimplies that any strategic policies andinterventions must address the livelihoodsof the rural population.A trend with critical implications forboth poverty and environment nationwideis that of rapidly increasing urbanization,along with the urban impoverishment thatis closely related to unemployment. Now,large parts of the rural population facelabor shortages as inhabitants - primarilymen - move to Thimphu or Phuentsholing,the second-largest town. A recent surveyof five districts revealed that there was amarked decline in the availability of farmlabor, with labor availability decreasingwith increasing access to rural areas.B H U T A N : T H E R O A D F R O M R I O14

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYMost rural-urban migrants appear tobe seeking employment, although jobavailability has in no way been able to keeppace with the influx. While a 1999 LaborForce Survey found only 1.4% officiallyunemployed, another survey in the capitalof Thimphu estimated that, out of anofficial population of 40,l78 in 1998, only33% were employed, while 55% were"dependents" and 12% unemployed.Equally worryingly, a new study by theMinistry of Communications and theCentral Statistical Organization, drafted inMarch 2002, found that migrants fromrural areas constitute the majority of thepoor and low-income group in urbanareas. The study found that among thisgroup, which suffers social as well aseconomic deprivation, 40% of children inThimphu and 65% in Phuentsholing wereilliterate.Currently, strong family ties provide asocial safety net for most of the vulnerable.However, rapid urbanization calls forincreased emphasis on employmentgeneration and the creation of socialsecurity schemes to address the growingproblem. At the same time, the RoyalGovernment is committed to improvingthe standard of living and quality of life inrural areas, thereby reducing the "push"factors in migration. Provision of qualityservices and raising of rural incomes, whichare being highlighted by the RoyalGovernment through development ofregional growth centers, will assist inencouraging rural residents to continue thevillage life that has been the wellspring andrepository of Bhutanese culture throughouthistory.With regard to the environment,alarmingly increasing amounts ofagricultural land are being lost to urbansprawl. In the last four years alone, Bhutanhas lost 629.91 acres of wetland toinfrastructure development and landconversion - significant when the amountof cultivable land is only about 53,200acres. This does not include illegalconversions, flood-affected or abandonedwetland areas. A total of 583.33 acres ofthis wetland was lost in only six districtsthat are undergoing urbanization. Humaninduceddegradation of soils, including soilerosion caused by overgrazing anddeforestation, could put the livelihoods ofhundreds of thousands of Bhutanese atrisk. Likewise, the unsustainable, but largelyunnoticed, exploitation of groundwaterresources must be avoided to maintainfood security. Mostly flat land is being lost,further reducing rice and other foodproduction. [Further details on this trendwill be given in Section 3b.]Also alarming is Bhutan's highpopulation growth rate, which, althoughdeclining after a vigorous campaignundertaken by the Royal Government, stillpresents a serious challenge to a nation withsuch a small percentage of land undercultivation. Sharply rising populationgrowth will have significant impact onvirtually all sectors, including education,health, employment and, needless to say,environment. The current population isalso very young, with 43% of the total inthe age group below 15. The high rate ofpopulation growth is mostly attributed toa rapid decline in mortality, especially ofinfants; mortality measured by crude deathB H U T A N : T H E R O A D F R O M R I O15

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYrate declined 33% during the decade 1984-1994 alone, for example. At the same time,the decline in total fertility rate over thesame period was very modest, by only 5%.[Population challenges will be detailed inSection 2d.]While accessibility is the foundation ofthe Ninth Plan, the success of continueddevelopment also must be based uponcontinuing decentralization, with heavyemphasis on community participatorybasedprojects regarding what residentsperceive is best for them. Not being ableto participate in or take advantage ofsocio-economic opportunities ordevelopment projects manifests in Bhutanas a lack of incentive and furtherencourages mere household selfsustainability.His Majesty the King initiatedthe process of decentralization in 1981,establishing the Dzongkhag YargyeTshogchungs (DYTs, or DistrictDevelopment Committees) ; a decadelater, His Majesty took the process a stepfurther by introducing the Geog YargyeTshogchungs (GYTs, or BlockDevelopment Committees).Local people need to participate andlead in the protection and sustainablemanagement of natural resources; likewise,they need to share in the benefits of naturalresources from their regions. Thus,people's participation in governance at theblock and community level - also acenterpiece of the Ninth Plan and with anemphasis on women - is imperative. Thisis being promoted to bring allcommunities out of their isolation, expandtheir access to essential socio-economicservices and enlarge their choices along theparameters of Gross National Happiness.2c.Changing ConsumptionPatternsThrough shaping of positivevalues, Bhutan is strongly promotingthe merits of rural subsistence livingas opposed to more consumeristlifestylesA major cause of continuedworldwide environmental degradation, asstated in Agenda 21, is the unsustainablepatterns of consumption and production.The aim is to ensure efficient use of naturalresources through minimizing pollutionand reinforcing values that encouragesustainable production and consumptionpatterns, along with policies that encouragethe transfer of environmentally soundtechnologies to developing countries suchas Bhutan.In an effort to enhance sustainableconsumption patterns, Bhutan is stronglypromoting the merits of rural subsistenceliving as opposed to more consumeristlifestyles. Gross National Happinessstresses different concepts of wealth andprosperity, highlighting higher standards ofliving through lifestyles that are lessdependent on the Earth's finite resources.Shaping positive values encompassesvalue education, which has beenintroduced in the schools, as well asemphasizing the values of extendedfamilies. Enhancing such values calls forB H U T A N : T H E R O A D F R O M R I O16

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYthe promotion of traditional arts,architecture and handicrafts. At the sametime, Bhutan recognizes that it cannot be a"living museum" and is also stronglypromoting the introduction and expansionof Information and CommunicationTechnology (ICT), an environmentfriendlyway to develop a knowledgebasedsociety. This will allow small and/or remote countries such as ours tobecome players in an increasinglyglobalized world and will preventBhutanese from being left behind by the"digital divide."Even so, with Bhutan's opening up tothe world has come a rapid change inlifestyles, including the introduction of newvalues, intensified consumerism and mediainfluence that may, if unchecked, erode therich spiritual and cultural traditions uponwhich Bhutan has flourished. In terms ofconsumption, one of Bhutan's biggest andmost challenging demands is that forfuelwood - a demand that is among thehighest in the world. The per-capita annualconsumption of fuelwood is estimated at1.27 cubic meters; total current annualfuelwood consumption is estimated at .94million cubic meters, which may soonreach the total Annual Allowable Cut levelfrom forests nationwide, estimated at 1.18million cubic meters. [This will bediscussed further in Section 3a.]As it continues to build its economy,the Royal Government is committed toavoid unsustainable patterns that aregenerally recognized as unduly hazardousto the environment, inefficient andwasteful. For example, a major step hasbeen taken through the banning of plasticbags nationwide. To achieve the overallgoal, however, international assistance willbe vital.2d.Population andSustainabilityAn uncontrolled populationgrowth rate is very likely to result inthe unsustainable use of Bhutan'snatural resources and is beingprioritized as a policy issueThe 1994 International Conference onPopulation and Development, held inCairo, stated that sustainable developmentcould only be achieved through integratedstrategies of development with populationplanning. The most recent populationsurvey of the country showed a decreasein the population growth rate from a veryhigh 3.1% per annum in 1994 to 2.5% in2000. Even so, it is estimated that by 2018the population of Bhutan could rise to 300persons per square kilometer of arableland, more than doubling the populationdensity on the very limited cultivable area.Moreover, even if the replacement levelof fertility is reached by 2012, as targetedby the Royal Government, the populationis likely to grow for many years due to thepopulation momentum resulting from theyoung age structure, with nearly half thepopulation younger than 15. It should benoted, however, that an emerging problemis that of the unattended elderly in ruralareas, caused by rural-urban migration andchanges in family values.B H U T A N : T H E R O A D F R O M R I O17

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYUnder the above growth scenario,social overhead costs also will increasebecause of the pressure on health andeducation facilities, which the Governmentprovides for free. Rapid urbanization alsowill demand more infrastructure, curbingeconomic development and sustainablemanagement of the environment. Withregard to Bhutan's environmentalresources, this will pose an even moreserious threat. Many forest areas arealready under heavy pressure forexploitation for fuel, timber and otherwood products. The need for moregrazing lands also could conflict with thegoal of protecting forest lands.In Bhutan, culture and religion do notconflict with the need for an effectivepopulation program; indeed, the religiouscommunity has provided immensesupport to and participation in the effort.To control the population growth rate,Bhutan has actively stepped up familyplanning activities, including the supply ofcontraceptives, the dissemination ofinformation on family planning and theexpansion of maternal and child health carefacilities. Individual choice is paramount.Particular emphasis has been given tothe benefits of small families and theeconomic, social and health benefits ofdelayed marriage and birth spacing. Withgirls enjoying equal opportunities ineducation, the levels of awareness aboutpopulation issues also has been rising;lengthier education for girls has beendemonstrated to be an effective means ofreducing population growth. Special youthcounseling and sex education initiativestarget adolescents between the ages of 15and 24. The political will is exemplified bythe commitment of Her Majesty theQueen Ashi Sangay Choden Wangchuck,who serves as UNFPA GoodwillAmbassador and who has extensivelytraveled the country promotingreproductive health.2e.Protecting and PromotingHuman HealthConcern for public health has longbeen a driving force behind environmentalpolicy in BhutanAs Agenda 21 so rightly notes, humanhealth depends on a healthy environment,including clean water, sanitary wastedisposal and an adequate supply of healthyfood. Public health problems in ruralBhutan have traditionally been associatedwith conditions of poor hygiene and ashortage of accessible health services. Bothof these root causes of disease are beingeffectively addressed in the Kingdom withthe establishment of well-distributed healthfacilities in rural areas along with increasingnumbers of health workers, as well as risingaccess to safe drinking water and sanitation(77.8% and 88% coverage respectively).Overall, remarkable improvements inhuman health since development beganfour decades ago led the United NationsEnvironment Program in 1996 to classifyBhutan in the category of medium humandevelopment countries. Basic health careis free, and Bhutan has invested significantlyin ensuring universal primary health care.B H U T A N : T H E R O A D F R O M R I O18

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYThe concern for public health thusconstitutes a guiding force shapingenvironmental policy in the country. Theproposed National EnvironmentalProtection Act, for example, will set andenforce standards for air quality, waterquality, pollution levels and vehicleemissions.Health priorities for the future includeensuring that primary health care servicesare further extended to reach those livingin the most remote parts of the nation,including the establishment of clinics inthose areas and the training of VillageHealth Workers; and further improvementin the quality of health care, includingdisease control programs and specializedinstitutions. Programs that respond to theneeds of special groups, including thedisabled, the mentally ill and the elderly,are being substantially strengthened, whiletraditional medicine is being integrated intothe Bhutanese system of health care.In addition, greater attention is beinggiven to health-related issues that must beeffectively addressed in a multisectoralcontext, including population, nutrition andemployment creation for women as wellas men. To address the issue ofsustainability and the high cost ofproviding free health care to a verydispersed and scattered population,innovative methods of financing healthcare, including a Health Trust Fund, havebeen established, while user fees for someelective medical services are beingintroduced in urban areas.Community participation in healthissues, through Village Health Workers andwater caretakers, among others, also isbeing emphasized. Finally, Bhutan is takingadvantage of new technologies that haveenabled it to introduce health telemetrics,or telemedicine, a system particularlyappropriate for the country's decentralizedsystem of health care. Health telemetricsis allowing linkages between referralinstitutions and the rapid diagnosis andtreatment of illness and disease,contributing not only to the quality ofhealth care but also to its cost effectiveness.While modern development hasbrought many improvements in the qualityof rural life, it also has brought previouslyunknown adverse environmental impacts.Particulate matter, effluent from industriesand gaseous pollutants all contribute tohealth problems in one way or another.Likewise, in urban areas water availabilityand quality has become a major concern,as has sanitary disposal of excreta andother human waste. Indeed, the need forproper collection and disposal of nondegradablesolid waste is increasing as aresult of the steady growth in consumptionpatterns. This, in turn, is placing additionalpressure on the few landfill sites operatingat present.The 11 townships planned nationwideby the Department of UrbanDevelopment and Housing, unlike earliertowns such as Thimphu and Phuentsholing,will have properly planned town areas thatwill cater to providing such services aswater supply, landfill sites, roads, footpathsand drainage. These towns are intendedB H U T A N : T H E R O A D F R O M R I O19

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYto be operational by the end of 2004, andother towns also are being identified forplanned development.2f.Human Settlements,Urbanization andSustainabilityAir pollution from a variety of sources,including winter forest fires, also issignificantly increasing. In 1999, a surveyon air pollution in Thimphu identifiedvehicle emissions and heating appliancesusing fuelwood as primary causes of thedeteriorating air quality in the capital. Adecline in air quality also has been blamedfor increased incidences of respiratorydisease, including asthma, among the urbanpopulation. Likewise, there is a highincidence of respiratory illnesses resultingfrom year-round exposure to smokeemitted from still-rudimentary fireplacesthat are used for cooking and heat in ruralhomes. In an effort to reduce air pollutionand improve human health, the RoyalGovernment has taken several steps. Theseinclude banning the import ofreconditioned and secondhand cars, whichare higher emitters than new cars;introduction of smokeless stoves andsawdust-burning fireplaces; and the pursuitof other alternative energy sources.Lastly, the occupational health andsafety aspects in industries and otherworkplaces are beginning to receiveattention. The National EnvironmentCommission Secretariat has startedincluding occupational health clauses inenvironmental clearances with whichproponents must comply. In the future,the new Department of Employment andLabor will be taking the lead in monitoringand enforcing occupational health andsafety standards across the country.As it becomes clear thaturbanization is here to stay inBhutan, the efficient managementand sustainability of humansettlements is a priority concern, as isthe need to ensure that all futureurban growth is in accordance withproven principles of planningBhutan is among the least urbanizedcountries in the world, with its urbanpopulation comprising 21% of the totalpopulation. Urbanization began only in1961 with the introduction of the First FiveYear Plan. In a pattern that would berepeated in other new administrativecenters, the growth of Thimphu, thecapital, began gradually but soon gatheredmomentum. At first, only a trickle ofprofessionals arrived to staff new publicsector positions, but they were soonfollowed by a chain migration ofadditional support personnel. Theestablishment of infrastructure, educationaland health facilities further emphasized theadvantages of urban areas and attractedmore job seekers and entrepreneurs. Theconstruction of roads also proved a majorforce for urban development, increasingaccessibility and mobility.Now, as also noted in Section 2b, thesituation is accelerating rapidly as Bhutan'surban centers are faced with ever-increasingmigration from rural areas. Indeed,securing land for urban growth and thenutilizing it in ways that contribute to bothB H U T A N : T H E R O A D F R O M R I O20

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYsustainable development and GrossNational Happiness will be one of theKingdom's most formidable challenges inthe years ahead.As a whole, Bhutan's urban populationis increasing at a rate of 6% to 7% annually,more than double the national populationgrowth rate even at its recent peak of 3.1%per year. More than half of the urbanpopulation resides in Thimphu andPhuentsholing, with the rest distributed in28 towns with populations ranging from500 to 10,000. If trends continue, it isestimated that the country's urbanpopulation would quadruple to more than400,000 during the next two decades.Thimphu alone is growing at about 7%annually and is expected to have 150,000inhabitants by 2025.Population density, as seen in Section2d, also is increasing pressure on theenvironment given the high growth ratecoupled with the difficult geographicalterrain, which makes very little landavailable for cultivation. Urban pressurescreated by the sharp rise in urban migrationand expanding cities are most visible ininadequate road networks and parkingfacilities, acute housing shortages,inadequate telecommunications facilities,poor water supply and drainage, and solidwaste and litter disposal.With the change from extended tounitary families, social as well as physicalinfrastructure in urban areas has comeunder severe pressure. An exponential,haphazard growth of unauthorizedhousing outside town limits, including anemerging squatter population, has furtherworsened numerous urban problems. Onthe positive side, in the capital the CityCorporation, which is responsible forplanning activities, recently established strictrules making it mandatory for Thimphuhouseholds to be linked to a newlycompleted modern sewage system, thusenhancing the city's standards of hygieneand sanitation as well as environmentalcleanliness.Further urban development is essentialfor the development of the country as awhole, the Royal Government recognizes,but this development must integrate theprinciples of sustainability in aneconomically sound and culturally viablemanner. In view of this, a high-levelNational Consultative Committee onHuman Settlement has been formed tofacilitate development of urban growthefficiently and effectively through thedevelopment of appropriate policies,plans, rules and regulations.The Royal Government envisions thaturban development will take place in asocially and economically proper - andenvironmentally sustainable - fashion. Aspart of its new commitment to effectiveurban development, a National UrbanPolicy paper is also being developed andis expected to be completed later in 2002;this is expected to contribute to thedrafting of legislation for the urban sector.Other strategies are being developed tocreate employment and privatize urbanservices, and rules are being enactedpertaining to municipal administration, landacts, subdivision regulations and buildingB H U T A N : T H E R O A D F R O M R I O21

SOCIAL AND ECONOMIC DIMENSIONS OF SUSTAINABILITYcodes. A detailed structural plan forThimphu also is under way to regulategrowth. At the same time, balanced andregional development, including improvedaccess to services in rural areas, is expectedto be a mitigating factor offsetting theurbanization challenge.2g.Making Decisions forSustainable DevelopmentThe building up of institutionalstructures and policy and regulatoryframeworks for sustainabledevelopment is a priority for thecountryAs has been indicated throughout thischapter, maintaining a balance in the naturalecosystem and balancing environmentalconservation with economic developmentremain important policy goals in Bhutan.But, unlike the past, the environment hascome under serious threat of beingcompromised for economic gain. Theimportance of building up institutionalstructures and policy and regulatoryframeworks for sustainable developmentthus is a priority for the country.Beginning even before its 1990preparatory workshop for the UNCEDconference, Bhutan had been committedto environmental conservation given itscultural and religious heritage. But the 1990workshop marked a crossroads at whicha decision was taken on a desirable strategyto maintain Bhutan's environmental andcultural wealth in the face of fundamentalchange.This has been achieved throughnumerous initiatives described in thischapter, including the selection of socialand economic programs in both currentand upcoming Five Year Plans;formulation of important sustainabledevelopment laws such as the NationalEnvironment Strategy; increasing emphasison decentralization and people'sparticipation to influence the direction ofdevelopment; and insurance that keysectors such as energy, transportation,agriculture, forestry, water, health andtourism incorporate environmentalmeasures.Again, however, it should benoted that these environmentallysound and socially equitable andresponsible choices have hadeconomic costs as well - but theyare costs that Bhutan hasconsciously incurred in itstestament to sustainable development,to poverty reduction, to anintact environment. Bhutan willnot pass the costs of environmentaldamage to other parts of society,other countries or future generations,adding to human suffering. ForBhutan, the road after Rio hasbeen one of healthy, productivedevelopment in harmony withnature, allowing all its people thepotential to have lives of dignityand integrity, lived with a civilizedrespect for others.B H U T A N : T H E R O A D F R O M R I O22

CONSERVATION AND MANAGEMENT OF RESOURCESCHAPTER 3 3a.Protecting theAtmosphereBhutan's fragile Himalayanenvironment and its richconcentration of living speciesface especially severe threats if climatechange is uncheckedIn the Himalayas, climate change ismanifested in natural disasters such as flashfloods from melting glaciers as well asmodifications in natural systems in forests,increased health risks from malaria, andnoticeable alterations in crop growingseasons. Indeed, melting ice and glacial lakeoverflow are already more frequent inBhutan - and were the source of a 1994glacial flash flood that caused considerabledamage in the western district of Punakha- while receding glaciers are bringing in theirwake avalanches, soil erosion and dramaticchanges in river flow.For Bhutan, where 79% of thepopulation depends on agriculture andnatural resources and where hydroelectricpower generation is the dominant sourceof revenue, the negative impacts of climatechange would be especially severe.Although the country's contribution toglobal greenhouse gas emissions is notsignificant, it is extremely vulnerable, givenits fragile mountain environment and itslack of resources as a Least DevelopedCountry for adapting to these adverseimpacts.The full extent of vulnerability ofBhutan to climate change can be betterdefined only after a scientific analysis ofthe impacts on the mountain ecosystem.Projects to conduct this analysis of likelyimpact on water resources, agriculture andlivestock are urgently required. Likewise,development of a national policyframework to facilitate implementation ofappropriate and effective mitigationmeasures and adaptation strategies isimportant.All this will, however, requireinstitutional strengthening, communityparticipation, development of nationalcapacity and local and regional expertise.Enhanced international assistance will beespecially important to continue increasingawareness, such as through communityparticipation in micro-environmental actionplans, and to provide subsidies for energyefficientsystems and alternative nonwood-basedmaterials for construction.Efforts also will include developing locallyappropriate methodologies for analyzingthese effects and increasing understandingof the current interactions of climate andB H U T A N : T H E R O A D F R O M R I O25

CONSERVATION AND MANAGEMENT OF RESOURCESenvironmental and socioeconomic effectsand changes.Such measures will be prioritized,however, because Bhutan is in a uniqueposition as one of the very few countrieswith greenhouse gas (GHG) sequestrationcapacity. With more than 72% of its surfaceunder forest cover and a low level ofpolluting industries, Bhutan is in a positionto meet the goals of the United NationsFramework Convention on ClimateChange to stabilize GHG concentrationsin the atmosphere at a level that wouldprevent dangerous interference with theclimate system. [Bhutan ratified theUNFCCC in 1995.]Forest coverage plays a critical role inthe climate system by acting as sinks forgreenhouse gases; with increasingmodernization, the need for these sinks willcontinue to grow. The initial nationalcommunication for Bhutan to theUNFCCC Secretariat, submitted inNovember 2000, focused on the GHGinventory. The estimate of GHG emissionsin 1994 from total carbon dioxideemissions was 228.46 Gg; by globalstandards, this is insignificant. Afteraccounting for gross sequestration fromland use change and forestry activities,carbon dioxide emissions in Bhutan are anet removal of some -3.55 Gg/yr.Although current emissions are small,an increase is nevertheless foreseen in someGHG sources such as road transport; thisis likely to continue if left unchecked.Further assistance in improving datacollection and analysis on GHGs is needed;one problem encountered during the firstGHG inventory was the low level ofconsistency of data, as well as lack of dataitself. Agencies involved in data collectionand management require urgent assistancein terms of upgrading of physical facilitiesand training of human resources. Toimplement appropriate and effectiveresponses to climate change, the followingare priorities for Bhutan: Improved environment database inall Ministries Emphasis on mitigation optionsavailable in sectors including energy,industrial processes, agriculture, landuse and forestry, and wastemanagementMitigation activities in the energy sectorrelevant to Bhutan include renewableenergy technology options, increasedefficiency in wood burning, introductionof efficient vehicles and improvement ofimported fossil fuel quality. These options,including their financial and economicimplications, will be examined carefully toestablish the GHG abatement potential.Alternative sources of energy such assolar power, windmills, water mills andbiogas also are being studied because theycan help reduce atmospheric pollution andprovide energy for settlements far fromthe national energy grid. Solar energyalready is used in some villages across thecountry. In the near future, it is quitepossible that remote communities, schoolsand health facilities will draw on solarpower for electricity and heating; a recentstudy by the Royal Government alsoB H U T A N : T H E R O A D F R O M R I O26

CONSERVATION AND MANAGEMENT OF RESOURCESsuggests that biogas, generated from dungand compost, could meet the cooking andheating needs of some 17,000 ruralhouseholds. While national-scalehydroelectric projects will provide energyfor major towns and urban centers, besidesearning significant revenue from export,clean power in many rural areas is expectedto come from small hydropowergenerators with capacities to light 200 to1,000 households.Urban air quality is emerging as aserious issue for Bhutan with the increasein the number of vehicles in the countryrising steadily, primarily in urban areas. Inthe last year alone, the number of vehiclesin the Kingdom grew by 14%, from14,206 to 16,335. In Thimphu, twowheelerscompose about 45% of the totalvehicles, while cars and jeeps account forabout 35%. Low fuel quality, poor vehiclemaintenance and facilities, andgeographical factors such as high altitudeand narrow valleys particularly aggravatethe problem of vehicular pollution.Although the absolute number ofvehicles per person in Bhutan is stillrelatively low, the National EnvironmentCommission, in collaboration with theRoad Safety and Transport Authority, hasbegun measuring the emission levels ofcars, to be followed soon by the institutionof nationally acceptable standards. Inaddition, the full privatization of the publictransport sector was achieved in 1990, with21 operators managing a fleet of morethan 100 buses on 73 routes nationwide.The Royal Government likewise has madeplans to enhance mass transport servicesfor commuters in the nation's larger towns,and the first city public transport systemwas introduced in Thimphu in 1999 toreduce pollution in the narrow valleywhere the capital is located. As noted inSection 2e, the import of inefficientrefurbished vehicles also has been banned,as has the import of two-wheelers withtwo-stroke engines. Efforts are being madeto improve the quality of fuel and toensure the availability of spare parts in thelocal market, and footpaths have beenconstructed to improve traffic movementin urban areas.Other contributors to urban airpollution include forest fires and the veryhigh level of fuelwood used for heating.In Thimphu alone, the annual consumptionof fuelwood is about 916,560 cubic feet.The burning of fuelwood causesparticularly high levels of pollution duringwinter mornings. However, successfulinterventions have occurred; for example,in the past the three common kitchens ofthe Royal Bhutan Police in the capitalconsumed 4,000 cubic feet of fuelwooda month. Today, with the installation ofelectric cookers through the Bhutan TrustFund for Environmental Conservation,fuelwood consumption has virtually beenstopped.In addition, the heating of bitumenalong road construction sites, dust fromunpaved roads, the burning of kitchengarden waste, and solar radiation fromunpainted corrugated galvanized ironsheets used for roofing affects air qualitynationwide. Finally, pollution fromindustrial and mining activities, which haveB H U T A N : T H E R O A D F R O M R I O27

CONSERVATION AND MANAGEMENT OF RESOURCESincreased significantly, affects not only thehealth of workers themselves but also thesurrounding environment. For example,the country's four cement plants emit majorpollutants such as dust, particulate matter,fugitive emissions and gaseous pollutants.Likewise, the four plants of thechemical industry emit carbon monoxide,carbon dioxide and sulfur dioxide, whilemining operations generate dust as well asdrilling waste and runoff that cause bothair pollution and soil erosion. Steps arebeing taken to control these trends throughheavy fines for polluters, and industries alsohave taken initiatives to mitigateenvironmental impacts by using de-dustingequipment such as filters and electrostaticprecipitators.In the legislative realm, the NationalEnvironment Commission and theMinistry of Trade and Industry areworking on clean technologyenvironmental management programs.Moreover, air quality standards andindustry-specific emission standards, aswell as the aforementioned vehicleemission standards, are being formulated.The Environmental Assessment Act 2000lays the base for environmentally soundindustrial development. Further possibilitiesexist in the expansion of urban publictransportation, electrical stoves for majorwood-burning institutions and subsidizedelectrical appliances for rural communities.Bhutan’s location in the fragileEastern Himalayan ecosystem,heavy reliance on subsistenceagriculture, water and forestresources, and the lack of financialand human capacity make itextremely vulnerable to the adverseimpacts of climate change. As avulnerable country with net negativeemissions of greenhouse gases,priority should be given to adaptationas the impacts of climate change willadversely affect sustainabledevelopment efforts in the kingdom.3b.Managing LandSustainably and CombatingDeforestationEvery effort is being made tostrengthen land planning andmanagement systems, as well as toimprove ways of coordinating landplanningMost farming in Bhutan involves highlyintegrated systems, with crops, livestockand forest components stronglyinterdependent. The average Bhutanesefamily owns a farm ranging in size fromtwo to eight acres. Households withinsufficient land of their own enter intotenancy contracts and sharecroppingarrangements to obtain additional land forfood production.B H U T A N : T H E R O A D F R O M R I O28

CONSERVATION AND MANAGEMENT OF RESOURCESMost of the limited land currentlyunder cultivation lies in small, often isolatedpockets along the main river valleys andthroughout the southern foothills. Theextremely steep slopes make farminglabor-intensive, and often mechanizationis impossible. Traditional shiftingcultivation is practiced in different partsof the country, mostly on these steepslopes, but this has contributed significantlyto the degradation of land and is beingofficially discouraged, with attention givento underlying social and economic causes.Given the location of their farms andthe rudimentary transportation network,most Bhutanese farmers integrate theiractivities so as to become self-sufficient,producing a variety of grains, fruit,vegetables and dairy products andharvesting both timber and non-timberforest products. Forests provide grazinglands for domestic animals such as cattle;farmers also depend on food fromforests during lean periods.Farming systems in Bhutan essentiallyconsist of natural resource managementpractices evolved over millennia to fulfillrural livelihoods. Some natural resourcessuch as arable land and livestock areprivately owned, while others such asforests, water and grazing rights arecommunity-controlled. In the highmountain regions of northern Bhutan, forexample, sustainability of land use ismaintained in the form of tsamdro, orcommunity grazing lands, primarily for yakherding. Local institutions regulate the useof these lands by ensuring that they arerotated about every three years in anequitable way among the pastoralists. Thissystem of checks and balances in landmanagement has led to both a fairly stableyak population and maintenance of theproductivity of the grazing land.However, community involvement insystems such as tsamdro is eroding due tocommercialization of the rural economy,the changing institutional environment andincreased pressure on natural resources.When locally agreed arrangements arelacking, or when Government capacity tocontrol the use of natural resources islimited, a de facto open-access situation iscreated. Under such conditions, there is anincentive to extract more resources and adisincentive to protect and manage theresource base; the end result isoverexploitation of the commons, to thepoint that further use is unsustainable. Signsof overexploitation and degradation ofcommon resources in Bhutan can alreadybe seen, including overharvesting ofbamboo, pipla and natural fodder andforest degradation in the vicinity of highlypopulated areas.Encroachment into fertile - sometimesthe most fertile - agricultural land forhuman settlement, industrial growth andcommercial enterprises is already atalarming levels and is expected to increasein the future. Pressure is rising rapidly toconvert the available 7.7% of cultivableland to other uses, and agricultural landhas decreased significantly since 1989.Under continuous degradation, the landcould ultimately become unproductive;intensification and associated effects suchas declining soil fertility, enhanced soilB H U T A N : T H E R O A D F R O M R I O29

CONSERVATION AND MANAGEMENT OF RESOURCESerosion and a general decline inproductivity are already visible. Watererosion is believed to account for the bulkof land degradation, although hard datais not available.In addition to land for agriculturalproduction, threatened resources includewater for irrigation and drinking;watersheds; forests near the vicinity ofcommunities; non-timber forest products;and medicinal plants. Solving degradationprocesses on communal land isconstrained by the many stakeholdersinvolved, confusion concerning rights andresponsibilities, and lack of cooperationbetween rural households. Nevertheless,the Royal Government is prioritizingefforts to combat such negativedevelopments, including strictly limitinghow much agricultural land can beconverted. This will have significantimpacts on food security in Bhutan, oneof the country's most significant challengesin land use.The Ninth Plan objective of nationalfood security is an essential element ofnational self-reliance fundamental to theenhancement of Bhutan's sovereignty andsecurity. Concern over food selfsufficiencyand food security stems fromthe increased demand for and reliance onimported staple foods. This trend has beenbrought about by rapid populationgrowth, the emergence of urban centersand non-farming communities; increasesin the general level of income andconsumption patterns, leading to anincrease in demand for rice; changing foodhabits from maize, wheat and buckwheatto rice; an increasing expatriate work forcelinked to development in industrial andmega-hydropower projects; and limitedarable land, difficult terrain and poor ruralinfrastructure. The decline in per-capitaavailability of agricultural land and shortageof food grain, as well as lack of alternativejob opportunities outside of agriculture inrural areas, also is expected to potentiallylead to cultivation of marginal land andA balance must be struck between the important national policy objectivesof conservation of natural resources and at the same time attaining food securityand improving rural livelihoods. The threat is that an emphasis on conservationalone will negatively impact food security and rural livelihoods, while conversely,the drive to attain food self-sufficiency may have severe impacts on theenvironment. The aim, therefore, must be to achieve a high degree ofcomplementarity among all goals. Strengthening the management of commonproperty resources, for example, is helping not only to reduce poverty andenvironmental degradation but also increasing the productivity of these resourcesand contributing to growth.B H U T A N : T H E R O A D F R O M R I O30

CONSERVATION AND MANAGEMENT OF RESOURCESoverexploitation, damaging the naturalresource base.With regard to forests, developmentefforts in Bhutan have been concentratedon exploiting these resources while givingprimary consideration to conservation andprotection of the environment. It isimportant to recognize the critical role thatBhutanese forests play in maintaining thebalance in climatic conditions not only inBhutan but also in neighboring northeasternIndia and in Bangladesh.Strategies linking conservation anddevelopment of forest resources consistof the optimum development ofhydropower resources, including standalonecommunity micro- or pico-hydels;ecotourism; and sustainable use ofbiodiversity resources based on properland use policies, given the carrying capacityof the land. Development of micro- andpico-hydels will provide power and energyto remote areas that can run small-scaleagro-processing or labor-saving machinesand light houses, resulting in the reductionof drudgery, particularly for women andchildren. Ecotourism, meanwhile, will helpto generate significant income in rural areaswhile underlining the need for continuedconservation of critical areas.From 1958 to 1999, broadleaf foresthas decreased by about 4%, although thecomparison from 1989 to 1999 alonestands at a higher 6%. Conifer forest alsohas been reduced by 6%. Thesedevelopments have consequently led to anincrease in scrub forest. As mentionedabove, forest degradation in Bhutan iscaused primarily by overharvesting fortimber and fuelwood; inappropriateharvesting practices; forest fires;overgrazing; habitat destruction; andpollution.In its Vision 2020 document, the RoyalGovernment commits itself to moreecologically sensitive approaches to forestmanagement, with an emphasis on themaintenance of biodiversity. Two of themost important policies to take intoaccount the land resource base, thesustainable use of land, and the increasingcompetition and conflict for land and itsnatural resources are the National ForestPolicy and the Forest and NatureConservation Act 1995.After nationalizing logging operationsin 1979, forest management practices havesteadily moved toward more sustainablemanagement. About 20% of the country'sneed for timber for construction andwood-based industries, as well asfuelwood, is currently met through ForestManagement Units (FMUs). The RoyalGovernment's goal is to provide all timberand firewood requirements from FMUsin the near future. In addition, detailedinventories of forest resources areconducted, and better planning and moreenvironmentally friendly harvesting androad construction methods have beenintroduced. Environmentally friendlyhydraulic excavators have been purchasedto reduce negative environmental impactsfrom forest road construction, traditionallyconducted with small crawler tractors.B H U T A N : T H E R O A D F R O M R I O31

CONSERVATION AND MANAGEMENT OF RESOURCESMoreover, under the Forest and NatureConservation Rules 2000, the RoyalGovernment also can halt highlydestructive cattle grazing in specificlocations for a certain period, or can restrictgrazing to an area that is fenced for naturalregeneration. At the same time, these Ruleshave allowed community and socialforestry programs to contributesignificantly to regeneration of forests aswell as further inculcating awareness andspiritual values in the population withregard to the need to conserve forestresources. Planting more forests, which hasbeen a priority response for Bhutan,reduces pressures on primary and oldgrowthforests; likewise, urban forestrypermits the greening of all places wherepeople live. Coronation Day in Bhutan,annually observed on 2 June, issimultaneously designated as Social ForestryDay and is marked by tree planting byschoolchildren and educators nationwide.One especially noteworthy area ofpotential with regard to forestry lies inexploiting the high-value, low-volumenon-timber forestry products such asmatsutake mushrooms, Cordyceps sinensis(Chinese caterpillar fungus, a high-altitudemedicinal product) and lemongrass oil.Appropriate management plans will bedevised to sustainably harvest theseresources, involving the local communities.Overall, every effort is being made tostrengthen land planning and managementsystems, as well as to improve ways ofcoordinating land planning in Bhutan.Promotion of alternative incomegeneratingactivities including ecotourismand cottage industries, such as thedevelopment of medicinal plants, arebeing strongly encouraged to curb soilerosion, landslides and the rapid loss ofhabitat and genetic diversity.3c.Conservation ofBiological DiversityBhutan is one of a very fewcountries that have the opportunity tomaintain their biodiversity largelyintact in the coming decadesBhutan has very high levels ofbiological diversity at the ecosystem, speciesand genetic levels. Indeed, its biodiversityis matched by very few countries in theworld - and fewer still have taken suchstrong steps to conserve their biodiversityresources. Bhutan ranks in the top 10% ofcountries with the highest species density,and it has the highest fraction of land inprotected areas, as well as the highestproportion of forest cover, of any countryin Asia. Thus, Bhutan is one of a very fewcountries that have the opportunity tomaintain their biodiversity largely intact inthe coming decades.Bhutan's great diversity of ecosystemsresults partly from its location at thejuncture of the temperate Palearctic realmand the subtropical Indo-Malayan realm,and partly from its geological relief andclimatic heterogeneity. The interaction oftopography, climate and human use hasresulted in the development of a complexpattern of vegetation and habitat typesacross the nation. However, noB H U T A N : T H E R O A D F R O M R I O32

CONSERVATION AND MANAGEMENT OF RESOURCEScountrywide inventory of ecosystems hasyet been conducted, although land covermaps are available.Overall, preservation of this richbiodiversity can be attributed to theenlightened leadership and the strongconservation ethic of the Bhutanese.Conservation is a central tenet ofBuddhism, and the importance ofprotecting nature, as noted in Section I,has permeated Bhutanese consciousness.Thus, preservation of the environment isan integral part of the Bhutanese valuesystem.The diverse Bhutanese flora haveaffinities to Southeast Asia, China/Japan,Tibet, the Euro-Siberian region and theArctic/alpine areas of Europe and Asia,as well as, to a limited extent, the flora ofIndia and Sri Lanka. Of the 5,446 speciesof vascular plants, as many as 750 areendemic to the Eastern Himalayas and 50or more are endemic to Bhutan itself. Theflora includes more than 50 species ofrhododendron and numerous species ofeconomic value. More than 300 species ofmedicinal plants are found that are used intraditional herbal medicine. The Bhutaneseflora is considered of great scientific valuenot only because of its biodiversity butalso because of its relatively good state ofpreservation.The mammal fauna consists of bothIndo-Malayan and Palearctic elements,which overlap in the temperate, largelyforested zone. Several important speciesare confined to the far south (e.g., elephant,gaur, wild buffalo), while others rangemore widely and are found in a variety offorest types (tiger, one-horned rhinoceros,golden langur, pygmy hog, leopard,Himalayan black bear, wild dog). Stillothers (snow leopard, blue sheep, takin)are found only in the cool forests and alpinemeadows of the north. The NationalConservation Plan provides a provisionallist of 178 mammal species, including 24internationally threatened species and 64species that may be endangered in Bhutan.Species of conservation importanceinclude snow leopard, tiger, red panda,takin, blue sheep, leopard, wild dog, muskdeer, sambar, barking deer, goral serow,marmot and pika.Although Bhutan's avifauna are stillpoorly known, around 770 species havebeen recorded, including at least 12 globallythreatened species. Aquatic habitats also areimportant but require significant furtherstudy. With regard to crop species, thediversity also surpasses anything one wouldexpect considering Bhutan's size. Througha long process of natural and humanselection, a wide array of crops and ofvarieties within crop species exists,sometimes hidden in remote areas. Manyof the native crops, as well as those thathave been introduced into Bhutan longago, possess significant genetic diversityand are ecologically well-adapted to thespecific requirements of the localenvironment.The Royal Government has establisheda system of national parks, wildlifesanctuaries and nature reserves for in situconservation of biodiversity across morethan 26% of the country's land area.B H U T A N : T H E R O A D F R O M R I O33

CONSERVATION AND MANAGEMENT OF RESOURCESIndeed, laws covering protected areas areoften more stringent than ordinary forestrylaws, although indigenous communitiesthat have traditionally relied on forestresources for livelihood sometimes inhabitprotected areas. Again, the Kingdom'sstrong conservation ethics have come atthe cost of economic development andshould be supplemented by compensationfrom international sources. The Forest andNature Conservation Act 1995 establishesguidelines for the creation andmanagement of all protected areas; thisAct calls for strategies for biodiversityconservation to be built upon two mainconcepts: Conservation value lies in thecumulative effect of speciesdiversity Natural resources must be used tomeet the collective needs of theBhutanese peopleIn late 2001 a new vision and strategydocument was adopted to lead to moreeffective management of protected areas.It is intended to ensure an increasinglyfocused approach and also take intoaccount emerging conservation issues inmanagement of the areas. Although majorproblems include lack of adequatecommunication among stakeholders,human-wildlife conflicts, poaching,inadequate human and financial resources,and forest fires, opportunities have beenoutlined in strong political support,potential for ecotourism and researchopportunities.In studying the country's biodiversity,the Royal Government is looking towardusing these resources sustainably.Eventually, Bhutan may want to movefrom being a passive conserver of geneticresources to an active partner in theirsustainable utilization. Scientific andcommercial partnerships to utilize Bhutan'sgenetic and biodiversity resources must beexplored. Undertakings could be startedwith small-scale commercial activities inmedicinal herbs and decorative flora, withthe end goal of developing pharmaceuticalproducts from Bhutan's immensebiological storehouse.3d.Protecting andManaging FreshwaterThe holistic management offreshwater as an acute andvulnerable resource with economicdimensions, and the integration ofsectoral water plans and programswithin the framework of nationaleconomic and social policy, are ofparamount importance for actionWater constitutes a very importantnatural resource for Bhutan, primarily inthe form of major north-south rivers, witha dense network of small, mainly rain-fedtributaries. The annual renewablefreshwater resource per capita is estimatedat 58,930 cubic meters, indicating thatBhutan is not currently under water stress.Traditionally, the most important use ofwater was for irrigation of crops, wateringof animals and domestic use by ruralhouseholds. With the inception andB H U T A N : T H E R O A D F R O M R I O34

CONSERVATION AND MANAGEMENT OF RESOURCESdevelopment of hydropower projects inthe mid-1980s, however, the role of waterresources, which are estimated to be ableto generate more than 30,000 MW ofpower, has increased tremendously.Consequently, hydropower has become thedominant sector in Bhutan, comprisingabout 40% of the nation's total revenue.Despite these seemingly abundantresources, with the increasing populationof Bhutan have come signs of waterscarcity and consequent conflict betweenirrigation and domestic consumption.Indeed, real problems of insufficientwater at the ground level exist, be it fordrinking or for irrigation. A recurrent,unresolved issue is the conflict over waterresources during peak agricultural seasonin areas with scanty water; rainfall can oftenbe erratic, and irrigation canals are oftendamaged by landslides during the peakperiod.There is a need to use some of thesignificant financial resources arising fromhydropower export for domesticwatershed management. The ElectricityAct 2001 has now provided a firm legalfooting for exploitation of the hugehydropower resources and has providedfor the establishment of the BhutanElectricity Authority, which will beentrusted with the responsibility of settingtechnical and safety standards forhydropower facilities. The Act also lays theframework for the formation of privatepower companies, inviting private sectorparticipation in the electricity supplyindustry.In 2001 the nation's first water body,the Bhutan Water Partnership, was launchedwith a mandate to coordinate and preparepolicy documents, strategic visiondocuments and action plans in the waterresource sector. This inter-Ministerialorganization replaces the ad hoccoordination previously found and isintended to ensure the sustainable utilizationof water resources, maximizing economicand social welfare in an equitable mannerwithout compromising the sustainabilityof vital ecosystems.In addition, although legislation relatedto abstraction and utilization of freshwaterand disposal of wastewater is almostabsent, there are initiatives to create anenabling environment with clear waterpolicies and legislation. For example,preparation of a Water Act that couldreduce the conflict that currently exists willbe a major achievement, as willdevelopment of practical managementinstruments such as preparation of a waterresource inventory, and strengthening ofinstitutional capacities and human resources.The holistic management of freshwateras an acute and vulnerable resource witheconomic dimensions, and the integrationof sectoral water plans and programswithin the framework of nationaleconomic and social policy, are thus ofparamount importance for action inBhutan. Better management of urbanwater resources, for example - includingthe elimination of unsustainableconsumption patterns by metering ofusage - is contributing substantially to thealleviation of poverty and improvementB H U T A N : T H E R O A D F R O M R I O35

CONSERVATION AND MANAGEMENT OF RESOURCESof the health and the quality of life of thepoor.At the same time, availability of cleanand sufficient supply of water for drinking,in both urban and rural areas, is aprerequisite for healthy living and has beenemphasized throughout the nation'sdevelopment. After more than 25 yearsof implementing water supply schemes,more than two-thirds of Bhutanese nowhave safe drinking water close to theircommunities and coverage of basic latrinesin rural areas is 82%.The water and sanitation sector receiveda significant stimulus in 1992 when HisMajesty the King issued a Royal Decreestressing that every household must haveat least a simple pit latrine. The decree alsoreaffirms that primary responsibility foroperation and maintenance of rural watersupply schemes lies with users. A pilotNational Baseline Water Quality Survey alsohas been undertaken to initiatedevelopment of a national water qualitydatabase for major watersheds in Bhutan.Interventions in water and sanitationhave resulted in notable improvements inwater and hygiene-related illnesses,including skin diseases and worminfestations. Even so, children and womenstill face particular health risks and poorpersonal and home hygiene remain theleading causes of ill health amongBhutanese children. In urban areas, engineoil from automobile workshops is oftendrained directly into nearby streams despitelegal prohibitions. At the same time,establishing basic facilities in remotecommunities over rugged terrain makesthe target of providing increased coverageto the more than 30% of Bhutanesehouseholds that still do not have safedrinking water difficult.Nevertheless, water is being made apriority among communities that are alsoconcurrently working toward numerousother needs, including establishingcommunity schools. Drinking water inpublic and private water supplies is nowbeing tested in some areas forbacteriological, chemical and physicalproperties to meet the minimal physicaland aesthetic criteria.The multisectoral nature of waterresource development is recognized, as wellas the multi-interest utilization of waterresources for water supply and sanitation,agriculture, industry, urban development,hydropower generation, inland fisheries,transportation and recreation. Specialattention will be given to the growingeffects of urbanization on water demandsand usage and to the critical role playedby local and municipal authorities inmanaging supply, use and overall treatmentof water, for which particular support isrequired. The scarcity of freshwaterresources and the escalating costs ofdeveloping new resources have aconsiderable impact on natural, industrial,agricultural and human settlementdevelopment and economic growth.Bhutan cannot afford to be complacentabout this crucial resource, nor any of itsother natural resources.B H U T A N : T H E R O A D F R O M R I O36

STRENGTHENING THE ROLE OF MAJOR GROUPSCHAPTER 4 By their sheer numbers, it isBhutan's rural majority thatwill have to play the mostimportant role in the Kingdom'sdevelopmentThe dzongkhag, or system ofadministration by independent, decentralizeddistricts, currently works to ensurenot only the survival but also the culturaland spiritual well being of the Bhutanesepeople. The Royal Government aims toadapt and strengthen both district and localinstitutions in order to make the processof development reach the grassroots, aprocess that has important implications forthe inclusion of sustainable developmentprinciples in policy formulation.The achievement of Bhutan's goal ofsustainable development also depends onthe active and daily involvement of theresource users - those who actuallyconsume, manage and conserve the nation'snatural resource base. This is especially truein light of the fact that 79% of thepopulation continues to live off thatresource base: farming the land, harvestingthe forests, and tapping into rivers andstreams. Because of their overwhelmingimpact, then, it is Bhutan's rural majoritythat must be encouraged to play the mostsignificant role in the nation's development.This major segment must suggest plans,advise on policy, define research priorities,direct and carry out research activities, andimplement the projects and monitor them.Nevertheless, it is fully accepted that thetranslation of the Agenda 21 goals intoreality over time will require thecommitment and involvement of allgroups in society. Bhutan's currentinstitutional and technical capacities aresuch, however, that there remains a crucialrole to be played by responsiblegovernments at all levels in guidingsustainable development policy. Inevaluating the nation's capacities, theNational Environment Commission hasidentified five key cross-sectoral needs: Information systems and research Institutional development andpeople's participation Policies and legislation Training and education Monitoring, evaluation andenforcementB H U T A N : T H E R O A D F R O M R I O39

STRENGTHENING THE ROLE OF MAJOR GROUPSTo reach a scenario of broad publicparticipation, with greater accountability,appropriate targets must be reached inthese areas. To enable the gradual transferof responsibility and strengthening of therole played by major groups in society alsowill require the building of capacity in allthese areas. Such capacities will bedeveloped with the ongoing assistance ofthe Royal Government and its internationalpartners. Bhutan's indigenous culturalheritage has promoted the sustainable useof natural resources and helped maintaina near-intact natural resource base thus far.Now, it is the nation's responsibility toappropriately adapt practices to respondto rapid development.4a.Women in SustainableDevelopmentBhutan displays genderneutrality and is encouraging notonly girls' education but also women'sparticipation in decision-makingbodiesWomen are actively involved in all areasof economic, political and social life andare a very important resource in thecountry's implementation of sustainabledevelopment and conservation of naturalresources. They have contributed asfarmers, business entrepreneurs, engineers,doctors and homemakers. Parents do nothave strong gender preferences and treatgirls and boys equally. The RoyalGovernment ratified the Convention onthe Elimination of Discrimination AgainstWomen in 1981, and unlike many countries,has never raised objections to any part ofthis very important document. Thus,Bhutan allows no overt discriminationagainst women, and women are in factaccorded a dominant role in the legalsystem, especially in family and inheritancelaw. A Royal Decree of 1998 emphasizedwomen's participation at all levels ofGovernment and society and called forgender-neutral participation based onpersonal merit and achievement.While it can be concluded that Bhutandisplays gender neutrality, gender gapsexist, particularly in literacy/education, inemployment and in decision-makingbodies. For example, women are clearlyunderrepresented in the legislative andexecutive Government bodies. Althoughwomen's participation in grassrootscommunity meetings is as high as 70%,Bhutan is actively encouraging theirinvolvement in decision-making at theblock, district and national levels. Nowthere are several women representatives inthe National Assembly as well as a womanRoyal Advisory Councilor, as well as anincreasing number of professionals in theGovernment and private sector. In therural areas, women also serve a veryimportant role as "water caretakers,"looking after the local water schemes.B H U T A N : T H E R O A D F R O M R I O40

STRENGTHENING THE ROLE OF MAJOR GROUPSConcerted efforts also have beenmade to increase the enrollment in schoolof girls, whose access to education beforedevelopment began in the 1960s wasalmost non-existent. Over the past decadethe primary school enrollment of girls hasgrown at an impressive annual rate of9.1%. Girls now comprise 46% of boththe primary and junior high school studentpopulation and 41% of high schoolstudents. Non-formal education classesalso focus specifically on women, withenrollment rates of women at more than70%. Likewise, the importance oftargeting women with relation to theirspecial needs in fertility and maternal healthis recognized. The maternal mortality ratehas been brought down to 3.8 per 1000live births; at least 95% of women areaware of family planning.Initiatives geared primarily towardenhancing the representation of womenin business are spearheaded by the activitiesof organizations such as the NationalWomen's Association of Bhutan (NWAB)and the Bhutan Development FinanceCorporation (BDFC). NWAB is the onlywomen-focused NGO in the country andaddresses the critical needs of rural womenin education, family health, skills training,employment and rural credit through asystem of nationwide chapters. BDFC,meanwhile, provides microcredit to therural population and is encouragingwomen to avail of its services.Thus, gender gaps are decreasingsteadily, although care is being taken thatothers do not open up in the course ofmodernization. At the same time, astronger focus is being given to betterdefine issues of immediate concern towomen. The following remain forconsideration and action: Establishing an effective nationalmachinery for gender equality Ensuring that the commitment tomainstreaming a gender perspectivein policies is not misconstrued, giventhat women already are welcometo participate in all programs Formally endorsing equal pay forequal work in law, with penalties Initiating a strong focus on domesticviolence as a human rights issue andon eradication of sexual abuse andharassment Formulating a national plan ofaction for women's development,based on national priorities andinternational declarations andconventions.Thus, while neither the social structureand political-administrative system nor thereligious structure have built-in or inheritedpolicies of discrimination against womenor men, the focus will become strongeron supporting the current system whileenhancing and expanding the choices ofwomen.B H U T A N : T H E R O A D F R O M R I O41

STRENGTHENING THE ROLE OF MAJOR GROUPS4b.Children and Youth inSustainable DevelopmentChildren and youth under 25, whocomprise more than 54% of theBhutanese population, are the focusof a comprehensive approach towardyouth developmentThe Royal Government ratified theConvention on the Rights of the Child in1990 and has on numerous occasionsreaffirmed the national commitmenttoward the importance of the rights ofthe Bhutanese child. Children and youthunder age 25 now comprise 54.27% ofthe population and thus form a verysignificant component of Bhutanesesociety, where children have traditionallybeen viewed as an investment for thefamily's future. The vast majority ofBhutanese children are actively involved infarming activities and are vital to nationaldevelopment. However, with the changingdynamics of Bhutanese families, especiallyin urban areas, children and youth are facedwith less parental guidance and a securefamily setting, which has led in some casesto delinquency, drug and alcohol abuse andother social aberrations.It is recognized that the focus on youthdevelopment must be undertaken in acomprehensive manner. In particular, withmore than 100,000 students currently inschool, the potential for unemploymentissues in coming years is great indeed. TheRoyal Government has establishednumerous special programs focused onyouth, including establishment in 1996 ofthe Youth Guidance and CounselingDivision in the Department of Education.This division provides a wide range ofactivities including sports, cultural, scout,environment and health programs. AYouth Development Fund also has beenestablished to ensure a sustainable sourceof funding for youth development andempowerment activities through formalschool curricula and extracurricularactivities in areas such as environmentalconservation, health and hygiene,reproductive health, agriculture and sports.With regard to the looming unemploymentissue, the new National Technical TrainingAuthority is emphasizing vocationaltraining and the dignity of labor to attractmore youth to "blue-collar" vocations.Recognizing that children and youth arehighly vulnerable to the effects ofenvironmental degradation, in the schoolsthe Environmental Education Programintegrates environmental studies into thecore curriculum at lower levels andprovides optional courses at the highschool level. A program by the RoyalSociety for the Protection of Nature(RSPN), the Ministry of Health andEducation, WWF and the NationalEnvironment Commission focuses oninvolvement of youth in environmentaleducation and awareness throughnationwide debates, essay competitions,development of environmental curricula,sports, exhibitions, and internships withB H U T A N : T H E R O A D F R O M R I O42

STRENGTHENING THE ROLE OF MAJOR GROUPSenvironmental organizations. Initiatives inschool greening, environmental camps andaffiliations with environmental NGOssuch as RSPN are also supported in orderto encourage experience-based learning.Thus, children and youth are beingactively involved in development, althoughthere is a need to strengthen the role ofyouth in community participation. Everyeffort will be made to ensure that thiscritical segment of society becomes evenmore fully involved in the nation's future -a future that, for good or for ill, it willhave to live with.4c.Family, Community andLocal Authorities inSustainable DevelopmentAcross the country, ruralcommunities are now taking chargeof development and village voices areinfluencing development policies asnever beforeMost Bhutanese are still inextricablylinked to their rural homes and farms,continuing their traditional approach to themanagement of land, natural resourcesand environment. These are sophisticatedecological responses to risk-prone microclimates.Vibrant customary rules andnorms equitably and efficiently regulate theuse of such resources as communitygrazing land, irrigation channels, forests,breeding stock, footpaths, bridges andshrines. To meet the challenges ofpreserving traditional Bhutanese culture,the National Commission for CulturalAffairs has been established, with theresponsibility of integrating culturalconsiderations into overall nationaldevelopment policy. In order tosuccessfully adapt a sustainabledevelopment agenda to the changes thatthe dynamic development andmodernization process are bringingthrough all strata of society, an emphasison the preservation of traditional culturalvalues must be preserved as one of thepillars of Gross National Happiness.Strengthening the role of farmers indevelopment has always been a highpriority for the Royal Government, withstrong support from the population. Inthe early years of national development,the Royal Government took a prescriptiveapproach, depending entirely onGovernment ability to provide all servicesand resources. Soon, however, it realizedthat for development to be truly sustainableand enduring, the drive must come fromthe people themselves. Now, the RoyalGovernment has changed from a topdownentity into one that works besidethe farmer, guiding and facilitating soundfarming practices but, at the same time,encouraging farmers to participate in theirown development and making themresponsible for their own success.B H U T A N : T H E R O A D F R O M R I O43

STRENGTHENING THE ROLE OF MAJOR GROUPSAll across the country, ruralcommunities are now taking charge ofdevelopment as the Royal Governmentdelegates more responsibility to the district,sub-district and village levels. Village voicesare influencing development policies asnever before, through village meetings,district conferences and the NationalAssembly.People in farming villages are learningto build their own community schools,irrigation facilities and to grow their ownseeds, sharing communal labor andexchanging information on cultivationpractices, sharing the labor and profits ofgroup farming schemes. Water UsersAssociations build and maintain their ownwater facilities, while Governmentsponsoredpotato growers' groups areturning into independent farmingcooperatives that share communal credit,farm labor, harvest and improvedcultivation practices. "Protectors of forest"are becoming the norm as social forestrypractices, making communities responsiblefor the sustainable use of resources fromtheir own forests, are promoted.Even so, there remains a great need for training and local capacity buildingat the community level to encourage even further popular participation. Likewise,the Government recognizes that alternatives must be provided to local peoplebefore legislation is enacted to limit their use of a natural resource. To meet andnurture these positive changes, the Kingdom's agricultural sector has: Trained professionals and extension agents in participatory approaches,skills that will enable them to support and work with farmers in the newenvironment Established agricultural machinery centers that develop and supplyimproved machines that optimize human labor and animal power Strengthened four Renewable Natural Resource Research Centers thatdevelop environmentally sound farming practices and technologies Provided capital for farmers through the rural credit schemes of the BhutanDevelopment Finance CorporationB H U T A N : T H E R O A D F R O M R I O44

STRENGTHENING THE ROLE OF MAJOR GROUPSThe Government also is encouragingfarmers to take up greater responsibilityfor privatization of agricultural industryand services and is promoting theformation of various farmers'cooperatives and groups to manage ruralinfrastructure, deliver services and marketagricultural produce. The BhutanCooperatives Act 2000 also is enablingfarmers to establish cooperatives andsocieties to meet their common economicneeds through jointly owned andeffectively governed enterprise. This Acthas been seen as a major breakthrough inempowering farmers with a collectivebargaining power that had previously beenlacking. Farmers with small landholdingsnow can come together, share the logistics,inputs and costs of production andexplore the market, while also capturingoutside markets. Already, there are 11farmer cooperatives in rural areas.Farming communities also are beingsupported through empowerment withprimary education and adult literacyprograms. Special curricula relevant torural life are being developed and taught,and research programs are aimed at raisingfarm production while reducingenvironmental pressures. The latterinitiatives include the breeding of higherproducingand improved livestock, whichreduces grazing pressure on degradedlands, and intense, high-yielding agriculturethat will make more efficient use of limitedland resources while helping to meet thenation's food needs and raising the incomesof small farm households.Clearly, the country has a very strongtradition of local authority. One of thebenefits of Bhutan's long history ofisolation is the development andrefinement of institutions based on thecountry's unique socioeconomic needs andtraditions. The commitment to the processof decentralization requires considerablehuman resource development and capacitybuilding. This can be achieved through theprovision of professional and highlytechnical staff at the district level,improvements in management, andfinancial management and informationsystems training.Both national-level and localorganizations need to strengtheninstitutional capacities if they are toimplement the national developmentagenda in the most sustainable waypossible. Doing so will requireimprovements in organizing and managingpersonnel skills and expertise, as well asstrengthening environmental laws andenforcement. Other necessary measuresinclude enhancing cross-institutionalcoordination, improving the organizationand use of databases and avoiding sectoraloverlap and duplication. Such institutionalcapacities are beginning to be built throughthe concerted effort of the RoyalGovernment and various internationalorganizations.B H U T A N : T H E R O A D F R O M R I O45

STRENGTHENING THE ROLE OF MAJOR GROUPSMany problems outlined in Agenda 21have their roots in local activities. As thelevel of Government closest to the people,local authorities have the potential toeducate and mobilize. In consultation withthe community, consensus may be built inappropriate sustainable developmentstrategies at the grassroots level to form astrong foundation toward the fulfillmentof Agenda 21 objectives. Ultimately, as inthe past, the responsibility of managingBhutan's natural resources will lie with localpeople.4d.Partnerships WithNGOsWith the strengthening of civilsociety, the role of NGOs in Bhutan,which has been limited thus far, isexpected to sharply increaseBhutan is a welfare state where health,education and social services are providedfree of cost and traditional village-basedinstitutions are effective, so the role ofNGOs has been limited thus far. However,with changing institutional structures it isnow recognized that NGOs can play auseful role in the shaping andimplementation of participatorydevelopment, by virtue of theirindependence from Government andother sectors of society.Without diverse and well-establishedexpertise throughout society, extensiveNGO activity is not yet a viable alternativeto Government programs. However, withthe significant strengthening of civil societyit is expected to increase exponentially inthe near future, and legislation is beingdrafted to regulate the formation ofNGOs. Currently there are only twonational NGOs, the National Women'sAssociation of Bhutan and the RoyalSociety for the Protection of Nature. Twointernational NGOs are also in the country,WWF and Save the Children/US.4e.Business and Industry,Including WorkersThe private sector is recognized asthe engine of economic growth butoperates within environmentallysound parameters, while workers areprotected against exploitationThe activities of the business andindustry sector have the potential tocompromise the successful achievementof a sustainable development strategy andthe fulfillment of the Agenda 21 guidelines.To date, however, the impacts of theindustrial sector in Bhutan on localenvironments are insignificant, owingprimarily to the sector's small scale. Evenso, Bhutan's fragile and vulnerablemountain ecosystem could be seriouslydamaged if preventative measures are nottaken to control the pattern of industrialB H U T A N : T H E R O A D F R O M R I O46

STRENGTHENING THE ROLE OF MAJOR GROUPSdevelopment. Environmental and socialconsiderations are being incorporated intoeconomic development planning andimplementation to avoid imbalance andpotential unsustainable practices in theprocess of modernization.In light of the inherent risks in thedevelopment of business and industry, theRoyal Government takes a lead role indefining the parameters within whichprivate sector activities may operate. In this,the Government is guided by the twinprinciples of Gross National Happinessand proactive initiatives being preferablein the sustainable development process. Inaiming toward the achievement of optimallevels of socioeconomic benefits, asopposed to maximizing resourceexploitation, the National EnvironmentStrategy outlines three broad avenues forsustainable economic development:expanding hydropower, increasingagricultural self-sufficiency and expandingthe industrial base.Strong Government backing has beengiven to continuation of private sectorsupport and privatization, as well asprovision of industrial incentives. TheRoyal Government has divested its sharesin many production and manufacturingcompanies and has created an enablingenvironment through establishment ofindustrial estates and infrastructure, as wellas through promotion of cottage andsmall industrial enterprises. On the businessside, business associations are also activelyinvolved in promoting sustainabledevelopment.Environmental criteria need to beadequately incorporated into industrialdevelopment planning andimplementation. The Royal Governmenthas recognized that a major tool to ensuresustainability of its natural resource base isto institutionalize the process ofenvironmental impact assessment (EIA)for development activities. TheEnvironmental Assessment Act 2000, thenation's first comprehensive environmentallegislation, establishes procedures for theassessment of potential effects ofprograms and projects - many of whichwill be in the business sector - on theenvironment.Amid industrial change, Bhutaneseworkers are protected against exploitation.An acute shortage of skilled and unskilledhuman resources exists in this sector,placing workers in a strong bargainingposition. Because of the traditionaldominance of the public sector, manyBhutanese are reluctant to enter the privatesector, and a more attractive workingenvironment is being developed. Draftconditions for private sector employment,highlighting employer and employeeresponsibilities, have been formulated bythe Ministry of Trade and Industry. Inaddition, the same Ministry has set up anoccupational health and safety program,with the aim of improving workers'conditions. A network has been establishedB H U T A N : T H E R O A D F R O M R I O47

STRENGTHENING THE ROLE OF MAJOR GROUPSon industrial safety and health regulationsto facilitate the exchange of informationbetween the Ministry and the InternationalLabor Organization (ILO).Nevertheless, the private sector remainsextremely small, with a significant amountof expatriate workers in the workforceand a share of overall national revenue ofonly 5.1% in 1999. In that same year, only10 private sector companies accountedfor almost half of the total private sectorshare. At the same time, the private sectoris recognized as the engine of growth andmust be the main provider ofemployment. With the rapidly expandingpopulation, the private sector base mustbe balanced and widened. In addition,Information Technology development islikely to be one of the main triggers toboost private sector development and helptake advantage of the globalizationprocess. This technology, along with otherclean technology, is being stronglypromoted and is expected to play a majorrole in Bhutan's development.B H U T A N : T H E R O A D F R O M R I O48

MEANS OF IMPLEMENTATIONCHAPTER 5 One of the critical abilities of anation to follow a sustainabledevelopment path is dependenton the capacity in the key fields of human,scientific, organizational, institutional andresource capabilities. This section willhighlight the ability of the country to financesustainable development and will assess itstechnological, institutional andorganizational capacity.The country has been a recipient of theUNDP Capacity 21 program, which hasworked toward building institutional andhuman capacities to formulate andimplement national sustainabledevelopment strategies. In addition, UNEPhas supported the preparation of a Stateof the Environment report for Bhutan.The country has further received projectsupport from the Global EnvironmentFacility (GEF); the GEF will become aneven more significant partner as it integratesits activities into national sustainabledevelopment programs, strengtheningenvironmental governance and buildingnational capacities to manage theenvironment.5a.Financing SustainableDevelopmentBhutan continues to rely on a mixof innovative resource-basedmechanisms, international assistanceand growing internal revenues todefray the costs of sustainabledevelopmentThe Royal Government aims to meetan increasing proportion of both currentand capital expenditures from internalresources. To achieve this, the Governmentcontinues its attempts to increase domesticrevenues by promoting greaterprivatization of the economy. But despitethe progress of the last four decades,Bhutan is still at a relatively early stage ofdevelopment and continues to require theassistance of the international community.Although it faces many of the constraintsof a Least Developed Country, it iscommitted to protecting its naturalresources for future generations. It istherefore imperative that the financial costsof conservation in Bhutan are supportedby the international community.B H U T A N : T H E R O A D F R O M R I O51

MEANS OF IMPLEMENTATIONThe country's rich natural resource baseallows for a number of innovativemechanisms for financing sustainability.Among the more promising of these arebiodiversity protection, bio-prospecting,"debt-for-nature" swaps, carbonsequestration and the promotion ofenvironmentally certified products. Suchfinancing mechanisms are particularlyappealing in Bhutan because it is relativelyinexpensive for the Kingdom to preserveits natural resources, while developednations are able - and now increasinglywilling - to place ever higher values onthem. It costs environmentally consciousdeveloped countries much less to preserveglobally valuable resources in developingcountries than it does in their own.Bhutan enjoys an added advantage inthe employment of such mechanismsconsidering that environmentalpreservation complements the nation'sown development goals. For example,unless the water catchment areas for newand proposed hydropower projects areprotected from environmentaldegradation, the feasibility of such projectscan be compromised and, as a result,minimize the earnings from them,hampering the Kingdom's plan for longtermeconomic development.In addition, the wealth of rare andexotic wildlife can act as an added incentivefor tourists to visit the country, enhancingthe potential for revenue earnings from thissource. The large system of protectednational parks, wildlife sanctuaries andnature reserve are also important potentialtourist destinations. In another example, a"debt for nature" swap was used in 1995to close down the environmentallyunsound Gedu Wood ManufacturingCorporation in southern Bhutan. TheGovernment of Netherlands provided thefinancial assistance with which theKingdom liquidated its borrowings. Thisgave the Netherlands an opportunity tocontribute toward the environmentalpreservation of an ecologically valuablearea, while Bhutan found a solution to anunsustainable situation that the shortage offunds would have forced it to continue.Bhutan also uses the "polluter pays"principle to deter the emission ofenvironmental pollutants by penalizingoffenders. For example, a cementmanufacturing plant would be required tobear the costs for cleaning up any pollutionit generates. Besides making for moreconscientious industrial behavior, thisapproach also helps to internalize the fullenvironmental costs of production. Inaddition, Bhutan is promotingenvironmentally friendly products such asmineral water, organically producedagricultural products, vegetable dyes,B H U T A N : T H E R O A D F R O M R I O52

MEANS OF IMPLEMENTATIONhorticultural products and aromatic herbsand spices. This area has great potentialindeed because Bhutanese products arealready attributed with cleaner methods ofproduction and therefore ensured a higherquality rating in the regional market.Currently , Bhutan is a passive conserverof genetic resources, but the country isworking toward becoming an activepartner in their commercial utilization andinternational promotion. The Kingdom isdeveloping the necessary technical and legalcapability to undertake the sophisticatedgenetic research and internationalnegotiations involved in germplasmdevelopment and gene patenting. Inaddition to its current small-scalecommercial activities in medicinal herbsand decorative flora, Bhutan will prioritizedevelopment of its own pharmaceuticalindustry so that it can take advantage ofits immense biological storehouse.Among potential techniques forincorporating actual environmental coststhat should be explored is natural resourceaccounting, which accurately reflects theenvironmental loss value of non-renewablenatural resources such as felled timber. InBhutan's Vision 2020 document thegreening of national accounts throughenvironmental satellite accounts is listed asa priority for providing the country withquantitative indicators of the importanceof the environment to the economy andsustainable development. Improvedenvironmental practices may also bepromoted in the future through taxreductions, duty exemptions or subsidizedloans that could be offered as rewards forenvironmentally progressive manufacturingpractices.An increasing concern is thatvery few international donors arecontinuing to provide support to thecore environment managementactivities in the country. Mostdonors are providing assistance onan ad hoc basis for project support.Furthermore, some donorinvestments foreseen in the NinthPlan (2002-2007) also have notyet been secured. Eventually, ifthere is only project support it willdraw resources from the coreactivities and may compromiseenvironmental managementactivities as a whole.B H U T A N : T H E R O A D F R O M R I O53

MEANS OF IMPLEMENTATION5b.Creating Capacity forSustainable DevelopmentAt this juncture, it is important toempower Bhutanese with theexpertise to understand the potentialand limits of the environment, as wellas the various options that willenable them to make difficult choiceswhen dealing with such complexissues as climate change andprotecting biodiversityThe importance of creating capacityfor sustainable development is recognizedas a key challenge due to the complexityof achieving sustainable development andthe wide range of inter-disciplinary issues.This means that balanced developmentcalls for a much wider effort not just fromdifferent Government agencies, but fromall other sectors of society as well. In its1990 Paro Resolution, the Kingdom'sleaders declared: "This is an effort whichcan productively involve all levels of oursociety, including the dzongkhag (district)administrations and non-governmentalorganizations, as well as our RoyalGovernment."require scientific, technological,organizational and institutional skills to bedeveloped in the country.UNDP's Capacity 21 project has beeninstrumental in strengthening environmentalmanagement and fosteringeducation, coordination and awarenessabout sustainable development in Bhutan.Under the Capacity 21 project, outreachworkshops were conducted in all 202blocks in all 20 districts between 1996 and2002 and proved useful forums wherelocal people not only determinedemerging environmental threats and issueswithin their communities but also designedmicro-environmental action plans toaddress the more urgent threats. A totalof 950 villages drew up such action plans,including activities as diverse as communitytree plantation and sloping agriculture landtechnology. These Agenda 21 forumsfurther attempted to ensure thatconservation is integrated harmoniouslyinto the process of economicdevelopment.Education, Training andPublic AwarenessAt this juncture, it is important toempower people with the expertise tounderstand the potential and limits of theenvironment, as well as the various optionsthat will enable them to make difficultpolicy choices when dealing with suchcomplex issues as global climate changeand protecting biodiversity. This will alsoAs also noted in Section 4b, the RoyalGovernment is implementing programsthat include environmental concerns in theformal education curriculum as well asnon-formal education. The disseminationof information and knowledge related tothe environment is taking place throughawareness programs that involve theB H U T A N : T H E R O A D F R O M R I O54

MEANS OF IMPLEMENTATIONmedia, arts, private sector, nongovernmentalorganizations andschoolchildren. Some significant measuresinclude: Special environmental educationprograms that begin with the firstyear of a child's school life andcontinue until Class IV. From thatpoint onward, environmentalstudies are taught as part of thescience curriculum, and at thecollege level it is offered as aspecialized field of study that canbe pursued as a professional careeroption A national program of humanresources development aims to trainprofessionals in relevant fields ofexpertise, including environmentallaw, environmental impact assessment(EIA), conservation ofnatural resources, and environmentalengineering Nationwide environmental awarenessevents for the public arepromoted during World EnvironmentDay each June Private artists as well as those fromthe state-sponsored Royal Academyof Performing Arts also highlightenvironmental issues and messagesfrequently during public events, instreet plays, theater and dramaTechnology TransferOngoing negotiations and discussionare resulting in a framework for meaningfuland effective actions with relation totechnology needs and needs assessment;technology information; enablingenvironments; capacity building; andmechanisms for technology transfer. Anemphasis also is being placed to developlocal technology aimed at reducingpressure on the environment, such asindigenous smokeless stoves. Likewise, theRoyal Government is encouraging the useof environmentally friendly solartechnology to provide lighting in remotevillages, monasteries and health facilitiesmade inaccessible to the national electricitynetwork by rugged terrain. TheGovernment also supports cleantechnology environmental managementthat aims to provide support to the privatesector for the use of clean technology.Because industrial development in thecountry is still at an early stage, these newtechnologies can be fully utilized in thefuture. Given the high cost of newtechnologies that are suitable for localsustainable development needs, continuedsupport in accessing and distributing suchtechnologies is essential to ensure successfultechnology transfer. Technology transfershould be based on local needs and suitableto local conditions.B H U T A N : T H E R O A D F R O M R I O55

MEANS OF IMPLEMENTATIONInformation Systems andResearchThe importance of informationsystems and research for sustainabledevelopment has been recognized in theNational Environment Strategy. Furtherbaseline data important for providing anunderstanding of the environment areneeded in natural resources, naturalresource use, topography and land use, soilquality and characteristics, land ownershippatterns, meteorology, air and water qualityand pollution levels. This data can be usedto assess the progress and achievement ofenvironmental policy objectives acrossvarious sectors and bring relevantinformation to bear on environmentaldecision making, policy formulation andanalysis.Bhutan is only now beginning todevelop the information base to addressthe emerging range of issues calling forattention today and in the near future. Tolink environmental data to Governmentplanning, a series of surveys and inventoriesby the Central Statistical Organization hasbeen undertaken to identify the datashortfall. In addition, a series of valuableresource planning maps have beenprepared by the Ministry of Agricultureto increase available knowledge aboutcurrent land use trends. Major efforts alsowill be focused on improving datacollection and coordination, maximizingaccessibility to and use of existing data,identifying user needs and coordinating theactivities of different levels of Governmentto avoid overlap and duplication.Equally important is the generation ofnew data. Research agendas must fit theneeds of local people, and findings mustbe disseminated quickly and appliedeffectively. But Bhutan cannot rely solelyupon its own work and initiatives. As asmall country with only the foundationsof its own academic and informal groupsin place, it must also draw upon theresources of its regional neighbors and thatof the international community at large.5c.National Mechanismsand Legal InstrumentsDevelopment of law at thenational level with relation tosustainable development has led tolegislation on environmental andenvironment-related issues by addingregulatory instruments with welldefinedrequirementsThe Program for Further Implementationof Agenda 21 established thetarget year of 2002 for all countries to haveformulated national sustainabledevelopment strategies. Bhutan'sEnvironment Strategy, the “Middle Path,”has already been in place for four yearsnow, making the Kingdom one of the 85countries globally to have completed sucha sustainable development strategy.B H U T A N : T H E R O A D F R O M R I O56

MEANS OF IMPLEMENTATIONBhutan has used a combination of thesustainable development strategy and fiveyeardevelopment sector plans. Thesesectoral plans have facilitated theGovernment in receiving financial resourcesfor helping decision-makers to achieve andmeasure progress toward sustainabledevelopment goals and targets. TheNational Environment Commission(NEC) is the national coordinator of thecountry's sustainable development strategy;its long-term objective is to define policies,programs, plans and actions forpromoting and ensuring the sustainabilityof Bhutan's natural resources. The NECprovides input into major policy areas inwhich environmental concerns andeconomic development need to bebalanced, such as tourism; road access;resource-based mechanisms for financingsustainability; public health; urbanization;and population and sustainability.Development of law at the nationallevel with relation to sustainabledevelopment has led to legislation onsectoral environmental and environmentrelatedissues by adding regulatoryinstruments with well-definedrequirements. Policies also have beenrefocused to better integrate fragmentedsectoral laws and regulations into acoherent framework, streamlining andharmonizing regulatory requirements.A prerequisite for creating environmentallegislation is the establishmentof environmental standards. Suchstandards have never been systematicallydeveloped for Bhutan, which has often ledto the adoption of regional andinternational standards instead.Environmental legislation eventually will bedeveloped for all sectors based onenvironmental quality standardsdetermined by the National EnvironmentCommission and sectoral Ministries.The majority of Bhutan's existingenvironmental legislation concerns theconservation of forests and the protectionof wildlife and their habitats. More recentlegislation covers the industrial and miningsectors and environmental assessment, ashas been mentioned. The next set ofenvironmental laws in Bhutan will have tobe built upon the framework of currentlaws such as the Forest Act 1969, Forestand Nature Conservation Act 1995,Mines and Minerals Act 1995 and theEnvironmental Assessment Act 2000. Inaddition, an umbrella law is needed tofacilitate implementation of a holisticapproach to environmental issues. TheRoyal Government has thus initiated thedevelopment of such a law, the NationalEnvironmental Protection Act, which iscurrently under way. Committee membersfor the formulation of this Act havealready undergone training in various fieldsof environmental law.B H U T A N : T H E R O A D F R O M R I O57

MEANS OF IMPLEMENTATIONBhutan participates actively in both global and regional forums on sustainabledevelopment issues. It has signed and ratified the Rio instruments as well as theConvention on Biological Diversity. Toward meeting the obligations to the latter,the Biodiversity Action Plan was prepared in 1998. Bhutan also has signedand ratified the United Nations Framework Convention on Climate Changeand participates actively in the South Asian Association of RegionalCooperation (SAARC) Environment Ministers fora. It further participatesin other bilateral and multilateral fora of the United Nations EnvironmentProgram (UNEP), the Economic and Social Commission for Asia and thePacific (ESCAP), World Bank, Asian Development Bank and theInternational Center for Integrated Mountain Development (ICIMOD).B H U T A N : T H E R O A D F R O M R I O58

CRITICAL ISSUES AND FUTURE CHALLENGES TO SOSTAINABILITYCHAPTER 6 in Bhutan, the decade followingthe UNCED summit in Rioensured that the RoyalGovernment charted out and implementeda clear agenda for sustainable development.Bhutanese are working toward their owndefinition of sustainability that is affectedby the evolving nature of the country'shistorical and cultural heritage, thegeography and physical characteristics ofthe land, and the social and political systemsthat together leave an indelible, singularstamp on each interpretation of the term.Sustainable development in theKingdom has come to mean the capacityand political will to effectively addresscurrent development and environmentalproblems - and tomorrow's challenges -without compromising the Kingdom'sunique cultural integrity and historicalheritage or the quality of life of futuregenerations of Bhutanese. The Bhutanesepeople aspire to achieve this by followingthe "Middle Path," the balance betweeneconomic development and environmentalconservation.To this end, strong institutional, legaland policy frameworks, capacity buildingand awareness and innovative fundingmechanisms for the environment sectorhave been developed. However, threatsto natural resources have still increasedbecause of economic growth, increasedper-capita income and demographicchanges, making it increasingly challengingto balance development andenvironmental conservation.Having said that, it should be noted that one of the most important ingredients needed forsustainable development, political will, is indeed firmly in place in Bhutan. This is heartening,because political will serves as the key to success, as effective new initiatives require majorchanges in the way policies and programs for sustainable development are designed andimplemented. Such implementation of innovative partnerships has occurred already, as hasbeen detailed throughout this paper, but additional impetus and practical steps are needed toestablish the credibility of the 2002 World Summit on Sustainable Development in carryingforward the sustainable development agenda in meaningful, measurable ways.B H U T A N : T H E R O A D F R O M R I O61

CRITICAL ISSUES AND FUTURE CHALLENGES TO SOSTAINABILITYNationally, biodiversity and naturalresource conservation and sustainabledevelopment are well-recognized priorities,and progress has been made in adoptingmeasures to protect the environment despitefinancial and technical constraints.Nevertheless, the state of Bhutan'senvironment remains fragile and undercontinued threat.For Bhutan, the primary future challengesarise from many different fronts that willhave to be dealt with on a continuing basis.These include: Globalization and the heightenedexpectations of unsustainableconsumerist lifestyles Local and national capacity building Stronger implementation andenforcement of rules and regulations Stronger baseline data and monitoringsystems Increasing education to influenceindividual behavior Prioritizing international environmentalinstruments Increasing technology transfer Stronger international financing,combined with allocation of domesticresources and enhancedenvironmental management, particularlyin urban areasAn oasis of nature like Bhutan thusrequires committed assistance from its moredeveloped partners to support thepreservation of a highly fragile mountainarea so rich in biodiversity that it constitutesa heritage for all societies. Again, we urgethe participants in the World Summit forSustainable Development to use thisopportunity to bring new vigor to theinternational commitment towardvulnerable mountain ecosystems and toconsider ways to compensate the remarkablesacrifices made by Bhutan on behalfof our common environment.If a sustainable path of developmentis to be forged, Bhutan's spiritual beliefsand cultural traditions have to be honored.This will involve the promotion of theindigenous ways of life that have sustainedthe Kingdom's people throughout the ages:the unique means of growing food; ofmeeting the needs for clothing and shelter;and, eventually, of returning to the landwhat we have taken from it. Indeed,Bhutan and the other "last remainingEdens" of the world can provide thevaluable lessons for a sustainable futurefor all of us on this planet. No longershould any country have to emulate theconventional modes of development thatare built on the never-ending exploitationof more resources, the scramble for morecars, and the hunger for more technology,more consumer goods, more materialcommodities.Bhutan travels on a bold and innovativepath to the future, an extension andexpansion of the noble road from Rio.With assistance, it will fully realize its destiny:to be the embodiment of the "MiddlePath," the Buddha's eternal call formoderation and compassion for all thingsand, above all, for the environment. It is anopportunity that must be seized.B H U T A N : T H E R O A D F R O M R I O62

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