COUNTRY BACKGROUND - Gross National Happiness Commission

Lack of Institutional Finance
Human Settlements
14.12 The main constraint in rural housing construction is the lack of institutional finance to enable the construction
of houses with modern sanitary amenities. The percentage of credit provided by the Royal Insurance Corporation of
Bhutan in 1985 for rural house construction was negligible (less than 0.2% of Nu. 68m). Although the Government
has continued to make major investments in rural water and sanitation programmes at the community level,
individual households would need to increase their own investment considerably to introduce latrines, smokeless
stoves, improved insulation and other facilities to improve their living conditions.
Lack of Maintenance Capacity
14.13 Rural areas have been provided with a water supply coverage of 40%, with 60% of the functioning rural
water schemes having uncontaminated water supplies. A large number of schemes (40%) are supplied from
sub-standard quality sources, while 16% of the schemes are not functioning and 31% require major repairs. This is
largely due to the community's inability to take responsibility for the operation and maintenance of completed
schemes. Communities lack the necessary skills and spare parts and have not been involved in the initial planning
and design of the schemes and therefore do not feel a sense of responsibility for the schemes. Community training
and organization has so far been inadequate. Furthermore, the involvement of women in the planning and
maintenance of schemes is negligible, although they are involved in the construction of the schemes and are the main
users.
Ineffective Designs and Installation
14.14 About 60% to 70% of schools, BHUs and dispensaries had latrines in 1990. However many of the latrines in
these institutions were neither hygienic nor well maintained, and were often poorly designed and constructed and
then subjected to use by more people than the design allowed for.
14.15 Less than 15% of the rural households have stoves equipped with proper ventilation facilities. Traditional
stoves are designed for cooking and as they lack chimneys smoke is trapped inside the houses. This leads to eye
irritations and respiratory disorders, both of which have a high incidence in Bhutan. They are also considered to be
fuel in-efficient. However traditional stoves are functionally more flexible than the improved stoves, which may
account for the lack of interest in the improved stoves.
14.16 The high proportion of water supplies schemes which are no longer functioning is also due to inappropriate
designs and installation.
Lack of Awareness of Improved Personal, Domestic and Environmental Hygiene
14.17 Because of the lack of piped water near the houses, water is scarce and personal hygiene is inhibited. Water
is stored in vessels for long periods of time and accumulates harmful bacteria. The lack of environmental hygiene is
compounded by the use of the lower storey of the house as animal sheds, in many cases. It is therefore difficult to
maintain a high level of hygiene in the surrounding footpaths and drainage.
14.18 The installation of latrines in rural areas is low: according to a survey in early 1991 conducted in 13 out of 18
Dzongkhags, 38% of rural households did not have a latrine. Of the 62% of the households with a latrine, 15%
had improved latrines.
Shortage of National Labour and Construction Capacity
14.19 The shortage of national labour and construction capacity has led to a heavy reliance on foreign labour and
construction companies. Many donor construction projects have been implemented on a turnkey basis with all inputs
imported, usually from India. While the Royal Government appreciates the provision of this assistance, it recognises
that this dependence will not further the aims of increasing national skills and self reliance. The lack of construction
capacity is also a major constraint for other sectors. For example, the education sector has been affected by delays in
construction of new schools due to lack of construction capacity.
3