COUNTRY BACKGROUND - Gross National Happiness Commission

Approach to Development
3.19 The formulation of the overall approach to development and strategies for achieving the objectives, and
their transformation into sectoral and macro plans began almost two and half years before the plan began i.e. in
January 1990. A time table on planning process was agreed by the Planning Commission Secretariat, Ministries
and Departments, Zones and other agencies. By January 1990, the Planning Commission Secretariat had circulated
policy guidelines and provisional budgets to the Ministries, Departments, and other agencies of the government.
The guidelines incorporated the recommendations of Mid-term Review of the 6th Plan undertaken in October 1989
and were further expanded by the sector Ministries before they were finally circulated to the zonal authorities who
coordinated the dzongkhag planning process.
3.20 To formulate the dzongkhag plans, a broad process of consultation took place with Dzongkhag Yargay
Tshogchung. People's views on the needs, opportunities and economic potential of their dzongkhag were obtained.
The dialogue during the planning process was important for responding to the people's priorities but also to obtain
their commitment to the success of projects and programmes through their contribution of resources such as labour
for construction and maintenance of infrastructure.
3.21 Based on the priorities identified, Dzongkhag plans were prepared and submitted to all Departments and
Ministries. The proposals were integrated into sectoral plans and revised in the light of constraints such as
manpower, equipment, etc. The finalised plans were then submitted to the Planning Commission Secretariat for
prioritisation and integration into a national Plan, with close liaison with Ministries and Departments. The
Ministerial budget requests were aggregated by the Planning Commission and reduced to match resource
projections. The Technical Committee of Planning Commission and Policy and Planning Divisions of the
Ministries reviewed the draft document to arrive at broad level of consistency. Once the sectoral budgets were
agreed, the dzongkhag plans were revised accordingly and reviewed by His Majesty the King with the people in
each dzongkhag.
V. Implementation and Monitoring of the Plan
3.22 Even for the functions performed directly by the Government, the Plan cannot aim to act as a rigid five-year
blueprint, but rather a means of securing consensus on objectives and priorities, and of developing consistent
strategies to achieve these objectives. The Plan provides a framework for the policies to be followed and for the
allocation of resources during the Plan period. However it is not possible to provide for all changing circumstances
in the Plan, and adjustment will have to be made where necessary during the course of the Plan. This will be
achieved largely through the annual budgets, with close liaison between the Planning Commission and the
Ministry of Finance to ensure that the budget reflects Plan priorities. The 7FYP has been prepared in a consultative
manner, and similar procedures will be involved in the monitoring and updating of the Plan during its
implementation.
3.23 In addition to the annual budget exercise, other improvements are being made to the planning capabilities
of the Royal Government. For example, the Planning Commission was reorganised towards the end of the 7FYP,
and Policy and Planning Divisions (PPDs) were established in all Ministries. In addition the data collection and
monitoring capacity of the Royal Government and in particular, the Central Statistical Organisation (CSO), will be
strengthened during the 7FYP, through absorption of Statistical Units from other Ministries and Departments, to
improve the coordination of data collection and analysis. The Computer Support Centre will be similarly
strengthened through training and equipment, and will be responsible for providing technical support to user
Departments and establishing computer Local Area Networks to enhance coordination and exchange of
information between and within Departments. The National Environment Secretariat will be responsible for
ensuring that all Ministries pay sufficient attention to environmental issues in their programmes. (see Chapter 21)
3.24 The outlook for the economy in the 7FYP is discussed in Chapter 7, including forecasts of growth and
identification of those sectors with greatest potential. Based on these forecasts, RGOB expenditure and revenue
targets are also presented. The allocation of Government funds based on the objectives outlined in this Chapter
will also be summarised. The following three Chapters provide more details of RGOB strategies on the
environment, the involvement of women in development and privatisation.
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