COUNTRY BACKGROUND - Gross National Happiness Commission

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Aid Policy Sources of AidSources of Aid 9.5 Historically, India has been Bhutan's main aid partner, but aid from third countries has become increasingly important, with the proportion of aid from third countries rising from about 17% in 1981/82 to over 30% by 1990/91. 9.6 Non-Indian aid is provided by a variety of aid agencies. Whereas the UN system tended to dominate aid provision in the early years of external assistance, aid from bilateral agencies and from other multilaterals, such as the World Bank, IFAD and the Asian Development Bank, has become equally important, as indicated in Figure 9.2. Allocation of AidAllocation of Aid 9.7 Aid from India An important proportion of Indian aid is in the form of budgetary support, which is not earmarked for any particular project or programme. In addition, India has funded a number of projects, often implementing them in a turnkey fashion. The Chhukha Hydel Plant (for which most expenditures took place in the Fifth Development Plan) was funded by a combination of grants and soft loans from the Government of India, and was treated as additional to the basic FYP aid. India has also provided significant technical assistance, both in training of Bhutanese nationals and in providing the services of Indian experts. 9.8 Technical Assistance and Capital Aid The composition of third country aid has changed significantly, with an increasing proportion supporting capital projects rather than technical assistance (see Figure 9.3). The Royal Government welcomes this trend, and hopes for a further shift towards capital assistance during the 7FYP. 2 Figure 9.2
Aid Policy 9.9 Sectoral Allocation of Third Country Aid Aid allocations have reflected national development priorities. The largest shares of technical assistance have tended to be provided to the following areas, in descending order: Human Resource Development, Agriculture and Forestry, Health and Population, and Development Administration. Industry and Transport and Communications, which take only a small share of technical assistance, have received a greater proportion of capital assistance, of which Agriculture and Forestry have received the largest share. III. Aid Policy for the 7FYPIII. Aid Policy for the 7FYP Basic PrinciplesBasic Principles Figure 9.3 9.10 The Royal Government welcomes aid from the international community. <strong>National</strong> development objectives will not be readily achieved without external funding and technical expertise. In Bhutan's case, the low level of monetisation of the economy and the limited tax base have made it more difficult to mobilise internal resources. As explained in the Chapter on Approach to Development, one of the main strategies to is to increase self reliance, which will mean increasing internal resource mobilisation and reducing dependence on aid. However, to raise adequate revenues to become completely self sufficient will not be possible within the 7FYP period and thus Bhutan will continue to seek assistance from her international partners. 9.11 Continuing aid to Bhutan is justified by Bhutan's status as a Least Developed Country. In addition the low levels of health and education indicators combined with the physical constraints, described in Chapter 2, provide further reason for Bhutan to seek aid. However the Royal Government recognises that there are dangers as well as benefits associated with aid. Aid must complement Bhutan's own efforts and must not be a substitute for them; and the responsibility for deciding national priorities and development strategy must remain with the Royal Government. 9.12 An important aspect of the strategy set out in Chapter 3 is to reduce reliance on external sources of funding and thus the Government will take the necessary steps to increase domestic resource mobilisation, including ensuring that communities continue to contribute to the costs of development activities, through provision of labour etc. The economic growth envisaged during the 7FYP, will also enable the RGOB to finance an increasing proportion of expenditures from domestic revenues. At the same time, the RGOB is determined to be prudent in its development expenditures and to keep its borrowing comfortably within its capacity to service debt. 3
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COUNTRY BACKGROUND I. Physical Char
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COUNTRY BACKGROUND Minerals The exa
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COUNTRY BACKGROUND Bhutan is the le
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COUNTRY BACKGROUND personnel polici
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Page 13 and 14: Figure 2.2 Economic Performance IV.
Page 15 and 16: Table 2.4 Government Expenditures 1
Page 17 and 18: Table 2.5 Summary of RGOB Budgetary
Page 19 and 20: Figure 2.5 Economic Performance 2.2
Page 21 and 22: Economic Performance of Infant Mort
Page 23 and 24: Approach to Development · sustaina
Page 25 and 26: Approach to Development 3.19 The fo
Page 27 and 28: Environment and Sustainable Develop
Page 29 and 30: Environment and Sustainable Develop
Page 31 and 32: Women's Involvement in Development
Page 33 and 34: CHAPTER 6 PRIVATISATION AND PUBLIC
Page 35 and 36: unacceptably high inequalities of i
Page 37 and 38: CHAPTER 7 ECONOMIC OUTLOOKECONOMIC
Page 39 and 40: Economic Outlook 7.9 This section e
Page 41 and 42: Table 7.2 Seventh Plan Outlay and S
Page 43 and 44: Figure 7.2 Figure 7.3 Capital Expen
Page 45 and 46: Economic Outlook economic sector wi
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Page 49 and 50: Financing GapFinancing Gap Table 7.
Page 51 and 52: Fiscal and Monetary Policy Table 8.
Page 53 and 54: Fiscal and Monetary Policy Strategy
Page 55 and 56: Fiscal and Monetary Policy Table 8.
Page 57 and 58: Fiscal and Monetary Policy TABLE 8.
Page 59: I. IntroductionI. Introduction CHAP
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Page 65 and 66: Aid Policy Aid and the Private Sect
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Page 75 and 76: Education Higher EducationHigher Ed
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Page 91 and 92: Table 12.5 Sectoral Training Funded
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Page 107 and 108: TOTALS FOR Health 1992/93 1993/94 1
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Human Settlements Lack of Skilled M
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Human Settlements only a fraction -
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Human Settlements awareness of the
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CHAPTER 15 TRANSPORT SECTORTRANSPOR
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Table 15.2 Passenger Carriage by Dr
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Civil AviationCivil Aviation Transp
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Transport Sector 15.25 In the 7FYP,
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Transport Sector target for formati
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Transport Sector 11
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CHAPTER 16 COMMUNICATIONS SECTORCOM
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Table 16.1 Telephone Facilities 199
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A. Objectives for the 7FYPA. Object
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Communications Sector Dzongkhags -D
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TOTALS FOR Department of Post, Tele
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Renewable Natural Resources Table 1
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Renewable Natural Resources earning
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Renewable Natural Resources 17.27 T
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Renewable Natural Resources Table 1
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Renewable Natural Resources coopera
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Renewable Natural Resources Institu
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Renewable Natural Resources 17.67 A
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Renewable Natural Resources Wildlif
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Renewable Natural Resources TOTALS
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Chapter 18 MANUFACTURING AND TRADEM
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18.8 (see Chapter 19 on Mineral Dev
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Input supplyInput supply Manufactur
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Manufacturing and Trade Polythene P
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Manufacturing and Trade Formulation
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Manufacturing and Trade V. Financia
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Mineral Development Coal mining and
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Mineral Development Table 19.2 Esti
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Mineral Development be purchased: 3
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CHAPTER 20 ENERGY SECTORENERGY SECT
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Exports and ImportsExports and Impo
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Energy Sector 20.21 Most of the rur
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shortages. Energy Sector 20.34 Alte
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Energy Sector items will include pu
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COUNTRY BACKGROUND - Gross National Happiness Commission

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