Raising East

Recently released Bhutan Poverty Assessment Report (2014) spells a picture of gloom for the nation’s east which has been found to be rating higher in incidences of unhappiness and poverty. At the same time and positively speaking, the east of the nation has lately been discussed and heard in news while it has also been highlighted in governmental undertakings, like the government’s East Development Initiative coming to much prominence.

Seen as the least developed and most backward among other dzongkhags of the country, the attention in terms of presenting real actions has been highly due for this part of the nation.

The poverty assessment report, mentions that the 2010 GNH survey estimates that 59% of Bhutanese are not-yet-happy (even in the least-poor dzongkhag Paro, close to 47% are not-yet-happy). Using the national average for the percentage of poor in 2012 and ‘not-yet-happy’ in 2010 as dividing lines, it is noted that unhappiness tends to increase with poverty and eastern parts of the country are highly prone to unhappiness and poverty.

The report provides an account of the poverty outcomes observed under the country’s 10th Five-Year Plan (2008-2013) and highlights the role of commercialization of agriculture, development of highways and roads and hydropower projects as the main drivers of prosperity in rural Bhutan.

Poverty reduction has been uneven across the 20 dzongkhags and poverty rate has remained the same in Pemagatshel and Tsirang. The pace of poverty reduction was slower in Dagana and Lhuentse but much faster in initially very poor Mongar, Samtse and Zhemgang.  However among poor eastern dzongkhags, Zhemgang has been more successful than Lhuentse in poverty reduction.

Over five years, the number of poor in Bhutan reduced by almost half - from 23% in 2007 to 12% in 2012.  It is deduced that for every two families that escaped poverty, one fell into poverty.

On the bright side, by internationally comparable USD 1.25 per day poverty line, Bhutan’s pace of reduction was fastest among the south Asian countries.  From 1990 when more than half of its population was in poverty, Bhutan has managed to reduce the percentage of poor to 4% by 2010.

It’s a good momentum achieved in the years, one that should be maintained, says the poverty report. Additionally, this pace of fight against poverty will receive a boost with the government’s ‘East Development Initiative’ (EDI) that aims to economically strengthen and develop at least six eastern Dzongkhags through various plans and policies. The dzongkhags of Lhuentse, Mongar, Trashigang, Trashiyangtse, Pemagatshel and Samdrup Jongkhar are targeted under this initiative. A sizeable chunk of about 27% of the national population will be inclusive under this pool.

The poverty assessment report stresses the need for the government to define and identify clear target groups for poverty reduction and to manage risks and vulnerabilities by putting in place, for the poor and vulnerable segments of the population, formal social protection mechanisms along with access to finance mechanisms like targeted micro-credit programs and crop insurance.

The country by focusing on its strengths of being a renewable resource-rich country is also encouraged to promote private sector-led growth ‘actively enabled by the public sector.’

Under this, agribusiness, which is an emerging sector in Bhutan, needs to be developed and the government can put in place policies and incentives to encourage and support farmers in providing access to markets. The government’s plan to expand hydroelectric power production in Bhutan through 2020 would also aid poverty reduction by direct or indirect means.

Complementary to that, the government’s EDI is also aiming at creating three regional growth hubs, improving accessibility and transport infrastructure, accelerating hydro power development, establishing premiere educational institutes, establishing agro based and green industries, improving tourism infrastructure, establishing referral hospitals and providing policy support.

Speaking in all good earnest, the eastern state of affairs was never in formation due to divisions on the political power-play front where the favored have shined and the ignored have been left to stagnate. The relief of the land, unfriendly terrain that hindered agriculture activities or developmental plans are chief reasons that placed the region where it stand or has stood for the years past and present.

And in passing, it also cannot be left an oversight that government has always made all feasible efforts to award prominence to the east in terms of introducing development, viz a vis, Sherubtse College, the nation’s first and only tertiary educational institute, the Kurichhu hydropower project to name some chief beginnings.

Published as Edtorial for Business Bhutan on September 20, 2014