Asian Development Bank and Bhutan: Fact Sheet

Abstract

Updated yearly, this ADB Fact Sheet provides social and economic indicators on the Bhutan as well as concise information on ADB's operations in the country and contact information. Although Bhutan ended its self-imposed isolation in the 1960s, fundamental development activities date back only about 20 years. Nonetheless, it has embarked on a far-reaching development strategy aimed at boosting what it calls Gross National Happiness—a holistic concept combining material well-being with an individual’s spiritual, emotional, and cultural well-being. Despite steady progress, Bhutan remains a poor country, with 23.2% of the population living below the national poverty line in 2007. Inequality is high, with the top quintile consuming eight times more than the lowest quintile. At the same time, the economic base remains narrow, with hydropower accounting for some 12% of gross domestic product (GDP) and 45% of national revenues. Hydropower and its related industries have low employment elasticity, leaving the labor market unlikely to be able to absorb the 50,000 youth and 20,000 rural migrants expected to enter the workforce by 2008. The Government aims to diversify the economic base by enabling greater private sector participation in development—a central pillar of its growth, employment generation, and poverty reduction strategy.