A new direction for Bhutanese economy
Oct 26, 2008-Paro: A strong economy reaping opportunities provided by globalization through development of competent industries. This is the course chalked out for tomorrow’s Bhutan in the country’s first industrial policy.
The policy, currently drafted for discussion by the economic affairs ministry, is expected to give direction and steer the Bhutanese economy into the 21st century playing field.
In a discussion workshop in Paro last week, the economic affairs secretary, Dasho Sonam Tshering, said the government places high importance on economic growth and therefore the onus for a clear Industrial Policy fell on the ministry.
“There was no clear Industrial Policy before to steer the country’s economic growth through a clear and transparent direction,” said the secretary. “Therefore, the Policy will facilitate businesses and industries which will bring about value addition and those with comparative advantage by capitalizing on unique selling products.”
Dasho Sonam Tshering said the Policy will emphasize on five important elements of sustainable economic growth, private sector development, diversifying the economic base, economic self-reliance, and employment generation.
A consultant for the Policy formulation, Achyut Bhandari, said the Industrial Policy will provide a clearer framework for the industrial development. He said the policy is the consolidation of the existing rules and polices which will give a real perspective on how to go about with economic development.
The lead consultant, Sanjeev Metha, a former Sherubtse College lecturer, said the Policy will help Bhutanese economy to have a level playing field with other competing economies.
According to Yeshi Seldon, the chief planning officer with the economic affairs ministry, the Industrial Policy will help accelerate economic growth and guide the development of economic activities in Bhutan.
She said the Policy will provide necessary framework to address clear direction for economic development. The Policy will serve the needs of both the private and public sectors and identify clear investment opportunities, she added.
The Policy is also expected to address vast opportunities for advancement that lie in the economic sector and highlight ways to capitalize on the opportunities provided by globalization.
The challenges and strengths of the economy were also discussed at the workshop.
Some of the challenges recognized were developing the capacity of the private sector, fostering rapid growth of exports, eradicating poverty, promoting equitable economic opportunities, and creating strategies to pursue economic development which will help realize Gross National Happiness.
The country’s rich culture, pristine environment, and stable social and political system with potential to promote tourism and attract foreign direct investment were identified as the strengths.
Further, Bhutan’s high potential to generate cheap electricity and its proximity to expanding economies would benefit the country immensely, according to the participants in the discussion.
The Policy focuses on creating globally competitive bussinesses in energy, industry, tourism, mining and quarrying, and construction sectors. It also looks into providing incentives to the above sectors to foster growth with necessary reforms like focusing on rural development and creating enabling institutions.
Dasho Sonam Tshering said the ministry has been working on the draft Policy for the last two years. After discussions with various stakeholders, the Policy will be submitted to the Gross National Happiness Commission.
The Policy is likely to be ready for implementation after about three months. About 80 participants from the government, corporate and private sectors, and the members of the economic committee of the National Council took part in the two-day workshop.
By Passang Dorji (Bhutan Times)