ECONOMY AT “TAKE-OFF” STAGE
The DPT government is confident that it will achieve the targeted 9% economic growth within its tenure despite the fact that in the past two years the economy saw an average growth rate of 7%.
Speaking to the media at the Meet the Press on Thursday, the works and human settlement minister Lyonpo Yeshey Zimba said the 9% growth rate was very ambitious. “But we are committed for a faster pace of development. Even in the past we have achieved a growth rate of 6-7% when many countries had growth rates of just 2-3%,” said the minister.
Lyonpo Yeshey Zimba said the reason why the government feels the 9% growth rate is feasible is because Bhutan is no longer at the same stage of development as three of four years back.
“In many ways we have reached a stage, which in economic parlance, is called the take-off stage. Unlike in the past we are more aware of the potential outside, our capacity has been enhanced, and infrastructure has developed. So we have reached a stage where we can move faster than in the past,” he said.
The works and human settlement minister said the targeted growth rate is achievable as there are several hydropower projects on the pipeline. “These power projects are very big. As a result of the implementation of these power projects over the next couple of years, as it progresses, the growth rate will be much higher,” he said.
This will contribute to the growth through the construction sector, employment of more people, and use of more local resources, said Lyonpo Yeshey Zimba. And after the power projects are completed, it will contribute by generating revenue, he added.
“When Tala project was completed the GDP jumped by around 21%. Now given a very small place and very large process of important projects, only 9% is possible,” he said.
Lyonpo Yeshey Zimba explained that initial years in any development is spent in preparation, so lot of yhr impact of the plans take place only after the second or third year.
Many plans are implemented like the starting of the Punatsangchu and Mangdechu projects, and with the present Punatsangchu I taking off, the government is trying to accelerate the economic development.
“For instance, we have plans in the tourism sector. We are talking about increasing the number of tourists and the employment potential. So when these activities start, and they will start because the policies are placed, and some have already started, achieving the growth rate of 9% is difficult but can and will be done,” said Lyonpo Yeshey Zimba.
The economic affairs minister, also present at the Meet the Press, said in some ways, a lot of commitments or activities in the DPT manifesto are ambitious.
“If we don’t have a growth rate of 9% we won’t achieve economic self reliance by 2020 nor will we be able to offer gainful employment to our youth,” he said.
The government has done the ground work and the economic development policy will be released shortly, said the economic affairs minister.
“We are revising the foreign direct investment policy. We are also accelerating economic development – various programmes we have broached and worked with McKinsey,” he said.
Source: bhutantoday