Bhutan Country Strategy Paper 2007-2013 - the European External ...

� Promoting use of energy sources that are environment friendly, such as hydropower, and
energy efficient technology.
� Implementing the provisions of the urban master plans including activities to improve solid
waste management.
3. Overview of past and ongoing EC cooperation with Bhutan, coordination and coherence
EC assistance to Bhutan started in 1982 and has amounted to some € 46 million between 1982
and 2002. The EC has gradually expanded its co-operation scope, which now includes renewable
natural resources (including medicinal plants), rural development, health, environment and export
diversification.
The EC strategy is in line with Bhutan’s approach to development, as set out in various planning
policy documents, most notably the 9th Five Year Plan (2002-2007) and ‘Bhutan 2020: A
Vision for Peace, Prosperity and Happiness’ (May 1999). The latter remains the central
unifying concept and aims to maximise Gross National Happiness and is the underlying
rationale for any future development initiatives.
The EC’s overall cooperation objective with Bhutan is poverty reduction through the promotion
of sustainable growth with special attention given to the environment. Given the country's
situation, the vast majority of the funds have been allocated for Development Co-operation
through the annual budget for Technical and Financial Co-operation in favour of ALA countries.
Given Bhutan’s predominant agricultural vocation, the EC chose to focus its activities on:
• Raising productivity in agriculture by introducing more efficient technologies and
methods.
• Improving rural incomes through increasing added value in agricultural outputs.
• Improving the institutional capacity to manage sustainable development.
Renewable Natural Resources (including livestock, agricultural production and extension and
Integrated Pest Management) and Health (especially the production of medicinal plants) was the
most important sector covered by the current strategy. Other areas of co-operation include trade
and export diversification in order to support Bhutan in its efforts to enhance its trade and
investment environment and help it participate effectively in the multilateral trading system and
the global economy.
Moreover, the EC has supported Bhutan’s effort towards Capacity Building (HRD,
Decentralisation and Administrative Reforms) in all its co-operation activities.
The communication on EC Development Policy 4 has provided the general framework for a coordinated
effort with other donors (World Bank) and Member States (complementarity) designed
to promote sustainable development, focusing on social and human aspects as well as on sound
management of natural resources and the environment. Equally important in this context are the
objectives set in the Action Programme for Development of Bhutan (2001-2010) at the third
LDC Conference (May 2001) emphasising agricultural self-sufficiency, human development
(social services), expansion of hydropower generation and enhancement of revenue growth.
4 COM (2000) 212 Final
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