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

• The results of past elections:
Local elections last held in August 2005.
• Coming elections:
First parliamentary elections to be held in 2008.
• The national development plan:
The development process in Bhutan was initiated in 1961 and has so far successfully completed four
decades of planned development. The 8th Five Year Plan (FYP) priorities (1997-2002) were characterised
by hydropower development and industrialisation, institutional and human resource development,
integrated rural development and improvement of social services. These objectives have guided donors’
assistance to the country, which amounted to 23% of GDP in FY 98/99. The 9th FYP (2002-2007) puts
emphasis on infrastructure development and improvement in the quality of social services.
Another policy document is ‘Bhutan 2020: A Vision for Peace, Prosperity and Happiness’ (May 1999). The overall
objective is poverty reduction through the promotion of sustainable growth with special attention given to
the environment.
• Membership in regional organisations:
Bhutan is an active member of several regional organizations and its membership continues to bring mutual
benefit to both Bhutan and the organisations.
Bhutan is a founding member of the South Asian Association for Regional Cooperation (SAARC) which
was established in 1985. A Memorandum of Understanding on Administrative Cooperation was signed
between the SAARC and the European Commission (EC) on 10 July 1996 in Brussels focused on exchange
of information, training programmes, technical assistance and any other areas jointly agreed to.
Bhutan became a member of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation (BIMSTEC) in 2004 and is also a member of the Asian Cooperation Dialogue (ACD) since
2005.
Political challenges in the near future:
Challenge A: People in the camps in eastern Nepal. The people in the camps, now reported approximately
100,000 in number are hosted in 7 UNHCR camps in eastern Nepal. A solution to the crisis seems
forthcoming as the US and Nepal agreed on third country resettlement. It is envisaged that some 60,000
people from these camps will be resettled to the US over a five-year period.
Challenge B: The Constitution and parliamentary elections: adoption of the draft Constitution and
parliamentary elections in 2008.
4. Economic situation
The regional average refers to South Asia (as per the World Bank Development Indicators Database)
Macro indicators Country Region Public expenditure indicators Country Region
Growth of GDP % 7.7 4.3 Government Expenditure/GDP % 35 N.A.
Investment/GDP % 48.1 Expend. Surplus/deficit/GDP % -6.2 -4.9
Exports/GDP % 21.9 16.9 EU Aid/Total Gov Expenditure %
Imports/GDP % 38.6 18.3 Total Aid/Total Gov Expend. % N.A N.A
FDI/GDP % 0.05 0.64 Health exp/GDP. % 3.6 N.A
Debt service/GDP 1.01% 24.5 Education exp/GDP.% 3.5 N.A
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