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

efficiently protecting the environment. In particular, capacity limitations and development
objectives at the gewog level will present challenges for the environment.
Bhutan is unique in its outlook on the environment and its plans for balanced economic
development. However, the country is faced with some key challenges to maintaining its pristine
environment in the face of its rapidly developing economy and changing rural-urban environment.
With hydropower as a major economic activity, it is critical that watersheds and forest cover are
maintained. Key issues to achieving this include sharing the costs and benefits of conserving its
environment and balancing development amongst rural and urban communities.
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