Bhutan Country Economic Update : Accelerating Growth and Poverty Reduction

World Bank

Bhutan Country Economic Update : Accelerating Growth and Poverty Reduction

Autores

World Bank

Editor

Washington, DC

Descripción

This report was prepared to help the Royal Government of Bhutan (RGoB) meet its felt need for more economic analysis and policy advice. It also seeks to provide information to a wider audience of development partners and interested parties. Over the past 25 years, Bhutan has been developing rapidly, pursuing sound economic policies, exploiting hydropower, and enjoying strong support from external development partners. Solid growth continues to raise per capita income and support improvements in social indicators. Through the prism of these four elements, this report seeks to contribute to the policy discussion by providing an integrative analysis and update of the Bhutanese economy, as well as developing a set of key recommendations and issues that warrant consideration or further study. Section two describes ongoing governance reforms, outlines the objectives articulated in Bhutan's Vision 2020 document and the Ninth Five-Year Plan (Ninth Plan), discusses the poverty reduction strategy, and notes progress towards meeting the millennium development goals. Section three examines recent economic developments, including growth, the balance of payments, and external debt. Section four analyzes macroeconomic policy, highlighting the challenge of fiscal volatility and the need to manage expectations surrounding the coming on-stream of the giant hydropower project Tala. Section five discusses several structural aspects of public resource management, including ongoing fiscal and financial management reforms, the importance of avoiding the 'natural resource curse,' and the treatment of state owned enterprises. Section six investigates the role of strengthening the investment climate for facilitating private sector development. Section seven comments on the prospects for accelerating growth, looking at the development of additional hydropower resources, construction, tourism, and agribusiness, emphasizing that while hydropower will continue to drive economic growth, tourism and value added activities in agriculture will be central to boosting growth and generating broad-based employment. Section eight concludes with medium term development prospects and challenges.

Palabras clave

ACCESS TO SAFE WATER, ACCOUNTABILITY MECHANISMS, ACCOUNTING, ANNUAL BUDGET, ANNUAL BUDGETS, ARTICLE, AUDITOR GENERAL, BALANCE OF PAYMENTS, BALANCE SHEETS, BANK LENDING, BANKING SYSTEM, BARRIERS TO ENTRY, BASIC SERVICES, BOND ISSUES, BONDS, BUDGET CONSTRAINTS, BUDGET DEFICIT, BUDGET DEFICITS, BUDGET PREPARATION, BUDGET PROCESS, BUDGET SYSTEMS, BUDGETING, CAPACITY CONSTRAINTS, CAPITAL EXPENDITURE, CAPITAL EXPENDITURES, CASH RESERVE, CASH RESERVE RATIO, CENTRAL BANK, CENTRAL BANK BILLS, CENTRAL GOVERNMENT, CENTRAL GOVERNMENT EXPENDITURE, CIVIL SERVICE, CIVIL SOCIETY ORGANIZATIONS, COMMERCIAL TERMS, CONSUMER PRICE INDEX, CONTRACT LAW, CREDIT GROWTH, CREDITOR, CURRENCY, CURRENCY BOARD, CURRENCY BOARD ARRANGEMENT, CURRENT ACCOUNT DEFICIT, DEBT, DEBT MANAGEMENT, DEBT SERVICE, DEBT SERVICE PAYMENTS, DEBT STOCKS, DEBT SUSTAINABILITY, DECENTRALIZATION, DEFICITS, DEPOSIT, DEPOSIT LIABILITIES, DEPOSITS, DEVELOPMENT BANK, DISBURSEMENTS, DOMESTIC BOND, DOMESTIC BORROWING, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKETS, DOMESTIC CREDIT, DOMESTIC DEBT, DOMESTIC REVENUE, DONOR ASSISTANCE, DONOR FUNDING, DONOR FUNDS, ECONOMIC CLASSIFICATION, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, ECONOMIC POLICIES, ECONOMIES OF SCALE, EDUCATIONAL ATTAINMENT, ENABLING ENVIRONMENT, EQUIPMENT, EXCESS LIQUIDITY, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXPORTERS, EXTERNAL DEBT, EXTERNAL FINANCING, EXTERNAL GRANTS, EXTERNAL IMBALANCES, EXTERNAL INVESTORS, FINANCES, FINANCIAL ACCOUNTABILITY, FINANCIAL INSTRUMENTS, FINANCIAL MANAGEMENT, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL SYSTEM, FISCAL ACCOUNTS, FISCAL DEFICIT, FISCAL DISCIPLINE, FISCAL MANAGEMENT, FISCAL POLICY, FISCAL SUSTAINABILITY, FIXED EXCHANGE RATE, FOREIGN EXCHANGE, GOVERNMENT EXPENDITURE, GOVERNMENT FINANCE, GOVERNMENT INVESTMENT, GOVERNMENT REVENUE, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HARD BUDGET CONSTRAINTS, HARD CURRENCY, HEALTH CARE, HOLDING, HOLDINGS, HOUSEHOLD INCOME, HUMAN CAPITAL, HUMAN DEVELOPMENT, HUMAN RESOURCES, IMMUNIZATION, INCOME TAX, INDEBTEDNESS, INFLATION, INFORMATION TECHNOLOGIES, INFRASTRUCTURE INVESTMENT, INTEREST PAYMENTS, INTEREST RATE, INTEREST RATE SPREAD, INTEREST RATES, INTERNATIONAL DEVELOPMENT, INTERNATIONAL STANDARDS, INVESTMENT CLIMATE, ISSUANCE, ISSUANCE OF TREASURY BILLS, LABOR MARKET, LABOR MARKETS, LIABILITY, LIQUIDITY, LIVING STANDARD, LIVING STANDARDS, LOAN, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MACROECONOMIC FRAMEWORK, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICY, MARGINAL COST, MARKET REFORMS, MEDIUM TERM EXPENDITURE, MEDIUM TERM EXPENDITURE FRAMEWORK, MEDIUM-TERM FISCAL FRAMEWORK, MEDIUM-TERM OUTLOOK, MINISTRY OF FINANCE, MONETARY AUTHORITY, MONETARY FUND, MONETARY POLICY, NATIONAL BANK, OPEN ECONOMIES, OPPORTUNITY COST, OVERDRAFT FACILITIES, OVERDRAFT FACILITY, PENSION, PERPETUITY, PERSONAL INCOME, POVERTY PROFILE, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, PRICE MOVEMENTS, PRIVATE CREDIT, PRIVATE INVESTMENT, PRIVATE SECTOR, PRIVATE SECTOR CREDIT, PRIVATE SECTOR GROWTH, PRODUCTIVE INVESTMENTS, PROGRAMS, PUBLIC ACCOUNTS, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE MANAGEMENT, PUBLIC FINANCE, PUBLIC INVESTMENT, PUBLIC OWNERSHIP, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SERVICES, PUBLIC SPENDING, RECURRENT EXPENDITURE, RECURRENT EXPENDITURES, REFERENDUM, RESERVES, RESOURCE ALLOCATION, RESOURCE AVAILABILITY, RESOURCE FLOWS, RESOURCE MANAGEMENT, RETURN, REVENUE SOURCES, RULE OF LAW, SALES TAX, SANITATION, SECTORAL ALLOCATIONS, SECTORAL PLANS, SECTORAL POLICIES, SEPARATION OF POWERS, SHORT-TERM BILLS, SOCIAL INDICATORS, SOCIAL SERVICES, STRUCTURAL REFORMS, TAX, TAXPAYERS, TELECOMMUNICATIONS, TOTAL SPENDING, TRADING, TRANSACTIONS COSTS, TRANSPARENCY, TREASURY, TREATY