The economy of Bhutan is largely based on agriculture and forestry. The main crops are rice, maize, wheat, buckwheat, barley and potatoes. In addition to these crops, Bhutan also produces cardamom, oranges and apples. Livestock rearing is an important source of income for the rural population. Cattle are reared for milk production as well as for sale in the local markets. Sheep and goats are raised for meat production.
According to cheeroutdoor, tourism is another important sector of the economy in Bhutan. This sector has grown significantly in recent years due to its unique cultural heritage and pristine environment. The country has become a popular destination for trekkers, climbers and bird-watchers from all over the world. Tourism contributes significantly to the country’s GDP and provides employment opportunities to many locals as well as foreign nationals from neighboring countries like India and Bangladesh.
Hydropower is another major contributor to the economy of Bhutan. The country has several large hydropower projects that generate electricity which is exported to India at a much lower cost than that produced by thermal plants there. This has helped improve the economic condition of both countries significantly by providing cheap energy to India while generating revenue for Bhutan’s government through export earnings.
The manufacturing sector in Bhutan is still relatively small but it has been growing steadily over recent years with investments from both public and private sectors in industries such as food processing, textiles, construction materials etc., These industries provide employment opportunities to many people in rural areas thereby contributing towards poverty reduction efforts in these areas.
Overall, the economy of Bhutan has been growing steadily over recent years with various sectors contributing towards its GDP growth rate which currently stands at 8%. With its unique culture, natural beauty and abundance of resources it holds great potential for further development which can be achieved with proper planning and execution of economic policies by its government authorities.
Abbreviated as RUB by abbreviationfinder.org, Bhutan signed a new friendship agreement with India in February 2007, replacing the old one from 1949.
The Program Director for the United Nations Environment Program, Achim Steiner, pointed out in July 2007 that although Bhutan is one of the countries that emit at least CO 2 into the atmosphere, it will be one of the countries that feels the consequences of global warming most, as it will will receive large amounts of water as the Himalayan snow masses melt.
In April 2007, the king lifted the ban on political parties. In June, the conservative royalist party, Druk Phuensum Tshogpa (Bhutan Peace and Prosperity Party) was formed. The party won the country’s first parliamentary elections in March 2008 and won 45 of the parliament’s 47 seats. Its chairman, Jigmi Yoezer Thinley, became prime minister.
Note: the capital city of Bhutan is Thimphu with a population of 114 551 (2017 Census). Other major cities include Phuentsholing with a population of 27 658, Gelephu with a population of 9 858, Wangdue with a population of 8 954 (2017 census).
In the fall of 2008, Thinley characterized the global financial crisis as a consequence of greed, and instead referred to Bhutan’s goal of National Prosperity, which emphasizes both spiritual and material values.
With a 3 year delay, local elections were held in the first half of 2011. The elections were conducted in the period January-June. 1104 representatives were captured among 2185 candidates. However, turnout only reached 56%.
In April 2013 elections were held for the 20-person National Council. There were 67 candidates, but in a few of the municipalities there was only 1 candidate on the ballot. All candidates were independent as the legislation prohibits parties from running for office. The king subsequently appointed another 5 members to the council.
In May, the first round of elections for the 47-person National Assembly was conducted. The second round was completed in July. The election was a landslide victory for the opposition party PDP, which gained 30 seats – a rise of 30. The former ruling party DPT had to settle for the 15th PDP chairman, Tshering Tobgay then assumed the post of prime minister. In particular, the background to the landslide election was that the DPT had initiated an approximation process to China. It was punished by India removing the subsidies on the sale of oil to Bhutan, with the result that energy prices tripled. Furthermore, India removed its credits to the country, throwing Bhutan into a difficult economic crisis. The PDP advocated strengthening relations with India and decentralizing power. After the victory, India’s Prime Minister Manmohan Singh sent his congratulations to the PDP.
- COUNTRYAAH: Find major trading partners of Bhutan, including major exports and major imports with latest trade value and market share as well as growth rate.
Bhuntan initiated a kind of land reform in 2011 at Khinadang in Pemagatshel. The purpose of the project was to resettle peasants from remote and hard-to-reach valleys to a village in a more fertile part of the country and at the same time make counseling and supplies available to them. The project was inaugurated in 2014 and from the start was a great success, which it was therefore decided to implement in other parts of the country as well.
In 2014, the king pardoned 45 prisoners convicted of possessing larger quantities of tobacco.
From a few thousand tourists annually in 1990, the number of tourists in 2014 increased to 133,500. The country seeks to mitigate the harms of tourism by imposing a daily tourist tax of $ 250 on each tourist and completely banning individual tourism. Only wealthy tourist groups have access.
Economic conditions
Despite the significant increase in the average per capita income recorded between 1985 and 1995 (+ 4 % per annum), Bhutan remains an economically very backward country and, even today, heavily dependent on foreign countries (India first of all).
The main economic activity is agriculture, and increasingly, according to FAO estimates, more than 90 % of the working population is employed in the primary sector, but contributes only 38, 2 % to GDP. Furthermore, the crops have a very poor yield: so is corn, which is widespread on 771. 000 ha, shows a yield of 867 kg / ha against an Asian average of 3728 kg / ha; rice, grown on 22 % of the arable land, has a yield of 1667 kg / ha against an Asian average of 3802 kg / ha. Forests (63% Of land area) allow a discreet timber production (1,398,000 m ³ in 1994), largely exported to India.
Over the last few decades, the industrial sector hasn’t made much progress; it remains substantially linked to the production of electricity (1682 million kWh in 1994). In 1988, the entry into operation of the Chukha power plant (with a capacity of about 338 MW) increased the country’s hydroelectric production, allowing the export of energy to India, which remains the main trading partner, despite attempts del Bhutan to come out of its economic orbit.
