[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109338-en":3,"doc-seo-109338-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109338,4810365810221,"Aurora","https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d",8,"Research & Report","Bhutan Country Economic Memorandum - Maximizing Bhutan’s Potential for Economic Diversification and Structural Transformation - September 2024","Bhutan Country Economic Memorandum (September 2024) analyzes how Bhutan can broaden its growth model beyond hydropower and accelerate structural transformation. The report examines hydropower revenue management and the links between hydro rents, private-sector development, and Dutch Disease symptoms. It evaluates agricultural productivity constraints and climate-related yield risks, outlining how productivity gains can release labor and shift value-added. It also reviews financial-sector concentration, credit allocation, stability and governance, financial deepening, and climate finance, concluding with actionable policy priorities.","BHUTAN  \nCOUNTRY ECONOMIC MEMORANDUM  \nMaximizing Bhutan’s Potential for Economic Diversification and Structural Transformation  \nBhutan Country Economic Memorandum  \n© 2024 The World Bank  \n1818 H Street NW, Washington, DC 20433  \nTelephone: 202-473-1000; [Internet:](Internet: www.worldbank.org)[ www.worldbank.org](Internet: www.worldbank.org)  \nSome rights reserved  \nThis work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.  \nRights and Permissions  \nThe material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given.  \nAttribution—Please cite the work as follows: “World Bank. 2024. XXX”  \nAll queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [pubrights@worldbank.org](pubrights@worldbank.org).  \nCover picture: © 2017 Sabine Hortebusch/Shutterstock. No use without permission.  \n[Design: Alejandro Espinosa / sonideas.com](Design: Alejandro Espinosa / sonideas.com)  \nBhutan  \nCountry Economic Memorandum  \nMaximizing Bhutan’s Potential for Economic  \nS E P T E M B E R 2 0 2 4  \nDiversification and Structural Transformation  \nMacroeconomics, Trade and Investment (MTI) Global Practice  \nContents  \nBhutan Country Economic Memorandum  \nContents  \nAcknowledgements x  \nAbbreviations and Acronyms xi  \nExecutive Summary 1  \n1. Hydropower Revenue Management for  \nEconomic Diversification 22  \n1.1. Introduction 23  \n1.2. Bhutan’s hydro and non-hydro growth nexus 25  \n1.2.1. Past growth has been driven by the publicly led and capital-intensive hydro sector 25  \n1.2.2. The private sector has remained small, with limited employment opportunities 28  \n1.2.3. Economy-wide effects of the hydro sector and symptoms of the Dutch Disease 31  \n1.3. Economic diversification in Bhutan: a framework for managing hydropower rents 37  \n1.3.1. The case for investing domestically 37  \n1.3.2. Current policies for economic diversification in Bhutan 41  \n1.3.3. A suitable institutional framework for effectively channeling hydropower rents towards productivity enhancing assets in Bhutan. 45  \n1.4. Policy priorities 54  \n1.4.1. Hydropower development to leverage the current comparative advantage and ensure future hydro rents 54  \n1.4.2. Policies to lay the foundation for (new) comparative advantages in the  \nnon-hydropower sectors 55  \n1.4.3. Institutional setup to frame and implement sector-specific policies 57  \n2. Structural Transformation Through  \nAgricultural Productivity  \n60  \n2.1. Introduction 61  \n2.2. Structural shifts in the agricultural sector 61  \n2.2.1. Agriculture continues to be Bhutan’s main employer, especially in rural areas 61  \nD  \nContents Bhutan Country Economic Memorandum  \n2.2.2. Agricultural value-added has fallen behind other sectors and comparators 63  \n2.2.3. The slow growth in agricultural value-added is driven by the reduced  \nproduction of Bhutan’s traditional crops 65  \n2.2.4. The agricultural sector is gradually transitioning from traditional to higher value products 67  \n2.3. Productivity as a kick-starter of structural transformation 69  \n2.3.1. Within Bhutan there is a statistical relation between more productive  \nagriculture and the release of labor 70  \n2.3.2. Agricultural productivity in Bhutan is","cbCaitGNw7jygPkl","https://ap.wps.com/l/cbCaitGNw7jygPkl","pdf",6528412,4,1,130,"English","en",105,"# Executive Summary\n# Hydropower Revenue Management for Economic Diversification\n## Introduction\n## Bhutan’s hydro and non-hydro growth nexus\n## Economic diversification in Bhutan: a framework for managing hydropower rents\n## Policy priorities\n# Structural Transformation Through Agricultural Productivity\n## Introduction\n## Structural shifts in the agricultural sector\n## Productivity as a kick-starter of structural transformation\n## Climate change may increase agricultural output but also lead to yield variability\n## Policy priorities\n# Bhutan’s Financial Sector: Issues and the Way Forward\n## Introduction\n## Concentration and credit allocation in the financial sector\n## Financial sector challenges and recent measures\n## Policy priorities","[{\"question\":\"How does the memorandum link hydropower to economic diversification in Bhutan?\",\"answer\":\"It studies how hydro-led, capital-intensive growth shapes economy-wide effects, including symptoms consistent with Dutch Disease. It then proposes a framework to manage hydropower rents to support productivity-enhancing assets and diversification.\"},{\"question\":\"What role does agricultural productivity play in structural transformation?\",\"answer\":\"The report argues that productivity improvements can accelerate labor release and shift sectors toward higher value-added activities. It also identifies production constraints and productivity gaps as key barriers to closing the opportunity.\"},{\"question\":\"What challenges and priorities are highlighted for Bhutan’s financial sector?\",\"answer\":\"The memorandum examines concentration and credit allocation, then discusses financial stability and governance of financial institutions, deepening financial intermediation, and bolstering climate finance. It concludes with policy priorities to address these issues and support broader transformation.\"}]","Bhutan Country Economic Memorandum - Maximizing Bhutan’s Potential for Economic Diversification and Structural Transformation - September 2024 | PDF",1784478754,328,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":29},"bhutan-country-economic-memorandum-maximizing-bhutans-potential-for-economic-diversification-and-structural-transformation-september-2024","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":20},"https://docshare.wps.com/document/bhutan-country-economic-memorandum-maximizing-bhutans-potential-for-economic-diversification-and-structural-transformation-september-2024/109338/",{"url":53,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"How does the memorandum link hydropower to economic diversification in Bhutan?","Question",{"text":76,"@type":77},"It studies how hydro-led, capital-intensive growth shapes economy-wide effects, including symptoms consistent with Dutch Disease. It then proposes a framework to manage hydropower rents to support productivity-enhancing assets and diversification.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"What role does agricultural productivity play in structural transformation?",{"text":81,"@type":77},"The report argues that productivity improvements can accelerate labor release and shift sectors toward higher value-added activities. It also identifies production constraints and productivity gaps as key barriers to closing the opportunity.",{"name":83,"@type":74,"acceptedAnswer":84},"What challenges and priorities are highlighted for Bhutan’s financial sector?",{"text":85,"@type":77},"The memorandum examines concentration and credit allocation, then discusses financial stability and governance of financial institutions, deepening financial intermediation, and bolstering climate finance. It concludes with policy priorities to address these issues and support broader transformation.","https://schema.org",{"og:url":53,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":107,"slug":139},19,"General","general"]