[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-112804-en":3,"doc-seo-112804-105":29,"detail-sidebar-cat-0-en-105":91},{"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":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},112804,1374391974468,"Eden","https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0",8,"Research & Report","Bhutan - Systematic Country Diagnostic - Taking Bhutan’s Development Success to the Next Level","Systematic Country Diagnostic Report No. 145069-BT examines key constraints and opportunities for accelerating poverty reduction and enhancing shared prosperity in Bhutan. It draws on analytical work and evidence collected through three World Bank Group working sessions, complemented by consultations with civil society organizations, the private sector, government stakeholders, and development partners. The report outlines development achievements, assesses demographic prospects, hydropower-linked vulnerabilities, and identifies priorities for sustainable and inclusive growth.","Report No: 145069-BT  \nBhutan  \nSystematic Country Diagnostic  \nTaking Bhutan’s Development Success to the Next Level  \nTable of Contents  \nPreface 5  \nOverview 7  \nI. Introducing Bhutan 11  \nII. Bhutan’s development success story – high growth, great strides in poverty alleviation and, 13  \nhuman and physical capital development  \nIII. A young and more educated demographic profile presents an opportunity for Bhutan’s next 17  \nstage of development, but lackluster private sector development remains a challenge  \nIV. Hydropower has served Bhutan’s development well, but changes in the outlook of the energy 21  \nsector call for alternative sources of growth beyond hydropower  \nV. Taking Bhutan’s development success to the next level 23  \n(a) Boosting private sector development 23  \n(b) Strengthening macro-fiscal stability 33  \n(c) Investing in human capital and improving service delivery 36  \n(d) Enhancing disaster and climate resilience 39  \n(e) Addressing implementation gaps 41  \nVI. Priorities for sustainable and inclusive growth 42  \nAppendix 1. Poverty in Bhutan 47  \nAppendix 2. Hydropower in Bhutan 48  \nList of Figures  \nFigure 1. US$3.20 poverty rates vary widely across districts 13  \nFigure 2. GDP per capita increased almost ten-fold since 1980… 13  \nFigure 3.…which was accompanied by an increase in the share of non-manufacturing industry in GDP 13  \nFigure 4. Poverty headcount declined significantly and is among the lowest among peers. 14  \nFigure 5. Bhutan performed relatively well in shared prosperity 15  \nFigure 6. Agricultural productivity has been increasing 16  \nFigure 7. Labor productivity of agriculture is very low, at 25 percent of overall productivity 17  \nFigure 8. The labor force is predominantly engaged in agriculture 17  \nFigure 9. The public sector increased its influence through an increase in SOEs 18  \nFigure 10. There will be a steady increase in the working-age population 21  \nFigure 11. Urbanization is projected to continue at a rapid pace 21  \nFigure 12. Educational attainment improved dramatically in the past decades 21  \nFigure 13. Bhutan’s logistics performance is low and has not improved in the last decade 23  \nFigure 14. Bhutan’s LPI is the second lowest in South Asia. 24  \nFigure 15. Large hydropower projects have resulted in macroeconomic volatility. 33  \nFigure 16. Saving-investment gap has resulted in external debt accumulation (% GDP) 34  \nFigure 17. Hydropower electricity production is affected by weather (annual change,%) . 34  \nFigure 18. Domestic revenue mobilization stalled (tax to GDP ratio,%) . 34  \nFigure 19. There is an acute shortage of health professionals. 37  \nFigure 20. Quality of services remains highly heterogeneous across the country 37  \nFigure A2.1. Hydroelectricity accounts for more than a third of exports. 49  \nFigure A2. 2Hydropower contribution to revenues declined in the 2010s. 49  \nFigure A2.3. Hydropower debt kept increasing 50  \nList of Tables  \nTable 1. The poor are concentrated in rural areas, are less educated and much more likely to work in 15  \nagriculture  \nTable 2. SOEs under DHI 19  \nTable 3. Unemployment is concentrated in urban youth (number of unemployed and unemployment 20  \nrate, 2018)  \nTable 4. Unemployment is concentrated among those with better education 28  \nTable 5. Summary of priorities 44  \nAppendix Table 1. Existing and Pipeline Hydropower Projects 48  \nAppendix Table 2. Delay in hydropower construction 49  \nAppendix Table 3. Impact of a delay in hydropower construction (one-year delay in Puna I or II project) 50  \nAbbreviations and Acronyms  \nBHU Basic Health Unit  \nBLSS Bhutan Living Standards Survey  \nCAD Current Account Deficit  \nCIB Credit Information Bureau  \nCPSUs Central Public-Sector Undertakings  \nCSIs Cottage and Small Industries  \nCSOs Civil Society Organizations  \nDGPC Druk Green Power Corporation  \nDHI Druk Holding and Investments  \nDMEA Department of Macroeconomic Affairs  \nDNT People-Centered and Pragmatic Party  \nECB External","cbCaisvnqXZqUj0p","https://ap.wps.com/l/cbCaisvnqXZqUj0p","pdf",1067280,1,54,"English","en",105,"# Preface\n# Overview\n# Introducing Bhutan\n# Bhutan’s development success story – high growth and poverty alleviation\n# A young and more educated demographic profile and private sector challenges\n# Hydropower’s role and energy outlook\n# Taking Bhutan’s development success to the next level\n## Boosting private sector development\n## Strengthening macro-fiscal stability\n## Investing in human capital and improving service delivery\n## Enhancing disaster and climate resilience\n## Addressing implementation gaps\n# Priorities for sustainable and inclusive growth\n# Appendix 1. Poverty in Bhutan\n# Appendix 2. 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