Question

What are the accomplishments and shortfalls of Bhutan being a traditional economy? In detail, please!

Answer 1

Bhutan is a landlocked country settled in South Asia between China and India. Bhutan is primarily mountainous and monitors numerous central mountain passes in the Himalayas. The system of government is a constitutional monarchy; the King is the Head of State, and the Prime Minister is the Head of government. Bhutan has a predominantly traditional economic structure under which resources are distributed based on the heritage and primitive methods. For monetary and trade links, Bhutan relies heavily on India. Bhutan is a member of the South Asian Association for Regional Cooperation (SAARC).

One of the least-developed countries worldwide, the Bhutan economy is focused on farming and forestry, which provide over 60 percent of the population with their primary livelihoods. Livestock farming and animal husitage are a major part of agriculture. The terrain is dominated by rough mountains and it is difficult and costly to build roads and other infrastructure.

The government's desire to protect the environment and culture in the country is taken into account in every economic program. For instance , the government encourages visits from elegant, environmentally conscientious tourists in its cautious expansion of the tourist sector. Detailed restrictions and unpredictable policies tend to impede foreign investment in areas such as industrial licensing, commerce, labor and finance. While GDP decreased in 2008 as a result of a slowdown in India, Bhutan 's predominant export market has boosted hydroelectric exportation to India.

Bhutan's per capita per capita gross domestic product increased steadily, averaging 7.8% year-on-year over 1981–2011, and over a period of $271 to $1,446, over the same period. The growth was driven primarily by hydropower development. Conscious efforts by the government to invest in developmental programs have led to rising poverty in the region. Bhutan has been one of the most rapidly growing economies in the region of South Asia with strong performance and an environmental pursuit. It appears that sustainability and inclusive economic growth are within reach.

Bhutan has recognized that it must continue with all those positive developments. to resilience growth to external and internal factors. This means increasing its efforts to increase its economic growth and ensure a broader distribution of the benefits of growth Bhutan's rugged terrain provides inadequate infrastructure and primary public service The country as a whole. Restricted infrastructure capacity, in particular for transport and connectivity;
Inclusive growth, hampering access to economic possibilities, was a major obstacle.

Bhutan must establish an institutional framework by means of a consultation process which consolidates the roles and capacity of strategic planning , coordination and monitoring effectively without centralizing the implementation and maintenance of the infrastructure facilities and services. In the transport sector in particular, the Framework requires a comprehensive evaluation of capacity building in all the government levels, with a special focus on the ability to plan, design, build and maintain road and related infrastructure.