Upload
valentina-grandy
View
214
Download
0
Embed Size (px)
Citation preview
The Economy
State of The Economy (2005-2010)
• Robust Growth - 8.9%• Inflation - 6%• GDP per capita: - US$ 1,852 in 2009 up from US $ 1,290 in 2005• High rate of capital formation – hydropower
investments• Buoyant revenue growth • Debt at Sustainable Levels• Structural Change in the Economy
Assessment of Economic Performance
IFI’s and External Agencies• Excellent ratings for macroeconomic performance
Tenth Plan Targets • Growth Target of 9% within reach• Maintain fiscal deficit <6% of GDP
• Economic landscape transformed by hydropower
• 3,000 MW Hydropower Capacity by 2020 comfortably overachieved
• Increasing tourism revenues by 150% achieved (2008)
• Increasing horticulture exports by 300% achieved (2007)
Economic Milestone Targets of Bhutan Vision 2020
• 9% Growth up to 2020
• 16.6 annual revenue growth to 2020
Macroeconomic Perspective up to 2020
2013 2014 2015 2016 2017 2018 20190
2
4
6
8
10
12
14
16
GDP Projected Growth 2013-2019
2013 2014 2015 2016 2017 2018 20190
10
20
30
40
50
60
70
Domestic Revenues Forecast 2013-2019In Billion Ngultrum
Economic Vulnerability
• Bhutan an LDC due to economic vulnerability and weak human assets base
• Economic Vulnerability Index (EVI) in 2009 at 52.9% • 24th most economically vulnerable LDC• EVI indicators of population, size, remoteness, export
concentration, share of primary sector in economy impact of natural disasters, agricultural and export instability
Afg
hani
stan
Ang
ola
Ban
glad
esh
Ben
inB
huta
nB
urki
na F
aso
Bur
undi
Cam
bodi
aC
entr
al A
fric
an R
epub
licC
had
Com
oros
Dem
. R
ep.
of t
he C
ongo
Djib
outi
Equ
ator
ial G
uine
aE
ritre
aE
thio
pia
Gam
bia
Gui
nea
Gui
nea-
Bis
sau
Hai
tiK
iriba
tiLa
o P
DR
Leso
tho
Libe
riaM
adag
asca
rM
alaw
iM
ali
Mau
ritan
iaM
ozam
biqu
eM
yanm
arN
epal
Nig
erR
wan
daS
amoa
Sao
Tom
e an
d P
rinci
peS
eneg
alS
ierr
a Le
one
Sol
omon
Isl
ands
Som
alia
Sud
anT
anza
nia,
Uni
ted
Rep
. of
Tim
or-L
este
Tog
oT
uval
uU
gand
aV
anua
tu,
Rep
ublic
of
Yem
enZ
ambi
a
0
10
20
30
40
50
60
70
80
90
52.9
LDCs by their Economic Vulnerability Index (EVI) CDP Triennial Review 2009
Economic Vulnerability
• Geographical Constraints• High Development and Trading Costs• MDGs unit cost US$ 354 per capita a year to 2015 • Low Rank of 161 among 183 economies for
Trading Across Borders Indicator• Export costs: US$ 1,352 per container • Import costs: US$ 2,665 per container
• Natural disasters
• Climate Change Impact on Hydropower and Agriculture
Social Development
PROGRESS TOWARDS MDGS
• Bhutan likely early achiever for several targets
• Strong policy & institutional support, commitment & effective integration with national planning framework
National level progress on MDG Targets often mask significant disparities & gaps at local level
Other Challenges: - Last mile constraints and costs, - Capacity issues, - Women’s empowerment and - Resource needs
MAJOR CHALLENGE: MEETING MDGS WITH GREATER EQUITY
MDG Success Stories and Areas Needing Attention
Goal 1: Reduce Extreme Poverty and Hunger
• Poverty scaled down from 36.3% in 2000 to 31.7% in 2003 and 23.2% in 2007
• Tenth Plan MTR indicates high likelihood of reducing poverty to 15% by 2013
• Reason for successful scaling back of poverty: - Growth, pro-poor expenditures and effective
redistributive policies
Issues Relatively weaker growth in
sectors important for livelihoods of the poor (Agriculture)
Underdevelopment of the rural economy
Rural Accessibility still a major constraint
Increase in food poverty from 3.8% in 2003 to 5.9% 2007
Multi-dimensional Poverty in Bhutan
• Multidimensional Poverty Concept highly relevant within the GNH framework
• Multidimensional Poverty Index (MPI) calculated on basis of Bhutan specific indicators & appropriate weights
• MPI (2010): 25.8% of Bhutanese are deemed to be MPI poor and deprived in at least 4 of 13 indicators
Nutrition (WHO)Child Mortality
Food Security
Enrolment 8y
Schooling 5y
Cooking Fuel
Toilet MDGElectricity
Water
Assets
Land
Livestock
House
0
0.1
0.2
0.3
Total Urban
Rural
National MPI based on Bhutan relevant indicators
Higher levels of MPI deprivation pertain to:
• access to improved sanitation • cooking fuel (wood, charcoal or
dung) • schooling 5 yrs (proxy for literacy) • electricity
Relatively Less MPI Deprivation in:
• School Enrollment• Drinking Water• Child Mortality• Nutrition• Assets• Livestock• House
Income Poverty and MPI across districts
Gas
a
Sam
tse
Dag
ana
Zhem
gang
Lhue
ntse
Tsir
ang
Mon
gar
Tron
gsa
S/Jo
ngkh
ar
T/Ya
ngts
e
P/G
atsh
el
Wan
gdue
Tras
higa
ng
Bhut
an
Chuk
ha
Sarp
ang
Puna
kha
Haa
Bum
than
g
Paro
Thim
phu
0
0.1
0.2
0.3
0.4
0.5
0.6Multidimensional Poverty Income Poverty
Broad Correlation exists with a few notable deviations
GOAL 2: ACHIEVE UNIVERSAL PRIMARY EDUCATION
On Track • 94% Net Primary Enrollment• 93.6% Primary School Completion Rate
Concerns: • Out of school children (11,565) • Quality of education• Withdrawal of school feeding programmes
GOAL 3: PROMOTE GENDER EQUALITY AND EMPOWERING WOMEN
Complete Gender Parity in Primary and Secondary Education
102 girls for 100 boys in primary schools 103.5 girls for 100 boys in secondary schools
Concerns: Gender imbalance at tertiary education (60.8 to 100 and
low female literacy levels Low level of female representation in national
parliament (13.8%) and local government (7%)
GOAL 4: REDUCE CHILD MORTALITY
On Track with a 48% reduction in IMR to 47 per 1,000 live births from 91 per 1000 live births
On Track with a 53% reduction in Under-5 MR to 69 per 1,00 live births from 148 per 1000 live births
Concerns: While MDGs are on track, Tenth Plan Targets would be highly challenging
GOAL 5: IMPROVE MATERNAL HEALTH
On Track with a 64% reduction in MMR to 200 per 100,000 live births from 560 per 100,000 live births
Concerns: Data issues: MMR still high and linked to low birth attendance (65%)
GOAL 6: COMBAT HIV/AIDS, MALARIA AND OTHER DISEASES
Successful rollback of Malaria and TB incidence
HIV/AIDS prevalence low but high risk factors and rising infection trends
Goal 7: Ensure Environmental Sustainability
High forest cover at 70.46% with protected area at 51.3%
On track for CO2 emissions – negative emissions
Pledge to maintain Carbon neutral economy and minimize carbon footprint
Access to Improved Sanitation at 96.4%. Early achiever
Access to Improved Drinking Water Source at 96%. Early achiever.
Goal 8: A Global Partnership for Development
Decent Employment Youth Unemployment still a major
concern with about 9.2% unemployment among youths
ICT Teledensity: Fixed line increased from
2.4 telephones to 3.8 per 100 ppl Mobile subscribers: Increased from
5.96 mobiles to 56.7 per 100 ppl Internet: Increased from 0.008 to 13.6
per 100 ppl
Resource Challenges
• Resourcing MDGs and Other Development Activities• MDG Needs Assessment and Costing• US$ 1.5 Billion required between 2011-2015• Rising recurrent expenditures• Recent Mckinsey Study on financing health care in Bhutan
reflected that healthcare costs could go up by as much as 70% over next 5 years
• ODA Inflows will still continue to be vital
THANK YOU