Bhutan to Graduate from Least Developed Countries Group by 2022

Email

Bhutan has stable political, economic and social settings that could attract a lot of Foreign Direct Investments.

Bhutan has stable political, economic and social settings that could attract a lot of Foreign Direct Investments. (Source: http://www.bbs.bt/)

 

As Bhutan prepares to graduate from the Least Developed Country (LDC) category in next few years, concerns are particularly high in terms of the country’s economic vulnerability.

Bhutan will benefit tremendously from the graduation

However experts, defying the sense of cynicism, believe that Bhutan will benefit tremendously from the graduation both in terms of trade and foreign investments.

Bhutan is one of the 47 LDCs in the world, having unique structural challenges to its development progress.

The Foreign Ministry, in collaboration with the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) organised a three-day regional capacity building workshop to help countries like Bhutan to formulate national policies and strategies in preparation for its graduation from the LDC category.

Usually there are cynicisms surrounding the graduation since a graduated country loses access to multilateral LDC specific funds. In trade, as well, graduation could imply a loss of duty free access to foreign markets.

However, UNESCAP said graduation is not a complex issue. In fact, the UNESCAP believes it reflects Bhutan’s success and improvement in its social and economic standings.

“When countries graduate, one element that they lose in the transition period is the preferential access to markets mainly in developed economies in Europe and the US. However, if you look at the Bhutan’s export structure, it doesn’t do that much trade with Europe and the US. Its main trading partner is India. So if you graduate, you will not lose any access to Indian market -electricity export, it won’t be losing that. India is also the main partner for Bhutan in terms of providing loans and grants. So this won’t be affected by graduating from the LDC category,” said Oliver Paddison, Chief of Countries with Special Needs Section under UNESCAP.

Bhutan fulfilled the criteria for graduation from the LDC category for the first time in 2015 and will be considered for graduation at the 2018 review.

Bhutan has stable political, economic and social settings that could attract a lot of Foreign Direct Investments

“LDCs are, as I said, generally more conflict prone, vulnerable and maybe foreign investors are not willing to invest into LDCs because they are often considered to be politically unstable which is clearly not the case  in Bhutan. So if you graduate, you are also sending signals that we are doing really well, we have the stable political, economic and social settings and that could attract a lot of Foreign Direct Investments (FDIs) potentially,” added Oliver Paddison.

Bhutan has met the graduation threshold for income and human assets index, while falling short in the economic vulnerability criterion.  If a country satisfies at least two out of the three criteria for graduation in two consecutive triennial reviews, the Committee for Development Policy recommends to the UN’s Economic and Social Council that the country should be considered for graduation. If this is accepted, Bhutan then will graduate from the least developed country to the developing country category by 2022.

 

By Sonam Phuntsho (This article has been edited for the Bhutan Times)

This article first appeared on Kuensel.

 

 


Related Posts

Thimphu TechPark aims to attract foreign investment

The main mission of the company is to attract reputed IT/ITES companies from both within Bhutan and around the world to...

Oct 01, 2017 17:37

Another Techpark in Bhutan by 2019

The Ministry of Information and Communications (MoIC) will establish another Techpark by 2019. This is geared towards...

Oct 17, 2017 09:38

Entrepreneurship Course Equips Youth with Business Skills

More than 30 out of school youths are learning how to make banana bread, chips, fruit wine and cardamom tea at a basic...

Oct 15, 2017 15:21

Gross National Happiness of Business Assessment Tool Proposed

The proposed GNH tool is expected to systematically assess a business establishment’s effort to integrate GNH values...

Nov 08, 2017 13:48

Startup Weekend Begins in Phuentsholing

The Startup Weekend is organised in collaboration with Thimphu Techpark, Techstars, Department of IT and Telecom (DITT)...

Oct 29, 2017 12:00

Bhutan is the best place to do business in the Indian...

Compared to its neighbours, Bhutan is still the considered the best place to do business in the region. India is ranked...

Nov 06, 2017 10:23

Latest

News

National Assembly Election 2018: Druk Nyamrup Tshogpa And Druk Phuensum Thosgpa Through To General Round

Druk Nyamrup Tshogpa secured 92,722 votes and Druk Phuensum Thosgpa secured 90,020 votes.

Sep 15, 2018 21:50

Samdrup Jongkhar Aims To Be The First Plastic Free Town In Bhutan

It may take time for Samdrup Jongkgar to become a completely plastic-free town but the residents will work towards fulfilling this dream...

Sep 11, 2018 16:56

Features

Drukgyel Dzong Which Used To House Sacred Bhutanese Documents Lost to A Fire In 1951, To Be Restored By 2022

The reconstruction works began in April 2016 after the command of His Majesty The King to celebrate the birth of His Royal Highness (HRH)...

Sep 17, 2018 15:42

11 Year Old Author Revives Forgotten Snowball Culture Of ‘Khakey’ In Bhutan

Khakey is a custom that originated in Western Bhutan and was popular a few generations ago.

Sep 13, 2018 19:27

Sports

Bhutanese Female Athlete Aces In Athletics And Boxing While Juggling Studies

Tandin was selected to compete at the 18th Asian Games in Indonesia last month.

Sep 09, 2018 17:24

An American Won The Breath-Taking 268km Tour Of The Dragon Mountain Bike Race In Bhutan

The 268 km race is considered as the toughest one-day mountain bike race in the world.

Sep 05, 2018 16:30

Business

Cultivation Of Avocado Looks Set To Take Off In Tsirang, Bhutan

A few farmers have already started selling avocados in the Sunday vegetable market for about Nu 250-350 a kilogram.

Sep 18, 2018 15:38

BEBL Group Aims To Export Bhutan’s Finest Agro-Products To New Markets Such As The Middle-East

Most of the Bhutanese commodities are absorbed within the Indian market, BEBL feels that the farmers are deprived of their deserving market...

Sep 14, 2018 17:52

Travel

Handicrafts Shops Thrives In Paro Selling Bhutanese Textile, Paintings, Bamboo Products And More

With businesses picking up fast as a result of the tourism boom, the handicraft shops in Paro have even formed a committee with a...

Sep 16, 2018 14:56

Be Awe-Inspired By The ‘Dance Of The Terrifying Gods’ And More At The Thimphu Tshechu Which Starts On 19 Sept

Held from 19 to 21 Sept 2018, the annual Thimphu Tshechu (festival) is a vibrant visual feast for both locals and foreigners.

Sep 12, 2018 20:45

Lifestyle

Miniature Bhutan Creates Amazing Artworks Out Of Pencil Lead And Rice Grains

Miniature Bhutan carves on the lead of pencil tips to make traditional miniature sculptures such as the Buddha, traditional bridges, swords...

Sep 10, 2018 12:44

Bhutan Buy - E-Commerce Platform Seeks To Promote Sale Of Bhutanese Products And Change The Way Bhutanese Shop

Samir Pradhan started Bhutanbuy, an e-commerce company, the first of its kind in Bhutan.

Sep 06, 2018 23:30

Subscribe to our newsletter

Never miss out on new happenings and news stories!