Contacts: In Washington: Benjamin Crow (202) 473-5105 bcrow@worldbank.org WASHINGTON, D.C., June 20, 2007—The World Bank today approved a US$12 million grant to support the Royal Government of Bhutan’s (RGoB) ongoing medium-term policy and institutional reform program. The Second Development Policy Grant is designed to support the government’s development strategy in enhancing economic growth, achieving better socioeconomic outcomes, and reducing poverty. Building on the objectives of the first operation, this grant specifically aims to help Bhutan enhance economic performance as well as the delivery of public services, and create better income earning opportunities. It is designed to facilitate greater labor market flexibility and increase foreign direct investment “In a well-managed country like Bhutan, which is on-track for achieving most of the Millennium Development Goals, the expected benefits of this grant in supporting the government’s program outreach and in strengthening budget management is substantial,” said Alastair McKechnie, Country Director for Bhutan. “Continuing support from the World Bank will help deepen this program and build continuity during the forthcoming political transition to constitutional monarchy and a democratic system of government that promotes development, employment, and accountability within the country’s framework of Gross National Happiness.” DPG2 seeks to strengthen the RGoB’s efforts to provide the sound macroeconomic and fiscal underpinnings for continued steady economic growth. This is expected to help improve the quality of life for all sections of the population, especially the poor and underserved. Measures to enhance access to education and health services—with a special focus on remote, underserved areas—will be particularly beneficial for the poor. Efforts to improve the investment climate for private sector growth and employment generation will create new opportunities and reduce the dependence of the poor on agricultural employment. “The Royal Government of Bhutan is committed to implementing its policy and institutional reforms and is making good progress,” said Christian Eigen-Zucchi, Bhutan Country Economist and Task Leader for the project. “DPG2 was designed to be consistent with the government’s development strategy as articulated in the Ninth Five-Year Plan, which also serves as Bhutan’s Poverty Reduction Strategy Paper.” Bhutan’s development has been guided by its own distinctive approach, which rests on the overarching notion of Gross National Happiness, emphasizing the importance of balancing material, spiritual, emotional, and cultural well-being as elements that together bring happiness to the individual. The government has translated this philosophy into a series of national objectives, emphasizing human development, cultural heritage, equitable development, good governance, and environmental conservation. The US$12 million grant is from the International Development Association, the World Bank’s concessionary lending arm. ### For more information about World Bank activities in Bhutan, please visit: http://www.worldbank.org/bt For more information about the project, please visit the project web site. |
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