Although the GDP per capita is among the highest in South Asia, poverty in Bhutan remains a serious social and economic issue—around 32% of the population is poor.
The country has made a remarkable progress in the socio-economic development:
- The annual growth rate of GDP averaged 6.6% in the 1990s
- The gross enrollment rate rose by 30%, from 55% in 1990 to 72% in 2000
- the incidence of malaria declined by almost 40% , from about 9,500 in 1990 to 6,000 in 2000
The Royal Government's development strategy is marked by its unique philosophy, such as measuring Gross National Happiness, which emphasizes harmony between material well-being and spiritual, emotional and cultural well-being.
Accordingly, the development strategy consists of four equally important goals:
- Economic growth and development
- Preservation and promotion of cultural heritage
- Preservation and sustainable use of the environment
- Good governance
However, data constraints remain a major challenge for implementing the above policy pillars.
The Royal Government tried to carry out some poverty studies such as Household Income and Expenditure Survey 2000 (HIES 2000) and Poverty Assessment and Analysis 2000 (PAA 2000) on pilot basis. The government is committed to improving the quality of the survey further, as the recently completed Poverty Reduction Strategy Paper indicated.
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Last updated: 6/7/06
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