Former Prime Minister Tshering Tobgay has been elected as the Prime Minister of Bhutan in parliamentary elections. Tobgay's victory indicates that the people of Bhutan are looking to him to rebuild the economy, address the ongoing migration crisis, and strengthen ties with India and Tibet amidst border negotiations with China [2573d667]. The People's Democratic Party (PDP), led by Tobgay, won 30 out of 47 seats in the National Assembly. Tobgay plans to implement a 12-point economic transformation plan to turn Bhutan into a developed nation by 2047. He aims to attract foreign direct investment, improve ease of doing business, boost export and tourism levels, and accelerate hydropower and renewable energy generation [2573d667]. The election was closely watched by India due to Bhutan's ongoing border negotiations with China. Bhutan and China are focused on resolving disputes in the Doklam plateau and other areas near the India-Bhutan-China border. Bhutan is expected to consider India's interests in these negotiations. China has continued settlement construction across the contested border, raising concerns about the permanent acquisition of Bhutanese territory by China [2573d667]. Tobgay's election is expected to bring more sensitivity towards India and open conversations with India regarding the border negotiations with China [2573d667].
Bhutan began voting in general elections as the country faces economic challenges and strives to maintain its 'national happiness' index. Both parties contesting the vote are committed to measuring success by the 'happiness and well-being of the people'. Bhutan's youth unemployment rate stands at 29%, and economic growth has averaged 1.7% over the past five years. Many young citizens have left the country in search of better opportunities abroad. The tourism industry, a key earner of foreign currency, has yet to recover from the disruptions of the Covid pandemic. Both parties have pledged to invest in hydropower, the country's primary source of energy. Bhutan held elections for the first time in 2008 after political reforms established a bicameral parliament. Bhutan, sandwiched between China and India, is closely watched by both neighbors due to strategic contested border zones [7f2d5ea4].
Bhutan is facing an economic crisis, with youth unemployment rates of nearly 30% and about one in eight people living in poverty. The newly elected Prime Minister, Tshering Tobgay, acknowledges the need to grow the economy but emphasizes that the tenets of 'Gross National Happiness' (GNH) will not be abandoned. Bhutan aims to strengthen its economy in a sustainable, equitable, and balanced manner, focusing on social progress, environmental protection, cultural preservation, and good governance. The country has been cautious in its approach to tourism, with a 'high value, low volume' strategy. Bhutan's tourism industry is recovering slower than other countries in Asia, and the country has adjusted its 'Sustainable Development Fee' multiple times. Despite the economic challenges, Bhutan remains committed to sustainable tourism and hopes to generate jobs for its youth. Thousands of young Bhutanese workers have left the country in search of employment opportunities abroad. Bhutan aims to strengthen its economy through tourism and other interventions to encourage these workers to return home [460e757d].
The Gelephu project, initiated by the fifth King of Bhutan, offers hope for the nation's future. The project has sparked both pessimism and optimism, with concerns about its scale and potential weaknesses. However, the project is seen as a way to revive the nation's economy, which has been struggling due to the COVID-19 pandemic and the failure of hydropower projects. The project aims to create an enabling environment for innovation and creativity, which are seen as the engines of economic growth in the information age. The fifth King has implemented significant reforms in education and civil service, addressing long-standing issues and demonstrating strong leadership. The project requires public support and participation to achieve its promise, and the King has called on the Bhutanese people to stand with him and build a better future for the country [899409e0].
Bhutan's economic growth rate is expected to reach 8.9 percent next year, driven by Punatsangchhu-II commissioning, improvements in manufacturing and construction sectors, and resurgence in tourism. The government has allocated Nu 97.63 billion for the Economic Stimulus Programme (ESP) in 2024-25. The lack of job opportunities has led to declining agricultural productivity, rural-to-urban migration, and out migration. To harness economic growth, focus on creating meaningful and sustainable jobs is necessary. Manufacturing, construction, tourism, and agriculture sectors offer opportunities for employment. Investments in skills training, vocational education, and innovative tourism practices can generate jobs. Improving access to markets, infrastructure, and modern farming techniques can benefit farmers. Small and medium enterprises (SMEs) should receive special attention for job creation. Addressing unemployment, rural depopulation, and outmigration requires integrating economic growth with job creation strategies [68eb2b99].
India has agreed to positively consider providing Rs 1,500 crore to Bhutan as part of the Economic Stimulus Programme in the next 18 months. A total of 61 projects amounting to Nu 49.58 billion (Rs 4,958 crore) were approved by the two countries. Foreign Secretary Vikram Misri visited Bhutan and reviewed the implementation modalities and cooperation in diverse areas of the India-Bhutan development partnership. The joint press release highlighted the exemplary partnership characterized by trust, goodwill, and mutual understanding at all levels, strong bonds of friendship, and close people-to-people contacts. The issues covered under the bilateral cooperation include development partnership, energy, trade and investment, connectivity and trade infrastructure, technology, people-to-people ties, as well as other regional issues of mutual importance. The Royal Government of Bhutan proposed activities to be conducted under the Economic Stimulus Programme (ESP) and India agreed to consider frontloading the full amount of Nu 15 billion i.e. Rs 1,500 crore of ESP in the first one and a half years subject to progress on the implementation of proposals. Foreign Secretary Vikram Misri visited Bhutan and met with King Jigme Khesar Namgyel Wangchuck, Prime Minister Dasho Tshering Tobgay, and Minister of Foreign Affairs and External Trade D N Dhungyel. The 3rd India-Bhutan Development Cooperation Talks were co-chaired by Foreign Secretary Vikram Misri and Foreign Secretary Aum Pema Choden, focusing on developmental cooperation and mutual interests. The two sides expressed satisfaction at the large number of Bhutan-India development projects implemented under the 12th Five Year Plan and virtually inaugurated 19 schools in Bhutan. Prime Minister Narendra Modi had announced the Government of India's development support of Nu 100 billion i.e. Rs 10,000 crore for Bhutan's 13th Five Year Plan period during his State Visit to Bhutan in March this year. The Bhutanese government conveyed appreciation for the invaluable support that the Government of India continues to provide for Bhutan's socio-economic development. The two sides discussed various components of the assistance and implementation modalities for GoI-assisted development projects during the Plan Talks [164e2055].