On 12^th of October 2007, the International Monetary Fund’s (IMF) public affairs and media relations department has released its 2007 Article IV consultation reports on Bhutan through its Public Information Notice (PIN) No. 07/129. However, the detailed report of the Article IV, 2007 consultation, which contains significant economic indicators of Bhutan’s economy, was made available to public by IMF yesterday on 16^th of October 2007. It is important to note that, Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year and a staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. And, according to the media relations department of IMF, on 5^th of October 2007, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Bhutan.      

The 2007 Article IV consultation discussions with Bhutan had been held in Thimphu from July 19−31, 2007, in which IMF staff members – Mr. Kalra (Head), Ms. Oura, and Ms. Topalova, Mr. Mohanty, Senior Advisor to Executive Director, attended meetings and met with the Bhutanese Prime Minister Wangchuk, Finance Minister Norbu, Royal Monetary Authority Managing Director Tenzin together with other senior officials, and private sector and donor representatives to finalize the report.     

Most importantly, the report suggests that, under the vibrant leadership of former King of Bhutan – Jigme Singye Wangchuk and under the present King Jigme Khesar Namgyal Wangchuk, Bhutan has achieved significant real GDP growth averaging 7 (Seven) percent during the year 1997-98 and in the year 2006-07, raising per capita GDP to around US$1,400, which also corroborates that, Bhutan is truly working to achieve Gross National Happiness in real economic basis. It also indicates that, Social indicators have also registered an appreciable improvement in the Kingdom of Druk Yul and Bhutan appears to be on track to meet several of its Millennium Development Goals of the United Nations due to the political stability and prudent economic management of serene Himalayan Kingdom.      

While assessing, economic developments of the year 2005-06 and 2006-07, the report recognized the contributions of India-Bhutanese joint venture – 1020 MW Tala Hydropower project and concluded that, Real GDP growth is estimated to have almost doubled from 9 percent in 2005/06 to 17 percent in 2006/07, with much of Tala coming on stream.     

However, the IMF report also suggests that, in the year 2006-07, aid support from India fell, public infrastructure spending saw rising trend and interest rate spreads with India widened, causing area of concern for the Bhutanese economy.   Although, it also acknowledges that, construction of joint India-Bhutan- hydropower stations Punatsangchu I and Dagachu will positively shape the economic growth in the Tenth Five-Year Plan (2008-09−2012-13) period, which would facilitate to maintain the projected GDP growth of average ratio of seven percent, as electricity exports to India from current and prospective projects would provide a fairly stable source of development to the economy.    

The report says that, Bhutan’s current debt dynamics are sustainable, subject to a moderate risk of distress and Macroeconomic outcomes have remained favorable in the concerned assessment periods.      

Area of Concern:       

Although, the IMF report indicates certain area of concerns that, Bhutan’s RMA (the Royal Monetary Authority) needs to remain watchful of excess liquidity, credit growth and financial sector soundness and suggests that, important measures could be taken to mop up excess liquidity and curb private sector credit growth to prevent future economic crisis. And it recognizes that, to eradicate unemployment, government needs to aligning the education system to market needs, further streamlining the regulatory regime, liberalizing the trade regime, implementing financial sector reforms and investing in infrastructure to lower non-labor costs to generate employments. However, it acknowledges that government is working hard to fulfill suggested measures.        

However despite significant economic growth, the IMF country report on Bhutan recognizes that, one of the major problem area of Bhutan’s leadership is to bridge the gap between rich and poor as Royal Government of Bhutan’s, 2004 Poverty Analysis Report, itself estimated, that, 32 percent of the population are living under poverty. It is important to note that, national poverty line in Bhutan is of Nu. 740 per month or US$17 and Poverty incidence is more severe in rural areas consisting of 38 percent and in the less developed Eastern region consisting of 50 percent.

However report acknowledges that, constraints of Bhutan’s landlocked geographical location, small size, and limited potential for diversification of production creates challenging environment to fight poverty.     

Direction of Trade:    

In the area of trade, report suggests on the basis of the data provided by the Royal Government of Bhutan, that, between the years 2001-2006, India had continued to maintain strong friendship with Bhutan by attracting increasing trend in export from the Himalayan Kingdom and from 100 million US dollars in the year 2001, achieved constant increase except the year 2003, as – 106 millions US dollars of export in 2002, 71 millions US dollars in 2003, 171 millions US dollars in 2004, 226 millions US dollars in 2005 and 320 millions dollars in the year 2006. Whereas import from India to Bhutan consisted of – 148 millions US dollars in the year 2001, 156 millions US dollars in 2002, 220 millions US dollars in 2003, 225 millions US dollars in 2004, 290 millions US dollars in 2005 and 288 millions US dollars in the year 2006.     

The new destination which found place in Bhutan’s import’s list is Singapore after India in the year 2006, which has replaced Japan’s lead in the area of imports in the year 2005. The area of concern for India is of rising trend of China’s economic inroads in Bhutan’s economy, which has got fourth position in imports together with Thailand. However, presently the volume of Chinese exports and imports are insignificant compared with Indian economic partnership with Bhutan. Whereas, Bangladesh occupies second favoured destination for exports from Bhutan after India consisting of ten millions US dollars in the year 2006.          

In conclusion, the report recognizes Hydropower in the structural sector as an engine of economic growth and appreciates Bhutan government’s focus in the areas of tourism sector as a high quality destination in Asia. It is important to note that, in recent years, Bhutan has attracted significant Foreign Direct Investments in the tourism sector and the Royal Himalayan Kingdom plans to increase annual tourist arrivals from around 13,000 in the year 2005 to about 30,000 by the end of the Tenth Plan period (2008/09−2012/13).        

(THE END)     

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The partnership between Denmark and Bhutan entered into a new phase after the high level review meeting of cooperation held in March 2007 to chart out development cooperation plan at the volume of 140 million Danish Kroner for the period 2008 to 2012. According to the Chief of Asia and Latin America Department of Denmark’s foreign ministry, Ms. Susan Ulbaek, the proposed futuristic plan of cooperation, “would provide Denmark’s support to Bhutan in the social sector, health and educational areas, environment, urban development, good governance and the development of the private sector including infrastructural support for democratic transformation.”[i]  

It is important to note that, Danish-Bhutan cooperation review meetings are held in every two years to facilitate the two sides to review various areas of cooperation and exchange opinions and perceptions to priorities the concerned issues and challenges fulfilling both nations’ mutual interests. 

For Denmark’s Asia vision, Bhutan is the best amongst the Asian countries that receive aid and support from Denmark.[ii] 

New Danish vision for Asia: 

Moreover the official statement by the Danish Ministry of Foreign affairs in June 2007 shows that, in future Denmark’s cooperation with Bhutan and Asia would see more intensive engagement in different fields. In its June 2007 official policy pronouncement, Government of Denmark has inaugurated the new vision for Asia focusing on “Denmark in Asia – a prioritization of the future” plan. The new Asia focused plan has august objective of reducing poverty level in Asia including Bhutan’s to half by the year 2015.

It is noteworthy, that presently 1.9 billions Asian people are living on less than two dollars a day, which Danish government wants to reduce to 800 million by the targeted year of 2015. According to the Denmark’s Development Co-operation Minister, Ulla Tørnæs, “the goal of the Danish Asia strategy is to gather political efforts under a single strategies so that Denmark can achieve all the necessary synergy effects in Asia,” as well as the need for Denmark to develop a strategy towards Asia, which is witnessing a rapid growth in political and economic fields in contemporary days.[iii]  

Danish Strategy of Private Sector Growth in Bhutan: 

Besides basic health, education and cooperation in social sector; Denmark has also identified the key segments of Himalayan Kingdom’s wood industry and promised to provide technical know-how and machinery with Danish collaborations under its ‘Business to Business’ development programme to give boost to all round private sector growth in Bhutan’s economic growth since 2002.  

The core objective of Danish support to Business to Business (B2B) programme is to create economic growth and poverty alleviation through support to commercially viable local enterprises of Bhutan. It provides significant support for the preparation and implementation of cooperation between Danish industry and identifying business houses from Bhutan for mutual benefits and sustained growth.

It is interesting to note that since 2002, Danish Development Agency – “DANIDA” has been facilitating participation of Bhutanese companies in international Trade Fairs. However, the first Danish B2B programme was realized in the year 2005, with the establishment of Joint Venture Limited Liability Company – Ms / G4S Security Services (Bhutan) Private Limited”. The project was inaugurated with the Danish support of DKK 3.6 million, by the collaboration between Chhundu Enterprises of Bhutan and the Danish Partner – Group 4 Holding A/S to provide professional security services to the public and private sector, in the areas of guarding including armed guard services.[iv] 

Equal Growth of Environment and Urban Sector: 

One of the key strategies of Danish development cooperation plan in Bhutan is to maintain and establish a semblance between the private sector growth, urban development with pristine environment of Himalayan Kingdom through its Environment and Urban development programme. Going with Bhutan’s need of maintaining bio-diversity and sixty percent of rich forest coverage, Danish support has been also streamlined since late 1980s for equal support to environment and urban development programme.

Till 2003, the environment and urban development programme of Danish support ran under separate heads of funding, but after that, both the programmes were merged into one focused plan of actions for the period 2004-2008.  In 1998, the Environment Sector Programme Support was initiated with a total grant of DKK 85 million (12 million Euros) and in the year 1999, Danida provided support to urban development sector with a grant of DKK 77 million (10.1 million Euros) up to December 2004. However after the merger of both the programmes for 2004-2008, Danida has been supporting the merged Environment and Urban Sector programme with DKK 110 million (15 million euros) as grant funding for a period of five years. And in the current year of 2007, the merged plan aims to – (a) Adoption of the National Environmental Protection Act and Water Act in Bhutan, (b) Maintain 60% forest cover at all time, (c) Improved urban infrastructure, (d) Enhancement of capacity for urban management, including maintenance of infrastructure; through the cooperation with different governmental agency of Bhutan like -National Environment Commission Secretariat, Ministry of Agriculture, Ministry of Trade and Industries and Ministry of Works and Human Settlements.[v] 

Working for Good Governance Programme in Bhutan: 

One of the key cooperation strategies of Danish government in Bhutan has been to facilitate projects of good governance together with Public Administration Reforms and promotion of Human Rights mechanism. As the prime objective of Bhutan’s governance policy is to provide opportunity for individuals and society to grow in a structure governed by laws and socially responsive policies.

The Danish support is focused towards four core areas of good governance viz. (a) Decentralization and strengthening of public administration, by strengthening capacity of the key institutions at central level responsible for the process and capacity building at decentralized levels, (b) Further development of the rule of law, including through institutions responsible for legal advice to the government, support for development of the criminal law and media law, (c) Radio broadcasting, with the aim of expanding radio coverage to the entire country and improving quality of public service broadcasts, and (d) Key institutions responsible for public finance, in particular the audit authorities, and institutions involved in public revenue collection as well as offering support to future key challenges for Bhutan, including support to new democratic institutions, strengthening the National Assembly and capacity building for ratification and implementation of the major UN Conventions on Human Rights.[vi] 

Earlier Denmark under its first phase of good governance programme provided a grant assistance of about Nu. 291 million (42 million Danish Kroners) and around Nu 305 million (44 million Danish Kroners) to support areas related to good governance like media development and strengthening the judiciary through its local grant financing facility. And to fulfill concerned core objectives of good governance, in June 2005, the Danish government provided Bhutan’s National Assembly a grant of about Nu 21 million, to develop the professional capacity and efficiency of the Assembly members and officials of the secretariat.[vii] In addition to the support to the National Assembly, the grant also facilitated study tour of Bhutanese parliamentarians for professional development and realized library for the members of the Dzongkhag Yargye Tshogdu and the Geog Yargye Tshokchung together with IT facilities for the public. In May-June 2005, Denmark’s Royal Library also supported Bhutan’s National Library to organize a three day international conference on written treasures of Himalayan Kingdom, in which scholars from – India, USA, UK, Germany, France, Sweden, Bhutan and also from Denmark participated on the themes of Bhutanese literature and scriptures, bibliographies, biographies, and spiritual personalities of Druk Yul.[viii]

One of the innovative support programmes in Bhutan by Denmark under its good governance initiative in 2005 has been of providing funding support to the judiciary to disseminate information about rule of law among students of lower, middle, and higher secondary schools around the country to make Bhutanese children and youth as informed, peace loving law abiding citizens.[ix]

Emerging Challenges for Denmark in Bhutan: 

However, despite Denmark’s close cooperation with Bhutan since many years, in recent months; the government of Denmark – DANIDA funded educational scholarships came under dark cloud of controversy in the selection of prospective candidates, which was reflected in Bhutan’s National Daily Kuensel online forum for discussions, posing new challenges for Danish development projects in the Land of Thunderbolt. Denmark’s selection of twenty Bhutanese students without national security clearance were severely criticized by Kuensel readers in the month of May-June 2007 on the topic entitled, “Danida funded scholarships?????”. And one of the Bhutanese readers nicknamed “confident” even suggested closing of Liaison office of Denmark (LOD) in Bhutan and inviting other donors to participate in Bhutan’s development.  However, when other reader of Kuensel nicknamed – “blackguy” tried to defend LOD’s selection process, another Bhutanese reader nicknamed – “Aim” responded by writing, “People like black guy will sell our country, Shame on you. You must be in hand with LOD, aren’t you? We need to punish those guys.” Another Kuensel online forum discussant nicknamed, “akuDruk” was sad that, LOD has not honoured the rules of this Country and expected that LOD should respect Bhutanese Law.[x] The reader’s discussion on DANIDA funded scholarship on Kuensel online forum started from 24^th of May 2007 and continued with majority opinion going against LOD/DANIDA educational funding decisions till 25^th June 2007 bringing new challenges for Denmark’s cooperation strategy in Bhutan. It also indicates that, Denmark’s future partnership agenda in Land of Thunderbolt needs more transparent mechanism with having assent of locally respected impartial people together with following laws and traditional customs of Bhutan to negate criticism from any corner. 

Although, despite severe criticisms of LOD/DANIDA by some readers, one positive aspect emerges from Kuensel online forum discussions that, Denmark has truly achieved her objective of creating platform for “vibrant discussions on current issues and realizing democratic spirit among Bhutanese” in its journey towards Gross National Happiness in South Asia, which it wanted to achieve while inaugurating and facilitating “Kuensel” go online with Danish funding of Nu 2.2 million few years back.  

Over the years, if Bhutan got benefited with generous Danish funding in different social-economic sectors, Denmark could also learn from Himalayan kingdom’s rich experience of realizing anti-smoking measures and serene way of traditional simple life of Gross National Happiness to realize anti-smoking law scheduled to take effect from 15^th of August 2007 in Denmark.♠    

(THE END)  

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[i] Ugyen Penjore, Bhutan Denmark review cooperation, Kuensel, Bhutan’s National Daily, Thimphu, 29 March 2007.

[ii] Ugyen Penjor, Fruits of cooperation visible, Kuensel, Bhutan’s National Daily, Thimphu, 6 April 2005.

[iii] Asia is in focus for the future, The Copenhagen Post, Copenhagen, Denmark, 21 June 2007.

[iv] B2B programme, Liaison office of Denmark in Thimphu Documents, Ministry of Foreign Affairs of Denmark, Thimphu, Bhutan. 20 March 2007.

[v] Urban and Environment Sector, Liaison office of Denmark in Thimphu Documents, Ministry of Foreign Affairs of Denmark, Thimphu, Bhutan. 09 August 2006.

[vi] Bhutan-Denmark Partnership: Strategy for Danish Development Cooperation with Bhutan-2003-2007, Royal Danish Ministry of Foreign Affairs Document, Danish State Information Centre,  2, Asiatisk Plads DK-1448 Copenhagen K, Denmark. September 2003.

[vii] Kinley Wangmo, Nu. 21 million grant for National Assembly, Kuensel, Bhutan’s National Daily, Thimphu, 21 June 2005.

[viii] Bishal Rai, Written treasures of Bhutan, Kuensel, Bhutan’s National Daily, Thimphu,01 June 2005.

[ix] Rinzin Wangchuk, Know the law to protect your rights, Kuensel, Bhutan’s National Daily, Thimphu, 12 August 2005.

[x] Danida funded scholarships ?????, Kuenselonline Forum Index -> From the readers, Kuensel, Bhutan’s National Daily, Thimphu, Bhutan.

 ♠ Bhutan banned sale of tobacco products on 17^th December 2004 and two months later also banned successfully smoking in public places, whereas Denmark passed parliamentary law against smoking on 5^th of June 2007, which will come into effect from 15^th of August 2007. However, since April 2007 Denmark has been facing opposition against new anti-smoking legislation and in April 2007 around ten thousand smokers and restaurateurs handed politicians a petition signed by sixty-one thousand people demanding a revision of legislation that will ban smoking in the vast majority of indoor public places. (The Copenhagen Post, Denmark, 19th April 2007 and 7th  June 2007).  

(THE END)

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Apart from Denmark’s close partnership with Bhutan in developing basic educational infrastructure, the Nordic nation’s development arm – DANIDA is deeply involved in developing Bhutan’s telecom infrastructure of higher education sector through partnership with recently established Royal University of Bhutan. The Royal University of Bhutan was established on 2^nd June 2003 coinciding with the commemoration of the Coronation Day of Fourth Druk Gyalpo, His Majesty the King Jigme Singye Wangchuck, to achieve educational vision 2020, as a ‘centre of excellence’ institution, which could meet national and wider international needs. And DANIDA’s role is to provide support to the establishment of the Royal University of Bhutan’s wide area network for connecting all the member institutes with each other and the office of the Vice Chancellor. However besides DANIDA, other nations like – India, Canada, Switzerland, Germany, USA, Australia, Singapore, Japan and international institutions like – UNDP, ILO, ADB, EU, WHO, UNESCO, and UNFPA are also involved in partnership with the Royal University of Bhutan in different fields. And new challenges are emerging for DANIDA, from new players and partners of RUB’s information technology support nations like – Singapore’s – Singapore International Foundation, Canada’s – Canadian International Development Agency (CIDA) and International Development Research Center of Canada (IDRC) and School of International Learning from USA.

Cooperation in Telecom Infrastructure Development:  

In addition to ICT support to RUB, Denmark also supports Bumthang based – Ugyen Wangchuck Institute of Environmental and Forestry studies with a contribution of DKK 4.0 million for curriculum development, training of staffs and for the establishment of library to realize the dream to make it as a fully functional environmental and forestry institution.[i]

 It is important to note that, in December 2004, Denmark’s Alcatel has got the contract of developing microwave radio and wireless IP telephony to connect remote villages of Bhutan with rest of the world. And with this project, Denmark got the credit of bringing wireless telephony to Bhutan as part of the Danida-funded project valued around DKK 110 million.[ii] Denmark’s Alcatel entered into the job of connecting 2,544 rural lines (minimum of ten lines in each Geog) in the land of Thunderbolt.[iii] The task was to replace the existing east-west transmission backbone of 34 megabits PDH microwave system with a new system of additional capacity as well as to upgrade the exchange capacity requirements by installing three new modern switching systems in Kanglung, Trashigang, Wangdue-phodrang, and Damphu, Tsirang stations. According to Bhutan’s national daily Kuensel reports, the project agreement had been signed under DANIDA’s soft loan channel called the mixed credit scheme, at the cost of 16.061 million Euros (approximately Nu. 950 million). In which, fifty percent will be a grant and fifty percent will be a loan. And the other contracting agency- Bhutan Telecom would be required to repay 13.008 million Euros, after interest to DANIDA over a period of 10 years in bi-annual installments after the completion of the project and through it, a total of eighty-eight “Geogs” in Bhutan will receive telephone and internet connections.[iv] Apart from bringing wireless telephony to Bhutan, the Danish government has also provided financial support of Nu.2.2 million to make Bhutan’s national daily – “Kuensel” go online. By bringing Kuensel online, Denmark truly made a bridge between the Himalayan kingdom and the world, smoothening the way for the philosophy of Gross National Happiness to disseminate across the globe. It also made a history in establishing, the first free media in Bhutan, facilitating vibrant discussions on current issues with participation from Bhutanese studying abroad as well as foreigners.[v] 

However, the recent proposal made by the newly appointed Singapore’s first ambassador- Mr Calvin Eu Moon Hu, that, the Lion nation is more interested in furtherance of educational sector in Druk Yul possesses new challenges for Denmark’s existing educational collaboration with Bhutan. And in future, Denmark needs to come up with new proposals to collaborate their well developed reputed Copenhagen and Aarhus University with the Royal University of Bhutan to meet competitions emerging from Singapore, Canada and the United States of America to fulfill objectivity of achieving Gross National Happiness in South Asia.

 Danish support to upgrade judicial infrastructure in Bhutan:

On 19^th of October 2004, Danida and the Department of Debt and Aid Management, ministry of finance of Bhutan signed an agreement of Danish support of Nu 23 million, which included construction of the building of Samtse court as well to develop an integrated web based judicial management system linking the high court with all the 20 district courts.[vi] And a month later on 24^th November 2004, the foundation stone for Samtse dzongkhag’s new court building was laid in a traditional ceremony by the Chief Justice of Bhutan, Lyonpo Sonam Tobgye and then Danish ambassador to Bhutan Mr Michael Sternburg. The chief Justice of Bhutan Mr. Lyonpo Sonam Tobgye, acknowledging the support of Denmark said that, “The judiciary with the assistance of Denmark will try to change this erroneous belief and make courts a majestic temple of justice.” Earlier DANIDA had also assisted Bhutan in developing construction of the dungkhag court building in Phuentsholing at the cost of Nu 16 million. And, according to then programme officer of the liaison office of Denmark to Bhutan, Mr T B Chhetri, in the year alone in 2004, till the month of November, Denmark had allocated DKK 65 million in its bilateral development assistance programme to Bhutan.[vii] 

 Danish engagement in Health infrastructure of Bhutan: 

Like intensive cooperation in developing judicial infrastructure of Bhutan, Denmark is also closely engaged in developing Bhutan’s health sector infrastructure. In January 2005, Denmark financed the construction of fifty bed new hospital building at Phuentsholing, originally built in 1972 as a twenty bed hospital. And first time a well developed modern clinical laboratory with two operation theatres, a casualty department and several other diagnostic facilities had been planned for new Phuentsholing hospital under Danish support.[viii] Apart from funding new building of Phuentsholing hospital with all of its functional equipments, Denmark also financed the construction of Department of Health Headquarter building with all the modern facility like – Floor heating system, under ground parking, thermo glazing and elevator; which was inaugurated on 14^th February 2005 by Bhutan’s Finance Minister Lyonpo Wangdi Norbu and Minister Counsellor of the Liaison Office of Denmark Mr. Torben Bellers and attended by Bhutan’s Health Minister Lyonpo Jigme Singye, Labour and Human Resources minister Lyonpo Ugyen Tshering, Assembly Speaker Dasho Ugen Dorji and Auditor General Dasho Kunzang Wangdi.[ix]  In addition to development of hospitals in Bhutan, in recent years, the Danish government has been also involved in establishing water treatment plant at Thimphu to meet growing population’s need of potable water. And in October 2005, a water treatment plant in Jungshina, Thimphu (construction began in 2002 with DANIDA’s funding) was started with DANIDA’s support to supply water to extended areas like Langjupakha, Changzamtog, Changbangdu, Hejo, Samteling, and northern parts of Zilukha   While inaugurating the Junshina water plant, the works and human settlement minister, Lyonpo Kinzang Dorji, expressed his gratitude to the Danish government for the treatment plant, which has been built at a time when the Thimphu municipality was faced with consistent problem of water scarcity and limited coverage.[x]

 According to the official documents of government of Denmark, from 1990 onwards, Danish development agency – Danida has provided two major grants to the health sector of Bhutan – (a) between 1990-1997, it provided DKK 74.6 million (10.6 million Euros) and (b) from 1997 to 2002, it provided DKK 120million (17.1 million Euros). And in next phase, an additional DKK 44.5 million (6.3 million Euros) was provided between 1999 to 2005, for the Rural Water and Sanitation programme through which Junshina water plant was established in Thimphu.[xi] 

Bhutan’s emerging closeness to Denmark could be assessed from the fact, that, when Himalayan kingdom’s foreign minister – Mr. Lyonpo Khandu Wangchuk was attending, United Nations General Assembly plenary meeting in September 2005, he chose specially to meet Denmark’s minister for Development Cooperation – Mrs. Ulla Tornaes, besides meeting foreign minister of Nepal and assistant secretary of state for South Asia of USA, Ms. Christina Rocca.[xii] The 2005 UN General Assembly plenary meeting was important for Bhutan’s interaction with UN, because in this UN meeting; Bhutan signed the UN Convention Against Corruption, the Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict, and the Optional Protocol to the Convention on the Rights of the Child on the Sale of Children, Child Prostitution and Child Pornography, as well as made a call to the world community to reflect on Bhutan’s development philosophy of Gross National Happiness.

(Continued…)

 ENDNOTES:  

[i] Marie Thesbjerg, (Trainee, Danida, Bhutan) paper, Great Diversity in Cooperation of Denmark and Bhutan, DANIDA, Thimphu, Bhutan, December 2005.

[ii] Danes bring wireless telephony to Bhutan, The Copenhagen Post, Copenhagen, Denmark, 03 December 2004.

[iii] Telecom project to provide 2,544 rural lines, Kuensel, Bhutan’s National Daily, Thimphu, 2 December 2004.

[iv] Karma Choden, Telecom infrastructure for 2544 subscribers in 88 more geogs, Kuensel, Bhutan’s National Daily, Thimphu, 4 December 2004.

[v] Minor Projects, Ministry of Foreign Affairs of Denmark, Liaison office of Denmark document, Thimphu. 9 August 2006.

[vi] DANIDA support to judiciary, Kuensel, Bhutan’s National Daily, Thimphu, 20 October 2004.

[vii]  Tashi Dorji, Samtse court foundation stone laid, Kuensel, Bhutan’s National Daily, Thimphu, 30 November 2004.

[viii] Tashi Dorji, Phuentsholing to get new hospital, Kuensel, Bhutan’s National Daily, Thimphu, 18 January 2005.

[ix] Health headquarter building inaugurated, Kuensel, Bhutan’s National Daily, Thimphu, 14 February 2005.

[x] Ugyen Penjore, Thimphu gets a second water treatment plant, Kuensel, Bhutan’s National Daily, Thimphu, 22 October 2005.

[xi] Health Sector Programme, Ministry of Foreign Affairs of Denmark, Liaison office of Denmark document, Thimphu. 8 August 2006.

[xii] Foreign minister addresses plenary UN meeting, Kuensel, Bhutan’s National Daily, Thimphu, 18 September 2005.

(Continued…)

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Dear Readers of Bhutan Gazette,  

Please make following corrections related with the last post entitled, “Denmark-Bhutan Relation: Where West meets East for Gross National Happiness in South Asia (Part-I),” as per the new updated information and clarifications received from the Royal Danish Embassy, New Delhi on Denmark-Bhutan Relations:

(A)    Permission for an international election observer to the Resident Coordinator of the Liaison Office of Denmark (LOD), Torben Bellers, and his staff members was given by the Ministry of Foreign Affairs (i.e. the Government), Royal Government of Bhutan and not by His Majesty King of Bhutan, as it was written “Bhutan’s Royalty permitted Danes as an observer of May 2007 mock election of transition towards democracy.”

(B)     At present the Danish Education Sector programme in Bhutan has a financial volume of DKK 86.5 million.♣

(C)    Disbursements to the education sector amounted during 2006 to DKK 24 million.♣

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♣ Bhutan Gazette sincerely thanks, Royal Danish Embassy at New Delhi for updating and clarifying certain important details related with its first post on Denmark-Bhutan relations.

 Rajshekhar 

Editor, Bhutan Gazette

INDIA

Denmark-Bhutan relation is a journey of close developmental partnership between a western nation popularized by N.F.S. Grundtvig (1783-1872) as a nation where, “few have too much and fewer too little”  and eastern spiritual nation of Himalayas’ popularly known as Druk Yul in the eastern part of South Asia to achieve Gross National Happiness (GNP). Bhutan established formal diplomatic relations with rising Scandinavian nation – Denmark in the year 1985, after the establishment of the Department of Foreign Affairs in 1970, which was later upgraded to a full fledged Ministry in 1972. Although, in the year 1985, the Royal Kingdom of Bhutan established diplomatic relations with four other countries of western civilization – Switzerland, Sweden, Norway, Netherlands and regional bloc – European Union,[I] but the relationship with Denmark grew stronger then other nations of the west, because of unflappable support of Danes to Bhutan in different developmental projects like India. And within little more then two decades of diplomatic relationship, Denmark become second largest developmental partner of the Royal Kingdom of Bhutan after India.  

However the Danish development co-operation with Bhutan was first initiated in the year 1978 after seven years of the establishment of ministry of Foreign Affairs of Bhutan. And in 1989 Bhutan was chosen as a Programme Co-operation country of Denmark, and till December 2003, Danish assistance was specifically focused on four areas of Health, Urban Development, Environment and Good Governance. But from December 2003, Denmark’s assistance programme towards Bhutan was diversified in different areas of cooperation including education sector. One of the positive aspects of Danish support to Bhutan’s education was that, it is more related to build basic infrastructure of primary-secondary education rather than partnership in higher education sector. According to the Liaison office policy objectives of the Ministry of Foreign Affairs of Denmark based at Thimphu, the decision to help Himalayan kingdom is based on, “Bhutan’s continued need for external assistance to overcome its development challenges, and the demonstrated commitment and capacity of the Royal Government of Bhutan to utilise Danish assistance, where the strong focus is directed towards domestic policies on poverty reduction and democratic change, which is based on the positive past experiences of rich partnership.”[II] And the foreign policy imperatives for development cooperation to bridge a gap between east and west was later realized, when Bhutan’s Royalty permitted Danes as an observer of May 2007 mock election of transition towards democracy together with Indian representatives – Mr. Krishna Kumar, deputy election commissioner from Punjab and district magistrate, G.K. Dwivedi from Uttarakhand. However apart from the Resident Coordinator of the Liason Office of Denmark (LOD), Torben Bellers, and his staff members, other members of international institutions like – the Resident Representative of the United Nations Development Programme (UNDP) to Bhutan, Mr. Nicholas Rosselini, the director of the UN information center, Shalini Dewan and eleven media personnel from five different foreign news agencies had been also permitted to observe the mock election and transition towards real democracy in Bhutan.[III]

 Danish Development Aid to Education Sector in Bhutan:   

The Danish development aid to the education sector of Bhutan was started in a major way in December 2003, when the Danish government committed to grant Nu 564 million (about Danish Kroner 80.5 million) to the education department of Bhutan to achieve its millennium goal of primary education for all by 2015. However earlier Danish support to the education sector had been also given to the Royal Kingdom, but then it used to be executed through local grant facility and environment sector programme mechanism. But the agreement signed on 15^th December 2003, between Mr. Nima Wangdi, the director, department of aid and debt management of Bhutan and Torben Bellers, minister counselor, resident coordinator of the Denmark liaison office in Thimphu heralded new era of Danish development cooperation in education sector of Bhutan. The proposed aid was planned for a period of five years from 2003 to 2008 under the Danish education sector programme support or EdSPS. It was envisaged that, Denmark will also finance for coming six years, the expenditure of Danish technical support staff attached with the ministry of education of Bhutan, which the Danes are successfully maintaining. For Bhutan’s need, it was formulated that seventy five percent of the grant assistance will be in the form of sector budget support, while remaining corpus will be utilized for other necessary needs. The Danish aid plan was initiated keeping in mind to facilitate Bhutan’s 9^th Five Year Plan (2003-2007) of educational goals. [IV]  The first long-term educational adviser from Denmark took up the post in October 2004 in Bhutan, to work in the field of curriculum development with particular attention to learning difficulties and inclusive education. The second long-term adviser was recruited in June 2005 to work in educational planning, and development and application of the Education Management Information System (EMIS).[V] 

Bhutan’s 9th Education Plan (2003-2007) aims to universalize primary schooling, expand access to the full basic education cycle whilst maintaining Bhutan’s emphasis on relevance and quality of education, and establish the National University. The 9th Education Plan is basically based on Bhutan’s Vision 20/20 which provides a framework of development principles to improve the quality of life.[VI]

It is important to note that, Royal Government of Bhutan’s educational Sector Strategy is focused on realizing the Vision 2020, which is an articulation of the goals and processes for achieving Bhutan’s aspirations in the education sector, as part of the wider development initiatives toward becoming a progressive sovereign nation enunciated in Vision 2020. The vision 2020 provides a framework of development principles, which address Bhutan’s unique needs and priorities for attaining its underpinning development objective of Gross National Happiness focusing on (a) Human Development, (b) Culture and Heritage, (c) Balanced and Equitable Development, (d) Governance and (e) Environmentally Sustainable Development; So, the vision 2020 provides desirable long-term outcomes and milestones in each sector of development.[VII] And the vision 2020 for education provides following objectives, Universal primary enrolment to be achieved by – 2007, Full enrolment of junior high school (class eight) to be achieved by – 2007, Full enrolment of high school (class ten) by the year – 2012, Full adaptation of secondary school curricula to the Bhutanese context – 2007, Attain student competencies equivalent to average level by International standard by the year- 2010, Attain student competencies equivalent to excellence level by International standard by the year- 2020, Introduction of an operational distance education programme by the year- 2007, and to achieve full adult literacy by the year  2012.[VIII]

 Apart from the trusted cooperation from India, Denmark’s active cooperation with Himalayan Kingdom has been playing an important role of catalyst in realizing Bhutan’s national dream of vision 2020 in educational sector. And continuing with commitment, in the year 2006, Denmark disbursed 8.048 million DKK (Danish Kroner) for Bhutan’s 9^th five year plan of educational objectives.  

(Continued…)

ENDNOTES:

[I] Bhutan’s Bilateral Counterparts, Ministry of Foreign Affairs Document, Royal Government of Bhutan, Thimphu.

[II] Development Aid, Liaison Office of Denmark in Thimphu Document Paper, Ministry of Foreign Affairs, Royal Government of Denmark, 8 May 2007.

[III] Phuntsho Choden, General Mock Elections on Monday, Kuensel, Bhutan’s National Daily, Thimphu, 26 May 2007.

[IV] Denmark commits Nu 564 million to assist Bhutan’s 9FYP education goals, Kuensel, Bhutan’s National Daily, Thimphu, 15 December 2003.

[V] Education Sector Programme, Liaison Office of Denmark in Thimphu Document Paper, Ministry of Foreign Affairs, Royal Government of Denmark, 23 May 2007.

[VI] 9th Five-Year Plan Education Sector Implementation Plan, Policy and Planning Division, Ministry of Education, Royal Government of Bhutan Publications, Thimphu, July 2003.

[VII] Education Sector Strategy: Realizing Vision 2020 – Policy and Strategy, Department of Education, Ministry of Health and Education, Royal Government of Bhutan Publications, Thimphu.

[VIII] Ibid. p.2

  (Continued….)

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