Thursday, 16 March 2017

News

SDF and UNDP to collaborate

United Nations assistant secretary general and UNDP regional director for South Asia and Pacific Haoliang Xu visited the SAARC Development Fund (SDF) Secretariat and assured to work together for strategic growth of SAARC member states and to achieve the UN SDGs, according to a SDF press release.
An MoU between SDF and UNDP was earlier signed in 2015, during the annual management committee meeting of UNDP at Kuala Lumpur, Malaysia. The key goal for the MoU is to collaborate for the advancement of the 2030 Agenda in the South Asian countries especially SAARC member states.
According to SDF CEO Dr Sunil Motiwal, SDF has already started their cooperation by co-financing two UNDP projects in the SAARC region approved by the SDF board which are the Economic Empowerment of Women through Energy Access in Mountain Countries of South Asia and the Support to Value Chain development, Entrepreneurship and Skill Development and Improved Connectivity which primarily focuses on improving the economic livelihoods of marginalised communities and promote creative industries.
SDF and UNDP are in the process of signing the project financing agreements for the projects and it is expected that implementation of these two projects will commence soon.

News from e kuensel of 16th March 2017

12th Plan to maximise GNH

The last mile of the country’s journey towards LDC graduation which is the 12th Five Year Plan, must prove that economic growth is possible without destroying the country’s environment and culture while ensuring a good governance system.
The country will then reveal to the world that a balanced, sustainable, holistic and inclusive development is achievable with the concerted efforts of leaders, agencies, developing partners and individuals working towards a common goal.
The emphasis, therefore, according to the Gross National Happiness Commission (GNHC) secretary Thinley Namgyel is on the triple Cs- coordination, consolidation and collaboration.
He said that the 12th Plan draws its inspiration from Royal Addresses, constitutional obligations, GNH survey findings, issues and challenges, and Bhutan’s commitment to internationally agreed development goals.
Coordination, he said, is one of the main challenges today emerging across various levels. Lack of coordination, synergies in efforts, overlapping provisions in some of the policies and duplications are creating difficulties in implementation.
The guideline for preparation of the 12th Plan, which was launched yesterday states that the Plan provides an opportunity to address these issues with a focus on strengthening institutions, systems, capacity building and enhancing the quality of goods and services.
The strategic framework of the Nu 300 billion 12th Plan, is to ensure that what is planned is delivered in a manner that maximises GNH principles.
“This is being done to ensure that some of the important elements of GNH such as psychological well-being, community vitality and time use, get the desired focus,” the guideline states.
The triple Cs 
The guideline mandates that coordination, collaboration and consolidation are ensured at all levels.
One of the main challenges today is the lack of policy coordination and coordination at the implementation level. Consequently, conflicting laws and policies, duplication of efforts and resources continue to trouble the country.
The GNHC secretary said that the formulation process of the 12th Plan ensures engagement of all stakeholders including the local government. “This will strengthen the working relations and thus allow for better coordination,” he said.
The 12th Plan will also focus more on the effective and efficient operation and maintenance of infrastructures already in place, instead of expansion.
As the country begins to shed its LDC tag, there will be an eventual decline in official development assistance and therefore the role of the private sector, civil society organisations and developing partners will increase.
As a result, strengthening cooperation in the areas of mutually beneficial projects will be inevitable. Regional cooperation in trade, transit and energy is expected to give rise to new technologies and opportunities.
Key result areas and flagship programmes
The national key results areas (NKRAs) have been formulated based on national aspirations, priorities and international and regional commitments such as the Sustainable Development Goals (SDGs).
There are 16 NKRAs that contribute to a just, harmonious and sustainable society through decentralisation. These NKRAs are also aligned with all the domains and indicators of GNH in addition to the SDGs.
For instance, for a just society, the priorities are to eradicate poverty, reduce inequalities, provide employment, ensure better access to health and education, strengthening of democracy and reducing corruption, among others.
However, 80 percent of the outlay prepared by the relevant agencies will be “tied” meaning the plan for these projects will have to be ready by the beginning of the 12th Plan. The remaining 20 percent of the outlay will be “untied” to provide flexibility to the agencies to accommodate ad-hoc or unplanned activities on an annual basis.
Integrated water security, economic diversification, quality of education and improving highland livelihood programmes are outlined as tentative flagship programmes of the 12th Plan.
Flagship programmes are accorded high priority as they would impact the majority of the NKRAs.
This programme will however mandate a blueprint, rigorous monitoring and will receive an earmarked fund.
While domestic revenues in the 12th Plan are expected to increase by almost 100 percent due to the commissioning of three hydropower projects, current expenditure is also expected to increase significantly by about 75 percent.
The main challenge of the 12th Plan is to rationalise and manage the expenditure because until the new hydropower projects are commissioned the revenue will remain constant while the  current expenditure will keep increasing.
Of the Nu 115 billion (B) capital budget outlay, Nu 15B is earmarked for flagship programmes and Nu 50B for central agencies.
Another Nu 50B is allocated for the local government. Of this budget, around Nu 10B has been allocated to the four thromdes, Nu 25B for the dzongkhags, Nu 10B for the gewogs and Nu 5B for 16 municipalities.
While the government will frame the 12th Plan, it will be up to the next government whether to follow the planned activities, modify the Plan or completely replace it.
Tshering Dorji

News from e kuensel of 16th March 2017

The last mile towards LDC graduation

While Bhutan is poised to graduate from a least developed to a lower middle income country next year, it still faces a multitude of challenges.
Lyonchoen Tshering Tobgay, speaking at the first day of the 13th Round Table meeting yesterday, said that while the country may make a leap and graduate, its economy and entire GDP is just USD 2 billion (B).
As the country’s small population is spread thinly across the country, the per capita cost for building infrastructure and the per capita cost for delivering services is much higher than it is in most other countries. This, for an economy of only USD 2B, is going to be a huge challenge, he said.
The cost of financing the planned development that is integrated with the Sustainable Development Goals in the next three Plans would cost the country an estimated USD 0.5B annually.
“To make matters worse, our economy is dominated by hydropower and subsistence agriculture. 27 percent of our GDP is trade deficit; and most of what we export is hydropower. Our current account deficit is 31 percent and, quite alarmingly, our debt to GDP ratio is at 116 percent,” he said.
Bhutan’s overall unemployment stands at 2.1 percent of the workforce. The latest unemployment results for youth indicate that 13.2 percent of young people are unemployed. “Because of the social progress that we’ve achieved and because our economy is still very shallow, we’ve not been able to create jobs that are required for our youths,” said Lyonchoen.
Fifty-eight percent of the country’s population depends on agriculture but only 2.93 percent of land is cultivable, which is barely 278,000 acres, making poverty a reality in rural Bhutan.
Today, 12.7 percent of the population is below the threshold for education, health and living standards defined by the multidimensional poverty index.
“So, we are vulnerable,” said Lyonchoen.
The assistant secretary general, assistant administrator of UNDP, director of the Asia Pacific region, Haoliang Xu, shared similar concerns. Haoliang Xu co-chaired the three-day Round Table Meeting with foreign minister Damcho Dorji.
He said that five mega trends that are likely to have  a profound impact on the Asia-Pacific region will impact Bhutan too.
A new world order with changes in the global balance of power and the roles that the USA will play in the world, the positions it will take on world affairs such as trade, the rise of China as with the operationalisation of the Asian Infrastructure Investment Bank, the potential for heightened regional tensions in different hot spots, the inevitable emergence of other major developing economies, are set to impact the course of development in the region.
The second is in the urbanisation and sustainable development sectors: With less than 50 percent of people living in cities, the Asia-Pacific region is just beginning to urbanise. But it is proceeding at a pace unprecedented in human history, adding some 44 million new urban residents each year. Efficient economic growth, greater economies of scale and better educational opportunities are suddenly possible, but inequity spikes and a nation is at risk of falling into an urban middle-income trap, locked in unsustainable patterns of consumption and production.
Third is climate change; the Asia-Pacific region is the most vulnerable in the world. Extreme weather events damage infrastructure and food production will hinder or reverse efforts to preserve ecosystems and to tackle poverty. While there are efforts to invest in renewable energy, urbanisation leads to greater, not less, pollution.
Fourth is rising inequality in the Asia-Pacific region, both in terms of income and opportunity, reflecting institutional weaknesses and social exclusion. Technological change, globalisation and market-oriented reform drive both rapid economic and rising inequalities. The rich will get richer fast. Poor access to education and health care will amplify inequalities faced by children. Migration from rural to urban areas will increase. Migration will come with greater inequality in urban areas.
The last is the Fourth Industrial Revolution. Whereas the Asia-Pacific region’s past economic booms have been driven by manufacturing, it will increasingly rely on robotics. This leads to temporary unemployment issues, especially due to automation in the work place. The increasing penetration of mobile internet access will open up new opportunities, but it is not clear whether or not these lines of access will translate into improved livelihoods for marginalised ethnic groups or the very poor.
Economic vulnerability is a major concern given Bhutan’s heavy dependence on hydropower.  Bhutan has a very high level of public debt. A financing gap will continue for the foreseeable future.
Bhutan’s geography is another source of vulnerability, as it cannot capitalise on economies of scale.  High trading costs lead to difficulties in diversifying the narrow economic base.
Bhutan sits in a seismically active zone, suffers from Glacial Lake Outburst Flood, and struggles to deal with climatic impacts from flooding to drought.
Bhutan is witnessing a youth bulge, youth unemployment, rapid urbanisation, continued issues of gender-based violence, and increasing pressure on the environment as development progresses.
As democracy in the country will be only 10 years old next year, more needs to be done in relation to Bhutan’s work around access to justice for all, which is a critical component of ‘leaving no-one behind’, Haoliang Xu said.
However, Lyonchoen said that the country is confident to overcome these challenges.
“I believe that we are on this last mile to overcoming our status as a Least Developed Country. To overcome our challenges, we need to continue to work hard; but we also need the generous support and guidance of our development partners,” said Lyonchoen.
He added that the last mile in development is represented by the 12th Five Year Plan, which begins in July next year.
The idea is, in five years, Bhutan will be able to achieve all her national aspirations. The first and foremost, Gross National Happiness.
“We need to prove to ourselves that economic growth is possible without undermining social progress, without compromising our culture and without destroying our environment. We need to prove to ourselves that development can be holistic, balanced, sustainable and inclusive… that we can achieve the targets that we have agreed to in the 2030 Global Agenda,” said Lyonchoen. “This last mile is not a sprint; it is a walk but a walk that will be conducted deliberately. In the mountains of Bhutan we know that sprints are of very limited use. We need to walk; we need to walk slowly; but we need to walk deliberately.”
Lyonchoen thanked the donor countries and agencies for increasing their contributions to Nu 68 billion from the initially committed amount of Nu 54 billion. He said Bhutan also benefitted from the assistance of UN agencies, the European Union, World Bank, and the Asian Development Bank.
“To help Bhutan’s young democracy to continue to flourish and deal with these challenges, Bhutan’s development partners need to stay engaged to support the government, which is fully committed to Bhutan’s development and wellbeing of its people,” Haoliang Xu said. “For the UN, we will continue to be Bhutan’s strong and reliable development partner.”
The country’s graduation from a LDC to Middle Income Country has come after drastic growth, the two leaders said. Planned modern development is new to Bhutan with the first Plan starting in 1961.
“In our case, guided by the wisdom of our beloved Monarchs and benefitting from the generosity and support and cooperation of our development partners, we have managed to scale our mountains rather successfully,” said Lyonchoen.
In the area of social development the country has achieved remarkable progress with free education and health care. In the past 10 years, the GDP in Bhutan has more than trebled. Per capita income has increased to USD 2,719.
Bhutan stands as a model to the world in the area of environment. While the Constitution requires 60 percent of land under forest cover, the recent Forestry Inventory shows forest cover is at 71 percent. More than 52 percent of the country is protected as natural reserves, national forest and wildlife sanctuaries are interconnected by biological corridors. Bhutan is a bio-diversity hotspot and the rich environment means that it’s also a carbon sink.
Some of the country’s biggest achievements have been made in the area of governance. The institutions of democracy – an independent judiciary, free and independent media, Anti-Corruption Commission, an independent Election Commission and CSOs are all in place.
The country has conducted two rounds of Local Government Elections and two rounds of Parliamentary Elections.
Despite all the socio-economic progress, Lyonchoen said that improving the GNH level is more important for the country.  GNH surveys of 2010 and 2015 show a slight but statistically important improvement of the GNH index from 0.743 in 2010 to 0.756 in 2015.
Representatives from the donor countries and agencies commended the country’s progress, especially on the integration of the Sustainable Development Goals in to the national development plans.
The Round Table Meeting, initiated in the early 1980s, is a forum for policy dialogue and aid coordination. The meeting allows donors and Bhutan to discuss common interests and issues, and to strengthen cooperation.
Tshering Palden 

Monday, 13 March 2017

News

Bhutan, World Bank sign USD 24M credit deal to improve growth

The Royal Government and the World Bank signed on March 10 the Second Fiscal Sustainability and Investment Climate Development Policy Credit (DPC2) of USD24 million to help improve fiscal sustainability, access to finance, and investment climate.
According to a press release from the finance ministry, Bhutan has made impressive progress in poverty reduction and economic growth over the past decade. At the same time, high levels of investment in the hydropower sector have increased pressures on the country’s fiscal balance and external accounts.
“The World Bank is glad that this policy credit together with other programs are effectively supporting the Royal Government’s reform momentum,” said Yoichiro Ishihara, the World Bank’s resident representative for Bhutan. “With this policy credit, Bhutan will be better equipped to enact policies to foster private sector development and create more employment opportunities, especially for its youth.”
The credit was signed by finance minister Namgay Dorj and Yoichiro Ishihara.
This credit is the second of two operations to support Bhutan’s 11th Five Year Plan goals of promoting green socio-economic development and achieving self-reliance. DPC2 was approved by the board of executive directors of the World Bank on December 21 last year.
“The Royal Government of Bhutan has used the policy credit to support institutional strengthening measures in some key areas, building on the momentum and lessons learnt from the past budget support operations to accelerate development in Bhutan,” Lyponpo Namgay Dorji said. “Improving fiscal sustainability, access to finance and investment climate are critical to achieve the goals of the 11th Five Year Plan.”
The development policy series will be funded by credit from the International Development Association (IDA) – the World Bank’s concessionary lending arm with a maturity of 25 years, including a 5-year grace period.
Staff Reporter

Saturday, 11 March 2017

Japan provides Nu 334.2M for four grant projects

The ambassador of Bhutan to Japan, V Namgyel and the ambassador of Japan to Bhutan, Kenji Hiramatsu signed the Exchange of Notes for the Japanese grant aid ‘The Project for Improvement of Medical Equipment’ at the national and regional referral hospitals on March 3 in New Delhi, India, according to a press release issued by the Japanese embassy in New Delhi.
Japan provided Nu 334.2 million (M) or Yen 551M for the project.
The ambassadors also signed three grant contracts under the Grant Assistant for Grassroots Projects. For provision of equipment to the National Mushroom Centre, Japan provided Nu 4.87M (Yen 8.4M).
Japan provided Nu 4.9M (Yen 8.5M) for the provision of medical equipment for the national referral hospital in Thimphu and Nu 4.81M  (Yen 8.3M) for the construction of a girls hostel at the Chungkha Primary School in Chukha.
Speaking at the signing ceremony held at the Japanese Embassy in New Delhi on March 3, ambassador V Namgyel conveyed the appreciation of the Royal Government to the Government of Japan for its steadfast support to Bhutan’s development for many years that has contributed to improving the quality of life of the Bhutanese.
He said that the four grant projects would further enhance the delivery of quality health services and reinforce the quality of life of the Bhutanese people by improving medical facilities, improving boarding facilities for girls and agricultural development in Bhutan.
The ambassador also said that these projects stand as further testimonies of the excellent ties of friendship, understanding and cooperation between the two countries.
Staff reporter

Political disagreements should not tear country apart: DIPD director

Members of political parties from Bhutan, Nepal and Myanmar came together at Taj Tashi Hotel in Thimphu yesterday to share experiences and achievements of their respective democracy.
Rasmus Helveg Petersen, the director of the Danish Institute for Parties and Democracy (DIPD), said every country, including the UK and the USA, is today facing political crisis and that dialogues are the key to solving the problems.
The director said political parties will disagree but should not tear the country apart. “It’s important for political parties to keep talking,” he said, adding that democracy around the world is in a crisis.
The day-long seminar titled “Achievements and Strengths of Democracy” was organised by Bhutan Democracy Dialogue in collaboration with the Election Commission of Bhutan.
Druk Phuensum Tshogpa’s (DPT) secretary general, Ugyen Dorji, who briefed the foreign delegates on Bhutan’s democratic set-up, said democracy in Bhutan was decreed by His Majesty The Fourth King Jigme Singye Wangchuck. “The country was stunned when His Majesty announced that Bhutan would be transformed into a democracy during the National Day celebrations in 2005 in Trashiyangtse,” he said.
He said elections in Bhutan are free and fair due to the presence of an independent election body and funds from the state for election expenses for political parties.
A foreign participant asked how minority rights were protected in Bhutan. Ugyen Dorji said that legal provisions that mandate a party to have members from all dzongkhags and regions to some extent ensure that people from all regions are included in the democratic process. “We don’t have a minority group as such in Bhutan,” he said.
The country’s laws do not allow formation of a political party based on ethnicity and region.
Ugyen Dorji explained that only two parties that make it through the primaries will get the opportunity to represent the people in Parliament. He said all Members of Parliament are elected through the first-past-the-post voting system and that Bhutan does not have proportional representation.
“This is perhaps one of the drawbacks of our democracy,” Ugyen Dorji said. He added that the country would look into the matter in future, if need be.
A member of the Nepalese delegation, Dina Nath Sharma, said that when political parties in his country have disputes over issues, they do come to a negotiating table for national interests. He said there are a number of political and ethnic groups opposing Nepal’s Constitution and that the government is committed to moving forward by addressing their concerns.
“Cooperation and consensus is the guiding principle of Nepal’s democracy,” he said. “Among disagreements, we find issues of common interests,” he added.
A delegate from Myanmar said democratic changes are gaining momentum in his country although there are armed struggles by some ethnic groups in the country. “Peace is essential for democracy,” he said.
Participants said democracies with a large number of minority and ethnic groups face bigger challenges.
MB Subba

News on emerging new political parties in Bhutan

Emergence of more parties could hurt chances of BKP, DCT and DNT

The people of Bhutan are likely to have more political parties to choose from in the upcoming parliamentary elections in 2018. However, entry of new parties could hurt the chances of the three existing parties that are outside Parliament.
Druk Gaki Tshogpa, a party in the making, is in the final stages of drafting its charter. It says it will soon apply for registration with the Election Commission of Bhutan.
For the two established parties – Druk Phuensum Tshogpa (DPT) and People’s Democratic Party (PDP) – it will be a case of more the merrier. A political observer said entry of more new parties will only spilt the share of undecided and independent voters while it would be difficult to sway the people who have traditionally voted for PDP and DPT.
Druk Nyamrup Tshogpa’s general secretary Tenzin Lekphel said: “I think they must have been inspired and motivated by the way the existing political parties have performed,” he said. “I think the new party will benefit. Therefore, we would like to welcome the party.”
He said that one good thing about the Bhutanese democracy is that a party cannot be formed easily. “There are election laws and rules that require and demand certain criteria to be fulfilled for them to get registered with the ECB,” he said.
A member of Druk Chirwang Tshogpa (DCT) who did not want to be named said it is difficult to form a “credible political party” and that emergence of more parties could weaken the position of the existing parties outside parliament. “We have a small population and not many are interested to join politics,” he said.
However, one of the founders of Druk Gaki Tshogpa, Chheku Dukpa, is hopeful that he will be able to form a strong party and he is “not worried” about the dearth of candidates. “We would like to register the party soon. We would like to identify a suitable party president,” he said.
He said new parties should emerge. “We are not concerned about getting good candidates,” he said.
He said the party is also not concerned about financial resources and thinks that in the past two elections the parties have overspent. “Our strength will be our unique ideas and determination. The notion of having to gather enormous financial resources is not bothering us at this moment,” he said.
In an earlier recent interview Lily Wangchuk,  DCT’s president, said a merger of the new parties would form a political force that will be strong enough to form the government next year. But the idea received lukewarm response due to ideological differences among the parties.
Failure to garner a minimum of 10 percent of the total valid votes cast in a primary will make the party ineligible for state funding in the next elections. In 2013, DCT and DNT fought the primary but only the latter met the 10 percent threshold.
Bhutan Kuen-Nyam Party (BKP) was disqualified just before the primaries. Observers say that it would have been difficult for either of the three new parties to meet the 10 percent threshold.
A political party can accept voluntary contributions, financial or in kind, made by any of its registered members provided the total value of such contributions does not exceed Nu 500,000. However, a member of political party said contributions from members are not adequate and only a few are willing to contribute.
The new party is confident that it will come up fairly strong to compete with any other parties.
Chheku Dukpa claims that there are already many people coming forward to associate with their party. “We would like to have a very good party president.”
MB Subba

News- Grant

India hands over Nu 526.8M to Bhutan

India handed over Nu 526.8 million to the Royal Government yesterday, according to a press release issued by the Gross National Happiness Commission (GNHC).
The Indian embassy’s deputy chief of mission, Esha Srivastava handed over cheques amounting to Nu 526.82 million (Nu 101.82 million for Government of India (GoI) Project Tied Assistance projects and Nu 425 million for the Programme Grant) to GNHC secretary Thinley Namgyal on March 8.
The money will be used to fund development of infrastructure and teaching at the College of Natural Resources and College of Language  and Cultural Studies in  Taktse. It will also be used as an installment of the Programme Grant for the period October-December 2016.
The GoI has committed Nu 45 billion in the 11th Five Year Plan to the Royal Government.
The detailed break-up of the commitment is: Nu 28 billion for Project Tied Assistance (PTA), Nu 8.5 billion for Programme Grant, and Nu 8.5 billion for Small Development Projects (SDP). As of now, GoI has released Nu 16.7 billion for GoI PTA projects, Nu 5.9 billion for Programme Grant and Nu 5.8 billion for SDP to the Royal Government.
In total, GoI has released Nu 28.4 billion to the Royal Government which is 63.1 percent of the total  GoI commitment for the 11th Five Year Plan Period.
Staff reporter

News - gender isuues in political arena

NCWC to review women quota for elected posts

… following Cabinet’s rejection of proposal that included introducing a quota
The National Commission for Women and Children (NCWC) will review part A of the National Plan of Action of Promotion of Gender Equality in Elected Offices following the Cabinet’s rejection to introduce a quota, it was pointed out at the conclusion of the 2nd national conference on women in governance, leadership and politics in Thimphu, yesterday.
NCWC’s director Kunzang Lhamu said they formulated two parts of the national plan through various consultations with stakeholders and it was formally submitted to the Cabinet for approval in 2015, a year after NCWC held several rounds of consultation with stakeholders.
She said that part A includes the introduction of a quota for women in all elected offices and nomination of candidates.
NCWC’s senior programme officer, Sonam Penjor, said that part A identifies and suggests possible entry points in the current electoral system that will ensure representation of women at the nomination level, thereby increasing the scope of women to be elected.
He said that as for the consultation, the best way forward for part A is to ensure the nomination of a minimum 33 percent female candidature by each political party for both primary and general elections of the National Assembly.
It was pointed out that 33 percent is the internationally accepted representation of women required to ensure responsive discourses and resolutions.
“Our intention is not to reserve seats for women but to diversify the choice for voters by ensuring that there is a female and a male candidate,” Sonam Penjor said. “The political parties could actually do this voluntarily. But then, we might not meet the set target.”
The section also states that the government shall ensure all necessary support or services are provided for the contesting female candidates in the general elections. “However, it comes with a condition that the 33 percent criteria should be incorporated in the Election Act,” Sonam Penjor said.
As for the National Council (NC) elections, it states that each gewog is eligible to nominate two candidates, a male and a female, to contest at the dzongkhag level elections.
It also states that in the event of a nomination of two or more male candidates and one female candidate from a gewog, only one male shall be selected to contest. “The same shall apply in the event of nomination of two or more female candidates and one male candidate,” the senior program officer said.
The proposal also includes ensuring that each village and chiwog will nominate only two candidates to contest in the elections for the post of gups and mangmis.
However, some of the participants say that doing this would restrict male candidates.
A participant, Tsheten Zangmo, raised her concern over how the authority concerned would select the two candidates, a male and a female, if a chiwog or a gewog has more than two male and female aspiring candidates.
Kunzang Lhamu said that the commission will re-consult with stakeholders and review the proposals in part A.
Meanwhile, NCWC officials said that the cabinet approved part B of the plan that was endorsed by NCWC in its sixth commission meeting.
Part B includes activities to respond to women’s needs, creating an enabling legislative and policy environment to enhance women’s participation, introducing support systems and services, conducting continuous awareness and advocacy programmes on gender equality and capacity building, among others.
During the conference, other pertinent women issues were also discussed. It included under representation of women in political parties.
A Danish-Swedish professor of political science at the Stockholm University, Professor Drude Dahlerup, said that a country without universal suffrage will not be labeled a democracy today. “Today, an all male or a strong male dominated political assembly has lost its democratic legitimacy.”
She said it is the responsibility of the political parties to be more inclusive in terms of gender and also minorities and youth. “Because it is the political parties who are the gatekeepers to the nominations of the candidates for the election.”
She also said that theories of the connection between socio-economic development and women’s political representation are challenged by actual developments, especially by the use of quotas.
Some of the panelists discussed if more education and more development would lead to more women representation in political parties.
The professor said that there is no historical evidence of this kind of connection. She said that the theory that the richer a country is, the higher the representation of women is no longer applicable.
The professor gave an example of Thailand, where she stated women are well educated but women representation at political sphere is only 4.9 percent.
She said there are so many qualified women in the civil society of Bhutan and there are enough to fill the whole parliament.
The professor added that the question of qualification has to be reconsidered when it comes to women representation as the post is about representing people. “If you look at India, there are people who are uneducated but a good representative of people. Therefore, we have to think out of the box,” she said.
The professor said that Bhutan is a new democracy and it has an opportunity to start from scratch to be all-inclusive in terms of gender and minorities unlike in old democracies where the political institutions were established before women had the right to participate.
She said that only eight percent of Bhutanese women were elected to the National Assembly in 2013 and many blamed women voters not voting for women for the low female representation.
She pointed out that there is no data to back this theory and that in many constituencies there were no female candidates.
Of 47 constituencies in the country, three-fourth had only male candidates, which means only nine constituencies had both female and male candidates.
She said that data available from the Election Commission of Bhutan for 2013 election state that number of votes casted for female and male candidates were almost same and it was an indication that when women are there, the voters support them as much as they support men. “Women voters should not be blamed but political parties are to be blamed for not having women in three fourth of the constituencies.”

Thursday, 2 March 2017

News

Reconsider taxation policy

A debate has been sparked following news that farmers were taxed this year for their cardamom sales.
On the one hand, the Income Tax Act 2001 requires that income from cash crops like apples, oranges and cardamom is taxed, along with other crops the government chooses. However, while apples and oranges, along with other fruits and vegetables have been taxed, cardamom has not been so far given its low market value. The government’s decision to tax those cultivating cardamom is a result of its higher market value and more farmers turning towards an apparently more lucrative cash crop in the past year.
On the other hand, we’re aware that rural-urban migration is a growing problem. Youth are leaving the villages in search of jobs in the towns. As a result, it is mostly the elderly left behind in the villages. Given the challenges: a changing climate causing more natural disasters, human-wildlife conflict, harvest and market unpredictability, and the demanding physical nature of farming, more land is being left fallow.
Efforts are being made to reverse this situation by attempting to provide farm mechanisation services, farm roads, electric fencing, green houses, better access to markets, compensation for crop loss, and low interest loans, among others.
But the question still remains if taxing our farmers tips the balance the wrong way.
By law, all income exceeding the exempted limit of Nu 200,000 is taxable. As citizens of this great nation that provides us with free education and health care, among others, it is our responsibility to ensure we declare our income truthfully and pay our taxes.
However, there may be a need for the government to reconsider its policy towards farmers given the circumstances.
For instance, it is a fact that more farmers have turned to cardamom and that they fetched high prices last year. But there are also reports that the price of cardamom has declined by almost half this year. The market situation of the crop has also apparently changed with supply vastly exceeding demand.
What is clear is that cardamom is not a reliable source of income. Lives will be affected this year and a tax on top of it may only add to their problems.
The Income Tax Act says that income from cash crops will be taxed on an accrual basis. The government could consider at least deferring the year from when it begins taxing cardamom.
Perhaps, an amendment to the Act is also due to allow the government more leeway in how it taxes farmers. Any loss in revenue could possibly be compensated by strengthening the way businesses, especially big businesses, are assessed to prevent leakage.
The agricultural sector has been and continues to be the foundation of this country. Recognising this, the government announced on the Birth Anniversary of His Majesty The King yesterday that the Rural Enterprise Development Corporation Ltd loan ceiling for farmers has been increased from Nu 100,000 to Nu 500,000.
The way forward is to keep money in the pockets of our farmers until the conditions for the farmer improves.

News

The Potential to make farmers happy

“Farmers” are the least GNH happy
“Agriculture is not just an industry for Bhutan but also an important source of culture in Bhutan. If the power of agriculture were to decrease, so would the power of country”. These are words of wisdom from His Majesty The Fourth King that JICA received and has cherished. In line with the importance of agriculture in Bhutan, JICA has continued to cooperate with the Government of Bhutan in the field of agriculture since 1964. In such a setting, one astonishing fact came to light after implementing the 2015 GNH Survey conducted by the Centre for Bhutan Studies & GNH Research(CBS) with assistance from JICA. Farmers were found to be the least happy among other occupational groups.


JICA Horticulture Project

a year's (2016) news in summary on high profile visits

High profile visits bolsters foreign relations

February 25, 2017 News
Yearender | Foreign Affairs: The year of the Monkey kept the foreign ministry on its toes with multiple high profile visits.
The country’s diplomatic relations with numerous old friends were further strengthened with prominent members of their royalties returning to their countries impressed with Bhutan.
A much talked about visit was that of the Duke and Duchess of Cambridge, HRH Prince William and Kate Middleton. The royal couple’s visit materialised following an invitation from His Majesty The King. They arrived in the country in April, accompanied by an entourage of more than 70 members of the foreign press, for a two-day visit. The royal couple tried their hand at archery and khuru in Changlimithang, and even hiked up to Taktshang.
About a month later, HRH Princess Maha Chakri Sirindhorn arrived on a four-day visit in May. The Princess visited the Wangbama, Wanakha and Samtengang central schools, which were beneficiaries of HRH’s agriculture programme.
Soon after, Prince Alwaleed bin Talal, the chairman of the Kingdom Holding Company (KHC), visited the country.
The King of Sweden Carl XVI Gustaf and Queen Silvia left the country on June 11 after a three-day state visit, impressed with the way the Bhutanese have preserved their tradition and culture.
The ambassador of the People’s Republic of China to India, Luo Zhaohui during his visit to the country said that China recognises the importance of the development philosophy of Gross National Happiness. Bhutanese living in the capital also witnessed songs, dances and acrobatics performed by the Xinjiang Art Theatre Song and Dance Troupe.
On the occasion of the 30th anniversary of Bhutan-Japan diplomatic relations, Bhutan witnessed a record arrival of Japanese tourists in the months of June, July and August. More than 3,300 tourists as compared to only 625 in the same period in 2015 visited the country.
Expressing security concerns, Bhutan joined numerous countries including India to not participate in the 19th SAARC summit to be held in Islamabad, Pakistan which was scheduled to be held in November last year.
The government expressed its concern to the Federal Democratic Republic of Nepal, who was the chair of SAARC, that the deteriorating security situation in the region had created an environment which is not conducive for the successful holding of the 19th SAARC summit.
The foreign ministry which has remained shy of the media yet again made headlines. After the two controversies that involved its former minister and the secretary, Lyonpo Damcho Dorji became embroiled in a corruption case. The minister however accepted lack of oversight and accountability.
The ministry also underwent a change at the helm as its Chief of Protocol Sonam Tshong took over as the new secretary. Sonam Tobden Rabgye was appointed the Ambassador to Bangladesh, and Tshewang C Dorji became the Ambassador to Thailand.
India appointed Jaideep Sarkar as its 17th ambassador to Bhutan in February. He replaced Gautam Bambawale who left to join as the Indian High Commissioner in Pakistan.
The country’s foreign relations was also active with regular exchanges of diplomats from various countries and goodwill visits from regional and international agencies.

New UN res rep presents credentials to foreign minister

UN: The new UN resident coordinator and UN Development Programme (UNDP) resident representative, Gerald Daly, presented his credentials to foreign minister Damcho Dorji today, according to a foreign affairs ministry press release.
Before his appointment to Bhutan as the UN resident coordinator and UNDP resident representative, Gerald Daly worked as a policy advisor and team leader with the UN Development Operations Coordination Office in New York from 2011. He has also served as the World Food Programme country director and representative in Thimphu from February 2003 to June 2007.
Gerald Daly is an Irish citizen. He succeeds Christina Carlson who served from July 2013 to August 2016.
Staff reporter

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Contemporary Bhutnaese artists carve out a niche

Yearender | ARTS & Culture: The Fire Male Monkey Year saw development of art and culture in the country. Art exhibitions and some of the memorable art and literary festivals such as the Mountain Echoes brought together talented artists from both within and outside the country.

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UN: The new UN resident coordinator and UN Development Programme (UNDP) resident representative, Gerald Daly, presented his credentials to foreign minister Damcho Dorji today, according to a foreign affairs ministry press release.
Before his appointment to Bhutan as the UN resident coordinator and UNDP resident representative, Gerald Daly worked as a policy advisor and team leader with the UN Development Operations Coordination Office in New York from 2011. He has also served as the World Food Programme country director and representative in Thimphu from February 2003 to June 2007.
Gerald Daly is an Irish citizen. He succeeds Christina Carlson who served from July 2013 to August 2016.
Staff reporter

Saturday, 25 February 2017

. Border: Military Intimidation, Diplomatic Seduction, Border Talks and Incursions, and Siliguri Corridor
Military intimidation followed by diplomatic seduction has formed an important part of China’s policy towards Bhutan. After the closing of the border, trade and all diplomatic contacts in 1960, China resorted to significant military posturing against Bhutan at least twice – in 1966 and in 1979 along the border which remains the prime reason of dispute. In 1966, on the tri-junction of Bhutan, Chumbi Valley and Sikkim, the Tibetan grazers accompanied by Chinese troops entered Doklam pastures. China later “formally extended claim to about 300 sq. miles of northeastern Bhutan and also substantial areas north of Punakha, the former capital of Bhutan.” When Bhutan requested New Delhi to raise this matter with Beijing, China rejected talking to India saying that the issues concerned China and Bhutan alone and "the Indian government has no right whatsoever to intervene in it (Singh 2000: 1109-1127)."
China followed up this incident by voting in favour of Bhutan’s membership at the United Nations (UN) in 1971 which implied its recognition of Bhutan. However, Bhutan’s strong support to India in the UN over Bangladesh issue the same year irked China dissuading them from building further momentum (Ibid).
The coronation of the new King of Bhutan in 1974 where China sent a high-level delegation and Bhutan’s vote in the UN in 1977 favouring the Chinese position against India’s on who should represent Cambodia marked opening up of other vistas of cooperation. For Bhutan, the Janata government in New Delhi made the task easier as its policy of “beneficial bilateralism” signaled normalisation of India-China relations (Gulati 2000: 79). China wanted the border talks to begin but with Bhutan still unprepared, it ensured large-scale intrusions in 1979. The negotiations finally began in 1984. In 1998, they agreed on Four Guiding Principles for further talks which included maintaining peace along the border, something China often violated to create pressure. After nineteen rounds of talks by January 2010, the two sides are said to have nearly finalised boundary demarcation (Bhutan Research 2012) and almost prepared to establish diplomatic ties with China (Sina.com, 13 April 2012). China also offered a sweet package deal to Bhutan that Bhutan has been reluctant to conclude. Medha Bisht (2010) wrote about the complexities involved in such a deal:
The protracted nature of Sino-Bhutan boundary talks and the continuous Chinese intrusions into Bhutanese territory reveals the strategic element embedded in the package deal. In November 2007, Chinese forces dismantled several unmanned posts near the Chumbi valley. This, analysts put it, has ‘distorted the Sino-Bhutanese border near Sikkim,’ with Chinese forces only a few kilometers away from the Siliguri corridor. Chumbi Valley, a vital tri-junction between Bhutan, India and China border, is significant as it is 500 km from Siliguri corridor—the chicken neck which connects India to North East India and Nepal to Bhutan. Meanwhile Chumbi Valley is of geostrategic importance to China because of its shared borders with Tibet and Sikkim. The North-Western areas of Bhutan which China wants in exchange for the Central areas lie next to the Chumbi Valley tri-junction.
Human resource shortcomings plague investigating agency
Yearender |  Corruption: The Anti-Corruption Commission’s (ACC) pro-activeness was questioned in the last year, as a result of its, as many perceived, snail pace on several cases.
The commission attributed its inability to keep up and clear the backlog of complaints to a shortage of human resources. As the ACC’s work is deemed sensitive, finding suitable people to work with the commission continues to be a challenge, especially with the Royal Civil Service Commission reluctant to provide human resource independence. ACC has 90 staff today, and plans to increase its strength to 147.
The past year also saw some disappointment for ACC’s investigators after the judiciary dismissed a few of its cases.
In June last year, the ACC and Office of the Attorney General (OAG) locked horns over fronting cases when the OAG converted criminal charges against 29 licence holders into a civil suit. The OAG cited the Anti Corruption Act for the conversion.
However, the ACC challenged OAG that despite an abundance of regulations, signed undertakings, expanded capacities of enforcement institutions like the regional revenue and customs office, regional trade and industries office, some Bhutanese “obsessed by greed” continued to resort to unlawful solicitation and amassing of wealth, leading to widespread progression of illicit businesses in Phuentsholing over the years.
Through intelligence gathering and surveillance for more than a year, the ACC learnt that fronting was providing a breeding ground for commercial bribery, deflection of goods across the border and an avenue for money laundering and forgeries. More than 40 trade licence holders are being prosecuted at the Phuentsoling dungkhag court for the restitution of more than Nu 600 million from these cases for the State.
As the Monkey year drew closer to its end, ACC was once again disappointed after the prosecuting agency dropped charges of fraud and conspiracy, in the land acquisition and substitution case involving former Trongsa Dzongdag Lhab Dorji and his wife Karma Tshetim Dolma during the establishment of the Institute for Language and Culture Studies in Taktse in Trongsa.
The OAG stated that upon diligent determinations of the facts and evidence contained therein, it found no merit to initiate any of the recommended criminal proceedings against the alleged suspects as the alleged transactions were found to have been caused due to administrative lapses of the State and the failure of a few individuals who had died before ACC began its investigation.
The year of the Monkey favoured former foreign minister, MP Rinzin Dorje after the Haa dzongkhag court acquitted him of charges that he had misused public property during his tenure as dzongdag. ACC appealed to the High Court which sentenced the MP to a year’s imprisonment.
However, the MP appealed to the Supreme Court which over turned the ruling and stated that it did not find any basis to criminally convict the appellant as OAG’s appeal to the High Court only sought to hold the defendant liable for administrative sanction.
Both the investigating agency and the public criticised the Supreme Court’s ruling and questioned if it would not encourage others to misuse pool vehicles.
Despite the criticism and disappointment, the ACC also handled some high profile cases in the Monkey year. One being the alleged reduction of a sentence from life to 10 years in connection with a choeten vandalism case in Mongar in 2002. It was alleged that the present foreign minister, Damcho Dorji when he was the Mongar drangpon sentenced a man from Chaskhar to life imprisonment. However, the then drangpon is alleged to have reduced the sentence to 10 years while issuing the conviction order to police.
Lyonpo Damcho Dorji accepted responsibility for the oversight.
Investigations on stalled notable corruption cases involving Bharat Heavy Electricals Ltd (BHEL), a public sector undertaking (PSU) of India, and a local Bhutanese company, Bhutan Ventures Trading (BVT), over a hydropower project tender and the irrational investment made by an insurance company in Nubri Capital have also been initiated and are expected to be completed soon.
The commission completed investigations on five cases involving fraudulent, illegal registration and transaction of government land in Thimphu by the former Chang gup and forwarded to the OAG for prosecution. Another illegal transfer of few acres of government Tsamdro land in Chang Debsi into a private individual involving the present serving Chang gup is also being investigated.
Meanwhile, Bhutan’s position in the global corruption ranking has remained unchanged at 27 from last year. According to the Corruption Perception Index 2016 released in January by Transparency International (TI), an anti-corruption watchdog, Bhutan scored 65 points out of 100. For the last three years, Bhutan’s scores in the annual index have remained unchanged.
Rinzin Wangchuk
Yearender |  Parliament: The last two sessions of Parliament were largely fruitful both in terms of fostering democratic practices and enactment of laws.
The eighth session of Parliament that concluded on December 9 last year adopted two Bills and as many international conventions. However, consensus could not be reached between the Assembly and the National Council on the Customs Bill of Bhutan and the Motor Vehicle Agreement between Bhutan, Bangladesh, India and Nepal (BBIN).
As per the legislative procedure, the agreement and the Bill were submitted to His Majesty The King for Royal Assent for deliberation in a joint sitting.
The National Council refused to adopt the BBIN motor vehicle agreement that was passed by the Assembly. This was a major setback for the government, which is bent on ratifying the agreement.
The BBIN agreement aims to facilitate seamless movement of vehicles across the borders of the four countries.
The Assembly amended the Income Tax Act of 2001 to exempt taxes on fixed deposits and enhance banking services.
To facilitate creation of employment opportunities, the Assembly approved a supplementary budget amounting to Nu 262.808 million (M). The amount for the supplementary budget was generated from interest received on account of the subordinated debt instruments under the Economic Stimulus Plan.
His Majesty The King addressed the seventh joint Parliament session on July 7, 2016.  His Majesty The King said that the main duty of the 72 parliamentarians is to carry out the sacred responsibilities of representing and serving the people.
His Majesty The King expressed appreciation to the parliamentarians for working to the best of their abilities and without failing to serve the people. His Majesty The King further commended the parliamentarians for performing thorough research and review on the issues they deliberated in Parliament.
During its seventh session, the Assembly passed the Customs Bill of Bhutan, the Civil Aviation Bill of Bhutan 2015 and the BBIN Motor Vehicles Agreement. In addition, a joint sitting of Parliament also adopted the Jabmi (Amendment) Bill of Bhutan and the Companies Act.
The Assembly in October launched its first annual report. The first annual report for 2015-16 was published coinciding with the joyous Birth of His Royal Highness The Gyalsey, Jigme Namgyel Wangchuck.
During the eighth session, the Members of the National Assembly made a three-day official visit to the Mangdechhu and Tangsibji hydroelectric power projects from December 1 to 3, 2016.
The parliamentarians also visited Trongsa Dzong and the Royal Heritage Museum. Since 2008, entrance fees amounting to Nu 910,000 has been collected from visitors visiting the Royal Heritage Museum and has been deposited in the government’s treasury.
During the visit, the parliamentarians examined the progress of the East-West Highway widening works.
National Council recognises media’s role 
The 18th session of the National Council deliberated five bills and five policy issues and endorsed recommendations. The bills are the Red Cross Bill, the customs Bill, the civil aviation Bill, supplementary budget and the tax (amendment) Bill.
While the Assembly didn’t accept some of the Council’s recommendations on the customs Bill, four were endorsed by both Houses. The Council also discussed the BBIN Motor Vehicle Agreement (MVA) but voted against its ratification.
Most of the recommendations on the civil aviation Bill were accepted by the Assembly and were submitted to His Majesty The Druk Gyalpo for Royal Assent.
In a significant development, the Council on May 26 called its first press conference and announced that the House would interact with the press twice every session – one in the beginning of the session and another at the end.
This was announced in recognition of the media’s role is democracy. The spokesperson said media play a crucial role in information dissemination.
The Council’s initiative to hold at least two press conferences during a Parliament session is one of the means of strengthening the institution. NC members said it was important for them to interact with the media.
The 17th session of the Council that concluded on June 24, 2016 focused on strengthening itself as an institution that is crucial for the success of Bhutanese democracy.
For the first time during the 17th session, Section 137 of the National Council Act, which states: “If the interpellator is not satisfied with the answer, he may, with the permission of the Chairperson call a debate in the Council, in which the appropriate authority of the government shall participate”, was invoked.
As per the Act, economic affairs minister Lekey Dorji was summoned during a re-deliberation on the issues related to mining in the country. This was part of the process of strengthening the institution of the Council.
The 17th session passed resolutions and recommendations on six subjects, including the annual budget, supplementary budget appropriation bill and the tax reform bill.
The session also resolved that the government urgently establishes an Alternative Dispute Resolution Centre as per the Alternative Dispute Resolution Act 2013. The House also passed a resolution calling upon the government to urgently table the Ownership of Assets and Accounts Abroad by Bhutanese Citizens Bill in the next Parliament.
The two Parliament sessions of the Monkey year concluded successfully with the blessings of the Triple Gem, and the noble guidance of His Majesty The King.

Friday, 24 February 2017

News

PM meets with new ADB resident representative

Meeting: Prime Minister Tshering Tobgay met resident representative/country director designate of the Asian Development Bank (ADB) Kanokpan Lao-Araya, and director general of the South Asia department, ADB Hun Kim, yesterday, according to the Prime Minister’s Office.
Hun Kim explained that opportunities in Bhutan for ADB is expanding and hence the ADB office in Thimphu has been upgraded from a Representative Office to a full-country operation, hence, the introduction for Kanokpan Lao-Araya.
Lyonchoen welcomed Kanokpan Lao-Araya and thanked the ADB for their investment in Bhutan’s socioeconomic developmental sectors. Lyonchoen added that ADB is the biggest multi-lateral partner for Bhutan and that Bhutan has benefited in terms of connectivity and infrastructural developments.
Kanokpan Lao-Araya expressed her commitment towards working as a bridge between Bhutan and the ADB.
Earlier in the day, she also presented her credentials to the foreign minister Damcho Dorji.
Kanokpan Lao-Araya, a Thai national, is ADB’s second resident representative to Bhutan.
Bhutan formally joined the Asian Development Bank in 1982.

Think tank recommends implementation of BBIN agreement

BBIN: Even as it remains uncertain whether or not Bhutan’s Parliament will ratify a motor vehicle agreement involving Bangladesh, Bhutan, India and Nepal (BBIN), experts and government officials from the sub-region have called for immediate implementation of the ambitious road connectivity plan.
The calls were made during a two-day BBIN conference organised by Kolkata-based think tank CUTS International from February 16 to 17 in the capital city of West Bengal. Overall, participants agreed that the agreement should be implemented despite the challenges.
Implementation of the agreement has been delayed as Bhutan has not yet ratified the agreement although it was inked more than one and a half years ago in June 2015. India, Bangladesh and Nepal have ratified the agreement, and are expected to go ahead with the plan by repackaging the agreement as BIN without Bhutan.
However, the Bhutanese government is determined to be part of this sub-regional group despite objections from the opposition and the National Council.
Information and communications secretary Dasho Karma Penjor and his predecessor Dasho Kinley Dorji took part in the conference. The secretary informed Kuensel that the other member countries asked him about Bhutan’s position on the motor vehicle agreement.
“We expressed Bhutan’s concerns with respect to the culture and environment,” he said. He said the agreement will be put to a vote in a joint sitting of the upcoming summer Parliament session.
According to a press release from CUTS International, Dasho Karma W Penjor informed the conference that “the political will in Bhutan was in favour of ratifying the pact”. He stated that steps were undertaken to demystify the various provisions of the agreement among different stakeholders in Bhutan.
The pact aims to allow seamless movement of vehicles across the four countries’ borders. The details of the rollout, including country specific restrictions on entry of vehicles, will be decided at a later stage in the protocols.
The National Assembly’s legislative committee chairperson MP Ritu Raj Chhetri said the agreement will provide platforms for negotiations in other areas of cooperation among the member countries. “It will open opportunities for economic development,” he said.
Supporters of the agreement believe that the agreement will accelerate economic development and integration in the sub-region. The region is one of the least integrated and connected regions of the world and intra-regional trade is around five percent of the total trade of South Asian countries.
The think tank believes that the connectivity agreement can be a game changer especially for land-linked countries like Nepal, Bhutan and states in North-East India. However, for effective implementation, it has to address a number of challenges to set the wheel rolling.
Two of the key challenges include lack of facilitating infrastructure coupled with lack of financial capacity of the countries to support development of infrastructure and harmonisation of procedures for transits. In addition, there are also significant challenges pertaining to land acquisition, concerns of transport operators, gender concerns, and differences in the mindsets of people.
The National Council has rejected the agreement, citing environment concerns and lack of road and infrastructure capacity to handle huge volumes of cargo and passengers.
Pushing the agreement through Parliament is not the final hurdle for the government. Unlike in the other three countries, Bhutan’s Parliament must also ratify protocols that will prescribe the details on the implementation part. The protocols are currently being drafted.
“The need of the hour is to get over the ‘big country and small country syndrome’, move forward and implement the agreement, which will have tremendous implication for growth and development of BBIN,” stated the think tank.
Speaking at the conference, India’s deputy secretary of the Ministry of Road Transport and Highway, AD James, said some of the initiatives that the government of India is presently undertaking to facilitate effective implementation of the agreement include expansion of road networks, development of logistical hubs with state of art facilities along major economic corridors.
Former governor of the Bangladesh Bank and professor of Dhaka University, Atiur Rahman, emphasised the need to develop regional financial institutions and chalk out other strategies such as public-private partnership models to facilitate funding for developing facilitating infrastructures.
The joint secretary of Bangladesh’s Ministry of Commerce Badrul Hassan Babul, underlined the need for greater trade facilitation among countries in the BBIN region through the MVA.
The joint secretary of India’s Department of Commerce, Bhupinder Singh Bhalla, emphasised the need to look beyond economic benefits and consider the important role that motor vehicle agreement will play in mainstreaming development for the land linked states in North-East India. He said the agreement will give easier access to the maritime ports in Bangladesh.
The Indian Commissioner for Customs and Export Promotion, Sandeep Kumar, pointed out that the region can save USD 2 billion by developing land ports and an electronic cargo tracking system but issues like land acquisition, access to electricity and IT tools severely limits the options.
The US Consul General in Kolkata, Craig Hall, said there is a need for enhancing intra-regional trade among countries in the South and Southeast Asian countries by sharing resources and removing various trade barriers.
The executive director of the think tank, Bipul Chatterjee, said that the agreement can yield concrete benefits for the common man. He mentioned that the pact is not only significant in terms of improvement of land ports but also from the point of view of development of economic corridors which is indispensable for trade facilitation.
CUTS International will be implementing a project over a period of two and a half years to not only explain the benefits of the agreement but to also help in addressing the concerns at the grassroots level that might act as a barrier against attaining the objectives of the regional pact.