. 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.

News

PM meets with new ADB resident representative

February 21, 2017 News Leave a comment 1,390 Views

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

February 21, 2017 Lead Story, News Leave a comment 2,715 Views

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.