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Bhutan - Country assistance strategy (English)

The goal of this country assistance strategy (CAS) of Bhutan is to help the country manage its considerable natural, institutional, cultural, and environmental assets in ways that can translate economic growth into rapid and inclusive social transformation and improvements in living standards. Bhutan's favorable medium-term growth prospects and its comfortable macroeconomic balances, based on its natural resource endowments and substantial grant and concessional aid inflows, create ideal conditions for concerted action to meet its development challenges. Its development vision provides a well-articulated agenda for action that is fully owned by Bhutan. Bhutan has drawn relatively little on International Development Association (IDA) financing in the past, preferring to use grant aid from bilateral donors and the United Nations before using multilateral assistance. This will continue, and the strategy will rely more strategically on IDA's comparative advantage in Bhutan, transferring knowledge and ideas rather than finance. The country faces two development risks: 1) Bhutan relies heavily on power exports to India and financial support from India and foreign aid. 2) Bhutan faces the risk of rising social and political tensions from rapid population and economic growth. Stability will depend on the way the government manages the conversion of economic growth into social transformation, including meaningful employment opportunities for its people.


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    Country Assistance Strategy Document

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  • Region

    South Asia,

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  • Doc Name

    Bhutan - Country assistance strategy

  • Keywords

    ratio of debt service to export;social transformation;Country Assistance Strategies;country assistance strategy;reproductive health and family planning;Financial Sector;comparative advantage;social and economic development;accounting and auditing standard;high population growth rate;Agriculture;Private and Financial Sector;rural to urban migration;access to health care;Acquired Immune Deficiency Syndrome;rural water supply scheme;project design and implementation;misuse of public funds;life expectancy at birth;gross primary school enrollment;social indicator;Public Expenditure Management;analytical and advisory;living standard survey;remote area;physical infrastructure;grant aid;development vision;financial sector strategy;health delivery system;crop and livestock;balance of payment;educated labor force;gdp growth rate;Foreign Exchange Reserve;foreign direct investment;rural access road;Health Service;cultural identities;dutch disease;foreign assistance;heavy reliance;high quality education;pattern of trade;forest product;secondary education system;universal primary education;large capital investment;Natural Resource Management;Medium of Instruction;public health expenditure;free trade agreement;sustainable rural livelihood;growth and development;degree granting institution;participation in education;per capita gnp;forecast of revenues;domestic financial assets;domestic saving rate;power purchase agreement;large power plant;dutch disease syndrome;real exchange rate;analysis of poverty;trade and investment;personal income tax;diversification of export;natural resource endowment;measure of poverty;quality of learning;foreign aid donor;direct foreign investment;forces of change;private sector bidder;liberalization of interest;current account deficit;interest rate structure;reliance on foreign;health promotion interventions;Public Sector Enterprises;minimum liquidity ratio;international financial institution;public information campaign;cost of travel;globally significant biodiversity;maintenance of building;primary school child;high value crops;free basic education;rapid population growth;primary school student;private sector activity;births per woman;private sector employment;resources and capacity;total fertility rate;sale of power;gnp per capita;vulnerable group;installed capacity;concessionary loan;capital expenditure;domestic production;social infrastructure;Hydroelectric Power;external environment;indian rupee;road maintenance;banking system;aid flow;program credit;health clinic;health clinics;Learning and Innovation Credit;domestic demand;free access;nonperforming loan;food insecurity;Cultural Heritage;project costing;education strategy;macroeconomic balance;social context;fiscal prudence;transferring knowledge;living culture;global knowledge;hydropower asset;economic reform;political leadership;social tension;Poverty Analysis;Economic Policy;energy-intensive industry;motor road;donor support;trade diversification;finding employment;Higher Education;heavy subsidies;high wage;Natural Resources;Exchange Rates;illegal immigrant;amnesty international;Capital Investments;welfare fund;majority ownership;tourism sector;real gdp;liquidity management;work permit;commercial bank;equity stake;price differential;dense forest;large deposit;safe haven;deposit rate;lending rate;power tariff;border area;capital-adequacy ratio;employment opportunities;cultural value;historical heritage;political tension;currency peg;nominal anchor;Macroeconomic Stability;political change;political transformation;economic statistic;lending strategy;Public Transportation;piped water;sustainable level;food shortage;gender discrimination;accurate assessment;elected representative;extensive consultation;planting season;Health Workers;public provision;refugee camp;bankruptcy procedure;private hand;rural economy;cash crop;health infrastructure;primary enrollment;tertiary schooling;linguistic group;secular education;domestic supply;government's policy



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Bhutan - Country assistance strategy (English). Washington, D.C. : World Bank Group.