Tourism Council of Bhutan Welcome to Bhutan Tourism Council of Bhutan

Presented to: Implementing Inclusive, Green Economy Approaches: Asia Regional Dialogue on Country Experiences and Ways Forward for Economic Decision Makers

Relevance of ECP and Green Economy to Bhutan Development Philosophy based on GNH National objectives of poverty reduction and environmental conservation. A constitutional commitment to maintain 60% of land under forest cover at all times. About 70 % of the rural population depend on agriculture and related services for livelihood. More than 98% of those under poverty are rural based. More than half of Bhutan's GDP can be attributed to sectors directly or indirectly dependent on the health of our environment. Hydropower and tourism sector major contributors to the national revenue (both dependent on the environment)

GNH Indicators & MDGs, UNHDI – influence resource allocation GNH Screening Tools to influence policy & project formulation GNH – Measure of Progress GNHI to guide development towards GNH Along with MDGs, UNHDI

What is the GNH Index? Initially GNH was guided by the four pillars, now we have the 9 domains A set of indicators that captures the aspirations of the Bhutanese people Indicators will be used for the following: – to guide Bhutan’s development much like a compass – To draw attention to areas that need to be addressed and thus be used as a basis for resource allocation – GNH Index related Policy and Project Selection Tools (PPST) will be used to mainstream GNH Gross National Happiness Commission

GNH as an alternative Development Framework GNH is a development approach that seeks to “achieve a harmonious balance between material well-being and the spiritual, emotional and cultural needs of an individual and society.” “GNH based on the belief that since happiness is the ultimate desire of every citizen, it must be the purpose of development to create the enabling conditions for happiness”

Bhutan’s philosophy of Gross National Happiness GNH Pillars Pillar 1: Good governance Pillar 2: Conservation of the environment Pillar 3: Sustainable and equitable socio- economic development Pillar 4: Preservation and promotion of culture

 Goal 1: Eradicate extreme poverty and hunger  Goal 2: Achieve universal primary education  Goal 3: Promote gender equality and empower women  Goal 4: Reduce child mortality  Goal 5: Improve maternal health  Goal 6: Combat HIV/AIDS,  malaria and other diseases  Goal 7: Ensure environment sustainability  Goal 8: Develop a global partnership for development  Sustainable and equitable socio-economic development  Conservation of Environment  Preservation and promotion of Culture  Good Governance GNH and MDGs and HDI MDGs and Targets Four pillars of GNH and Nine Domains Four Pillars Human Development Index ▪ life expectancy at birth ▪ literacy rate ▪ GDP per capita (PPP US$) ▪ HDI and Bhutan Bhutan’s on HDI ranked 132 Life expectancy at birth : 65.7 yrs Adult literacy rate : 52.8 GDP per capita (PPP US$): 4,837 Nine Domains  Psychological wellbeing  Health  Education  Culture  Community Vitality  Good Governance  Living Standard  Time Use  Ecological Diversity and resilience

EM in Bhutan – a timeline: 2006 – tentative steps towards mainstreaming (from a ‘reactive’ or ‘safeguarding’ to a ‘proactive’ approach – PEI (UNDP, UNEP) expanded to include poverty & CC – Capacity building (AusAID) & several initiatives (ECP Guidelines & EDP) 2009 – Joint Support Programme (Danida, UNDP, UNEP) 2011 – ECP RG (Awareness, capacity development, advisory role – multi-sectoral & catalytic drivers for EM)

Mainstreaming Initiatives & Interventions into Polices and Plans 10

Mainstreaming into Plans and Policies Identification of windows of opportunities within the policy and plan formulation process Assessing those windows and making interventions within them.

Mainstreaming into Policies

Policy Protocol The formulation of any policy begins with the preparation of a Concept Note which should clearly state the following: The reason/rationale for proposing the policy (what issues need to be addressed and government directives if any). The process and indicative timeline that will be followed in developing the policy including likely need/use of TA. (If TA is to be used, the ToR must be shared with RED, GNHCS for comments). Identify opportunities and alternatives to integrate GNH principles and crosscutting issues such as environment, poverty, climate change, gender, etc. within the policy. Major impediments or risks foreseen in the development of the policy. 13

Policy Protocol Format/Report Mainstreaming cross-cutting issues (i)Gender: Specific gender inequalities existing; Causes of such inequalities and opportunities to address them; Are there any targeted specific initiatives proposed? Challenges & constraints for attaining gender equality? (ii)Poverty: Initiatives to address income gaps & inequalities.

Policy Protocol Format/Report Mainstreaming cross-cutting issues (iii) Environment: Identification of key sustainability issues linked with this policy and mainstreaming of these issues; Opportunities for sustainable use of natural resources; and Contribution to national goals, principles, and international commitments, eg. Carbon neutrality (iv) Vulnerability and resilience (adaptation) of communities and eco-systems Climate change Disaster Environmental degradation 15

GNH Screening The final draft policy before endorsement is screened to see if it is GNH favorable or not: The policy is screened for its perceived impact on 22 variables. Variables relate to areas such as Economic Security, Material Well being, Equity, Gender Equality, Environmental Degradation and

Some achievements with Policies Fiscal Incentives within the Economic Development Plan to promote Greener Eco Efficient Industries Draft Minerals Development Policy revised to include sections on revision of royalties, contributions to community welfare, health, education, gender, and Strategic Environmental Assessment. Sections inserted within the Renewable Energy Policy to incentivize communities to operate renewable energy schemes and also encourage supply and use of energy efficient appliance.

Mainstreaming in Plans

19 Goal: “Self-reliance and Inclusive Green Socio-Economic Development”.

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6 Step Matrix – ECPM Framework Key ECP Pressure/ Concern Analysis on Status, Trends and Impacts of Identified Pressure/ Concern Proactive Opportunities & Alternative Options to Mitigate or Address Identified Pressure/Concern Short and Long Term Impacts/ Benefits of Proposed Opportunities & Alternative Options M&E for Proposed Opportunities & Alternative Options with Indicators at Outcome and Output levels Link with NKRAs/ SKRAs/ DKRAs ProblemData/scenario s SolutionsBenefitsM&ELink 21 Workshop on ECP mainstreaming matrix with all sectors from 4 th to 10 th January 2012 – Framework for Mainstreaming ECP in the 11 th FYP. Workshop on ECP Mainstreaming with Districts from 7 th to 20 th September 2012

Public Environment Expenditure Report Greening of National Accounts initiated Targeted Intervention for Poverty Reduction: Rural Economy Advancement Programme National Rehabilitation Programme Strategic Assessments done for Punatsang Chu Hydropower Basin and Damdum Industrial Estate Strategic Assessment planned for all 10,000 MW hydropower projects. Other ECP Outcomes 22

Thank You