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p. 10 of 13 BACK | NEXT Map Executive Summary I. Overall Performance During Eighth Plan Period II. Improving Quality of Life for All: The Ninth Plan A. Introduction B. Strategies and Objectives of the Ninth Plan C. Medium-Term Prospects, Challenges, and Risks Appendix

Country Economic Review - Bhutan : II. Improving Quality of Life for All: The Ninth Plan

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A. Introduction

33. His Majesty the King clearly defined Bhutanese development philosophy in the 1980s, introducing the concept of gross national happiness. This has guided the preparation of the country's five-year plans ever since. In Bhutan, economic growth and material progress must not be seen as being the only way to personal fulfillment, but must be tempered by an equal emphasis on the advancement of an individual's spiritual and emotional security. These societal values stem from a strict Buddhist moral code that permeates personal ethics, government policies, and development philosophy. A part of this is the quest for fairness, equity, and equal treatment for all. Over time, therefore, economic development in the Bhutanese context has come to mean the balancing of material economic progress with the maintenance of Bhutanese cultural and spiritual values, the improvement of social well-being, the preservation of the environment, and the promotion of good governance, all attained as a result of relatively wide participation in decision-making. Resources have been used judiciously and fairly, therefore, and even though vulnerability remains widespread, it is not associated with the abject wretchedness and human suffering so often found elsewhere.

34. These general thrusts are consistent with those on which ADB's Country Strategy¹ is based, and with its institutional approach to poverty reduction, namely that poverty has material and nonmaterial dimensions, each of which has to be addressed. To this end, ADB provided technical assistance (TA) to the Government to help it define the nature and extent of Bhutanese poverty.² As a result of the participatory process in this exercise, there has been a shift in many areas of government thinking towards a multi-sectoral - or holistic - approach to development and poverty reduction, and a recognition that, despite the Government's traditional quest for fairness, some groups have been left behind in the development process. These groups tend to be those living in the rural areas, where physical access is often poor and the quality of public services inadequate. The Ninth Plan will introduce greater focus on these groups as a key objective.

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