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Bhutan: New Pathways to Growth

Publication | January 2017
Bhutan: New Pathways to Growth

This book chronicles Bhutan’s development story and discusses policies that can unlock the country’s economic potential and overcome its limitations.

The Kingdom of Bhutan has gone through a remarkable socio-economic transformation over the past 5 decades. It has progressed from a traditional stage of economic development with limited production rooted in one primary sector, to achieving the preconditions for an economic take-off. However, Bhutan is still confronted with a number of development challenges, including a narrow economic base, limited private sector development, underdeveloped credit markets, and a build-up in economic inequality with significant youth unemployment.

This book consolidates a body of knowledge accumulated by ADB while working with the Royal Government of Bhutan on monitoring and strengthening its macroeconomic management framework, and through support to development activities throughout the country.

This publication has been copublished with Oxford University Press. Order the book here.


  • Foreword by Dasho Tshering Tobgay
  • Introduction
  • Sabyasachi Mitra and Hoe Yun Jeong
  • Bhutan's Macroeconomic Challenges – Joshua E. Greene
  • Vulnerability and Resilience: A Conceptual Framework for Bhutan – Patrick Guillaumont
  • The Experience of Gross National Happiness as a Development Framework – Karma Ura
  • Unlocking Bhutan's Potential: Measuring Potential Output for the Nation – Sabyasachi Mitra, Sarah Carrington, and Anthony Baluga
  • Bhutan's Rupee Crisis: Macroeconomic Causes and Cures – Karma Ura
  • Monetary Policy Framework for the Royal Government of Bhutan – Hwee Kwan Chow
  • Bhutan's Consumer Price Inflation and Price Transmission from India – Sabyasachi Mitra, Anthony Baluga, and Elbe Aguba
  • A Framework of Trade Policy for Bhutan Compatible with the Gross National Happiness – Inkyo Cheong, Taeho Bark, and Hoe Yun Jeong
  • Electricity Consumption, Output, and Trade in Bhutan – Hooi Hooi Lean and Russell Smyth
  • Banking in Bhutan: An Assessment of Financial Sector Development – Rebel A. Cole and Sarah Carrington
  • Index
  • About the Editors and Contributors