On May 12, 2020, Trongsa District Court delivered a judgment using Skype video conferencing without requiring the physical presence of the parties to the action in court. Drug offenses and property crimes have spiked. However, there are two potential veto players, one domestic and one external. By 2018, the number of PBOs had grown to 35. Among its South Asian counterparts, Bhutan ranked second behind India. The lagging growth of the private sector, made worse by the COVID-19 pandemic, limits the availability of jobs for Bhutans young people. There are no trade unions because of the rural subsistence nature of much of Bhutan, the relative absence of large organizations and lack of government support for unions.
In November 2020, Bhutan had a foreign reserve of $1433.9 million. There have been considerable improvements in the availability of education. In the 2010 Gross National Happiness survey conducted by the Center for Bhutan and GNH studies, 92% of respondents indicated an intention to vote in the next election, which survey reporters interpreted as a commitment to democracy. A national human development report, Ten Years of Democracy in Bhutan, launched in March 2019 by the prime minister, Lotay Tshering, and the U.N. Under-Secretary-General, reported on the results from a survey. The constitution declares that religion is separate from politics and that religious institutions and personalities must remain above politics. As of August 2019, remittances sent by Bhutanese working abroad had shrunk to half the amount received in 2018. ICAO rules require countries to have independent control over air traffic; Bhutans air traffic at the Paro International Airport, however, is currently managed by the Indian Air Force. The Lhotshampa, that is, people of Nepalese origin who cannot become citizens, do not enjoy these property rights. In September 2020, the OAG created a Governance and Corporate Legal Service Unit comprised of experts in corporate and financial law to reform the existing government procurement and contracting system and to review the dispute resolution process for commercial disputes.
The National Commission for Women and Children is responsible for the countrys obligations to international agreements while there are NGOs that focus on womens and childrens issues. The rapid increase in internet penetration and access to social media in the country has also reportedly increased discussion of politics and policy matters. However, there are serious environmental problems including solid waste disposal, impact of road construction, loss of prime agricultural land to urbanization, illegal logging, over-exploitation of non-timber forest resources, livestock in excess of the lands carrying capacity in some areas, and a growing number of vehicles. Political parties contest seats only in the National Assembly. Decision-making is generally consensual in nature and overt conflict is avoided. Projects included the Bhutan Living Standard Survey; the Preparation of Strategic Program for Climate Resilience; the Food Security and Agriculture Productivity Project, which aims to reduce reliance on food imports; and the Youth Employment and Rural Entrepreneurship Project, which aims to create more jobs. COVID-19 interrupted the implementation of regular policies, especially in the areas of education, business, and the goals of the 12th five-year plan. They are not formally recognized by the government and have no religious buildings. Bhutans GDP grew by an average of a little over 7% in 2017/18, which made it one of the fastest growing economies, according to the ADB. In September 2020, Bhutan issued its first-ever sovereign bond worth BTN 3 billion with a three-year maturity period; all the issued bonds were purchased. Citizens can join political parties that have been approved by the Election Commission. Bhutan made noteworthy progress in digital government by moving to 82nd position from its 111th ranking in 2018 in the E-participation Index (EPI). Unlike in 2013, when voter turnouts were lower than in 2008, the turnout in 2018 was higher in elections for both National Council and National Assembly. Two Christian pastors were fined and sentenced to prison for evangelism in 2016.
The Land Act of 2007 provides comprehensive coverage of the regulation and administration of land and is administered by the National Land Commission. The country has difficulty attracting foreign direct investment (FDI) to its landlocked nature, small domestic market, distance to global and regional markets, weak economies of scale, narrow economic base and vulnerability to natural disasters. Hydroelectricity is the main source of government revenue but hydropower development is capital intensive and requires both huge borrowing and long waiting times before projects generate income. The forecast for 2020 2021, considering the countrys struggle with the COVID-19 pandemic, according to the Asian Development Bank (ADB), ranged between 5.2% and 5.8%. Most of these programs provide aid in the form of grants. In 2019, 9,541 cases were registered with 2,692 pending cases from 2018. The civil service focuses on upwards accountability. This punishment, however, was removed by an amendment in December 2020, which clarified that homosexuality between adults does not constitute unnatural sex.
The surprise winner in the primary round was a new left-of-center party formed in 2013, the Bhutan United Party (Druk Nyamrup Tshogpa, DNT), led by Lotay Tshering, a urology surgeon. According to an ADB report in April 2019, Bhutans tax base is narrow.
Of Bhutans population, 75% adhere to Mahayana Buddhism. The Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa, DPT) accepted its role as the opposition party with 17 members of parliament, which made it the strongest opposition in the countrys democratic history beginning in 2008. Failure to secure such clearances can limit access to employment, business ownership, education and international travel. The decisions of the lower courts can be appealed upwards and each level of the court system maintains its independence. Women increasingly participate in the workforce but lag behind men, with ILO estimates used by the World Bank recently (2016) putting the female participation rate at 59% (however, this is high in contrast to other Asian countries). Economic and social changes have been proceeding rapidly in Bhutan. Bhutan also has non-party elections at the local block (gewog) level. Bhutans party system is young, without strong links to or deep roots in society, and low ideological and programmatic polarization. The National Assembly has tended to overlook or ignore some legislative initiatives by the National Council.
For example, a conversation between the prime ministers of Bhutan and China on the sidelines of an international meeting in the run-up to the 2013 election raised speculation that diplomatic relations between the two countries might be established.
COVID-19 further undermined the financial viability of private enterprises, especially those working in tourism. In recent years, the ACC has been very active in investigating and prosecuting corruption cases against civil servants, politicians and the military. In response to COVID-19, Bhutan took quick steps to adapt education and some government services to remote delivery modes. COVID-19 has also negatively impacted Bhutans critical earnings from remittances and forced the return of over 6,000 Bhutanese from abroad. Party platforms have been distinguishable only by differences in the strategies highlighted to achieve Gross National Happiness and varying emphasis on particular elements of it; this was true also in the 2018 elections. Over 50% of the country is designated as protected as national parks, nature reserves or biological corridors. Parties have small memberships, which ranged from 142 to 799 members for those in the 2013 National Assembly election. In 2020, porous borders with India presented some challenges to enforcing the lockdown to prevent the spread of COVID-19.
COVID-19-related restrictions did not impact freedom of assembly. They were driven out in a joint action by Bhutans security forces and the Indian Army in 2003. In November 2020, the Indian prime minister, Narendra Modi, announced a plan to launch a Bhutanese satellite into space to provide a third international internet gateway for Bhutan. Most have now been resettled in third countries, especially the United States. Since the launch of the money transfer platform RemitBhutan in 2016, remittances have generally increased. The end of the Doklam standoff between India and China in 2017 did not conclude Bhutans border issues with the latter. In 1985, Bhutan was a founding member of the SAARC and has played an active role in its affairs ever since. In the 2013 to 2018 parliament, only four of the 47 members of the National Assembly were women and there were only two women in the 25-member National Council, with both women in the National Council appointed by the king. The government also provided two rounds of relief to the hardest hit segment of the population. In addition, some of the outputs, most notably the growing number of educated but out-of-work young people, are creating new policy problems. Bhutan has little alternative to continuing its close relations with India while expanding its international leverage through broader diplomatic contacts, as it has done recently by establishing diplomatic relations with Australia and Germany. With reduced revenues from the important tourism sector in the wake of COVID-19 and simultaneously increased expenditure on relief and mitigation, the governments dependence on SOEs has only grown. Bhutan relies on India for considerable budgetary support. In August, it declared a national lockdown and a strict tracing policy, which was extended in September. Relations with neighboring India are close and cooperative, including with the Indian military, which has a presence in Bhutan. In April 2019, Bhutan and Bangladesh signed five bilateral agreements to expand cooperation in the areas of inland waterways, health, agriculture, tourism and public administration training.
There was a corresponding rise in respondents who trusted a few of their neighbors from 14% in 2010 to 34% in 2015. According to the U.S. State Department, there were no incidents of disappearances, arbitrary killings or torture in 2018. NGOs have been developing but remain few in number and focused on the environment, as well as on women and childrens affairs.
The impact of WTO membership on Bhutans Gross National Happiness (GNH) program and doubts about Bhutans ability to benefit from WTO membership are two major concerns. It was ranked 97th out of 138 economies in 2016 2017. Two female candidates were elected to National Council.
Critics fear that the councils intrusive oversight could make journalists more prone to self-censorship. The adoption of this goal is rooted in the governments experience from the implementation of the previous plan. The government responded with a re-prioritization of 12th Five-Year Plan activities to offset COVID-19-related expenditure increases and income loss. Poverty has been reduced in rural areas where living conditions, amenities and dietary behaviors have improved during the period of 2007 to 2017. Other aid suppliers include the major international financial institutions, the World Bank and the ADB as well as some U.N. agencies including UNDP and UNICEF. The World Bank ranked Bhutan 51 out of 144 economies in registering property in 2016 and 2017, well above its overall doing business ranking of 73 in 2017 and 82 in 2019. However, the assets of banks have increased by a greater amount. Loan rates were cut in 2016 following recommendations of the World Banks Financial Development Action Plan. Quantitative indicators show Bhutans economy to be performing reasonably well. The state continues to play a dominant role in modernizing Bhutan. The potential external veto player is India.
In 2019 2020, the two houses clashed openly. These figures can be interpreted as reflecting greater awareness and support for democracy. In December 2018, India committed INR 45 billion for Bhutans 12th five-year plan (2018 2023). Some external organizations have commented on the very strict criteria facing ethnic-Nepali Bhutanese when trying to obtain citizenship and security clearances.
Gender-based violence was reported to have increased by 36% in in 2020 compared to the previous year. In 2020, Bhutans ranking declined again to 131st out of 153 countries. However, Bhutans major cooperative efforts are with India. International air services have begun to react to the increase in tourist numbers and to the number of Bhutanese traveling abroad. The National Assembly and the National Council, Bhutans lower and upper houses of parliament, respectively, have clashed at times over legislation and policies but have eventually settled most of their differences amicably. The Mines and Minerals Act 2020 gives a monopoly to a government-owned authority over exploration and marketing of mines and minerals.
Otherwise, applicants for citizenship should have at least 15 years (public servants) or 20 years (others) proof of residence and proficiency in the national language. Domestic air services, begun only in 2012, are very limited and unaffordable to most of the population. Nevertheless, the act has given a slight boost to competition in the economy. It enjoys observer status in the WTO. The newly established DNT, which has formed the new government, reported over 11,000 members. Womens literacy rate is 57% compared to 75% for men. The transition has been smooth and reflects the countrys ability to adapt imported institutions to fit the Bhutanese context.
As part of its 2018 campaign pledge to reduce the gap between rich and poor, the new government led by the DNT has promised to establish a second national referral hospital, provide free Wi-Fi, launch the Sung Joen app (a free chat app), and pay a breastfeeding allowance to mothers not entitled to paid maternity leave. The two new parties did not make it past the primaries, leaving the DPT and PDP to run against each other in the general election. To offset the current account deficit, the government borrowed from multilateral banks and the domestic market. Bhutan has two universities the Royal University of Bhutan and Khesar Gyalpo University of Medical Sciences of Bhutan. There are few interest groups in Bhutan and they are of marginal importance in a country where the state has such a commanding presence.
The report showed considerable gender disparities in health, education, economy and politics. As political and legal contests grow in a democratic system, demands for judicial adjudication is on the rise, especially involving cases of corruption and abuse of power. The 11th five-year plan focused on strengthening institutions, systems, capacity-building and enhancing the quality of goods and services. The framework is expected to help to provide equitable, inclusive and quality education and lifelong learning opportunities. In 2015, Bhutan also founded the Jigme Singye Wangchuck School of Law.
Until 2010, state banks held a monopoly in Bhutan. Little or no internal strife in the previous or current cabinets has been reported. The judicial branch functions independently of the executive and legislative, and judges are appointed by the king on the recommendation of the judicial council.
