If Bhutan were to use income tax return data instead, however, the country might not face the same issues. The concept focuses on niche exports of high-value, low-volume Bhutanese products geared towards high-end markets. Because inequality estimates are sensitive to the inclusion or exclusion of extreme values, current data may not provide reliable inequality estimates. Development, Economics and finance | South Asia. Since backbone infrastructure such as electricity and internet are both accessible and affordable in Bhutan, this area offers tremendous potential. In South Africa, the richest 10% hold 71% of the wealth, while the poorest 60% hold just 7% of the wealth. Does income inequality hurt economic growth? South Asia is already home to a vast majority of severe food insecure people (86 percent) and disruptions in the economic, food, and health systems resulting from the COVID-19 pandemic are expected to have impacts on all forms of malnutrition. The Gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality (where everyone has the same income) and 1 corresponds with perfect inequality (where one person has all the incomeand everyone else has no income). Bhutan, a small, landlocked mountainous least developed country (LDC) in South Asia isnext in line to graduate from the LDC categoryin 2023. Estimates predict a 14.3 percent increase in the prevalence of moderate or severe wasting among children under 5 years of age, equal to an additional 6.7 million children. In 2017, GINI index for Bhutan was 37.4 %. South Africa ranks as the country with the lowest level of income equality in the world, thanks to a Gini coefficient of 63.0 when last measured in 2014. The Behaviour Change Communications Strategy for nutrition, and a sevenminute video on nutrition garden that were developed highlight the importance of kitchen gardens for family nutrition. On the ecommerce front, having completed itseTrade Readiness Assessment, the country has swiftly implemented several recommendations. With COVID-19 vaccine development and approval process making impressive progress, we hope that the vaccination will mitigate impacts of the pandemic. Development partners such as theEnhanced Integrated Frameworkand theInternational Trade Centrehave joined the Government in supporting this initiative. The countrys National Statistics Bureau undertakes a living standard survey once every five years with the financial support of its development partners. Follow UNICEF Bhutan on Twitter and Facebook. But gathering data isnt as simple as it seems several challenges stand in the way. Nearly 35 percent of children in Bhutan are stunted, 5.9 percent under five years are suffering from wasting, 11.7 percent of children have low birth weight and 7.6 percent of children under five are overweight. Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. Please use a genuine email ID and provide your name. Rapid socio-economic development has transformed the country significantly over the past few decades. This is a list of countries or dependencies by income inequality metrics, including Gini coefficients. With 26 percent of the adult population infected, Eswatini has the highest rate of HIV prevalence in the world. Selected comments may also be used in the Letters section of the Down To Earth print edition. That said, in 2005, the Gini coefficient was even higher, at 65.0. As international borders closed and in-country movements got restrained, supplies of fresh vegetables, fruits and livestock products stopped. It looks at the availability of liquid wealth holdings for poorer households as a buffer to draw in exceptional circumstances such as the current crisis, and discusses policy options to help counteract high and rising wealth inequality. Otherwise, it runs the risk of putting the wrong policies in place. The description is composed by our digital data assistant. Education on what constitutes a healthy diet and how to create hygienic environments at home, in schools and in the community, together with investment in girls education and infrastructure that underlies good water, sanitation and hygiene practices, are critical. The country has been able to achieve this feat despite relatively high growth in tourism in recent years becauseits government has adopted a strict sustainable tourism approachto avoid a potentially negative impact on the environment. Inequality can also refer to gender discrimination in social institutions and other gender issues such as the violence against women. The report has a case study on Bhutans transition from school feeding to national integrated school nutrition programmes with increased focus on achieving nutritional outcomes for school children in addition to educational goals, thereby strengthening Bhutans human capital. Moreover, this kind of data gives valuable insight into levels of inequality across the world the same applies to Bhutan. Besides achieving 100% electricity access, Thimphu TechPark in 2012 that houses 19 mostly foreign companies and employs 600 people is a small but remarkable success, $12 million in impact investment for Mountain Hazelnuts, innovative financing such as blended finance and impact investment, India being the largest export market, where more than 80% of exports are destined, these elements are currently found to be deficient in Bhutan, the best governance indicator amongst the LDCs, significant improvements made in the business climate, From glacier melting to rise in glacial lakes, eastern Himalaya most hit by climate change, Narendra Modi takes U-turn on large hydro projects in Arunachal, , .

This report sheds light on the multiple pressures on the middle class. Recognizing the need to ensure health and wellbeing of the Bhutanese population, the continuity of essential healthcare services without disruption was accorded priority during lockdowns. See here for a full list of our related publications and other material on income distribution and poverty. Risks and Opportunities, Under Pressure: The Squeezed Middle Class, A Broken Social Elevator? Its work analyses the multiple causes linked to growing inequalities, such as globalisation, technological change and changes in redistribution and policy fashion. Except for Bangladesh, Bhutan and Nepal, most countries experience moderate to significant bottlenecks in the delivery of counselling by community health workers to mothers on healthy eating to prevent excessive weight gain during pregnancy. Copyright 2022Asia & the Pacific Policy Society. This country strategic plan is aligned with the Governments priorities with regard to achieving food and nutrition security, with a focus on gender-transformative and HIV-sensitive actions. Bhutan has also made considerable improvements on environmental, social and governance indicators in the past two decades. Bhutan's impressive track record lies in a willingness to explore its areas of potential and use innovative approaches to overcome structural challenges. Some of the world's poorest countries, such as the Central African Republic, have some of the highest Gini coefficients (61.3 in this case). FAO estimates that the number of undernourished people globally could increase by 132 million, assuming a decline of global GDP of 10 percent attributable to the impact of the economic recession associated with COVID-19. While these surveys have led to comprehensive official reporting on poverty statistics by the National Statistics Bureau, in-depth analyses on inequality is still lacking. ADB encourages websites and blogs to link to its web pages. We believe strongly that we can and must do things differently. Trends in income inequality and its impact on economic growth, November 2016: OECD Inequality Update 2016 "Income inequality remains high in the face of weak recovery".

The Asian Development Bank and the World Bank funded living standard surveys in 2007, 2012, and 2017. The TechPark increased productive employment in Bhutan through the promotion of enterprise development in the ICT sector, enhanced ICT skills amongst the Bhutanese workforce and improved access to finance. The Lorenz curve plots the percentiles of the population on the graph's horizontal axis according to income or wealth, whichever is being measured. The long-run increase in income inequality not only raises social and political concerns, but also economic ones. UNICEF remains committed to support the Royal Government of Bhutan in building back better by implementing nutrition-sensitive polices such as the 1,000 golden days programme that can nurture the health of every child and mother.. Inequality can refer to economic inequality which is the difference in how assets, wealth, or income are distributed among individuals and/or populations.

It tends to drag down GDP growth, due to the rising distance of the lower 40% from the rest of society. You can change your personal cookie settings through your internet browser settings. The key priority sectors include agriculture, agro-processing, social assistance and emergency preparedness and response. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.

Essential supplies such as noncommunicable disease kits were provided. Additionally, due to limitations such as reliable GDP and income data, the Gini index may overstate income inequality and be inaccurate. Besides achieving 100% electricity access,the three approaches below have served Bhutan well and deserve a special mention as they could be replicated. Gaps in policy enforcement, legal frameworks and the allocation of resources limit the effectiveness of social protection programmes in addressing hunger, womens empowerment and HIV. To do this effectively, however, it must first use the right kind of data to inform its policy decisions. The COVID-19 pandemic has been unprecedented and has put tremendous pressure on health systems including in Bhutan. The Gini coefficient saw sustained growth during the 19th and 20th centuries. The small size of the domestic market, dispersed pockets of production and the absence of economies of scale, coupled with a landlocked status and high trade costs means that Bhutan cannot be competitive in the global market on a large-scale production. Governments need to invest in nutrition and food safety in fresh and street food markets to promote healthy diets. Regulation of sales and marketing of food for consumers, especially children, is important to curb overweight, obesity and related diseases and illness. They also gauge opinions on how the government should help improve overall welfare and social capital conditions. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. It consists of earnings, self-employment and capital income and public cash transfers; income taxes and social security contributions paid by households are deducted. World Bank's Poverty and Shared Prosperity 2020 report, Gini Index coefficient distribution of family income - CIA World Factbook. Additionally, more than half of South Africa's population lives in poverty. The Palma ratio is the share of all income received by the 10% people with highest disposable income divided by the share of all income received by the 40% people with the lowest disposable income. Knoema, an Eldridge business, is the premier data platform and the most comprehensive source of global decision-making data in the world. These actions are needed now more than ever because the face of malnutrition is changing in Asia and the Pacific, with highly processed and inexpensive foods readily available throughout the region. Together with our partners, we work in 190 countries and territories to translate that commitment into practical action, focusing special effort on reaching the most vulnerable and excluded children, to the benefit of all children, everywhere. Copyright Down To Earth 2022.

Should the Bhutanese authorities be incapable of doing so, they should reconsider their current methods of assessing inequality. The Asian Development Outlook analyzes economic and development issues in developing countries in Asia. The report shows that there is space for policies to make societies more mobile and protect households from adverse income shocks. These include slower GDP growth, reduced income mobility, greater household debt, political polarization, and higher poverty rates. Income inequality among individuals is measured here by five indicators. Seventy percent of the rural population lives below the national povertyline and 25 percent is considered extremely poor. The OECD Compare your income toolallows you to see whether your perception is in line with reality. It should fund these surveys permanently and commit to sustaining the initiatives of the National Statistics Bureau. Bhutan's constraints and challenges will certainly resonate with similar land-locked, soon graduating, or simply small, countries. Greater attention is also needed to operationalize national policies and plans to improve the delivery of health services for maternal and child diets and good nutrition outcomes. Food prices and available incomes govern household decisions on food and dietary intake, said the FAO Bhutans Assistant Resident Representative, Chadho Tenzin. This report provides new evidence on social mobility in the context of increased inequalities of income and opportunities in OECD and selected emerging economies. Around 35 percent of women of reproductive age in Bhutan have anaemia. UNICEF promotes the rights and wellbeing of every child, in everything we do. Inequality in Bhutan has been on the governments radar since the first living standard survey in 2003. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. Further, employees within the private sector particularly those related to tourism lost their jobs. What's your perception of income inequality? The support focused on technology-induced production of different types of vegetables in a few urban sites of Thimphu, Bumthang, Punakha and Sarpang districts. The Gini coefficient, also called the Gini index or Gini ratio, is the most commonly used measure of income distributionsimply put, the higher the Gini coefficient, the greater the gap between the incomes of a country's richest and poorest people.

Identifying sectors of interest to foreign investors, attracting FDI toindustrial parks, strengthening the capacity of investment promotion agencies and inter-government coordination should be explored. ADB is helping Bhutan diversify its economy, catalyze private sector growth, improve connectivity, build climate-resilient infrastructure, and strengthen human capital. Although Bhutan's figure is comparable to its immediate neighbours Bangladesh and Nepal, a comparison with best performers such as Cambodia and Maldives not only shows where Bhutan is losing out but also shows the potential that exists. The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

Official reports so far including in 2003, 2007, 2012, and 2017 only include a brief chapter on inequality. The national strategy for sustainable development and inclusive growth through 2030 and the strategic road map for 20192022, which guide the development and economic recovery of Eswatini, recognize the critical dimensions of human development, including poverty reduction, employment creation, gender equity and social integration. It covers the aspects of both, social mobility between parents and children and of personal income mobility over the life course, and their drivers. We will have to continue to advocate and reinforce preventive measures until COVID-19 poses health threats to our population. A recent report reveals thatthese elements are currently found to be deficient in Bhutan. Export diversification should go hand in hand with the possibility to move up the value-chain ladder, which requires appropriate skills, technology, quality infrastructure, trade facilitation measures and logistics. In 2015, the top 1% of earners in the United States averaged 40 times more income than the bottom 90%. The prominence of technical support and capacity strengthening reflects efforts to engage in evidence generation and a gradual transition to sustainable national ownership. The Report is timely in reflecting nutritional status and needs while also featuring key solutions to achieve our nutritional goals and thus enhancing health and wellbeing, particularly of our women and children in Asia and the Pacific Region during pandemic era, WHO Bhutans Representative Dr Rui Paulo de Jesus said. Living standard surveys are important to Bhutan as they provide crucial information on its socio-economic conditions, while allowing its government to measure the success of its policies. The pandemics impacts on the state of food security and nutrition in Bhutan is equally of concern. The nutrition of Bhutanese people is likely to be affected by the pandemic as people shift diets to more affordable food and shelf-stable and pre-packaged foods, which generally are less nutritious. In Bhutan, one of the immediate impacts of the pandemic were felt by the most vulnerable section of the population, the urban residents, who depend totally on imports from across the borders and supplies from the rural farming community. Our aim is to bring you news, perspectives and knowledge to prepare you to change the world. UNICEF Bhutan Representative Dr Will Parks said that the report is a call to not lose momentum in the efforts that are made for the wellbeing of mothers and children. This is reflected in its Gross National Happiness policies as well as its Constitution. This article is based on the authors paper published in the Asia & the Pacific Policy Studies (APPS) journal. Income from black market economic activity is not included and is the subject of current economic research.[2][3]. But the outbreak of COVID-19 and a lack of decent work opportunities in many parts of the region, alongside significant uncertainty of food systems and markets, has led to a worsening of inequality, as poorer families with dwindling incomes further alter their diets to choose cheaper, less nutritious foods, he said. Okay to continue The small size of the Bhutanese market has remained a disincentive to foreign investment in the country.

It is based on three pillars with the following outcomes: Strategic outcome 1: Vulnerable people in shock-affected areas are able to meet their basic food and nutrition needs during times of crisis; Strategic outcome 2: Smallholder farmers, particularly women, have enhanced capacities to supply structured markets with nutritious foods by 2024; Strategic outcome 3: By 2030 equitable, integrated and shock-responsive social protection systems are accessible to vulnerable populations, particularly women, children, adolescent girls and people living with HIV. You can read the full paper, Estimating the trends in inequality in Bhutan using the recent Living Standard Survey 2017: The importance of adjusting expenditure for household composition,here. How seeking counselling helped a student find herself. The report also calls for action within the private sector, as it has an important role to play in supporting the transformation of the food system and its value chains for achieving healthy diets. The share of the manufacturing sector in terms of GDP has remained stagnant in the last 10 years, while the industrial sector was driven mainly by construction, mining and electricity. Bhutan and other similar landlocked LDCs would do well to attract more private investment, in particular FDI, for which reform measures may not be enough. The report states that Bhutan is among the four countries along with Nepal, the Philippines and Vanuatu in reducing the burden of anaemia in women of reproductive age between 2000 and 2016 with all other countries experiencing slower or no progress, or even a worsening status. In 1820, the global Gini coefficient was 0.50, and in 1980 and 1992, the figure was 0.657. Aiming to diversify exports while recognizing the small size of its domestic market,the country created Brand Bhutan. Safe, accessible and responsive feedback and complaint mechanisms will be mainstreamed throughout the CSP. The Eswatini zero hunger strategic review reveals that poverty is closely associated with hunger and gender inequality.

How a student is fighting depression to return to school. Increasing local food production (including home and community gardens) through appropriate stimulus packages, farmer linkages to local markets and schools and capacity strengthening initiatives are important to build a self-sustaining ecosystem. There is widespread concern that economic growth has not been fairly shared, and that the economic crisis has only widened the gap between rich and poor. Services to improve the diets of mothers and young children should be prioritized as part of the essential package of health services needed to address undernutrition, overweight and obesity and to achieve universal health coverage.