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A Buddhist monk standing in front of a temple in Bhutan, during the National Happiness Reassessment.

Bhutan Holds General Election Amid Economic Challenges and Calls for National Happiness Reassessment

01/07/2024
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Bhutan Holds General Election Amid Economic Challenges and Calls for National Happiness Reassessment

by Richie
01/07/2024
in Economic Indicators, Global Trade, International Relations, Trade Policies

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Bhutan, the scenic Himalayan kingdom, is gearing up for a general election against a backdrop of serious economic challenges that prompt a reevaluation of its longstanding commitment to prioritizing “Gross National Happiness” over economic growth.

Scheduled for Tuesday, the election features two parties dedicated to a government philosophy that measures success by the “happiness and well-being of the people,” as enshrined in the constitution.

The key focus of the election revolves around the economic difficulties faced by the younger generation in Bhutan, characterized by chronic unemployment and a significant brain drain through migration abroad.

Amidst the picturesque landscapes, some voters are expected to trek for days to cast their ballots in this landlocked and sparsely populated nation, comparable in size to Switzerland.

Notably, Bhutan’s youth unemployment rate stands at 29 percent, and the country has experienced a notable emigration of its citizens in search of better financial and educational opportunities abroad, with Australia being the top destination.

Both political parties contesting the election acknowledge the critical issue of mass exodus. Pema Chewang of the Bhutan Tendrel Party (BTP) expressed concerns about losing the “cream of the nation,” while Tshering Tobgay, former prime minister and People’s Democratic Party (PDP) chief, raised alarms about “unprecedented economic challenges and mass exodus.”

The economic challenges facing Bhutan include a struggling tourism sector, which, despite being a small share of the economy, remains a crucial foreign currency earner. Tourism is yet to fully recover from the disruptions caused by the COVID-19 pandemic.

The previous government initiated diversification projects, such as a special economic zone on the Indian border and plans for a cryptocurrency-mining scheme. Both political parties have pledged increased investment in hydropower, the primary source of energy in Bhutan.

Despite the economic hurdles, Bhutan’s mountainous terrain and abundant water resources create favorable conditions for hydropower development and export to India, according to the World Bank.

The election is closely watched by neighboring countries, China and India, as they eye strategic contested border zones. The cooperation agreement between Bhutan and China in October added significance to the strategic dynamics in the region.

As Bhutan heads to the polls, the nation, with around 800,000 people, finds itself sandwiched between two of the world’s most populous countries, China and India, both observing the vote with strategic interest.

Bhutan, with its Buddhist-majority population, held its first elections in 2008 following political reforms that established a bicameral parliament. The campaigns in Bhutan are traditionally subdued, governed by strict rules on the posting of election materials on public notice boards.

Catch the latest supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.

#BhutanElection #GrossNationalHappiness #YouthUnemployment #HydropowerDevelopment #EconomicChallenges #BrainDrain #TourismRecovery #BuddhistMajority #IndiaChinaRelations #PemaChewang #TsheringTobgay #BhutanTendrelParty #PeoplesDemocraticParty #StrategicInterest #BicameralParliament #COVID19Impact

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