Publisher Description

The Kingdom of Bhutan has gone through a remarkable socio-economic transformation over the past five 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 chronicles Bhutan's development story and discusses a range of policies that can unlock the country's economic potential and overcome its limitations. It consolidates a body of knowledge accumulated by the Asian Development Bank 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.

Author Biography

Sabyasachi Mitra is the Deputy Representative at the Asian Development Bank, European Representative Office, Frankfurt, Germany.Hoe Yun Jeong is a Senior Economist in the Regional Cooperation and Operations Coordination Division of South Asia Department at the Asian Development Bank.

Table of Contents

List of Tables, Figures, and BoxesDasho Tshering Tobgay: ForewordAcknowledgementsList of AbbreviationsSabyasachi Mitra and Hoe Yun Jeong: Introduction1. Joshua Green: Bhutans Macroeconomic Challenges2. Patrick Guillaumont: Vulnerability and Resilience: A Conceptual Framework for Bhutan3. Karma Ur: The Experience of Gross National Happiness as a Development Framework4. Sabyasachi Mitra, Sarah Carrington, and Anthony Baluga: Unlocking Bhutans Potential Output for the Nation5. Karma Ur: Bhutans Rupee Crisis: Macroeconomic Causes and Cures6. Hwee Kwan Chow: Monetary Policy Framework for the Royal Government of Bhutan7. Sabyasachi Mitra, Anthony Baluga, and Elbe Aguba: Bhutans Consumer Price Inflation and Price Transmission from India8. Inkyo Cheong, Taeho Bark, and Hoe Yun Jeon: A Framework of Trade Policy for Bhutan Compatible with the Gross National Happiness9. Hooi Lean and Russell Smy: Electricity Consumption, Output, and Trade in Bhutan10. Rebel A. Cole and Sarah Carrington: Banking in Bhutan: An Assessment of Financial Sector DevelopmentIndexAbout the Editors and Contributors

Long Description

The Kingdom of Bhutan has gone through a remarkable socio-economic transformation over the past five 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 abuild-up in economic inequality with significant youth unemployment.This book chronicles Bhutan's development story and discusses a range of policies that can unlock the country's economic potential and overcome its limitations. It consolidates a body of knowledge accumulated by the Asian Development Bank 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.

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