Economic Development Policy (EDP) 2016.

The Economic Development Policy (EDP) 2016 sets the agenda and the general direction for the development of sectors that have the highest potential. This Policy departs from the usual sector/agency based approach and has been prepared in consultation with a wide range of stakeholders from private to government and its success depends on an integrated and wholesome involvement of all the stakeholders. To accelerate economic growth, a clear, stable and transparent policy framework is necessary. The time line to achieve the goals of this Policy shall be 2020 through the following Strategies: 1) Promote Hydropower; Cottage and Small Industries; Mining; Tourism; Agriculture (known as the five Jewels). 2) Diversify the economic base with minimal ecological footprint. 3) Harness and add value to natural resources in a sustainable manner. 4) Increase and diversify exports. 5) Promote Bhutan as an organic brand. 6) Promote industries that build the Brand Bhutan image. 7) Reduce dependency on fossil fuel. 8) Promote industries through a cluster effect and championing approach.
The EDP shall provide the highest level of strategic direction, to ensure that economy takes the centre stage of development initiatives. The Policy recognizes that unless the constraints to business growth are systematically addressed, the capacity of the private sector as the engine of growth cannot be enhanced. In this context, the Policy aims at creating an enabling environment for investment. Emphasis shall be on improving agricultural productivity and production to achieve national food security, supply raw materials to agro based industries and for exports. The Ministry of Agriculture and Forests (MoAF) shall encourage to intensify development of crops, livestock and forestry products for domestic consumption as well as for income and employment.
Agriculture (comprising agriculture, livestock and forestry) continues to be a major player in the economy. The sector accounts for 16.67% of GDP and employed about 58% of the total population in 2015. With majority of the population engaged in agriculture, the sector has considerable potential for growth, employment, poverty reduction and for attracting increased investments (7.6). Energy is the greatest opportunity for the country and the main driver of the economy.
The economic development process shall take into account environment mainstreaming in a phased manner that allows for industries to grow as well as engage in cleaner production. The success of the country’s environment conservation efforts shall be one of the main drivers for developing the Brand Bhutan theme. Protection of biodiversity, genetic resources and promotion of indigenous knowledge shall be pursued. The availability of fast flowing rivers and the abundance of sunshine, biomass, wind etc. offer tremendous opportunities for hydropower and renewable energy development, particularly in the light of concerns on global climate change (7.2). Alternative renewable energy shall be promoted to diversify the energy supply mix and enhance energy security. Mining plays an important role in the economy and in supply of raw material for the mineral based industries, infrastructure and other development projects. While mineral exploitation brings about increased economic activity and development, it can also have adverse social and environmental consequences, which must be adequately addressed and managed in the interest of the well being of all citizens and environment.