WFP Regional Bureau for Asia and the Pacific - 2016 SPRs RBB 2016 SPRs by project type | Page 43
Standard Project Report 2016
Country Context and WFP Objectives
Country Context
Bhutan is a small Himalayan country in South Asia, landlocked between China in the north and India in the south. It
has a total surface area of 38,394 square km with an estimated population of 768,577 in 2016. The country's
development policies and plans are guided by the concept of Gross National Happiness, which stresses the
achievement of equitable and sustainable development over economic growth.
Bhutan made an impressive reduction of its national poverty rate from 23 percent in 2007 to 12 percent in 2012, as
measured against the international poverty line of USD 1.90 per person per day (Bhutan Poverty Assessment,
2014). However, the country is challenged by its mountainous terrain and poor road access isolating rural
populations from markets and social services and limiting their livelihood opportunities. The country's rugged terrain
is prone to flash floods and landslides, often leading to the closure of roads for up to weeks in some areas,
especially during the rainy season. With a majority of the population living as rural farmers in small villages
scattered throughout the mountainous landscape, logistical challenges often impede access to social services.
Bhutan is largely agrarian with almost 70 percent of the population working on subsistence farming, yet one-fourth
of the population suffers from seasonal food insecurity, especially during the months before the harvest.
Eighty-four percent of all of Bhutan's imports come from India, which is also the destination for 89.4 percent of the
country's exports. Overall imports exceed exports by 120 percent, suggesting an economy that is heavily reliant on
imports (The Economist, Intelligence Unit: Bhutan, 2014). A booming construction industry, especially for
hydro-power projects, and increasing availability of credit facilities has led to rising domestic consumption. The
Government has responded to these imbalances by imposing import restrictions on products from India.
Bhutan, Kingdom of (BT)
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Development Project - 200300