Statement of the Governor
for the Kingdom of Bhutan

Mr Chairman
Mr President
Distinguished Governors
Ladies and Gentlemen

It is an honour to address the Twenty-Eighth Session of the IFAD Governing Council. I would like to take this opportunity to convey our appreciation and gratitude to IFAD for its continued support as we pursue our goal of Gross National Happiness, conceptualised by our King His Majesty Jigme Singye Wangchuck.

We in Bhutan saw unusually severe floods, landslides, and destruction of much rural infrastructure during the last monsoon season. Our eastern region, one of the poorest parts of the country, was particularly hard hit. With only 7.8% of the total land area under arable cultivation, the destruction of farmland was a sad reminder that we must be vigilant in our use and management of the Himalayan land resources. The devastation also highlighted the need for developing a national disaster management strategy, and for seeking long-term regional and international collaboration to address these issues through research, information sharing, and technical interventions.

A poverty analysis in 2004 revealed that 31.7% of the population subsists on less than 1 US Dollar per day, and that most of these people live in rural areas. Several other studies have also demonstrated the close relationship between poverty and the lack of road and market access. Even with the huge investment in roads and communication during the past four decades, almost 60% of Bhutanese farmers live more than one hour’s walk from a motorable road, and about 10 percent live more than eight hours from the nearest road head.

Mr Chairman
Ladies and Gentlemen

The combination of ecological threats and rural poverty has highlighted the importance of balancing sustainable land management with enhancements in production, road access, and marketing. Although construction of roads is very expensive in mountainous regions such as Bhutan, improving road access is the main priority of remote communities in Bhutan. Furthermore, improved access contributes not only to poverty reduction, but also to other aspects of social development including drops in disease, child mortality, maternal deaths, and illiteracy. Supporting rural infrastructure is therefore one of the most effective means to achieving the national target of the Millennium Development Goal. I am therefore very grateful for the support to rural infrastructure development that Bhutan has received from IFAD and other donors, not least to our farm road programme.

The government is also making a concerted effort to boost farm incomes by assisting farmers in increased market orientation, by creating market outlets, and by developing new marketing strategies and products. Because of the limited land resources, the transportation costs and other reasons, Bhutan will not be able to compete internationally in the production of bulk crops. Instead, we are aiming at products of high value and low volume and at taking advantage of our special ecological conditions.

Mr Chairman
Ladies and Gentlemen

A constant challenge to land use in the ecologically fragile Himalayas is to balance production with environmental preservation. While Bhutan is well known for its pristine environment, large areas under protected status, and healthy populations of many internationally threatened species of flora and fauna, we must also acknowledge that renewed efforts are needed to secure the sustainable use of agricultural land. Hence, agricultural intensification, mechanisation, and commercialisation create new demands for sustainable land management.

For instance, shifting cultivation is gradually being replaced by more permanent agricultural systems, which could entail an increased risk of erosion, landslides, and fertility degradation. We must therefore seek ways of helping farmers intensify their land use, including the adoption of alternative means of soil and land management.

Upon my return from this Governors’ Council meeting, I will personally direct a new land management campaign in the eastern part of the country. The campaign will focus on community-based land-use planning, demonstration of best practices, and improved extension in land and fertility management. These efforts will be facilitated by the farm road development, which will enable farmers to intensify their land use and adopt improved land management techniques. In the same context, we will help farmers in the most fragile areas in obtaining farm land that is less prone to land slides and flooding.

I report with great pleasure that IFAD’s current support to Bhutan focuses on sustainable rural development in the most ecologically fragile and economically most challenged areas of the country. Furthermore, a new IFAD programme currently in the final stages of formulation aims directly at enhancing production, access, and marketing in the six eastern districts. This illustrates how closely IFAD’s support to Bhutan has been aligned with the national policies and priorities – truly an outstanding example of partnership in development.

Allow me to conclude by wishing a successful 28th Session of the IFAD Governing Council.

Thank you for your attention and Tashi Delek.