Concluding Statement at the Bhutan Round Table Meeting

by Haoliang Xu, UN Assistant Secretary-General,

UNDP Assistant Administrator and Regional Director, Asia and the Pacific

Thimphu, 11-12 December

Your Excellency, Lyonpo Rinzin Dorji, Minister of Foreign Affairs and Co-Chair of the Round Table Meeting.

Excellencies,

Distinguished Delegates,

Ladies and Gentlemen

·  It has been an honor and privilege for me to co-chair the Twelfth Round Table meeting in Bhutan. As other delegates noted, I would also like to thank the Royal Government for warm welcome and hospitalities. I also appreciate all the dedicated efforts to organize this very successful Round Table Meeting that coincides with the launch of the Eleventh Five Year Plan (2013 – 2018).

·  The four presentations yesterday gave us the opportunity to take stock of the significant progress that Bhutan has achieved in particular MDGs. The presentations also highlighted the remaining challenges and constraints, including reliance on a single sector and economic and environmental vulnerabilities, and underscored the importance of smooth transition from LDC status in the future. The 11th Five Year Plan is very ambitious and everyone’s efforts are needed to achieve the targets in pursuance of gross national happiness.

·  Bhutan’s economy is still small and heavily dependent on one sector for growth and its development, as we heard yesterday, it must be rebalanced. The economy needs to be diversified through greater private sector participation, focusing on high value-added and higher productivity.

·  While poverty rate has fallen significantly to 12 per cent of the population, regional disparities remain a challenge. To ensure inclusive development, there is a need to reach out to remote communities with services and livelihood opportunities to improve their productive capacities and resilience to vulnerabilities. There is also an urgent need to generate decent jobs especially for youths as this could tear at Bhutan’s social fabric.

·  We must not forget the ever-present risk of natural disasters. Despite Bhutan’s impressive environmental record, it is vulnerable to the impacts of climate change. Bhutan must continue to invest in building resilience, through mitigation and adaptation measures, including innovative and sustainable farming practices, strengthening institutions and community capacity to plan for and respond to disasters, and introducing affordable insurance schemes to protect against climate-related losses.

·  I find that discussions during the meeting were open and substantive. Now, concrete actions are needed to follow up on this Round Table Meeting among the government and all the development partners. It is clear that Bhutan needs resources and partnerships to achieve 16 key results areas of 11th Five Year Plan and ensure a smooth transition from LDC status. The country is in an advantageous position, since there are some years to go to prepare for graduation without having adverse effects of graduating in a rush. The Government should be commended for its forward thinking and early preparations. Indeed, this is an example of global best-practice.

·  The next few years will be vital to help Bhutan rise to meet its challenges, tap its potential and fully achieve its aspirations. During this period, Bhutan will need the continued and even scaled-up support, both financial and technical, of its development partners, including south-south cooperation.

·  The Government of Bhutan can count on the support of the United Nations Development System to support the 11th Five Year Plan, and help prepare its Smooth Transition Strategy by leveraging UN inputs to the process and ensuring national ownership of the process. And I must also underline to development partners, that more and targeted resources would be required to tackle some of the deep seated remaining constraints and ensure sustainable graduation.

·  In closing, I would like to thank the Government again for hosting this important Round Table Meeting and the high quality preparations that allowed for a very substantive, engaging and candid exchange about Bhutan’s development challenges and opportunities, as well as the priorities of the Eleventh Five Year Plan. On behalf of my colleagues at the United Nations, I would like to acknowledge the leadership and immense time and effort of the Royal Government of Bhutan that went into making this meeting so successful.

·  And finally, I thank all the development partners for participating in this Round Table Meeting, especially those of who have traveled long distances to join us in Bhutan.

Thank you and Tashi Delek!

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