LANDLOCKED DEVELOPING COUNTRIES: FOCUS ON ENERGY AND ECONOMY IN BHUTAN
HARNESSING THE HIMALAYAS After five years of intense preparations Bhutan “graduated” from the UN list of Least Developed Countries in December 2023. Nestled in the Himalayas between India and China, it is the only carbon-negative country in Asia thanks to its vast forest cover and mighty hydropower – over 90 percent of which remains untapped By Howard Hudson, OPEC Fund
C apturing the full force of rivers raging down narrow tree-lined valleys, hydropower is driving growth and development across Bhutan. Now energy self-sufficient, Bhutan has used electricity exports to push its GDP per capita above US$3,500 a year – almost a third higher than Bangladesh and nearly two-thirds more than Nepal, according to World Bank data. This small Himalayan kingdom has developed steadily since the 1980s posting average real GDP growth of 7.5 percent per annum, which the government has ploughed back into reducing poverty. Bhutan is also investing in its signature concept of Gross National Happiness, which rests on four key pillars: 1. S ustainable and equitable
gone beyond “net zero” and absorbs more greenhouse gases than it produces. It is not all plain sailing, however, for this country of almost 800,000 people. Bhutan still faces considerable debt distress, prompting calls for more targeted technical assistance and increased development finance. Beyond reinforcing its business infrastructure, the government also seeks to extend its trade preference agreements while boosting market access through neighboring countries’ ports. Speaking at the UN Least Developed Countries Summit in Qatar, March 2023, Prime Minister of Bhutan Lotay Tshering said:
The OPEC Fund & Bhutan
To date, the OPEC Fund has provided US$1.9 million in six national grants supporting water & sanitation, education and energy projects. The country has also benefitted from regional grants,
“We are taking [graduation] with a lot of honor and pride – we are not nervous. Life is all about adaptation. I think we are going to lose on availability
socio-economic development; 2 Environmental conservation; 3. P reservation and promotion of culture; and 4. Good governance.
especially in the agriculture sectors and healthcare. In June 2023, Prime Minister Lotay Tshering spoke at the second OPEC Fund Development Forum in Vienna as a special guest provided insights into the country’s measurement of well-being through its Gross National Happiness Index.
Life expectancy has risen since the 1980s from under 50 to over 70 years, partly thanks to free and accessible healthcare that now covers over 90 percent of the population. Bhutan is also one of only three carbon-negative countries worldwide, alongside Suriname and Panama. In other words, it has already
of some grants but we will be accessible to more business opportunities or more investments.”
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