Introduction
Bhutan did not experience the nationalist movements that took hold in Afro-Asian or European nations, and there are two critical justifications for that factor. One was that Bhutan had the advantage of wise leadership ingrained in the country’s culture and history. In Europe, movements against the centuries-old monarchical systems were the primary means by which nationalism was articulated. On the other hand, the Bhutanese monarchy was established in 1907 (U.S. Library of Congress). Additionally, it was grounded on the contemporary concepts of written contracts and popular consent. However, the government of Bhutan has been unable to solve significant political, social, and economic issues that seriously jeopardize efforts to stabilize the rule. Therefore, there is a need for a roadmap for successful democratic government consolidation. It should include more influential trade unions, civil society organizations, and a more significant private sector.
Reestablishing the democratic forces in the country became the main force behind the development of sociopolitical relationships. According to Hague et al. (2016a), the citizens themselves serve as the main decision-making body in a direct democracy. However, political populism had already started to show itself as political leaders began to prioritize personalities over policy, present elections as a struggle between the weak and the mighty, and covertly use racial and religious issues to win support. According to Jung (1994), Asian economies are transitioning from an industrial era that is labor- and capital-intensive to one that is information- and technology-intensive. Nevertheless, recent years have seen a shift toward more responsible politics. Bhutan has strategic significance beyond its population and physical size due to its geographic proximity to two Asian superpowers and the nature of their relationship. Bhutan’s attempt at democracy must result in increased interethnic harmony, economic prosperity, and political stability. Bhutan can reach prosperity through the establishment of trade unions, which do not currently exist, as well as a focus on the country’s private sector due to the recent decrease in the country’s GDP from 19% to 16.1% (BTI Transformation Index, 2022). As a result, through democratic values and effective economic decision-making processes, the current national challenges can be addressed.
The Political Landscape and Challenges
Democracy and Governance
Bhutan is a young democracy that is trying to develop its political culture. Most of the time, after a democratic transition is complete, there are still many tasks to perform and attitudes and habits to nurture before democracy can be said to have been consolidated (Linz & Stepan, 1996). The country’s culture, according to Hague et al. (2016b), is the aggregate of the fundamental beliefs, attitudes, and understandings that give political processes shape and substance. In Bhutan, there is a positive sign of accountability and robust inter-party competition. Notably, the ruling party and the opposition party have challenged each other on several issues, including legislation and public policy. According to BTI Transformation Index (2022), when the ruling party DNT repeatedly appealed to the opposition DPT to act as one unit, the latter dismissed the offer. Instead, it demanded cabinet positions allowing it to be part of the decision-making team.
Bhutan’s democracy has also displayed signs of solid horizontal accountability. For instance, the National Council and the National Assembly, which are its upper and lower houses, have clashed severally over policies and legislation but ended up setting their differences in an amicable manner (BTI Transformation Index, 2022). Apart from these two houses, Bhutan’s judiciary has created much interest among the public due to its verdicts and its role in mediating the differences between the branches of government and constitutional bodies like the Attorney General and the Anti-Corruption Commission.
Freedom of Assembly and Freedom of Association
The freedom to assemble and associate is guaranteed under the constitution of Bhutan, yet there are various limitations. The ability of citizens to join parties is recognized by the Election Commission as one of the rights (ACE Project, 2018). Moreover, even though demonstrations and protests are allowed, the government must still support them. Regarding the freedom of association, only groups are thought to be not harmful to the unity and peace of the country can exist. For this reason, civil society organizations (CSOs) that could assist in working with refugees or checking on human rights and other areas deemed sensitive are outlawed in Bhutan. Moreover, BTI Transformation Index (2022) reports that a CSO must register with the government to operate in Bhutan. Additionally, there are no trade unions due to Bhutan’s general rural subsistence nature, the relative absence of large companies, and the government not supporting partnerships.
Overreliance on SOEs and Effects of COVID 19
In Bhutan, state-owned enterprises (SOEs) produce most of the nation’s income, primarily from mining, hydroelectricity, and minerals. Therefore, the government does not see the urgency of addressing the regulatory and financial concerns of the private sector. One of the clear examples of this is the Mines and Mineral Act of 2020, which gave the SOE monopoly (Chhetri, 2020). However, with reduced earnings from the vital tourism sector at the height of COVID-19 and increased expenditure stemming from mitigation and relief measures, the Bhutan government has only continued to depend on SOEs.
The Lhotshampa Refugees
Another political issue that can be examined is the Southern Questions regarding Lhotshampa refugees (BTI Transformation Index, 2022). These refugees were either expelled or fled from Bhutan in the early 1990s. However, the concern has primarily subsided due to the settling of more than 90 thousand of them abroad, mainly in the United States. Nevertheless, thousands of these refugees have remained in Nepal even after the end of the resettlement program in 2019 (BTI Transformation Index, 2022). The two nations have disagreed on how to integrate the refugees permanently.
Economic and Social Challenges
Economic Indicators
The WHO estimates that the life expectancy in Bhutan rose from 52.4 years in 2000 to 70.6 in 2017 ((BTI Transformation Index, 2022). Also, access to electricity and clean water increased from 60% and 81% of households in 2008 to 98% in 2017 (BTI Transformation Index, 2022). Even though 81% of the population has access to improved sanitation, 18% have reported irregular water supply (BTI Transformation Index, 2022). For instance, between 2019 and 2020, the capital city of Thimphu and its environs faced critical water shortage episodes, which forced many residents and businesses to turn to private water vendors. Poverty levels in 2007 were at 23%, halving to 12% in 2013 and dropping to 8.2% in 2017 (BTI Transformation Index, 2022). The majority of the poor people were among the country’s rural population. Another key economic indicator is tax as a percentage of GDP, which rose from 5% to 19% between 2004 and 2016, then dropped to 16.1% in 2018 (BTI Transformation Index, 2022). These economic indicators show that Bhutan’s economy is not entirely efficient.
Rapid Population Growth and Unemployment
There have been rapid economic and social changes in Bhutan in the last three decades. Specifically, its capital Thimphu has experienced a population explosion, growing from 30000 to about 138,736 inhabitants by 2017, constituting about 20% of the country’s total population (BTI Transformation Index, 2022). Even though urbanization proliferates in Thimphu and other towns, the majority of the populace, about 61%, dwells in rural areas and primarily engages in agriculture (BTI Transformation Index, 2022). Recognizing that 91% of Bhutan’s population resided in sparsely populated regions in 1960 represents a considerable decline (Ranjan, 2020). The rural-urban migration has increased considerably in the last six decades.
Initially, the Royal Civil Service provided employment opportunities for students graduating from schools and colleges. However, since 2000, the number of students graduating from schools and colleges has exceeded the employment slots, showing the need for a robust private sector to create more employment opportunities (BTI Transformation Index, 2022). Reports from Thimphu show that there are increasing problems brought about by urbanization on the families of Bhutan, primarily due to rising youth unemployment. Notably, crimes involving property theft and drug abuse have spiked.
Weak Education and Healthcare Sectors
One of the significant educational challenges of Bhutan is a highly narrow skills base, and almost half of the population is illiterate and innumerate. Even though enrolment in primary and secondary schools has increased, repeater rates and high dropout are significant concerns for the Bhutan government. According to the Twelfth Five-Year Plan, by 2018, the enrolment rate in Bhutan stood at 96.8% (Ranjan, 2020). Approximately 97% of children between 6 and 12 years attended primary education and other forms of structured learning equivalent to it. Also, the document states that the gross enrolment ratio for classes VII to XII was about 89.3% (Ranjan, 2020). Between 2005 and 2017, the introductory literacy rate increased from 59.5% to 71.4% (Ranjan, 2020). Nevertheless, Bhutan still lacks a suitably trained population, affecting its human resource capabilities.
The human resource capabilities of a country also depend on its population’s health. In Bhutan, the total health expenditure is about 3.8% of its GDP, with 75% financed by the government (Ranjan, 2020). There has also been an increase in lifestyle diseases like cardiovascular diseases, respiratory ailments, and diabetes, which were responsible for more than half of the deaths in 2016 (Ranjan, 2020). Moreover, the country has been experiencing an increase in the number of people suffering from mental problems recently. The government had three doctors and fourteen nurses for every ten thousand people in 2016, which falls way below international standards (Ranjan, 2020). The burden of the healthcare budget worsens as the domestic revenue growth does not match the expenditure on health.
Gender Violence and Inequality
Female literacy improved slightly between 2012 and 2017, rising from 55% to 59% (Ranjan, 2020). Similarly, girls’ enrolment in tertiary institutions enhanced from 35% to about 46% between 2005 and 2018 (Ranjan, 2020). Maternal mortality, on the other hand, declined from 255 to 89 per million people between 2000 and 2017. Additionally, women’s inclusion in Bhutan’s civil service improved from 32.4% to 35.43% between 2012 and 2017 (Ranjan, 2020). However, women are not well represented in the local government and parliament, accounting for 11.6% and 15.27%, respectively (Ranjan, 2020). Moreover, only 11.2% comprise the workers at the civil service’s executive level (Ranjan, 2020).
Another notable development in Bhutan has been the rise in gender-based sexual and physical violence. Even though the Domestic Violence Prevention Act 2013 was enacted to address this issue, it has not been able to decisively check these issues faced by Bhutan women (Ranjan, 2020). Many cases of violence against women go unreported; at times, police officers fail to register them. The primary reason for the prevalence of domestic violence is the belief that men are superior to women.
A proposed Political Roadmap
Expansion of the Democratic Space
Even though the Bhutan government has improved in terms of democracy, trade unions and the civil service society do not have sufficient democratic space to operate thoroughly. While trade unions are essential in employee rights, free civil society organizations will help promote human rights, deal with vulnerable people like refugees, and check government excesses. According to Sander & Putnam (2010), without social networks and the reciprocity and trust-based norms those networks foster, neither a democracy nor a healthy society can exist. Civil society organizations will play a vital role in dealing with societal issues like the lack of freedom of speech and political censorship (Christensen, 2017). Moreover, they would address gender equality and gender-based violence by complementing the Domestic Violence Prevention Act (International Labour Organization, 2013). The Bhutan government should therefore respect the role of these independent people’s organizations to allow citizens to pursue and protect the country’s framework.
One of the crises that some countries like the USA faced is the emergence of a caste society where the more informed, wealthier populations engage in political exercise at the expense of the less privileged ones. Sander and Putnam (2009) have warned that if such issues are not addressed, society can become a land of less opportunity. Civil society organizations are essential in addressing such challenges. They will engage with an expanded mandate in education, training, human resource development, community development, enterprise development, and employment generation, which are significant needs of Bhutan. CSOs also engage in health and nutrition advocacy, law, general advocacy, politics, and sustainable development, which are crucial in stimulating Bhutan’s socioeconomic prospects.
Trade unions will help make Bhutan cities and local communities more inclusive and equitable, facilitating up-skilling, employability, and inter-generational knowledge transfer. The associations will attain this by negotiating regional tripartite agreements with employers and Bhutan’s authorities for socio-economic inclusion and decent work generation. This will enable Bhutan to realize gender equality and parity, labor rights, and the facilitation of the transition of informal workers to the formal work bracket.
Additionally, trade unions will help create appropriate policies to enable small and medium enterprises (SMEs) to help them generate quality employment. Moreover, the trade unions will help integrate the returnees and refugees within Bhutan’s local communities and economy. One country that has benefited from trade unions is Denmark, where 62 cities, including Copenhagen, adopted labor and social contracts in cooperation with building worker’s unions (Public Service International, 2017). Its economic indicators are impressive: the poverty rate was 0.3% in 2019, life expectancy was 82% in 2020, the unemployment rate was 4.8% by 2021, and its GDP was 397.1 billion dollars in 2021 (World Bank, 2022a). The municipalities have better value for money, and the workers have social protection and formal contracts, benefiting their families and promoting socio-economic inclusion.
Expansion of the Private Sector
Bhutan needs to set up relevant laws to expand the private sector to help provide critical services like health, education, water, and electricity, among others. One country that has recognized the role of private partnership in Japan has enabled it to grow economically and expand its international influence through public-private partnerships (Ministry of Foreign Affairs of Japan, 2022). Japan’s economic indicators are very impressive: poverty rate was 0.7% in 2013, life expectancy was 85% in 2020, access to electricity was 100% by 2020, foreign direct investment was1.2% of GDP, and its GDP was 4.94 trillion in 2021 (World Bank, 2022b). The expansion will not only improve service delivery but will also increase efficiency and create employment. This will help improve people’s health by ensuring access to healthcare and financing options. It will also reduce the government’s burden of financing healthcare.
Since the government’s education system has not successfully trained adequate skilled workers, the private sector can help produce human resources relevant to Bhutan’s needs. More employment will also mean a broader tax base. Therefore, the Bhutan government will improve from 6% direct taxpayers to a more considerable number (BTI Transformation Index, 2022). The private sector will also be essential in the products’ value chain. Since the country is primarily Agricultural, private companies can help spur the rural economy by creating demand for raw materials from farmers.
Conclusion
Economic growth, poverty, and inequality interact through a series of bilateral interconnections, which typically affect one another indirectly. Bhutan’s government emphasizes promoting well-being, although poverty is also a significant source of worry. Bhutan’s economy has grown significantly over the past few decades. Even though Bhutan has developed democratically, occasioned by a robust judiciary, parliamentary system, and credible electoral practice, it has failed to offer sufficient space for civil service organizations and trade unions.
Additionally, it has created monopolies by granting state-owned enterprises exclusive authority in exploiting minerals and providing electricity and water. The suggested roadmap is to expand the democratic space by removing restrictions on civil service organizations and trade unions. Moreover, the Bhutan government should develop the private sector to spur socio-economic growth. These measures will help improve the socioeconomic welfare of Bhutan by improving service delivery, freedom of expression, and economic development.
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