The Bhutan Chamber of Commerce and Industry (BCCI), with the support of the European Union-funded Voice for Green Change Partnership (V4GCP) project, has embarked on a groundbreaking initiative to craft a comprehensive proposal for private sector engagement in Bhutan’s 13th Five-Year Plan, a document that is expected to steer the country toward ambitious economic and developmental goals. This initiative, coordinated by the Handicrafts Association of Bhutan (HAB), reflects a significant shift in the country’s approach to development, placing the private sector at the forefront as a key driver of economic growth and innovation, in alignment with the government’s vision for a private sector-led growth model.
In a statement underscoring the importance of this initiative, BCCI President Tandy Wangchuk remarked, “This is the first-of-its-kind initiative where the private sector asserts its role as the engine of growth for Bhutan’s economy. Our goal is to support the government in achieving the objectives of the 13th Plan, especially those involving private sector participation.” His statement encapsulates the aspiration of the private sector to transition from being a peripheral player to a central force in the country’s economic transformation.
The 13th Five-Year Plan, which spans from 2024 to 2029, is bold in its ambition to achieve a Gross Domestic Product (GDP) of USD 5 billion by 2029 and to elevate Bhutan to the status of a “High-Income GNH (Gross National Happiness) Country” by 2034. These lofty targets reflect the country’s dual commitment to economic prosperity and the well-being of its citizens, as enshrined in the GNH philosophy, which prioritizes holistic and sustainable development over mere economic metrics.
Achieving these goals will require robust collaboration between the government and the private sector, a sentiment echoed by Chandra Bdr. Chhetri, Secretary General of the BCCI, who said, “The proposal seeks to streamline and amplify the private sector’s contributions to ensure a unified and significant impact.” This statement highlights the critical role that the private sector is expected to play, not only in driving economic growth but also in addressing cross-cutting challenges such as unemployment, poverty, and environmental sustainability.
Under the 13th Plan, the private sector will have the opportunity to contribute significantly to the economic development cluster, which is one of the four main clusters of the plan. In addition to economic development, the other three clusters are social development, security, and transformed governance, each of which is interconnected and essential for Bhutan’s progress. The economic development cluster, in particular, envisions a range of initiatives to create a conducive business ecosystem, including streamlining regulations, establishing one-stop service delivery points, reforming licensing and tax frameworks, enhancing access to finance for businesses, and privatizing state-owned enterprises (SOEs) through public-private partnerships (PPPs).
These reforms are designed to address some of the long-standing barriers that have hindered private sector growth in Bhutan, such as bureaucratic inefficiencies, limited access to capital, and an overly dominant public sector. By addressing these challenges, the government aims to unlock the potential of the private sector to drive innovation, create jobs, and contribute to the overall prosperity of the nation.
In addition to these structural reforms, the government has identified nine growth drivers that will serve as the foundation for the country’s economic development under the 13th Plan. These growth drivers include agriculture and food security, renewable energy, tourism, information and communications technology (ICT) and innovation, infrastructure development, manufacturing, creative arts and culture, health and education, and green industries. Each of these drivers represents an area of opportunity for the private sector to make meaningful contributions, whether through investment, innovation, or the development of new business models that align with Bhutan’s GNH principles.
The private sector’s involvement in these growth drivers is not limited to economic development alone. Under the transformed governance cluster, the private sector will also play a crucial role in strengthening government-to-business (G2B) platforms, advocating for legal reforms to improve the business environment, and promoting digital transformation to enhance efficiency and transparency. These efforts will be complemented by collaborations with civil society organizations and media to raise awareness about the private sector’s role in economic management and to foster a culture of accountability and partnership.
One of the most promising aspects of the initiative is its emphasis on advancing Bhutan’s digital economy, which has the potential to revolutionize the way businesses operate and compete in an increasingly interconnected world. By leveraging digital technologies, the private sector can not only enhance its productivity and competitiveness but also contribute to the government’s broader goals of achieving gender equality, environmental sustainability, and poverty reduction.
The BCCI is committed to ensuring that the voices of all stakeholders are heard in the development of the proposal. To this end, the chamber has invited private sector players from a wide range of industries, including tourism, manufacturing, education, farming, ICT, and others, to participate in consultations and share their insights and recommendations. These consultations will also involve government ministries to ensure that the private sector’s contributions are aligned with national priorities and that there is a clear roadmap for implementation.
“We hope the government agencies will embrace this opportunity for collaboration and partnership,” Tandy Wangchuk said, emphasizing the importance of mutual trust and cooperation between the government and the private sector. This sentiment was echoed by Chorten Dorji, Project Director of the V4GCP, who described the initiative as a “historic milestone” for Bhutan’s private sector. “If successful, this partnership between the government and the private sector could be a model for other nations,” he said, highlighting the potential for Bhutan to serve as an example of inclusive and sustainable development.
The final proposal, which is expected to be presented to the government by April 2025, will outline specific recommendations and action plans for private sector engagement in each of the clusters and growth drivers. It will also include mechanisms for monitoring and evaluating the impact of private sector contributions, ensuring accountability and transparency in the implementation of the 13th Plan.
While the initiative represents a significant step forward for the private sector, it also underscores the challenges that lie ahead. These include overcoming societal perceptions that have traditionally favored public sector employment over private enterprise, addressing skill gaps in the workforce, and ensuring that economic growth does not come at the expense of Bhutan’s natural environment and cultural heritage.
Despite these challenges, there is a sense of optimism and determination among stakeholders that this initiative will pave the way for a new chapter in Bhutan’s development journey. By placing the private sector at the heart of the 13th Plan, Bhutan is not only seeking to achieve its economic goals but also to create a more inclusive, resilient, and sustainable society.
“This collaboration is not just about economic growth; it’s about creating opportunities for our people and ensuring sustainable progress,” Wangchuk concluded. His words reflect the broader vision of the initiative, which is to harness the collective potential of the private sector and the government to build a brighter future for Bhutan and its people.
As the countdown to April 2025 begins, all eyes will be on the BCCI, the V4GCP, and the Handicrafts Association of Bhutan to deliver a proposal that is both ambitious and actionable, setting the stage for a transformative partnership between the public and private sectors in Bhutan.
