Bhutan: Navigating Tradition, Challenges, and Aspirations

Before setting foot in Bhutan, one often conjures images of a mystical kingdom tucked away amidst the Himalayas. It’s a land shrouded in mystery, known for its landscapes, rich cultural heritage, and unwavering commitment to Gross National Happiness.As an outsider, one can’t help but be intrigued by the tales of this tiny kingdom, where spirituality intertwines seamlessly with everyday life, and tradition reigns supreme. It is with these thoughts I was traveling to Bhutan on a weeklong trip that was official but gave me a tourist-like feeling.

As the plane descends towards Paro, the gateway to Bhutan, anticipation builds, and the landscape below unfolds like a scene from a painting. A lone taxi driver greets me at the taxi stand and tells me the price for travel to Thimphu. The Indian in me wants to negotiate but somehow the surroundings ask me to hold my urge. As we move, white prayer flags (Manidhar) flutter in the mountain breeze while tiny stupas (Tsa tsa) dot the roadside mountain shades symbolizing how Bhutanese people immortalize their deceased loved ones.  Monasteries cling to cliff edges, defying gravity, as if daring visitors to question the divine forces at play. And amidst it all, the gentle sound of crystal-clear river water flowing serves as a soothing soundtrack to the journey ahead in a deep valley.

One is greeted by the warm smiles of the Bhutanese people all around as you roam through the parallel streets of Thimphu. Thanks to Indian movie channels and soap operas, their familiarity with the Hindi language extends beyond music, as many understand the language with ease. Amidst this cultural exchange, one cannot overlook the activities and heavy lifting that women engage in different spheres of life, juggling multiple roles with grace and determination yet finding time to indulge in a refreshing bite of Doma (a version of Indian ‘paan’ with betel nut and lime) alongside their male counterparts. A row of shops manned mainly by women, just opposite a leading financial institution, sell authentic Bhutanese handicrafts. The shops double up as weaving centers, where womenfolk are busier creating beautiful pieces of handicrafts than selling them.

Digital payments have become ubiquitous in Bhutan, with even taxi drivers using mobile apps to scan QR codes for parking payments. Nearly all banks offer mobile apps that facilitate various transactions at no cost and in an interoperable manner, a feature not commonly found in other South Asian countries. Restaurants, shops, and small businesses appear to be highly comfortable with digital payments, as evidenced by the prominent display of QR codes on their billing desks. Few establishments may also extend you the phone numbers of their Indian workers to accept payments through Indian payment apps. Interestingly, the use of Indian currency does not evoke any reaction, even when mixed with the local currency notes while making payments.

In a few days of your stay, you come to realize that beneath the tranquility lies a myriad of challenges that beset this small, landlocked kingdom. Despite its fertile lands, predominantly organic produce, and heavy reliance on agriculture for employment, the youth are disenchanted with the economic prospects of agriculture. Primarily lack of scale followed by erratic climate, losses due to handling and wildlife, logistical and transportation challenges, and difficulty in accessing the markets make it very difficult for the small farmers to generate income reducing it to a subsistence activity. Those who endeavour to establish businesses in agriculture, either independently or with support from the government and development agencies, often lack the requisite know-how, entrepreneurial discipline, and access to relevant financial products, resulting in scant success stories.

 

 

Financial institutions, frequently seen as lacking strategic intent to extend credit to the priority sector, have their valid reasons. Their experiences, marked by high non-performing assets (NPAs), inadequate government data, and the absence of credit risk coverage, make it challenging to extend exposure beyond a few large-ticket clients. Moreover, institutions routinely contend with high attrition rates, often resorting to poaching talent from neighbouring institutions, though even this proves challenging at times. Compounded by the allure of greener pastures, the migration of youth to foreign countries as distant as Australia has emerged as a formidable challenge and a means of escape for those grappling with hardships within the country. As one of the officials aptly puts it, “Just as a house requires a minimum of four pillars, a nation needs basic infrastructure to support its development. Bhutan has such requirements, but when it comes to resources, we lack the necessary scale and means”. One wonders if it is time to reassess some of these priorities.

 

 

Amidst these challenges, there emerges a glimmer of hope – the promise of a new city on the Indian border, poised to revitalize Bhutan’s economy and usher in a new era of prosperity. But true progress may require more than just infrastructure and investment; it demands a concerted effort from all stakeholders – government, private sector, and civil society. People look towards the newly elected government with the hope of setting the priorities right and actions in motion.

As I bid farewell to the land that bears striking resemblances to my home state of Uttarakhand in many ways, I am filled with admiration for its people and a profound belief in their ability to overcome adversity. Bhutan may be small, but its dreams are vast. And perhaps, therein lies the true essence of this enchanting kingdom – a beacon of hope amidst the towering peaks of the Himalayas, embarking on a journey of transformation against all odds.

To know more about our work, reach out to the author of this blog Neeraj Lekhwar.