Module Code and Title:       AEC302          Bhutanese Economy I

Programme:                          BA in Development Economics

Credit Value:                         12

Module Tutor:                       Sonam Yeshey

Module Coordinator:            Sanjeev Mehta

General objective: This module aims to provide an overview of the pattern of economic growth and accompanying structural changes in the Bhutanese economy during the periods of planned economic development. The focus of this module is on the analysis of inter-temporal changes in the major macroeconomic variables since 1961. This module will strengthen the ability of students to evaluate the role of development planning in Bhutan.

Learning outcomes – On completion of this module, learners should be able to:

1. Discuss the development process in Bhutan.
2. List the major objectives of five-year plans in Bhutan.
3. Evaluate the planned development process.
4. Analyse the time pattern of growth and accompanying structural changes.
5. Explain Bhutan’s development strategy and link it with various objectives.
6. Trace the changing pattern of financing of the development plans in Bhutan.
7. Explain how poverty is measured in Bhutan.
8. Evaluate the methodological issues in poverty estimation.
9. Analyse the impacts of the patterns of international trade.

Learning and Teaching Approach: This module will be taught by means of lectures, guest lecturers, tutorials, classroom workshops, seminars and self-directed study. Lectures will aim at explanation of various concepts and theories aided by tutorials. Guest lecturers will be invited on the basis of expertise on a particular topic. Students will also attend any relevant seminar or conference organised in Thimphu. In classroom workshops, students will use secondary data to analyse the trends on various macro parameters of the Bhutanese economy, or review some of the relevant research papers and undertake debate on relevant issues.

Assessment Approach:

A. Quizzes (3): Portion of Final Mark: 15%

Students will take three written quizzes (worth 5% each) of 30 min duration, covering approximately 3 weeks of material.

B. Group presentation: Portion of Final Marks: 15%

In groups of 4, students will research a topic related to the module. The analyses will be shared in 20 min presentations, followed by Q&A.

• 2%       Organization of the presentation (group mark)
• 2%       Comprehensiveness of content (group mark)
• 2%       Accuracy of content (group mark)
• 3%       Analysis and discussion (group mark)
• 2%       Peer review (individually assessed)
• 2%       Presentation clarity, tone, pace (individually assessed)

C. Viva voce: Portion of Final Marks: 5%

One oral assessment, on the knowledge of basic facts and figures related to Bhutanese economy, asking 5-7 questions to each student.

D. Critical Essay: Portion of Final Mark: 15%.

Students will write an essay on topics such as development strategy/ review of development plans/ financing of five year plans / methodological issues related to poverty measurement. Each essay should have a maximum limit of 750 words.

• 2%       Logical flow of thoughts
• 7%       Ability to comprehend relevant issues in the debate
• 3%       Evidence based arguments
• 1%       Language skills
• 1%       Subtleness of conclusion
• 1%       Structure of the essay

E. Midterm Examination: Portion of Final Mark: 20%

Students will take a written exam of 1.5 hr duration covering topics up to the mid-point of the semester.

Pre-requisites:

Subject Matter:

1. Planned development
   • Strategic framework for planning
   • Objectives and strategies
   • Operationalizing GNH
   • Institutional and policy framework: role of GNH commission, local governments, resource allocation mechanism, NEC
   • Public private partnership
   • Review of the five year plans, with major focus on the current five year plan
2. Rate, Pattern and structure of growth since 1980
   • Time pattern of the growth of national income and per capita income
   • Sector specific growth rates
   • Structural changes accompanying the growth
   • Regional dispersal of growth
3. Financing of plans
   • Changes in the pattern of financing of the five year plans
   • Role of internal and external resources
   • Rates and composition of saving and investment
   • Role of international aid and assistance
4. Demographic changes
   • Major demographic trends, review of population policy
   • Major issues pertaining to quality of life of the population: health, education and malnutrition; rural urban migration
5. Poverty, inequality and unemployment
   • Measurement of poverty (income and multi-dimensional poverty)
   • Trends in inequality, poverty and unemployment in Bhutan
   • Poverty alleviation and employment generation strategy
   • Vulnerability and social protection practices
   • Emerging role of civil society
6. International Trade
   • Composition and direction of International trade
   • Balance of trade and balance of payment
   • External debt
   • FDI

Reading List:

1. Essential Reading
   • IMF (latest). Bhutan: Country Report.
   • Mehta, S. (2009). Nature and Structure of Bhutanese Economy. Thimphu: KMT Press.
   • RGoB (latest). Mid-Term Review of Five Year Plan. GNHC.
   • UNICEF (2013). Bhutan Common Country Programme Document 2014-2018.

1. Additional Reading

• Five Year Plan documents. GHNC.
• RGOB (1999); Bhutan 2020: vision for peace prosperity and happiness. Ministry of Planning.
• RGOB (Latest). Annual Report. Royal Monetary Authority.
• RGOB (Latest). Poverty Analysis Report. National Statistical Bureau.
• RGOB (2000). National Account Statistics 1980-2000. CSO, Planning Commssion
• RGOB (2001). Household Income and Expenditure Survey 2000(Pilot): Report on Income and Expenditure, Poverty Measurement, and Socioeconomic Profile of the Households. CSO, Planning Commission, Thimphu.
• RGoB (2010). Bhutan Population and Development Situation Analysis. GNHC.
• RGoB (2013). Draft National Population Policy. GNHC.
• RGoB (2013). Draft Social Protection Policy for Workers in Bhutan. MoLHR.
• RGoB (2014). Technical Evaluation Report: Rural Economy Advancement Programme Phase 1. GNHC.
• World Bank (1996). Bhutan country economic memorandum, report no. 16113-BHU.

Date: January 15, 2016