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Bhutan
Together with local institutions and development partners, EIF is supporting Bhutan to incorporate trade into its national development planning.
EIF is working on the country's infrastructure for ecommerce and support for local products and female producers.
Growing economy, supporting capacity in Bhutan
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Supporting Bhutan's digital future
- Institutional coordination and capacity-building: The Enhanced Integrated Framework (EIF) is a major partner providing trade-related technical assistance in Bhutan. It has identified the sectors most in need of trade to develop core human resources. The EIF has supported institutional capacity-building and coordination on trade development and the formulation of trade policies and discussions – including the development of Bhutan's competition policy and trade strategy. The EIF National Implementation Unit (NIU) is an integral part of the Trade Department and plays an instrumental role in inter-ministerial coordination and Aid for Trade (AfT) implementation.
- Fostering partnership and resource mobilization: Based on capacity built, the NIU and the Trade Department developed bankable projects and mobilized support from development partners, such as the Japanese International Cooperation Agency, the European Union (EU), the International Trade Centre (ITC), the UN Development Programme (UNDP) and UN Economic and Social Commission for Asia and the Pacific. The EIF's engagement in Bhutan was essential in enabling the country to gain much of this additional trade-related funding and technical assistance. In addition, the NIU has extensively engaged local partners, from both the public and the private sectors, to implement AfT projects, ensuring local ownership, impactful results at the grassroots level and sustainability.
- The EIF provided seed money to strategic priority areas, which has created momentum for the development of small- and medium-sized enterprises (SMEs), improved the country's competitiveness and exports as well as triggered reforms and helped amplify impacts. The Government of Bhutan has developed an e-infrastructure for trade in services, such as the people data hub, the trade and investment portal and an online commodity auction.
EIF is working to strengthen institutions so as to prioritize trade, coordinate with donors and mobilize resources to address trade-related needs.
Results:
- Trade strategy part of Bhutan's Economic Development Policy 2014 and its Five Year Plan (2013-2018).
- Established Bhutan Chamber of Commerce and Industry as a forum to discuss business-related issues in the economy and for consultation with government.
- Set up regional trade and industry offices in various parts of the country to help carry out trade/commerce-related service delivery by the Ministry/Department of Trade.
- Initiated government-to-citizen service portal visualizing all public services online, with more than 35 services rolled out and the majority trade related.
- Established export exhibition centre in Thimphu in February 2017 with the aim to promote local products and exports by showcasing items and information of more than 50 private firms and cooperatives.
- Trained 165 entrepreneurs on skills development and 113 exporters on export procedures and requirements.
- Established 6 raw material banks for the development of the craft sector, with 248 women as direct beneficiaries.
EIF is working to provide a sounder information and communications technology ecosystem by accelerating access for targeted sectors and improving data, information and business opportunities available on improved electronic platforms.
Results:
- Put in place Government data centre and set up data hub.
- Launched online commodity exchange system with the auctioning of potatoes. Bhutanese farmers are now selling their products faster and more efficiently, with online auctioning helping to cut processing and payment time to one day and ensuring better price comparison.
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