{"id":448,"date":"2020-07-19T07:42:00","date_gmt":"2020-07-19T07:42:00","guid":{"rendered":"https:\/\/enlightenment-demo.onedesigns.com\/blog\/?p=448"},"modified":"2021-04-07T09:29:46","modified_gmt":"2021-04-07T09:29:46","slug":"happiness-needs-to-be-financed-too-a-new-generation-of-conservation-finance-in-bhutan","status":"publish","type":"post","link":"https:\/\/enlightenment-demo.onedesigns.com\/blog\/2020\/07\/19\/happiness-needs-to-be-financed-too-a-new-generation-of-conservation-finance-in-bhutan\/","title":{"rendered":"Happiness Needs to Be Financed Too \u2013 A New Generation of Conservation Finance in Bhutan"},"content":{"rendered":"\n

Nestled among the peaks of the Himalayas between China and India \u2014 Bhutan is a land of remote mountain valleys, rich in natural wonders \u2014 and with a population less than one million, one of the most sparsely populated countries in Asia.<\/p>\n\n\n\n

Contrary to the declines across the rest of the world, flora and fauna populations are showing a reverse trend. For a large number of species under threat in the region, the country has proven to be an important last refuge. Its mountain peaks host some of the few remaining populations of snow leopard and red pandas reside near bamboo stacks in the high mountain forests.<\/a><\/p>\n\n\n\n\n\n\n\n

\"\"<\/a>
Bhutan is home to about 200 mammals including the Red Panda<\/figcaption><\/figure>\n\n\n\n

Its tiger population numbers over 100 and is considered by IUCN to be among the most viable in the world. Bird populations are growing and new records frequently occurring. The 740th<\/sup> bird species was recorded in Bhutan in early 2019. For a small country, its number of bird species equals that of all of Europe combined and the small country is home to 30 percent of world\u2019s wild cats species.<\/p>\n\n\n\n

One of the last groups of over 500 Black Necked Cranes, a species numbering below 7000 globally, crosses the Himalayas annually to commute between their winter residence in Bhutan\u2019s Phobjikha Valley and their summer home in Tibet.<\/a><\/p>\n\n\n\n

\"\"<\/a>
Bhutan\u2019s forest and ecosystem services sustains hydropower and agriculture which are important pillars for its socio-economic development<\/figcaption><\/figure>\n\n\n\n

An Alternative Development Model Called Gross National Happiness<\/h3>\n\n\n\n

The country has demonstrated courage and innovation in pursuing its national development model, resisting the common \u201cGDP growth first \u2014 worry about the environment later\u201d approach that characterises most countries.<\/p>\n\n\n\n

Instead it has developed a new growth paradigm known as \u201cGross National Happiness,\u201d which includes economic growth, but amid a basket of other targets including factors associated with people\u2019s happiness. It seeks to achieve a harmonious balance between material growth with societal inclusiveness, resilient cultural identity, environmental sustainability and good governance.<\/p>\n\n\n\n

Bhutan\u2019s model has already demonstrated remarkable results, as the country has achieved multiple development milestones. The life expectancy has risen from 66.3 to 70.2 between 2005 and 2017. Measles was recently eradicated, and Malaria will potentially soon follow.<\/p>\n\n\n\n

Bhutan will officially graduate from its Least Developed Country (LDC) status in 2023. It will achieve this while ensuring the constitutional requirement to preserve at least 60 percent of the nation under forest cover for all time.<\/p>\n\n\n\n

Today, the nation\u2019s forest cover, at 70 percent of the land area has the capacity to sequester 6.3 million tons of carbon dioxide \u2014 four times what Bhutan emits \u2014 making it the only carbon negative country in the world. A recent evaluation has estimated Bhutan\u2019s total ecosystem services to be worth around US$ 15.5 billion per year.<\/p>\n\n\n\n

Refining the Model, Current Crossroads<\/h3>\n\n\n\n

But despite Bhutan\u2019s carbon negative status, unique development paradigm and conservation core, there remain challenges. Bhutan has one of the highest per capita consumption of fuel wood in the world, 69 percent of the population relies on climate-sensitive agriculture to earn a living, and economic growth is strongly dependent on investments in hydropower.<\/a><\/p>\n\n\n\n

\"\"<\/a>
Biodiversity is the natural capital of the poor and three-quarters of Bhutanese depend on subsistence farming<\/figcaption><\/figure>\n\n\n\n

Economic diversification is a key element of the country\u2019s new development strategy, in particular looking at continued sustainable development of ecotourism and small and medium enterprises. Financially, hydropower also overshadows other resources. The Domestic tax base averages at below 15 percent, which is relatively low. The IMF is committed to work with the government on tax reforms, in particular to rationalise the Sales Tax system into a more streamlined system.<\/p>\n\n\n\n

When putting a looking glass over the situation of development finance, a similar picture emerges. The government is looking at different ways development objectives can be financed, including innovative financing mechanisms.<\/p>\n\n\n\n

Exploring New Approaches to Development Finance<\/h3>\n\n\n\n

During the country\u2019s pinnacle policy dialogues every two and half years, known as the 14th<\/sup> Roundtable Meeting in mid-March, the State Secretary of Finance, Dasho Nim Dorji outlined a number of innovative financing options such as issuing Green Bonds, e-payments, establishing a new Climate Fund and reforming the tax collection system.<\/p>\n\n\n\n

A key element in this strategy is their work on the Biodiversity Finance Initiative (BIOFIN). This is a tool developed by the United Nations Development Programme (UNDP) to scan the existing landscape of financing a country\u2019s natural resources, to rethink and diversify existing options. It lays out a structural approach to measure past expenditure and future needs for finance to fund a country\u2019s biodiversity goals.<\/a>In the Photo: Ludlow\u2019s Bhutan Swallowtail is Bhutan\u2019s national butterfly, rediscovered after 75 years. Photo Credit: Sonam Wangdi<\/a>In the Photo: A rich floral diversity, Bhutan has 46 different Rhododendron species. Photo Credit: Ngawang Gyeltshen, National Coordinator BIOFIN<\/p>\n\n\n\n