Rural poverty remains a significant concern despite Bhutan seeing overall progress in reducing poverty and inequality over the years. This is according to the Bhutan Poverty and Equity Assessment 2024, launched today by the World Bank and the National Statistics Bureau. The report outlines key factors contributing to poverty in rural areas and provides recommendations to address the issue.
The report highlights that the national poverty rate declined sharply from 28 per cent in 2017 to 11.6 per cent in 2022.
However, the report highlights rural poverty as a concern, with rural areas accounting for 87 per cent of the country’s poor. Out of 95,000 people living in poverty, 83,000 are in rural areas.
The report attributes this disparity to several challenges. Rural households rely heavily on low-productivity agriculture, with limited access to markets, financing, and protection against climate change vulnerabilities.
Furthermore, poor access to basic services like education, healthcare, and financial institutions continues.
According to the World Bank, disparities in service quality and slow job growth also lead to people migrating from rural to urban areas.
“People are migrating to urban areas because of a lack of opportunities. This will affect the country, because urban planning has to take into account people coming to urban areas. People moving from rural to urban areas will constrain the already limited resources,” said Alvin Etang Ndip, Senior Economist, World Bank.
Moreover, the report also highlights that terrain and climate dependence make these communities highly vulnerable to hazards such as floods and landslides, further endangering livelihoods and food security.
Highlighting these challenges, the World Bank recommends boosting agriculture through better access to finance and market infrastructure.
It also urges job creation through private sector growth and vocational training in rural areas.
Additionally, managing the rural-urban service gap through investments in roads, schools, and healthcare is deemed important.
“There is a lot of work that needs to be done, not only in terms of reducing monetary poverty but also improving access to services, access to roads and internet connectivity and others that may help to improve the incomes of the rural,” said Alvin Etang Ndip, Senior Economist, World Bank.
Speaking at the launch, Cabinet Secretary Kesang Deki said that the government is aligning some priorities in the 13th Five-Year Plan to address the issues. The plan focuses on climate risk mitigation programmes, skilling and education reform programmes to address youth unemployment problems.
She added that the report will serve as a critical policy guide for implementing the 13th Five-Year Plan.
Sangay Chozom
Edited by Sonam Pem
