Bhutan: Joint Staff Advisory Note of the Poverty Reduction Strategy Paper
IMF Staff Country Reports, March 9, 2005
Source details
- Canonical URL
- Bhutan: Joint Staff Advisory Note of the Poverty Reduction Strategy Paper
Other formats
Bibliographic details
- Published: March 9, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451806250.002
Executive summary
- Focus: Joint Staff Advisory Note on the Poverty Reduction Strategy Paper (PRSP) Progress Report for Bhutan.
- Objective: Galvanize the poverty reduction efforts of the Royal Government of Bhutan, building on past achievements.
- Growth target: The PRSP targets an average growth rate of 8¼ percent during 2004/05–2006/07.
- Comparative benchmark: The 8¼ percent target is about 1¾ percentage points above that experienced during the Eighth Plan and the first two years of the Ninth Plan.
- Outlook: Pushing the economy to this higher growth trajectory will be a challenge; however, some increase in the growth rate can be expected over the medium term.
Key findings and analysis
- PRSP purpose and scope:
- Aimed at galvanizing RGoB poverty reduction efforts and building on past achievements.
- Emphasizes continuity with previous plans (Eighth Plan and Ninth Plan).
- Growth assessment:
- Targets an average growth rate of 8¼ percent for 2004/05–2006/07.
- This target exceeds recent performance by about 1¾ percentage points.
- Implementation challenges:
- Achieving the targeted higher growth trajectory is assessed as a challenge.
- Staff note that some increase in the growth rate is achievable over the medium term.
Policy implications and recommendations (implicit in advisory focus)
- Strengthen implementation capacity to pursue the PRSP’s growth and poverty-reduction objectives.
- Maintain focus on measures that build on past achievements and address constraints to raise medium-term growth toward the 8¼ percent target.
- Monitor progress against PRSP objectives for timely adjustments given the acknowledged implementation challenges.