Publication: Bhutan Macroeconomic and Public Finance Policy Note: Hydropower Impact and Public Finance Reforms towards Economic Self-Reliance
Date
2015-11
ISSN
Published
2015-11
Author(s)
Abstract
Bhutan’s hydropower generation potential
raises the prospect of tremendous development opportunities
for the country: fast increasing export revenue, sustained
economic growth, and rapid poverty reduction. Driven by
developments in the hydropower sector, the country has grown
at an average rate of 7 percent per year over the last
decade, while poverty has declined remarkably fast. But
hydropower development also creates significant challenges
as follows: (i) macroeconomic instability; (ii) lack of
self-reliance; and (iii) few private sector jobs. This
policy note assesses the opportunities and challenges
associated with hydropower development. It informs a
possible strategy supportive of macroeconomic stability,
fiscal self-reliance and private sector development. And it
argues that fundamental changes in public finance, amounting
to a paradigm shift, are central to the implementation of
such strategy.
Citation
“Boyreau, Genevieve; Rama, Martin. 2015. Bhutan Macroeconomic and Public Finance Policy Note : Hydropower Impact and Public Finance Reforms towards Economic Self-Reliance. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/24581?locale-attribute=fr License: CC BY 3.0 IGO.”