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Kingdom of Bhutan. Economy

Source: http://allworld.wallst.ru/page.php? nfile=bhutan_ec&ctr=29

Бутан :: Экономика The national economy of one of the smallest countries of the world consists of forestry and agriculture which give means of livelihood of 90% of the population and make 40% of GDP. In agriculture agriculture and pasturable animal husbandry is developed. A massif complicates the message within the country and the countries with the outside world. The economy of Butane is closely integrated with India the trade and credit and monetary relations. The industrial sector - backward, is presented mainly by home economy. The majority of projects, type of construction of the road connecting the country to India is realized by immigrant labor. The main attention of the government is concentrated on development of tourism and power (Butane has large hydroenergy resources - according to the UN about 200 thousand MW). Each economic program accepted by the government considers his desire to leave invariable traditional lifestyle of the population and to protect environment. The strong overregulation of economy and uncertainty of laws in such areas as trade, stirs industrial licensing, hiring of labor to penetration of foreign investments into Butane.

Gross national product, gross internal product, and GNP per capita in 1998 - 2000.
 199819992000
GNP (in one million a dale. USA)354399441
GDP (in one million a dale. USA)398440487
GNP per capita (in a dale. USA)470510550

In 1959, with active participation of India, reforming of national economy of Butane began. In 1961 the first five-year development plan was accepted to action. Its main objective was to finish centuries-old isolation. For this purpose considerable investments were made in construction of transport infrastructure. Besides continuous road construction the subsequent five-year plans provided development of an elementary education system, health care, exploitation of natural resources of the country.

Butane is capable to finance no more than 10% of all expenses on capital construction. Other means arrive from India, the IMF, the UN, Asian Development Bank. The success of five-year plans depends on a regularity of receipt of the Indian investments and qualification of the Indian experts. The largest investment project - construction of hydroelectric power station in Chukhe was completely financed by the southern neighbor. India also buys up surplus of the electric power made in the kingdom. It is supposed that this station will become the first in the development plan of hydropower potential of Butane.

Till 1960. Butane had no own currency, trade relations were under construction on a barter basis. Today the kingdom has both own currency, and the national bank which is letting out it.

Butansky economy - agrarian type, the most part of the population it is occupied in agriculture. Arable lands make only small percent of all area of the country. The heavy climate, poor soils, the mountain district interfere with development of the new areas occupied with the woods and meadows. Rather low, irrigated valleys of the central Butane are suppliers of bulk of crop production. Because of high-rise differences of climate in the kingdom grow up a limited number of cultures: rice, corn, potatoes, citrus and wheat. On scattered pastures of the country breed yaks, cattle, sheep, pigs and horses.

The majority the butanskikh of land tenure small by the sizes. The terrace technology is actively used. The government stimulates introduction of rather new principles of agriculture. Gardening is encouraged, and since 1967 the emphasis was placed on development of small irrigating systems.



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