Striding toward economic diversification and sustainable development, Bhutan officially launched the “Accelerate Bhutan’s Job Transformation through Renewable Natural Resource (RNR) Value Chains Project” on October 30, 2025. Funded by the World Bank (WB) USD 34.7 million, the project aims to unlock new economic opportunities, enhance value addition across RNR sectors, and generate employment—particularly in rural areas—aligning with the nation’s long-term vision for transformation.
The project is implemented by the Ministry of Agriculture and Livestock in collaboration with the WB, alongside the Ministries of Health and Energy and Natural Resources. This multi-sectoral partnership underscores Bhutan’s strong commitment to leveraging its renewable natural resources—forests, agriculture, and livestock—to foster sustainable economic growth and job creation.
In alignment with Bhutan’s 13th Five-Year Plan (FYP) and the nation’s 10X Economic Vision, the project underscores a strategic push toward the modernization of agrifood systems, the promotion of sustainable forestry, and the creation of resilient and inclusive job markets. It reflects Bhutan’s broader ambition to shift from traditional subsistence-based practices toward commercial, technology-driven, and climate-resilient production systems that can compete regionally and globally.
At the heart of the initiative lies the development of high-potential Renewable Natural Resource (RNR) value chains, with a focused emphasis on dairy, citrus, potatoes, and forest-based products—sectors that not only hold strong comparative advantage but also have deep linkages with rural livelihoods. By improving production efficiency, market connectivity, and product quality, the project aims to transform these value chains into engines of growth that generate income, create jobs, and stimulate private sector participation.
A central objective is to move beyond raw production toward value addition, ensuring that farmers and local entrepreneurs capture a greater share of the economic benefits. This includes introducing modern processing facilities, cold-chain logistics, standardization and certification systems, and digital platforms that connect producers directly to markets. Through such measures, Bhutan seeks to enhance its export competitiveness, reduce post-harvest losses, and position its agri-based products as premium, environmentally sustainable goods in international markets.
By aligning agricultural modernization with environmental stewardship, the project also reinforces Bhutan’s commitment to Gross National Happiness (GNH) principles—ensuring that economic progress remains sustainable, equitable, and environmentally sound. In doing so, it aspires not only to boost the nation’s economic resilience but also to redefine Bhutan’s RNR sector as a cornerstone of inclusive, green, and high-value economic transformation.
The USD 34.7 million investment comprises USD 29.8 million in International Development Association (IDA) financing—including a grant, credit, and shorter-maturity loan—and a USD 4.7 million grant from the Global Partnership for Sustainable and Resilient Landscapes Multi-Donor Trust Fund.
Beyond direct public funding, the project aims to attract private sector investment into Bhutan’s RNR sector. It will promote climate-smart agriculture, strengthen institutional capacity, and support value addition and post-harvest processing to enhance export readiness. A key component of the project involves productive partnerships between producers and buyers, supported through demand-driven business planning and matching grants.
This approach is expected to incentivize private participation, reduce market barriers, and expand opportunities for smallholder farmers—ultimately driving productivity and increasing rural incomes.
One of the project’s most notable features is its emphasis on employment generation and social inclusion. Approximately 42,000 beneficiaries are expected to benefit directly, with women comprising about 65 percent of the target group. Through mechanization, digital advisory services, standardization, and improved value chain linkages, the project aims to create thousands of sustainable jobs, especially in rural areas where livelihood opportunities remain limited.
Speaking at the launch, Lyonpo Younten Phuntsho, Minister for Agriculture and Livestock, said the project will directly contribute to Bhutan’s long-term vision of becoming a high-income nation. “It aligns with the 10X Economic Vision and the 13th Five-Year Plan, serving as a cornerstone for Bhutan’s economic transformation,” he said.
Tomas Rosada, Practice Manager at the World Bank, highlighted the project’s potential to transform Bhutan’s rural economy. “This initiative will increase agricultural productivity in key value chains such as potatoes, dairy, and citrus, while promoting climate-smart practices among producers,” he said.
Reaffirming the Bank’s long-term commitment to Bhutan, Rosada added, “We are not turning away from investments in healthcare, infrastructure, education, or energy. We are doubling down on all of them. A job is what happens when a school leads to a skill, when a road leads to a market, when a clinic keeps someone healthy enough to work, and when energy powers a business. That is how we turn investment into impact—delivering what people need most: a job, a chance, a future, and dignity.”
He further emphasized, “Together, we can build a modern, resilient, and inclusive agri-food system for Bhutan—one that creates jobs, drives growth, and secures a better future for all.”
The project adopts a comprehensive approach, addressing agricultural productivity, market infrastructure, institutional capacity, and quality standards. By creating an enabling environment for RNR enterprises, it aims to enhance Bhutan’s economic resilience, reduce import dependence, and increase export revenues through high-quality, certified products.
Implementation will span five years, beginning in Fiscal Year 2025–26 and concluding in 2030, with robust monitoring and evaluation mechanisms in place to ensure transparency, accountability, and continuous learning.
Ultimately, the Accelerate Bhutan’s Job Transformation through RNR Value Chains Project represents a strategic investment in Bhutan’s natural and human capital. By harnessing its renewable resources efficiently and sustainably, Bhutan is poised to accelerate economic diversification, create meaningful employment, and strengthen its foothold in regional and international markets—paving the way for a resilient and inclusive future.
Sangay Rabten
From Thimphu
