ADB Launches New Country Partnership Strategy for Bhutan

MANILA, PHILIPPINES (13 September 2024) — The Asian Development Bank (ADB) today launched a new country partnership strategy (CPS) for Bhutan aimed at helping the country address economic obstacles and enabling inclusive, sustainable, resilient, and job-creating growth.

The 5-year partnership strategy from 2024–2028 will reinforce the government’s development programs by strengthening public sector management and enabling private sector development, building climate adaptive and resilient infrastructure and systems, and supporting human capital development and the employability of Bhutanese youth.

Bhutan has made good progress in reducing poverty and improving its education and health indicators over the past 2 decades. It graduated out of least-developed country status in December 2023. To continue building on this progress, Bhutan needs to address the challenges of economic slowdown, a worsening macrofiscal position, its narrow economic base, the absence of an enabling environment for the private sector, vulnerability to climate change and disasters, and high levels of youth unemployment and outmigration.

“Under the new CPS, ADB will enable a shift toward private sector development, climate change and disaster risk reduction and mitigation, and regional cooperation and integration. It will assist Bhutan in undertaking policy reforms, diversifying its economy, building quality infrastructure in underserved areas, and supporting human capital development,” said ADB Country Director Shamit Chakravarti. “The CPS is the result of our close partnership with the Government of Bhutan and complements its 13th Five-Year Plan for 2024–2029.”

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.