Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges

The note documents the remarkable progress that Bhutan has made in reducing poverty, sharing prosperity, and improving other measures of well-being. Poverty reduction was helped by improved earnings in the commercial agriculture sector. Moreover, vulnerability has remained high, partly because farmers are exposed to various uninsured risks, including price shocks, but also because the social protection system is weak overall and nonfarm diversification is low. Going forward, it will be important to continue increasing agricultural productivity and creating productive jobs outside of the agriculture sector. Proper prioritization and sequencing of policies may also help in this regard.


World Bank. 2019. Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges (English). Washington, D.C. : World Bank Group.


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