Economy – Page 3 – Tshering Tobgay

Public policies

March 17, 2010Economy, Government

Several multinational companies, like Tata, Airtel, Lafarge, and Infinity, have shown interest in investing in Bhutan. And others, like Mountain Hazelnut Venture, have already started doing business in our country. So it’s time the government finalized its foreign direct investment policy. But before finalizing the policy, the government should hold thorough consultations with all stakeholders, particularly the private sector, to ensure that they understand the policy and, more importantly, that they commit to supporting it. And once the FDI policy is finalized, it should be made public. Incidentally, the cabinet approved the Economic Development Policy last year. But it…

Mineral development policy

March 15, 2010Economy

According to the DGM director general the draft mineral development policy “… is for the development of the mining sector in a equitable, safe, more value added and environment friendly way.” Good. The draft mineral development policy proposes to allow only “one mining lease to an individual or to a company”. Very good. I’m all for a healthy reduction in the number of mines in our country. But wait a second, what about the Punatshangchu Hydropower Project Authority? Didn’t they recently apply for “three large quarries”? And what about Penden Cement? Surely they operate more than one mine. And…

Doubtful PM

March 6, 2010Economy, Government

More than decade has already passed since the start of Bhutan’s accession process to the WTO. And many of our current ministers have been involved throughout the process. So I find it strange that, after all these years, one of them, the prime minister, is “still unsure” about joining the WTO. What do you think? Should we join or not? Or are you also “still unsure”? Take our poll that asks, “Should Bhutan join the WTO?” Caricature by Bhutan Observer

Flip-flop

February 26, 2010Economy, Government

I’m happy that the Government has revoked its decision to liberalize tourist tariffs. And that it has decided instead to increase the minimum tourist tariff to US$ 250 per night from 2011 onwards. Liberalizing tourist tariffs would have undermined Bhutan’s valuable brand image and affected our economy and society significantly. But I’m alarmed at how the Government changed its decision. Just one meeting with stakeholders and the Prime Minister decides, during that meeting itself, that liberalizing tourist tariffs is not such a good idea. Just a simple show of hands of those present at the meeting, and the PM…

Bhutanese power

February 16, 2010Economy

I was happy to read about DHI’s plans to carry out major investments in power generation, power transmission, construction, information technology, aviation, mining, cement production and telecom in the next four years. These investments will add considerable value to the commercial interests of the Royal Government, while also leading and stimulating private sector growth. Of these investments, which, in total, are estimated to cost DHI about Nu 53 billion, I am most excited about DGPC’s project to start a hydropower construction company. Our country is blessed with perennial, fast flowing rivers perfectly suited to generate environmentally friendly run-of-the-river hydropower.…

Up for adoption?

February 16, 2010Economy

That Ratan Tata has said that he is interested in investing in Bhutan may or may not be good for us. That will depend on how the Government eventually finalizes its foreign direct investment policy. But the Prime Minister, it appears, has already decided that Tata will be good for us. In fact, he’d gone so far as to tell the Chairman of the Tata Group that: “A country like Bhutan would be happy to be adopted by Tata”. And to make certain that Ratan Tata did not miss the Government’s invitation for adoption, all our major newspapers –…

Mass tourism

February 7, 2010Economy

A recent entry, which was basically a reproduction of the opposition party’s Press Release on the Government’s tourism policies, generated a lot of comments. As of now there are 44 comments, the last of which belongs to “10000eyes” asking: OL: do you read all the comments made by the blogger…or you just glance on it? just want to know… Yes, I do read your comments. I read every one of them. And I benefit immensely from your comments, especially those that are critical of and challenge my views. Obviously what’s more important is that other people – concerned citizens…

PRESS RELEASE

January 29, 2010Economy, Media

The Opposition Leader called on the Minister of Economic Affairs, His Excellency Lyonpo Khandu Wangchuk, yesterday to express the Opposition Party’s concerns on the Royal Government’s recent policy decisions on tourism. The Opposition Leader reported that, after studying the Royal Government’s Executive Order of 13 November 2009 and consulting a wide range of people, representing a cross section of society, the Opposition Party has concluded that:
On the Royal Government’s decision to “Roll out of the integrated channel, price and supply policy that liberalizes the minimum package price and mandatory package via tour operator requirement…”

Liberalizing the tourist tariff will undermine the positive brand image that our country has carefully cultivated and enjoyed over the last three decades. Most foreigners, including those who have never visited Bhutan, perceive Bhutan as a high end, exclusive destination. They consistently applaud the existing tariff policy as responsible and sustainable measures that are also in line with the principles of Gross National Happiness. Liberalizing the tourist tariff, even if it actually amounts to increased tourist spending, will harm Bhutan’s brand image.

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Banking on vouchers

January 22, 2010Economy, Villages

B-mobile’s strategy to market their cellular phone services in rural Bhutan is aggressive. In Sombaykha, for instance, where they introduced their services recently, B-mobile had a representative traveling from village to village dishing out free SIM cards and offering recharge vouchers at initial discounted rates. Our farmers were delighted. Everywhere the B-mobile representative went, farmers rushed to welcome him. In addition to giving free SIM cards, B-mobile automatically doubled the value of each farmer’s initial purchase of recharge vouchers, subject to a maximum purchase of Nu 500. This meant that if a farmer was willing spend Nu 500, she’d…

Starry-eyed plan

January 21, 2010Economy

Almost all your comments on “Visiting tourists” expressed concern about the Prime Minister’s executive order to prepare a blueprint to do away with the minimum tourist tariff. The poll asking, “Should the minimum tariff for tourists be removed?” drew a similar response with 82% saying “No!” Thank you for your comments. As promised, I’ll share your views with the government. Today, I wish to draw attention to another blueprint that the Prime Minister has ordered. In the same executive order (of 13 November 2009), the Tourism Council of Bhutan was directed to constitute: A cross sector implementation team consisting…

Gakiling eggs

January 20, 2010Economy, Villages

Guess how much an egg costs in Gakiling? Two ngultrums! Yes, farmers there are willing to sell their eggs for a pittance. And still they still don’t get any buyers. That just shows how little access they have to markets. “Yoed ba chin tsong sa med. May ba chin nyo sa med,” is how Ap Tshering Wangdi had described their predicament a few years ago. But some farmers have now decided to take matters into their own hands: they’ve decided to, collectively, sell their eggs in Thimphu. And, Rinzin, a young farmer, has volunteered to collect the local eggs…

Visiting tourists

January 9, 2010Economy, Government24 Comments

The bedrock of our successes in the tourism sector has been the “low volume, high value” policy. This unique policy has served us exceedingly well ever since the first tourists started visiting our Kingdom in early 1970s. And today, Bhutan is both famous and envied the world over for its cautious tourism policies. This policy has proven itself. We continue to enjoy the rewards of tourism (government revenue, jobs and international attention) without sacrificing our culture, our environment, and our way of life. Equally important, our tourists swear, time and time again, that their experience in Bhutan has been…

Dangerous work

December 29, 2009Economy

On September 9, 2007 a flyover that was being built in Hyderabad collapsed killing two people. The contractor, Gammon India, was charged with negligence. On July 12, 2009 a flyover that was being built in South Delhi collapsed killing six people. The contractor, Gammon India, was held responsible for the accident, and was banned from undertaking metro rail construction for two years. On December 24, 2009 a bridge that was being built in Kota, Rajasthan collapsed killing 28 people. Rescuers continue to search for about 50 workers who are missing since the accident. The contractor? Gammon India, who also…

Making the right connections

December 14, 2009Economy

Here’s why many of us suffered slow internet connections yesterday: Vandals had severed Reliance’s fiber optic cables somewhere between Siliguri and Jaigon. The damaged cables are being replaced, and Reliance has assured Bhutan Telecom that their connections will be restored within an hour. Bhutan Telecom’s total bandwith is currently 110 Mbps. Of this 90 Mpbs is provided by Reliance – 45Mpbs from Reliance London; and, as backup, 45 Mbps from Reliance Hongkong. However, all 90 Mpbs come in through Jaigon along the same route, even if on separate cables. This compromises the Bhutan Telecom’s bandwith backup aspirations. The remaining…

Standing up for sitting fees

December 5, 2009Economy, Government

“Guest”, a frequent commentator, left the following note in my last entry: Please pardon me but I am going to deviate from the topic to register my unhappiness at your support for DHI during the discussions in the Parliament. I cannot believe that a man of your intelligence truly meant what you said. I do not believe that your blind support for DHI stems from your need to show allegiance to our King. I think it is wrong to do so. In fact, you ought to know, more than anyone else, that it would be a great disservice to…