Bhutan is a small land locked country with a population of around 6,34,982 persons and area of 38,394sq kilometers. Bhutan has been one of the most isolated nations in the world, but with developments it now has direct international flights, internet, mobile phone networks, and cable television that have given leverage even to the banking facilities in the country. Farmers and people living in rural areas are blessed now as they are able to get immediate access to small loans through mobile banking and group lending schemes. This has enabled a large number of rural populations to start micro and small businesses, finance farm activities, and other income generating projects. The country has balanced modernization with Gross National Happiness as its philosophy. The GNH construct emphasizes on harmony between material well-being and spiritual, emotional and cultural well-being. Preservation of the traditional culture and environment forms the basis of its economy and how Bhutan develops will be guided by them in the future.

 

Agriculture is the primary occupation and is still carried out by over 69% of the population, mainly as a subsistence activity. About 79 percent of the population resides in rural areas.  At $1770, the per capita GNI in Bhutan is among the highest in South Asia. However, rural poverty at 32.7% in Bhutan, remains a serious social and economic issue and the government has poverty alleviation as one of the thrust in its 10^th FYP mainly driven by the MDG. With the switch from Monarchy to Democratic Monarch, Bhutan is at an interesting stage in its history. The economy is opening up and new institutional frameworks are taking shape to enable creation of NGOs, cooperatives, new banks and insurance companies.