Cooperatives in Bhutan - Status and Scope

Dorji DhradhulSonam WangmoDepartment of Agricultural Marketing and CooperativesMinistry of Agriculture and ForestBhutan

Introduction Historical aspects of Bhutanese

community Agencies involved in pre cooperatives

phase Prospects and Opportunities for

Bhutanese Farmers through ICA, Asia Pacific

Presentation outline:

Bhutan is a land locked country bounded by two gigantic countries – India and China.

Total area – 38,394 sq.km with a total population of 650,000

Socio-economic development policy of country guided by “Gross National Happiness philosophy”

Introduction:

Objective:

Mountains countries with altitude ranging from South to North

72 % covered by forest Agriculture sector contributes to 19% of

GDP Employs 65% of working population,

Industry (7%) and Services (28%)

Cont’d….:

Historical aspects of Bhutanese community: Strong collaboration between farmers Working together in groups to maintain

religious and social institution Concept of FGs not alien to Bhutan However, FGs a vehicle to development

started in Govt. plans and programs only in early nineties.

Involving and promoting people’s

participation at grassroots level through FGs Important role in socio-economic

development On the aspects of poverty in Bhutan, poverty

reduction is the theme of Royal Government in its 10th Five Year Plan (2008 – 2013).

Poverty reductions in Bhutan though cooperatives are viewed not only to contribute to national goals but also immensely contribute to global Millennium Developmental Goals.

Cont’d….:

As of June 2010, a total of 480 RNR based informal group

No rules and regulation in place to formalize the group, hence the informal group

Informal FGs envisioned as precursors towards formation of FGs

Need for legal entities

Cont’d….:

Enactment of Cooperative Act of Bhutan in July 18, 2001

Ministry of Home and Cultural Affairs (MoHCA) is mandated to implement the Act

Not much progress towards development of FGs and Cooperative

Dual custodian –MoHCA &MoAF CAB, 2001 laid foundation for registration

of Coop as legal entity but limited the registration of small and informal FGs

Cont’d….:

Agencies involved in pre coops. phase: Within 10th FYP CAB 2001 amended by 2nd

session of the parliament in Jan 2009 The Cooperative (Amendment) Act of Bhutan

2009 Includes the provision for registration of FGs

and authorizes the MoAF to implement the act

Royal Government has recently instituted a Department of Agriculture Marketing and Cooperatives under Ministry of Agriculture and Forests.

Cooperative Rule and Regulation 2010 launched by MoAF on 23rd June 2010

With dedicated institution and amendment CAB 2009 era not far Bhutan to have its first ever Cooperatives registered.

DAMC is in the process of developing strategy as a master plan for implementing Cooperative Act and Regulation for developing FGs and Cooperatives

Strategies consists of series of road map mainly focusing on (1) Launching the regulation (2) Registering FGs and Cooperatives (3) Coordination and information system (4) Capacity building of all stakeholders

Cont’d….:

First group of FGs and primary cooperatives has been selected for registration in August

This marks a historic moment in Bhutanese developmental process towards Cooperatives movement

First 18 FGs and 5 primary cooperatives will be registered by September 2012

Cont’d….:

Prospects and Opportunities : Cooperative movement is new and nascent in

Bhutan in addition many other factors challenge

Cooperative development in Bhutan Department as facilitating agencies foresee

several opportunities to learn and benefit from ICA. Some of these opportunities and areas for collaboration for support from ICA are the followings:

Cooperatives institutional and organizational capacity development of the Cooperatives

Creation of linkages between Bhutan and the relevant international and regional institutes and agencies (e.g. ICA and ICA Asia Pacific)

Establish a networking on information and knowledge for Cooperatives, especially trading at international levels.

Support in the establishment of the Cooperative Development Fund.

Specifically, we like to request the ICA Asia Pacific to help us in celebrating the International Year of Cooperatives 2012 with technical and

financial assistance.  

Cont’d….:

THANK YOU

TASHI-DELEK