[{"bbox": [96, 153, 1163, 212], "category": "Text", "text": "digitalisation in education nationwide and the digitalisation of public services to enhance efficiency, efficacy, transparency and accountability"}, {"bbox": [96, 222, 1163, 369], "category": "Text", "text": "The Action will foster **multi-stakeholder sector coordination** with development partners, CSOs and private sector which will further contribute to the realisation of Action objectives. It will strengthen **EU-Bhutan Policy dialogue** and enhance the partnership in multilateral fora. It will contribute to SDG 1 (ending poverty); SDG 5 (gender equality); SDG 8 (Decent work and economic growth); SDG 10 (Reduced inequalities) and SDG 16 (Peace, Justice and Strong Institutions)."}, {"bbox": [85, 434, 324, 467], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 500, 235, 528], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 547, 1134, 663], "category": "Text", "text": "Bhutan, a politically and economically stable country, transitioned peacefully from absolute to constitutional monarchy in 2008. Since then it has experienced decreasing poverty, peaceful democratisation, and implemented policies protecting the environment, all indicating progress on good governance."}, {"bbox": [96, 691, 1134, 894], "category": "Text", "text": "Bhutan's **economy** has rapidly expanded in the past decade, with a GDP per capita of USD 3000 (2020). However it remains heavily dependent on India for its trade balance and revenues from sale of hydroelectric power. As a result of the COVID-19 pandemic, the economy experienced its largest contraction in 2020 with growth estimates as low as -6.3%. Bhutanese public debt has increased to 124.7% (June 2021)¹ of GDP (still considered moderate by the World Bank/IMF), with hydropower debt accounting for 75% of the total external debt. Bhutan is not alone as a country grappling with rising fiscal deficits and debt burdens as a fallout from economic shockwaves induced by the pandemic."}, {"bbox": [96, 922, 1134, 1183], "category": "Text", "text": "Despite the shocks, the **macro-economic situation** remains stable due to the RGoB's timely implementation of fiscal and monetary measures during the pandemic. The Public Finance Management (PFM) reform process remains a priority, and has progressed well under the ongoing PFM programme supported by the EU (EUR 3 Million) and Austrian Development Agency (EUR 1 Million). In addition, the EU-funded South Asia Regional Training and Technical Assistance Centre (SARTTAC) has been working with member countries, including Bhutan, to help identify, monitor, and manage fiscal risks. The work being achieved through PFM reform will complement this Action and EU support for strengthening the fiscal decentralisation process may in the long run have a positive influence on macroeconomic stability."}, {"bbox": [96, 1211, 1134, 1387], "category": "Text", "text": "**Regional disparities** are also evident, with eastern and highland districts registering 35% of the total poor population. These disparities pertain to provision of services, or lack thereof, in health and education between regions and the reduction of economic activities in the most remote areas. This is likely to widen following the COVID-19 pandemic. Bhutan continues to have a low percentage of people using the internet and there is much scope for improvement in digital literacy as well as professional training and opportunities for ICT to create decent jobs."}, {"bbox": [96, 1413, 1134, 1559], "category": "Text", "text": "Despite a favourable institutional and legislative framework, the **gender equality** status of Bhutan shows a mixed picture. Bhutan ranks still poorly (130 out of 156) in the Global Gender Gap Report 2021. Areas where gender inequalities persist are low representation in public and political institutions, unequal participation beyond secondary education—especially in science, technology, engineering and mathematics (STEM) subjects. Labour force participation rate for women stands at 49.6% against 73.6%"}, {"bbox": [85, 1622, 527, 1645], "category": "Footnote", "text": "¹ Public debt was 119.9 (FY 2019/20), World Bank (2021)"}, {"bbox": [1037, 1680, 1143, 1705], "category": "Page-footer", "text": "Page 5 of 39"}]