Five-Year Plans of Bhutan

The Five Year Plans of Bhutan are a series of national economic development plans created by the government of Bhutan since 1961.

The government of Bhutan has played a pervasive role in its economy and development. Since 1961 the economy has been guided through development plans, which the Development Secretariat and later the Planning Commission directed, subject to the National Assembly's approval. In the World Bank's 1989 appraisal, "Coming late to the development scene, Bhutan was eager to avoid mistakes committed elsewhere. Although strongly dependent on foreign aid, it was determined to follow its own set of priorities, keep public finance on an even keel, build up a well trained but lean bureaucracy, and prevent environmental damage from overexploitation of the forests or uncontrolled growth of tourism." To help avoid further mistakes, the government used traditional social institutions and involved people at the local level in planning and implementation for their own district, subdistrict, or village. "As a result of these factors," said the World Bank, "development in Bhutan has been remarkably free from seeing economic, social, or cultural disruption."

India fully funded the First Development Plan (1961–66). The first plan, for which Nu107.2 million was allocated, and the Second Development Plan (1966–71), for which Nu202.2 million was allocated, focused primarily on developing modern budgeting techniques. According to some foreign observers, the first two plans failed to set priorities and achieve economic-sector integration as might be expected of genuine development planning. The major economic-planning emphasis was on public works, primarily roads; forestry; health care; and education.

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