2002年-世界发展银行全球_Bhutan___Private_Sector_Survey_173页_11mb

Summary of Bhutan Private Sector Survey

Core Content

This document is a comprehensive report on the Bhutan Private Sector Survey, conducted in June 2002. It provides an overview of the state of Bhutan's private sector, its growth, structure, and challenges, with a focus on four key industries: Agroprocessing, Wood-Based Industries, Tourism, and Information Technology. The survey was undertaken in collaboration with the Ministry of Trade and Industry (MTI), Bhutan Chamber of Commerce and Industry (BCCI), World Bank, and UNDP. The report also outlines fiscal year, currency equivalents, and key abbreviations and acronyms used throughout the document.

Main Views

1. Overview of the Private Sector

• Bhutan's private sector is small, new, and underdeveloped.
• It has grown significantly since the 1960s, driven by the development of hydro-power, urbanization, and infrastructure.
• The sector is dominated by a small number of medium-sized companies, with the majority being small firms employing fewer than 10 workers.
• Approximately 85% of all firms are cottage or mini enterprises with less than $100,000 in invested capital.
• The largest firm employs less than 540 workers, highlighting the sector's limited scale.

2. Employment Trends

• Formal sector employment is estimated at 60,000, with 22,000 in the public sector and 38,000 in the private sector.
• Non-nationals make up 50% of the formal sector workforce.
• The government is saturated with public sector employment, so private sector absorption of school leavers is becoming critical.
• By 2010, it is projected that 90,000 school leavers and graduates will enter the workforce, creating a significant challenge for the private sector.

3. Advantages and Disadvantages

Advantages:

• Access to the Indian market is relatively free, offering a large consumer base.
• Cheap labor from India provides a cost advantage in labor-intensive production.
• Stable labor relations with no issues of disruptive union activity or strikes.
• Flexible labor regulations allow companies to hire and fire with ease.
• Low electricity prices (one-half to one-fifth of those in neighboring countries) support power-intensive industries.
• Political stability and a corruption-free government are major strengths.

Disadvantages:

• Lack of entrepreneurial talent due to the newness of the private sector.
• Geographic remoteness and landlocked status limit access to global markets.
• Small domestic market (around 750,000 people) is insufficient to support growth.
• Low productivity in firms due to inexperienced management, outdated technology, and unskilled labor.
• Limited financial services and high costs for basic financial products.
• Transportation challenges, especially in remote areas, increase operational costs.
• Restrictive trade policies and absence of FDI limit market diversification and growth.

4. Sector-Specific Conclusions

Agroprocessing

• Agriculture contributes 35% to GDP, but only 3% of output is processed for commercial use.
• Fruit and vegetable processing is the dominant subsector, valued at US$3 million.
• Imported produce is increasing due to urbanization and changing consumer preferences.
• Constraints include low productivity, high transportation costs, and lack of branding.
• Recommendations include improving raw material supply, value addition, and management skills.

Wood-Based Industry

• Forestry contributes 11% to GDP and provides 25,000 jobs.
• Wood-based industries (e.g., sawmills, furniture) employ no more than 2,000 individuals.
• Low productivity and lack of economies of scale are major issues.
• Government policies such as export bans have pushed firms to move downstream.
• Constraints include inadequate access to timber types, high transportation costs, and limited marketing skills.
• Recommendations include allowing access to single-species timber, relaxing export bans, and improving management and training.

Tourism

• Tourism has grown 4–36% annually over the past decade.
• 2000 was a record year with 7,559 air arrivals and 13,000 road arrivals, generating US$10.5 million in foreign exchange.
• Tourism is highly seasonal, with hotel occupancy under 20% and low repeat visits.
• Pricing policy is a major constraint, with high tourist fees and government royalties.
• Marketing efforts are weak, and access to Bhutan (especially by air) is limited.
• Recommendations include adjusting pricing policies, improving marketing, enhancing infrastructure, and developing new tourism products.

Information Technology (IT)

• IT usage is limited, with few firms using local area networks and only 15% having Web sites.
• Communication is dominated by e-mail, fax, and telephone, with Internet usage being minimal.
• High connectivity charges, lack of IT professionals, and underdeveloped regulatory systems hinder growth.
• Opportunities include software development and data entry services.
• Recommendations include increasing IT adoption, developing skilled professionals, and establishing appropriate regulations.

Key Information

• Currency: The ngultrum (Nu) is the local currency, with 1 Nu = US$0.02083.
• Fiscal Year: January 1 to December 31.
• Survey Scope: Covered 100 firms across various sectors, identifying three biggest business problems.
• Supporting Entities: Included BCCI, UNDP, World Bank, and private sector firms.
• Recommendations: Emphasize improving infrastructure, developing financial systems, enhancing labor skills, and expanding external linkages.

Conclusion

The private sector in Bhutan is at a nascent stage and requires policy support and sector-specific interventions to grow and absorb the increasing number of educated workers. The report outlines a vision for private sector development, emphasizing the need for investment, innovation, and international competitiveness. It also provides sector-specific recommendations and annexes with detailed data and analyses for further reference.