Are Bhutanese becoming richer?

THIMPHU: In a finding that is bound to bring smiles to Bhutan's advocates of gross national happiness, a recent study has shown that the gap between the country's rich and the poor is closing with the number of people living below the poverty line dropping significantly.

The number of Bhutanese living below the national poverty line has dropped from 31.7 percent in 2004 to 23.2 percent of the total population, according to the 2007 Bhutan Living Standard Survey (BLSS) carried out by the National Statistical Bureau.

The national poverty line has been established at a minimum monthly earning of Nu 1,096 per person, with estimated food requirement at Nu 688 and non-food requirement of Nu 408. Previously, the poverty line put the minimum monthly earning at Nu 740 a month.

Poverty in Bhutan, according to bureau officials, was still a rural phenomenon with higher rates found in Zhemgang, Samtse, Mongar, Lhuentse and Samdrup Jongkhar districts.

In rural Bhutan, 30.9 percent fall below the poverty line compared to 1.7 in the urban areas. "The gap between the rich and the poor is also closing, though not significantly," an official said.

The survey, which focused solely on poverty analysis, puts the number of people below the poverty line at 146,100 out of an extrapolated population figure of 630,000.

The NSB estimates the population in 2007 at 658,888, a projection based on the 2005s National Housing and Population census, which put the resident population at 634,982.

However, an NSB official said the drop in the percentage was not drastic and attributed the decline to wider coverage by the survey and an increased sample items of food products.

"When sample items are less, the consumption report from the survey will also be less and more people will show below the poverty level," said the official.

Food sample items were increased from 83 in the last survey in 2003 to 118 in 2007.

The survey also estimates Bhutan's sex ratio at 96 males for every 100 females, literacy rate at 56 percent, with capital Thimphu having the highest of 72 percent.

It also estimates the net enrollment rate at primary level to be 82 percent, with 23 percent, 19 percent and 11 percent at lower, middle and higher secondary levels.
      
Bhutan's unemployment rate has also jumped from 3.2 to 3.7 percent, with unemployment rates higher in the age group 15 to 24 years. The labour force participation is estimated at 67.3 percent.

The survey shows that about two-thirds of households own their own dwellings, but only one in five in urban areas own their living spaces.
     
According to the survey, health and public transport are generally given favourable ratings by households surveyed. While a fourth of urban households complain about waiting time in hospitals, rural respondents suggested roads, bridges, electricity, and water supply as their priorities to improve livelihood.

The primary source of income in Bhutan is still farming, according to the survey.