Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges

This note uses data from the Bhutan living standards survey (BLSS) for 2007, 2012, and 2017 to examine trends in poverty reduction and shared prosperity and to assess the drivers of poverty reduction in the last decade. The note documents the remar...

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Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/453601581395382618/Poverty-Vulnerability-and-Welfare-in-Bhutan-Progress-and-Challenges
http://hdl.handle.net/10986/33366
id okr-10986-33366
recordtype oai_dc
spelling okr-10986-333662021-05-25T09:32:52Z Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges World Bank DEMOGRAPHIC AND HEALTH SURVEY POVERTY ASSESSMENT POVERTY REDUCTION SHARED PROSPERITY EQUITY HYDROPOWER EMPLOYMENT JOB CREATION AGRICULTURAL PRODUCTIVITY VULNERABILITY POVERTY MEASUREMENT This note uses data from the Bhutan living standards survey (BLSS) for 2007, 2012, and 2017 to examine trends in poverty reduction and shared prosperity and to assess the drivers of poverty reduction in the last decade. The note documents the remarkable progress that Bhutan has made in reducing poverty, sharing prosperity, and improving other measures of well-being. To this end, it first establishes a poverty trend that is measured in a consistent manner over time. The resulting poverty trend deviates from official poverty rates for mainly two reasons: (a) the consumption aggregate is being measured in a consistent way over time, resulting in a different distribution of consumption in each survey year; and (b) the 3.20 dollars World Bank poverty line for lower middle-income countries is used as the cut-off to define poverty. Poverty reduction was helped by improved earnings in the commercial agriculture sector. Moreover, vulnerability has remained high, partly because farmers are exposed to various uninsured risks, including price shocks, but also because the social protection system is weak overall and nonfarm diversification is low. Going forward, it will be important to continue increasing agricultural productivity and creating productive jobs outside of the agriculture sector. Proper prioritization and sequencing of policies may also help in this regard. 2020-02-21T16:18:48Z 2020-02-21T16:18:48Z 2019 Report http://documents.worldbank.org/curated/en/453601581395382618/Poverty-Vulnerability-and-Welfare-in-Bhutan-Progress-and-Challenges http://hdl.handle.net/10986/33366 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Poverty Assessment South Asia Bhutan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic DEMOGRAPHIC AND HEALTH SURVEY
POVERTY ASSESSMENT
POVERTY REDUCTION
SHARED PROSPERITY
EQUITY
HYDROPOWER
EMPLOYMENT
JOB CREATION
AGRICULTURAL PRODUCTIVITY
VULNERABILITY
POVERTY MEASUREMENT
spellingShingle DEMOGRAPHIC AND HEALTH SURVEY
POVERTY ASSESSMENT
POVERTY REDUCTION
SHARED PROSPERITY
EQUITY
HYDROPOWER
EMPLOYMENT
JOB CREATION
AGRICULTURAL PRODUCTIVITY
VULNERABILITY
POVERTY MEASUREMENT
World Bank
Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges
geographic_facet South Asia
Bhutan
description This note uses data from the Bhutan living standards survey (BLSS) for 2007, 2012, and 2017 to examine trends in poverty reduction and shared prosperity and to assess the drivers of poverty reduction in the last decade. The note documents the remarkable progress that Bhutan has made in reducing poverty, sharing prosperity, and improving other measures of well-being. To this end, it first establishes a poverty trend that is measured in a consistent manner over time. The resulting poverty trend deviates from official poverty rates for mainly two reasons: (a) the consumption aggregate is being measured in a consistent way over time, resulting in a different distribution of consumption in each survey year; and (b) the 3.20 dollars World Bank poverty line for lower middle-income countries is used as the cut-off to define poverty. Poverty reduction was helped by improved earnings in the commercial agriculture sector. Moreover, vulnerability has remained high, partly because farmers are exposed to various uninsured risks, including price shocks, but also because the social protection system is weak overall and nonfarm diversification is low. Going forward, it will be important to continue increasing agricultural productivity and creating productive jobs outside of the agriculture sector. Proper prioritization and sequencing of policies may also help in this regard.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges
title_short Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges
title_full Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges
title_fullStr Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges
title_full_unstemmed Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges
title_sort poverty, vulnerability, and welfare in bhutan : progress and challenges
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/453601581395382618/Poverty-Vulnerability-and-Welfare-in-Bhutan-Progress-and-Challenges
http://hdl.handle.net/10986/33366
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