Bhutan Macroeconomic and Public Finance Policy Note : Hydropower Impact and Public Finance Reforms towards Economic Self-Reliance

Boyreau, Genevieve ; Rama, Martin

World Bank, Washington, DC

关键词: DEFICIT;    MONETARY POLICY;    HOLDING;    BORROWER;    EQUIPMENT;   

RP-ID  :  106327

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Bhutan’s hydropower generation potentialraises the prospect of tremendous development opportunitiesfor the country: fast increasing export revenue, sustainedeconomic growth, and rapid poverty reduction. Driven bydevelopments in the hydropower sector, the country has grownat an average rate of 7 percent per year over the lastdecade, while poverty has declined remarkably fast. Buthydropower development also creates significant challengesas follows: (i) macroeconomic instability; (ii) lack ofself-reliance; and (iii) few private sector jobs. Thispolicy note assesses the opportunities and challengesassociated with hydropower development. It informs apossible strategy supportive of macroeconomic stability,fiscal self-reliance and private sector development. And itargues that fundamental changes in public finance, amountingto a paradigm shift, are central to the implementation ofsuch strategy.