The objective of the Bhutan InvestmentClimate Assessment (ICA) is to evaluate the investmentclimate in Bhutan in all its operational dimensions andpromote policies to strengthen the private sector. This ICAconsists of two volumes. Volume 1 summarizes the mainresults. Volume 2 presents a more detailed analysis of eachof the three main themes of the report: labor productivityand skills, access to finance, and business governmentrelations, and is supplemented by a chapter on the genderdimensions of the investment climate. Volume 2 also includesthe supporting econometric analysis of the enterprise surveydata. The purpose of Volume 2 is to provide additionaldetail on the underlying data and analysis which supportsthe main results summarized in Volume 1. In Volume 2,Chapter 1 sets the Bhutanese context and background,explains what's new in the second Bhutan InvestmentClimate Assessment, and presents the overall findings of the2010 report. Chapter 2 reviews the characteristics of theinvestment climate in Bhutan, including the macroeconomicperspective. Chapter 3 discusses labor productivity andskills and the importance of focusing on high value addedniche industries. Chapter 4 reviews access to finance as aprimary constraint to firms in Bhutan and discusses anapparent access to finance paradox. Chapter 5 reviews thebusiness government enabling environment in Bhutan and theimportance of licensing reform. Chapter 6 discusses thegender dimension of the investment climate in Bhutan.