BHUTAN-DENMARK PARTNERSHIP

The overriding objective of Denmark’s cooperation with Bhutan is to continuing the poverty reduction by promoting sustainable economic growth, environment, urban development and good governance. Additionally, aid is provided under the Mixed Credit Programme, the Public-Private Partnership facility and the Business-to-Business programme.

All Danish assistance is channeled through Bhutan’s Ministry of Finance and thus fully integrated into the national budget. As one of the largest donors, Danish development assistance to Bhutan has contributed to the important changes in the Bhutanese society, including a reduction in the number of people living below the poverty line.

Based on the positive macroeconomic development in Bhutan the Danish aid is expected to gradually phase out after 2013. Bhutan will continue to be a programme country for Danish development assistance in the next few years. The country continues to need external assistance to overcome the development challenges, the demonstrated commitment and capacity of the government, the strong focus on poverty reduction within domestic policies, strong commitment to achieving the Millennium Development Goals and the decisive strive towards democracy.