The Kingdom of Bhutan (Bhutan) and the World Bank Group (WBG) have had a long-standing relationship that has grown in recent years with the establishment of the WBG’s Bhutan Country Office in Thimphu in 2011.
Bhutan became the member of the World Bank (International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA)) in 1981, followed by its membership with the International Finance Corporation (IFC) in 2003 and the Multilateral Investment Guarantee Agency (MIGA) in 2014. The Bhutan Country Office is represented by the Resident Representative (Yoichiro Ishihara) under the supervision of the Country Director (Qimiao Fan) for Bangladesh, Bhutan and Nepal based in Bangladesh.
WBG’s partnership with Bhutan has been fully aligned with the country’s development vision articulated in the Constitution, Bhutan Vision 2020 and the 11th five-year plan (FYP). The partnership is articulated in WBG’s Country Partnership Strategy (CPS) for FY2015-2019. The CPS is organized its activities under three results areas: (a) improving fiscal and spending efficiency; (b) increasing private sector growth and competitiveness; and (c) supporting green development.
The Royal Government of Bhutan and the WBG also jointly conducted the Performance and Learning Review (PLR). The PLR assessed the implementation progress of the CPS to date, and based on the assessment, made necessary adjustments to the program for the remaining period of the strategy. The WBG has also started preparations of Systematic Country Diagnostics (SCD) as a basis for the formulation of its next County Partnership Framework (CPF) in alignment to the 12th FYP of the Royal Government of Bhutan. The World Bank has committed to doubling its country allocation to $100 million for Bhutan with more favorable terms between 2017 and 2020. To support Bhutan’s development with the increased availability of IDA financing with better terms, the World Bank has started strategic discussions with the Government to ensure alignment with the government preparations of the 12th FYP.