Interview with the UN Resident Coordinator in Bhutan

During a visit to India, Gaurav Ray, UN Resident Coordinator in Bhutan, spoke to UN News about discussions on UN reform, regional cooperation and the importance of communicating the impact of multilateralism at a time of growing global uncertainty. He also met UN agencies, development partners and embassies based in India that work closely with Bhutan.

India has also been an important partner, contributing significantly to Bhutan’s development and continuing to do so. That is an important aspect of Bhutan’s journey towards graduation and beyond, says Gaurav Ray

Interview with the UN Resident Coordinator in Bhutan, Gaurav Ray

Q) What is the purpose of your visit to India, and what have been your takeaways?

A) The purpose of this visit to India is twofold.

First, we had the visit of the President of the United Nations General Assembly. I came to meet her and to understand how the United Nations is moving forward, particularly in terms of its reform process.

The second reason is linked to our work in Bhutan. Once a year, we organise a development partners’ meeting. As you know, and as viewers may know, the United Nations has a country team in Bhutan. We have six agencies based in Bhutan, and around eight or nine more agencies based in India. This visit gives us an opportunity to interact with them, share Bhutan’s story, and hear their inputs.

It is also an opportunity for United Nations agencies and important partners, including embassies and development agencies based in India, to come together and exchange views.

My key takeaways from this visit are several.

First, the President of the General Assembly had very interesting things to say. One point that stayed with me is that the story of multilateralism is not being portrayed very positively these days, given changes in diplomacy and in the way we are organised. Her honest feedback to us, as Resident Coordinators, was to keep sharing positive stories with people who may have a different perception of the work of the United Nations.

She also emphasised the importance of highlighting how the United Nations functions in the field, and how its work with communities makes a real difference.

From the meetings with United Nations partners, embassies and development agencies, another takeaway for me was the importance of constantly updating our partners about what we are doing in Bhutan.

Bhutan is a very small country, located geopolitically between two major countries, China and India. So it is important to ensure that Bhutan is not forgotten, and that the valuable work being done by the United Nations is communicated consistently.

The second key point is self-reflection: how can we remain relevant in Bhutan, and what is the added value of the United Nations? These are my main takeaways from this visit.

Q) Bhutan recently graduated from Least Developed Country status. How would you describe this development journey, and what made it possible?

A) It is remarkable, I think, the way Bhutan has developed. If you look at Bhutan 50 years ago, there were hardly any roads. People had to find different ways of getting into the country. Bhutan was a closed country. So, in the last 50 to 60 years, its development journey has been remarkable.

Second, Bhutan has had a very good relationship with its neighbourhood. That has been a positive factor as it has graduated from Least Developed Country status and moves towards becoming a higher-income country. It is well on track in doing that, and it has had good partners along the way, including the United Nations. We have a very strong relationship with Bhutan, and there is great acceptance of the United Nations’ contribution and support.

India has also been an important partner, contributing significantly to Bhutan’s development and continuing to do so. That is an important aspect of Bhutan’s journey towards graduation and beyond.

Another very important factor is that Bhutan is a carbon-neutral country — in fact, it is carbon-negative. To maintain that, it is written into the Constitution that 60 per cent of Bhutan’s land must remain under forest cover. Right now, forest cover stands at around 70 per cent, so Bhutan is well beyond that requirement.

In that sense, Bhutan’s journey is very unique.

Q) Recent tensions around the Strait of Hormuz have shown how global energy shocks can affect countries far beyond the region. Has Bhutan felt any impact, especially as a landlocked country?

A) Bhutan faces three big challenges during this crisis.

One is inflation. The prices of commodities have definitely gone up, and if this continues, it will have an impact.

The second is fiscal pressure on the exchequer. Bhutan has subsidised the prices of fuel, including diesel and petrol, and it has to find the money to keep those subsidies going. I am not too sure whether this can be sustained, and if it continues, Bhutan could face a fiscal problem. That is one area we are worried about, and we are watching it very closely.

The third major impact is on tourism. Bhutan is a high-end tourism market, with its policy of high impact, low volume. Tourism is being affected as we speak. So these are the three areas where Bhutan is seeing a direct impact from the consequences of the situation in the Strait of Hormuz.

On the positive side, hydropower has been a major strength in Bhutan’s development journey. It is green, and Bhutan has strong hydropower generation. That is one reason why the fuel crisis is not hitting Bhutan’s economy as badly as it might otherwise have done.

However, the transport sector is the most affected. Bhutan’s high dependence on India for fuel, diesel and petrol is a concern, because if there is a problem in India, it definitely has consequences for Bhutan.

And climate change remains one of the biggest challenges facing the world today.

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