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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 ) in 1981, followed by its membership with (IFC) in 2003 and (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, and . The partnership is articulated in . 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 12^th FYP of the Royal Government of Bhutan. ľ¹ÏÓ°Ôº 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 12^th FYP. Bhutan is one of about 30 Early Adopters for the Human Capital Project (HCP), a global effort to accelerate more and better investments in people for greater equity and economic growth. 

World Bank¡¯s operations are conducted through three channels: IDA credit, grants and trust-funded activities and, Advisory Services and Analytics (ASA). The Royal Government of Bhutan and the World Bank signed its first series of  ($30 million) in April 2018. ($29 million, until 2019) is under implementation with IDA credits. To complement the projects with IDA credits, the World Bank also provides support through more than nine grants / trust-funded activities including: 

• ($8.6 million)
• ($4 million)
• ($8 million)
• ($0.7 million)
• ($1.5 million)

These activities are underpinned by ASAs. ľ¹ÏÓ°Ôº, for example, has conducted an , , , , and . Additionally, as part of World Bank¡¯s engagement with broader stakeholders, National Council of Bhutan, the upper house, and the World Bank organized a three-day workshop on ¡°¡± in May 2018.

For further information, please contact Yoichiro Ishihara (Resident Representative and Senior Country Economist, yishihara@worldbank.org) and Tenzin Lhaden (Operations Officer and Economist, tlhaden@worldbank.org).

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