Rupee Crisis and implication thereof

Indian Rupee

The current rupee crunch that Bhutan is facing today, as far as I am concerned, was as sure as eggs. It was, in fact, bowed to the inevitable. To me, it was just a matter of how worse would it get and when?

Just have a look around your house and it will tell you how dependent you are to India. I don’t know about yours- almost everything I have in my house is imported from India including the broom behind my door.  The question however is,- is it bad? Not necessarily I would say. United States, for example has everything imported from China. You can hardly find products made in USA in many of the malls there and so is the case with Australia.

Where is the problem then? The problem lies with imbalance of trade and thus payment. Unlike USA and Australia, we are simply importing much more than what we are exporting.  Was that avoidable? Absolutely not! It is only rationale to demonstrate our economic prosperity through increased pattern of consumption. As much as desirable, the rate at which our economy has grown and growing is directly responsible for this crisis and I would neither blame government nor private sector directly.

Had it not been for Bhutan, situation like this could have already resulted into major financial and economic crisis in the region. Latin American Crisis of 1994 and Asian Crisis of 1997 are some of the legendary examples of how currency crisis can trigger major crisis in the economy. 

The first thing any rationale person would do in such a situation is sell Ngultrum or convert whatever Ngultrum you have into other stable currency or buy gold.  Reaction of such nature, if the market is efficient, will distort market equilibrium by increasing supply and decreasing demand for Ngultrum in the economy. This will invariably lead to what analyst would call ‘loss of confidence’ to our Ngultrum.   Thanks to dead and inefficient capital market, absence of foreign exchange market, un-integrated economy and innocent people- we still have confidence in our own Ngultrum.

To be continued....

Why the State should fund Political parties in Bhutan?

As a realist and anti-corruption activist, I dare say- the State should fund Political Parties in Bhutan and here are my Two Cents as to why.

(For my readers outside Bhutan, State funding for political parties has been a controversial issue ever since the ruling party submitted to the Parliament for approval owing to the financial difficulties faced.)

Not considering the existing electoral laws vis-à-vis the governance of the Political Parties in Bhutan and even by the modest and the most conservative standard, Political Parties ought to spend not less than Nu. 3 million annually to stay alive and kicking in the system. And that, invariably, excludes resources needed in R&D Department, which I say is very crucial, if one is to make any difference in the arena of politics.

And, where should this 3 million come from? The Political Parties Rules of the Kingdom of Bhutan-2009 provides for but limits the source of revenue to one-time registration fee, membership fee and voluntary contributions.  If what’s being experienced by the two existing political parties holds any water, this 3 million Ngultrum is hard to come by and it’s increasingly going to be harder with memberships dwindling and no voluntary contribution coming forth. There are also no indications, whatsoever, that people will register with the parties and accordingly contribute to their sustainability in future. And if this be the case, how will Political Parties function?

And, yes of course, we have few elites who can chip in?  But, as much restrictive as this voluntary contribution is (there is ceiling to it as well), it is also a highly risky business. There is a saying that my mother often reminds me of- “MEE ZEY KOEMER GYAL TSAM NA….RANG SEM KIPAI DUE MESHAR”. (You will not have peace of mind….if you have gobbled food from others).  That’s where and when the environment for CORRUPTION becomes conducive.   And if this be the case, how will Political Parties function?

Therefore, it is only proper that the State not only fund but also fund adequately if democracy is not to be undermined in this country.

Off-Party Campaign

In context of political change in the Thunder Dragon Kingdom

Many wake up from their deep but eternal slumber

While some on the pretext of 'responding to nation’s call'

Others calling it their sacred duty

Many for financial freedom

Few for social fame

Like many elsewhere

Some vowed for employment

Others guaranteed national security 

Many promised  better economic prosperity
Few even pledged to protect our pristine environment
A million dollar questions, however is- Is Bhutan changing for better?

Amidst these aspiring politicians
How many are genuine?

How many can deliver?
And yet-how many are crooks? Only a time can reveal and until such time

Lets think of those who thought of what one can do to one’s country and not otherwise.


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Note:This is the poem I wrote in 2007 when Bhutan was frantically preparing for transition from 100 years of Monarchy to Constitutional Democracy.