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The changing face of Bhutan
Nestled deep in the Himalayas, Bhutan has long resisted the temptations of globalization. Not anymore. It is now the venue of the famous cola wars.
Nestled deep in the Himalayas, Bhutan has long resisted the temptations of globalization. Not anymore. It is now the venue of the famous cola wars.
Pepsi is here and Coke is coming," said Foreign Secretary Ugyen Tshering in a recent interview.
The introduction of major soft-drink brands into Bhutan is part of a larger shift as this nation's people watch the simple lifestyle they have long enjoyed come up against the forces of economic growth and globalization.
"We are part of the global economy and we have to learn to deal with it," said Tshering. "But we have to do it a little bit differently and ask if we really need something and if it will make us happier. For example, we need expertise, but maybe not at the expense of national identity." Bhutan is a nation in flux. As more students graduate and look for jobs and as fast economic growth boosts incomes, pressure is building on this Buddhist nation of 657,000 to open up to foreign investment, review its stringent environmental laws and get more tourists into the country.
"They are educating a lot of young people and they want to create jobs for them. ... So they're encouraging some big corporations to come there," said Irfan Khan, vice president corporate affairs of Coca-Cola India, which is a wholly owned subsidiary of Atlanta-based Coca-Cola Co.
Bhutan's new push for foreign investment is especially apparent in the tourism sector, with new hotels planned for the capital Thimphu. One of these is a 10-cottage, 15-room $2.5 million hotel to be 60% owned by Singapore-based Hotel Properties Ltd. and 40% by local partner Tobgyal Dorji.
Bhutan opened its doors to tourism in 1974. But until 1996 the government handled all tourism requests. The arrival of private tour operators, now more than 90, made it possible to link more widely with overseas travel agents, and the number of visitors has grown, with almost 8,000 expected in 2001. Still, the government continues to strictly limit tourism, imposing a $200 minimum daily rate for visitors though that includes food and lodging.
The government also expects the economy to expand by a healthy 5.9% in the fiscal year that started July 1, down only slightly from 6.1% last year. But economic growth may come at the expense of the country's pristine environment.
Bhutan is a predominantly agricultural nation of rich forest and valleys cut by clear mountain streams. Almost 70% of the country is still covered by forest thanks to the government's strict controls on logging. Villagers are allowed 30 trees each for house construction, but those in the booming urban centers have to buy timber at market prices which have been pushed to very high levels due to the controls. As a result, it often takes years to build a house in the cities. Such a shift in policy would be disheartening to many who admire Bhutan's strict environmental standards and lack of materialism, especially in such a poor country - per capita gross domestic product is $656.
In Bhutan's National Human Development Report for 2000, the king was quoted as saying that "gross national happiness is more important than gross national product."
And many Bhutanese agree. Bureau Report
Pepsi is here and Coke is coming," said Foreign Secretary Ugyen Tshering in a recent interview.
The introduction of major soft-drink brands into Bhutan is part of a larger shift as this nation's people watch the simple lifestyle they have long enjoyed come up against the forces of economic growth and globalization.
"We are part of the global economy and we have to learn to deal with it," said Tshering. "But we have to do it a little bit differently and ask if we really need something and if it will make us happier. For example, we need expertise, but maybe not at the expense of national identity." Bhutan is a nation in flux. As more students graduate and look for jobs and as fast economic growth boosts incomes, pressure is building on this Buddhist nation of 657,000 to open up to foreign investment, review its stringent environmental laws and get more tourists into the country.
"They are educating a lot of young people and they want to create jobs for them. ... So they're encouraging some big corporations to come there," said Irfan Khan, vice president corporate affairs of Coca-Cola India, which is a wholly owned subsidiary of Atlanta-based Coca-Cola Co.
Bhutan's new push for foreign investment is especially apparent in the tourism sector, with new hotels planned for the capital Thimphu. One of these is a 10-cottage, 15-room $2.5 million hotel to be 60% owned by Singapore-based Hotel Properties Ltd. and 40% by local partner Tobgyal Dorji.
Bhutan opened its doors to tourism in 1974. But until 1996 the government handled all tourism requests. The arrival of private tour operators, now more than 90, made it possible to link more widely with overseas travel agents, and the number of visitors has grown, with almost 8,000 expected in 2001. Still, the government continues to strictly limit tourism, imposing a $200 minimum daily rate for visitors though that includes food and lodging.
The government also expects the economy to expand by a healthy 5.9% in the fiscal year that started July 1, down only slightly from 6.1% last year. But economic growth may come at the expense of the country's pristine environment.
Bhutan is a predominantly agricultural nation of rich forest and valleys cut by clear mountain streams. Almost 70% of the country is still covered by forest thanks to the government's strict controls on logging. Villagers are allowed 30 trees each for house construction, but those in the booming urban centers have to buy timber at market prices which have been pushed to very high levels due to the controls. As a result, it often takes years to build a house in the cities. Such a shift in policy would be disheartening to many who admire Bhutan's strict environmental standards and lack of materialism, especially in such a poor country - per capita gross domestic product is $656.
In Bhutan's National Human Development Report for 2000, the king was quoted as saying that "gross national happiness is more important than gross national product."
And many Bhutanese agree. Bureau Report