Bhutan will shed its Least Developed Country (LDC) status and become a Lower Middle-Income Country next year. The graduation entails exclusive access to certain international support measures. However, the transition would also imply a loss of the foreign grant, aid and technical assistance Bhutan currently receives as an LDC. One of the impacts of this transition is expected to be on the Civil Society Organizations (CSOs) who are already expressing concerns about losing their development partners. CSOs mobilize a major chunk of their funds from international donors.
Nazhoen Lamtoen is a donor-driven non-profit organization. The CSO provides aftercare and post-release services for children who have come into conflict with the law. It works towards integrating juveniles back into society. They also provide services for children in difficult circumstances. The CSO fears that 90 per cent of their funding will be affected if their development partners phase out support after Bhutan’s LDC graduation.
“Recently, there is a concern among the CSOs that most of our donor partners are soon phasing out support. So, this is very concerning for all the CSOs regarding sustainability issues as we heavily depend on international donors. So that is one of the biggest challenges that we as a CSO are facing currently,” said Thinley Tobgyel, the Executive Director of Nazhoen Lamtoen.
Similarly, Ability Bhutan Society (ABS) is concerned that 100 per cent of their programme-based activities and 50 per cent of their operation-based activities will be affected if their development partners withdraw support.
Kuenzang N. Tshering, the Executive Director of ABS says that as the global economy is reeling from the impact of the COVID-19 pandemic, the development partners might back out while others would provide irregular and reduced support.
He, however, remains optimistic that the CSOs will continue to receive support from international partners regardless of the country’s LDC status.
“One way, I see some kind of challenge we may face because some development partners may wish to withdraw. On the other hand, I also see better prospects in a way, our development partners and donors who have been with us for so long may not immediately withdraw. Perhaps the donors and development partners might like to shift their focus to the CSOs. That is my expectation. The way things are moving, the way the donor agencies and our development partners are talking and interacting indicates that they would like to continue helping Bhutan.”
The story is no different for other CSOs.
Lhak-Sam which works to help people living with HIV says 100 per cent of funds could be affected as a CSO that is completely dependent on partners.
Some new CSOs such as the Bhutan Stroke Foundation dread its sustainability would be more at stake as it is already difficult to garner funding from development partners even today.
The Bhutan Kidney Foundation which is not fully dependent on the development partners says 30 per cent of its funding will be affected if its partners withdraw their support.
Meanwhile, the chairperson of the Bhutan Civil Society Network believes that while the foreign assistance grant for the government would reduce, the transition might be an opportunity for CSOs to explore innovative solutions to harness international support.
“There will not be a particular thematic group that will benefit. I think the benefit will be overall. Now each CSOs have to strategize and explore how to get support from donor agencies and development partners,” said Dr Rinzin Rinzin, the Chairperson of the Bhutan Civil Society Network.
Currently, there are 54 CSOs in the country. As per a report on resource mobilization for sustainable LDC graduation, between 2010 and 2019, CSOs sourced and spent more than Nu 3bn for the country.
Tashi Yangden
Edited by Phub Gyem