The picturesque Himalayan kingdom of Bhutan is set for a general election with serious economic challenges calling into question the country’s long-standing policy of prioritizing “gross national happiness” over growth.

Both parties in Tuesday’s vote are committed to the constitutional philosophy of a government that measures its success by the “happiness and welfare of the people.”

Some voters are expected to march for days to cast their votes in the landlocked and sparsely populated country, which is similar in size to Switzerland.

Many think primarily of the problems facing the kingdom’s younger generation, with chronic unemployment and the brain drain abroad.

“We don’t need any more new roads or bridges,” 46-year-old farmer Kinley Wangchuk told AFP. “What we really need are more jobs for young people.”

According to the World Bank, Bhutan’s youth unemployment rate stands at 29 percent, while economic growth has stagnated at an average of 1.7 percent over the past five years.

Since the last election, record numbers of young citizens have left abroad in search of better financial and educational opportunities, with Australia the top destination.

According to a local news report, around 15,000 Bhutanese visas were issued there in the 12 months to July last year – more than in the previous six years combined and nearly two percent of the kingdom’s population.

The issue of mass exodus is of central importance to both parties taking part in the election.

Career civil servant Pema Chewang of the Bhutan Tendrel Party (BTP) said the country was losing the “cream of the nation”.

“If this trend continues, we could face a situation of empty villages and a deserted nation,” the 56-year-old added.

His opponent, former prime minister and People’s Democratic Party (PDP) chief Tshering Tobgay, 58, raised the alarm about Bhutan’s “unprecedented economic challenges and mass exodus”.

His party’s manifesto cited government statistics showing that one in eight people “struggles to meet their basic needs for food” and other essential goods.

Economic promise

Tourism, a small part of Bhutan’s economy but a major foreign exchange earner, has yet to recover from disruptions caused by the coronavirus pandemic.

Last year the government cut the significant daily contribution of foreign visitors to ensure the industry remains sustainable and preventative measures are in place ecological damage.

But the number of foreign tourists in 2023 was only about a third of the 316,000 four years earlier.

The previous government pursued several projects to diversify the economy, including a special economic zone on the Indian border and plans to raise funds for a cryptocurrency mining program with a Singapore-based company.

Both parties have pledged a huge increase in investment in hydropower, the country’s main energy source.

The BTP manifesto said installed hydropower capacity was only 10 percent of potential, while the PDP promised the development of steel, cement and other supporting industries that would create much-needed jobs.

According to the World Bank, Bhutan’s mountain valleys and abundant water resources have created “ideal conditions” for the development and export of hydropower to India.

Nearby Nepal signed a lucrative hydropower deal this week to supply 10,000 megawatts over the next decade to energy-hungry India, which relies largely on coal but is taking some preliminary steps toward decarbonization.

Subdued election campaign

Bhutan held elections for the first time in 2008 after political reforms were introduced Bicameral Parliament shortly after the beginning of the reign of the current king, who remains extremely popular.

Election campaigns have always been a low-key affair in the Buddhist-majority country, with strict rules stipulating that election materials can only be posted on public noticeboards.

A November primary narrowed the race to two parties, with both lawmakers from the previous administration and their former opposition eliminated.

The party of former prime minister Lotay Tshering, a doctor known for performing surgeries on weekends to relieve himself of the pressures of office, polled just 13 percent.

Bhutan has around 800,000 inhabitants and lies between the two most populous countries, China and India.

Both neighbors are watching the vote with interest as they have strategically disputed border areas in mind.

A “cooperation agreement” was signed between Bhutan and China in October after talks over their disputed northern border sparked concern in India.

New Delhi has long viewed Bhutan as a buffer state firmly in its power and effectively managed the country’s foreign policy until 2007.