Cause Of Poverty In Bhutan

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According to Rural Poverty Portal (2009) poverty in Bhutan is caused mainly due to nature of the topography. Bhutan has rugged terrain with only 2.93% arable land. The rugged terrain also limits the accessibility of inhabitants to social and health services and marketing and educational facilities adding to higher rate of poverty. Populations are growing rapidly in rural areas but resources and opportunities are limited. Due to high illiteracy rates and lack of trainings, rural people lack entrepreneurial skills and knowledge of technology that they need to improve their living standards. The limited access to credits and financial services, increasing cost of goods and services also aggravate poverty in rural areas. The other cause of poverty is natural calamities.
According to Wangdi (2015) since Bhutan lies in a mountainous region, our ecosystem is very fragile and prone to impact of climate change. Occurrence of flash flood and rising temperature will cause severe damage to our cropland since our agricultural land is located on slopes eventually affecting country’s food security. After 2030, rice yield is expected to decline gradually due to increase concentration of CO2 in the atmosphere. In Bhutan rice yield loss per hectare by 2030 is expected to be 3.2kg, 12.6 kg in 2050 and 22.5kg by 2100. Challinor et al (2009) also found out that crop yields can be reduced due to other impacts of climate change such as variable rainfall and temperature, loss of soil fertility

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