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Trade & Economy

Bhutan's development model faces its hardest test yet

Saturday, 6 June 2026, 07:23 · 1 min read

Bhutan (a small Himalayan kingdom long celebrated for its Gross National Happiness philosophy and strictly managed tourism) is pursuing an ambitious economic overhaul, dubbed the "10X" vision, that includes special economic zones, digital assets, and tokenized land — a sharp departure from decades of deliberate, tradition-first gradualism. The shift is driven by mounting pressures: rising youth unemployment, rapid emigration of educated workers, shallow capital markets, and a hydropower export model that leaves the country financially constrained, all of which Prime Minister Tshering Tobgay described in early 2025 as an "existential threat." At the centre of the strategy is the Gelephu Mindfulness City, a major special economic zone near the Indian border championed by King Jigme Khesar Namgyel Wangchuck, but critics warn that innovations such as land tokenization and blockchain-linked visas risk undermining local communities and the very cultural identity that distinguishes Bhutan's development path.

Sources
The DiplomatBhutan’s Development Model Faces Its Hardest Test ↗︎
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