Source: A. O.
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Introduction
The Royal Government of Bhutan follows the development philosophy of Gross National Happiness (GNH), introduced by the former king, His Majesty Jigme Singye Wangchuk, as a holistic approach that encompasses economic growth and material progress, as well as the emotional security and spiritual progress of the individual. The concept of GNH seeks to balance economic progress with the maintenance of Bhutan's traditional cultural and spiritual values, the improvement of social well-being, preservation of the environment, and the promotion of good governance. Guided by this development philosophy, the Royal Government of Bhutan puts great emphasis on providing electricity to all residents by 2020 and on financing social programmes through revenues from exports of electricity to India. The 9th Five-Year Plan (2002-2007) refers to the energy sector as one of the lead sectors of the national economy. Estimated revenue from hydropower energy exports is to be around at least 30% of total state revenue; and major institutional restructuring in the electricity industry and legal framework is underway.
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In the past, the emphasis was on power generation and grid extension. Today, the power sector programme for rural electrification is gaining momentum. It is geared to meet the aspirations of the rural communities and the Royal Government through electrification by locally generated hydropower and grid-supply extension. Under the 9th Five-Year Plan the Government aims to electrify 15,000 rural households, covering all 20 districts (dzongkhags) of the country. The vision is full electrification of the country by the year 2020. Major relevant national sector institutions are the Planning Commission, the Department of Energy (Ministry of Trade and Industry), the Department of Forestry (Ministry of Agriculture), the Department of Industry (Ministry of Trade and Industry) and the Royal Civil Service Commission.
The research project described below originated in the context of the 9th Five-Year Plan of the Royal Government of Bhutan, and the aims and objectives as elaborated in the Austrian-Bhutanese Energy Sector Programme 2002-2004. Rural electrification is identified by the 9th Five-Year Plan as a vital tool for improving the quality of life and addressing poverty alleviation. However, such an assumption needs to be backed up by facts. In addition to a comprehensive assessment on the impact of Rural Electrification on the rural population conducted by the Asian Development Bank, it was deemed necessary to have an Impact Study to complement and corroborate those findings. The Impact Study was carried out by the Interdisciplinary Research Institute for Development Co-operation (IEZ) of the Johannes Kepler University/Linz under the guidance of the author. The special aspect of the study is that over a period of more than 2 years precisely the same villages, and largely the same households and same individuals have been observed.
Between 2004 and 2005 the Austrian Development Cooperation supported electrification in four dzongkhags or districts (Zhemgang, Samtse, Trashigang and Pema Gatshel). The aim was to connect 262 users (units, households) to the national grid. As reported by Bhutan Power Cooperation and as evaluated by the Impact Study, in fact 266 households (units) were electrified within this project. The Baseline Study was conducted in September/October 2003 and the second phase of the research in March/April 2006. Long-term and short-term impacts of rural electrification were monitored and documented, to give a comprehensive picture of socio-economic changes as well as changes in the daily lives of the local people.
According to the World Energy Council (2008) some two billion people in rural areas of developing countries do not have adequate energy sources to allow fulfilment of the basic human needs of nutrition, warmth and light - let alone the possibility of harnessing energy for productive uses that might allow them to escape from the cycle of poverty. The main objective of this study therefore was to verify the assumption that rural electrification is an especially appropriate tool for improving the quality of life of the rural population in Bhutan. The main question to be answered was: What changes have come about with the introduction of electricity to individual households and to villages, two and a half years after being connected to the grid?
Main Results
The main results of the comprehensive research can be summarized on two different levels or dimensions: The individual approach shows dramatic changes in the daily life of everyone who has experienced the transformation from the 'dark' to the 'light' - not only in terms of practical changes like cooking and heating habits, hygiene and health, spare time, new education facilities etc., but also in terms of changes within the epistemological dimension of thinking about life, anticipating the future, being connected to the outside world (through new media), etc. For the vast majority of those interviewed, electrification has meant a tremendous change in their personal lives and lifestyles. Living in poor rural societies, some had felt 'neglected' before electrification, especially those who had some experience of the 'outside world' (as labour migrants or as visitors to the national capital). In most cases, this feeling of 'forgotten remoteness' has now been replaced by a positive identification with the new conditions of village life after getting connected to the grid.
The societal approach involves two different areas of data interpretation. The socio-cultural impact on the societal level is also tremendous - village life has changed not only individually but also collectively. Electricity empowers communities, resulting in more community activities and strengthening solidarity among members of the community. On the other hand, the socio-economic impact - interpreted from the macro-economic level - is less evident. In the current situation, community economies are too weak to permit investment in new machinery or equipment that could raise agricultural productivity. Very few farmers can afford to buy new electrically powered rice-mills, for instance. As yet, the impact of rural electrification on the local economies cannot be seen directly, in terms of higher family incomes through the use of new techniques, or greater agricultural productivity - only indirectly: Having more spare time enables the villagers to engage in additional income activities like weaving, kitchen gardening, small services, etc. But here it must be borne in mind that electricity is a prerequisite for further investments in the agricultural sector, and that only two years at most had passed since electricity was introduced in these villages. Once the density of monetarization (the actual amount of money circulating in local rural economies) increases, there will be more investments in new machines and technologies to strengthen local agricultural productivity.
Main results on the individual dimension
- Health: Providing poor households with electricity in partial replacement of traditional fuels like firewood, kerosene, dung and agricultural residue reduces indoor pollution and consequent health hazards associated with combustion and traditional fuels. Before getting connected to the grid and before the installation of improved stoves (with chimney) in some households the thick smoke all day long - there was no outlet - created an extremely unhealthy environment. Eye diseases, skin infections, diarrhoea and respiratory problems and (in the south) malaria were very common. With the households connected to the grid and the widespread use of electric kitchen appliances like rice-cookers and electric kettles, this situation has changed dramatically. In 2006, 62.2% of the men surveyed (as against 16.4% in 2003), 54.9% of the women (10.0% in 2003), 81.6% of the young males (29.0% in 2003) and 76.5% of the young females (15.8% in 2003) said that they had had 'no illness within the last 6 months'. The most vulnerable population are females - of all ages - and they were the ones to suffer the most from various health problems before electrification. Since women do most of the kitchen and food-preparation work, they are the first to benefit from the greatly improved hygiene and sanitation situation at home.
- Time availability: Household members are also spared from the drudgery and inconvenience of having to collect firewood for cooking and (partially) heating, leaving more time for more productive activities that can generate additional sources of income, or for spending more leisure time with the family. The most visible and significant effect of electrification on individual time availability is the reduction in hours spent every day on farm chores and collecting fuel-wood: On average, men now spend 1 hour 56 min. less and women 1 h 18 min. less per day on 'farm chores' and 'collection of fuel-wood' than before their households got connected to the grid. For girls, the workload has been also reduced significantly since electrification - from an average of 6 h 36 min. to 5 hours a day.
- Education/Media: Electricity brings new possibilities for education and media use. With the advent of electricity, people have become more exposed to change and new ideas. As also described below, the means of communication are changing, with a 'bigger window' to the outside world - and this is a challenging new situation for the whole of society. Young people read more and also use audio and video media more than the older generation. Among the youth population, there is a significant gender difference: boys watch significantly more TV than girls. Within the adult population, no gender differences were found in TV use. Interestingly, the new media consumption patterns do not create new 'classes' - access to media and the actual use of them do not depend on cash income or business activities. All those surveyed - adults and youth, females and males - say they get 'the best news about their country' through the radio. In 2003, TV ranked last (only nine mentions), but had come up to rank 4 (55 mentions) out of 8 positions in 2006 - behind 'radio', 'local authorities' and 'neighbours'. The importance of TV as a source of information is likely to continue to grow.
The Bhutanese philosophy of 'Gross National Happiness' and the high awareness of the nation's rich cultural heritage provide a sustainable background for appreciating the knowledge and the wisdom of older people, even though their societal role has already changed. Very interestingly, we see that young people below 18 now prefer a 'mixed concept' of education (not only books and formal school learning), although a significantly higher percentage of girls than boys think that by learning from 'old people' they would get better knowledge. Furthermore there seems to be a distinct tendency for young people between 14 and 18 years of age to prefer to establish smaller families than those in which they themselves grew up.
Main results on the societal dimension (socio-cultural and socio-economic changes)
- Sources of energy: In 2003 in all households except one, wood was the main source of energy for cooking and heating, For lightning, kerosene open-wick lamps were used in 75 households (HH); candles (21 HH) and lanterns (19 HH) were also in common use. In 2006 most of the daily cooking - and especially the previously time-consuming cooking of rice - is done by electric rice-cookers (69HH), electric cookers (4 HH) and LPG gas cookers (22 HH). The number of LPG gas cookers has increased significantly - and the costs of purchase are lower than for an electric cooker. The traditional stove is still used for heating purposes - when needed - and for cooking animal fodder and making local ara (liquor).
In 2003, average monthly expenses for fuel-wood were NU 55 per household in winter and NU 36 per household during the summer months, yielding a monthly average of NU 42.3 for the entire year. The use of electricity has reduced the expenses for fuel-wood significantly. In 2006, doing much food preparation and cooking with electrical devices, households spend an average of NU 11.12 (currency exchange rate in 2006: 1 Euro = 52 Ngultrum/NU) in the summer and NU 16.96 in the winter for fuel-wood, which means a monthly average of 13.0%. With an average monthly e-bill of NU 77 and a minimum of NU 35, electrification has not meant a financial burden for most households. This is also the reason why the vast majority of the respondents say that in general their household costs have not increased since getting connected to the grid, whereas the standard of living has increased greatly.
- Socio-economic aspects: Annual cash income as such has increased perceptibly. In 2003, average cash income of household (N = 76) in the target areas was NU 18,317.82; by 2006 this had risen to 19,856.53 (N =94) - however, this was not above the estimated annual rate of inflation. That means that in 2006, households do not have more cash for daily living than in 2003. A macro-economic take-off - in terms of more cash on hand - cannot be observed since electrification in the areas under study.
- Electrical appliances: Adults say they want to buy more electrical items, whereas the young people still seem more interested in clothes and shoes. Girls are significantly more interested in buying books, novels and educational materials than the rest of the sample. Rice-cookers, curry-cookers and electric kettles ('water-boilers') are the most desired electrical appliances.
- Village infrastructure: Satisfaction with the local village infrastructure has increased greatly in all areas studied and in all sub-samples. Most respondents also say that the situation in farming (80.8%) and livestock (70.4%) has become better due to electrification. Asked if the improvement in living conditions is due mainly to electrification, 100% of the youth, 98.9% of the male adults and 89% of the female adults surveyed said 'yes'.
- Business/Investments: Whereas the high degree of satisfaction has remained and even became stronger in the health sector, in the infrastructure of the villages and the farming and livestock situation some disappointment can be observed concerning business opportunities. These definitely have not become better through electrification - due to the lack of funding for business investments. If people had more money, most of them would build a new house. Investments in agriculture (buying land, tractors, machineries, mills etc.) have become more important than before electrification: 19.0% in average (as against only 7.0% in 2003).
- Preferences for village life/Improvement of living standard: One of the most impressive results of the survey is the finding that attitudes to village life have changed completely among the young people. In 2003, 71% of the youth surveyed said they would prefer to live in the town, with only occasional visits to the village: by contrast, in 2006, 66.4% want to stay in the village, with occasional visits to town. The vast majority - 87.15% - of those who would opt for life in the village say that electrification is an important reason for their preference. These findings demonstrate how rural electrification could be a highly efficient strategy for preventing massive migration to towns - especially among the young people. More than half of those who say they would prefer to live in the town belong to households that are clearly better off than the average in our sample. Thus, migration wishes and preferences for village or town life do not depend on the socio-economic status of the individual household, but on satisfaction with one's socio-economic situation.
A full 73.1% of the respondents say that the standard and the quality of living have increased 'very much' since electrification. Slightly more than half of those who say that the standard 'has not increased' or only 'a little bit' live in households with annual cash incomes above the average. In other words, those who have higher incomes are not automatically more satisfied with the current standard of living. Especially for the poorer people, we find that electrification has had a major impact on improving their standard of living.
Further Suggestions
The results of the study verify impressively the assumption that rural electrification is an especially appropriate tool for improving the quality of life of the rural population in Bhutan. Many changes have come about with the introduction of electricity to the households under study - on the individual, socio-cultural and socio-economic levels. The tremendous improvement in public health; in time-savings, allowing additional economic and social activities; greater awareness of the importance of investments in agriculture; greater understanding of the 'world outside' brought by new and more intensive media-consumption patterns - all this has made rural life more attractive, especially to young people.
The impact of electrification on the quality and the standard of living in the rural societies surveyed is quite high, so we can say that rural electrification is indeed an efficient tool for poverty alleviation. As yet, direct economic impacts - in terms of higher cash income and higher macro-economic productivity - are not visible. It will take time and more monetary investment possibilities before a statistically significant increase in economic productivity can be observed in the agriculture-based communities of rural Bhutan. But for such economic improvements, electricity is and will remain the first and the most important precondition. The remarkable results of this comprehensive study should provide the basis for further scientific and scholarly guidance and for evaluations of the impact of electrification on rural societies in Bhutan. It will be important to observe how economic and socio-cultural patterns change after another five, eight or even ten years.
Source: Andreas J. Obrecht (Ed.): Soft Transformation in the Kingdom of Bhutan. Socio-cultural and Technological Perspectives. Böhlau Verlag Wien, Köln, Weimar 2010
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