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 Bhutan is not just a Himalayan kingdom of unmatched natural beauty, cultural richness, and inspiring self-reflection. From the kingdom's uniqueness now arises a set of economic and social questions that are of pressing interest for the entire world. And Bhutan is all set to answer them - one by one.
Bhutan's economy, one of the world's smallest and least developed, is on the road to recovery. The livelihood of this sparse population of roughly 700,000 is based on agriculture and forestry, largely of subsistence farming and animal husbandry. The majority of these agricultural communities are nestled in deep valleys amidst the rugged mountain terrains, which until a few years back fostered the rise of the hardy population.
In recent years, a series of remarkable monarchs began to guide the country toward technological modernization, international trade (notably with neighboring India), and political democracy. What is incredible is the thoughtfulness with which Bhutan is approaching this process of change.
As part of an ambitious effort to transform the remote Himalayan Kingdom into a globalized economy, traditionally insular Bhutan is also pursuing a bold new plan to become an education hub in Asia. Unveiling the plan in April this year, the country looks forward to build an education city with the participation of reputed international institutions.
The education city, Bhutan hopes, will meet its larger national objectives of building a green and sustainable economy, boosting culturally and spiritually sensitive industries, creating a knowledge society, and promoting ‘Brand Bhutan.'
Under the EDP, world class international schools, general education colleges and specialized colleges in the fields of ICT, architecture, engineering, medicine, law, management, and design will be encouraged to open franchise/campuses in the country.
The education city however is only one element of Bhutan's Economic Development Policy. With annual economic growth rates averaging near eight percent in recent years and per capita income reaching nearly $2200, there is a new self-assurance in Bhutan to embark on new initiatives.
Besides education, other priority foreign investments are high end health services, business process outsourcing, high value tourism with low environmental impact, research and development, and consultancy services. Bhutan's new FDI policy offers attractive incentives in relation to repatriation of dividend and capital.
Economists predict that Bhutan can become one of the most developed nations in the world in the next decade provided it works efficiently towards its vulnerability to climate change including the retreat of glaciers and the loss of land cover.
Bhutan has, in the recent years, succeeded in answering the question of how to guide an economy to produce sustainable happiness - combining material well-being with human health, environmental conservation, and psychological and cultural resiliency. With continued resilience, this Land of the Dragon or ‘Shangri-La' can become a role model for other developing nations. 
Huma Iqbal is Assistant Editor, SouthAsia magazine.
Huma Iqbal is Assistant Editor at SouthAsia Magazine. She writes on socio-political and developmental issues of the region.
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