*This article is originally published in the Asia Pacific Policy Observatory May 2024 Report.
The Landlocked Dragon Kingdom
Bhutan, a landlocked nation in south-central Asia, is situated on the eastern slopes of the Himalayas. Historically, Bhutan was an isolated kingdom, but its isolation began to diminish in the latter half of the 20th century, leading to an acceleration of change. During the reign of King Jigme Dorji Wangchuk (1952–72), Bhutan underwent significant governmental reforms, moving away from absolute monarchy in the 1990s towards establishing a multiparty parliamentary democracy in 2008. Bhutan’s economic heart lies in the fertile valleys of the Lesser Himalayas, which are separated by high and intricate ridges. Bhutan is the first country in the world with specific constitutional obligations on its people to protect the environment. Among its requirements: At least 60% of the nation must remain under forest cover at all times. The political center of Bhutan is located in the Paro and Thimphu valleys of the Lesser Himalayan region. Positioned between the Assam-Bengal Plain of India to the south and the Plateau of Tibet of southwestern China to the north, Bhutan holds considerable geopolitical significance.
Political Evolution in Bhutan
Bhutan’s digital journey began in 1999 with the introduction of the Internet and lifting the television ban by King Jigme Singye Wangchuck. This period of modernization coincided with significant political developments, including the adoption of a new constitution in 2005 and the establishment of a democratic constitutional monarchy through the first national election(s).
Bhutan’s government operates under a three-branch system (executive, legislative and judiciary) as outlined in the constitution. The King remains the head of state, while the Prime Minister leads the government. As a young democracy, Bhutan recently held its fourth National Assembly (Lower House) elections in January 2024. Five parties contested the election, with the People’s Democratic Party (PDP), led by Tshering Tobgay, emerging victorious. With no seats in the last National assembly, PDP has secured 30 seats out of 47 seats this time, winning the highest number of seats and reinstating Mr Tobgay as Prime Minister for a second term (2013-2018, 2024-present).
The former ruling party (2018-2023), Druk Nyamrup Tshogpa (DNT), did not gain enough votes in the first round, failing to appear for the final round of the election. The DNT, with its emphasis on good governance, economic self-reliance, and social harmony, focused on creating a just and harmonious society through sustainable socio-economic development. In stark contrast, the PDP advocated for a more democratic and liberal society, prioritizing sustainable development, social justice, and equitable growth, with a strong emphasis on inclusive governance and digital infrastructure development for convenient delivery of public services. PDP’s priority is also reflected in its manifesto which envisions creating full employment (97.5%) in the next five years, with annualized creation of 10,000 jobs, including 2,000 jobs in the digital sector.
PDP’s Manifesto: Digital Bhutan for Globalized Nation
PDP recognizes Information and Communication Technology (ICT) as a cornerstone for economic growth, educational advancement, and business development. Their 2024 manifesto, “13th Plan Plus 13 Pledges” outlines key initiatives to bridge the digital divide and propel Bhutan into a globally connected nation.
Here’s a breakdown of their key ICT proposals:
- Affordability: PDP pledges to significantly reduce data charges, aiming to match competitive rates in neighboring India.
- Nationwide Connectivity: They plan to ensure consistent, high-speed Internet access across all administrative levels, from Dzongkhags (districts) to remote villages. This includes key institutions like government offices and schools.
- Universal Access: PDP aims to eliminate connectivity gaps, ensuring no village faces weak or disrupted Internet service.
- Bridging the Rural Divide: They propose incentivizing cable operators to extend services to remote locations, promoting broader access to cable TV.
- Education Transformation: Equipping schools with high-speed Internet and smart classrooms will enhance ICT-enabled teaching and learning.
- FDI for Growth: PDP aims to attract Foreign Direct Investment (FDI) specifically for small and medium-sized businesses in the agriculture and ICT sectors.
These initiatives demonstrate PDP’s commitment to fostering a digitally empowered Bhutan, positioned to compete and collaborate on the global stage.
Advancements in Bhutan’s Digital Transformation
Bhutan embarked on a digital transformation journey in 2008 with the aim of revamping its public service delivery system. To achieve this, the newly elected government conducted the Improving Public Service Delivery System (IPSDS) exercise, which later merged with the Accelerating Bhutan Social Economic Development (ABSD) initiative. This collaboration led to the creation of a Government to Citizen (G2C) program and the establishment of a dedicated G2C Project Office. With international support, Bhutan transitioned from fragmented agency services to a centralized Citizen Services Portal, offering a one-stop shop for citizens, businesses, and government entities. The portal’s user experience is constantly improving, with recent additions like a chatbox support system and an integrated payment gateway for online transactions.
Bhutan’s citizens can now access government services conveniently online, reducing the need for in-person visits. The government’s national fiber optic backbone, coupled with a high mobile penetration rate exceeding 100%, and a skilled IT workforce provides the foundation for expanded access to digital services nationwide. By streamlining services and prioritizing digital initiatives, Bhutan has achieved significant progress in several areas including ‘Accessibility’ as measured by the ITU’s Digital Readiness Index (DRI). Bhutan’s DRI for 2023 is categorized as “Emerging,” a marked improvement from its previous classification in the “Low” category. This shift reflects Bhutan’s commitment to digitalization, which is evident from the PDP’s manifesto, and is seen as a key driver for improving the economy, education, businesses, and all facets of people’s lives.
Bhutan’s Evolving ICT Landscape: Policies and Regulations
Bhutan’s approach to ICT development is guided by the principles of Gross National Happiness (GNH), a measurement adopted by the government since 2008 that emphasizes social and economic well-being alongside technological advancement. The key ICT policies are driven by the Ministry of Information and Communication (MOIC) which has been replaced by the respective ICT division(s) created under different ministries including the Government Technology Agency. A summarized version of various ICT policies is mentioned below:
Bhutan Telecommunications and Broadband Policy
The Bhutan Telecommunications and Broadband policy was also developed during PDP’s first term, due to the increasing use of Mobile and Internet services and technological convergence. It is replaced by the Bhutan ICT Policy and Strategy (BIPS) 2009 to address the sector’s fast-changing nature, particularly in telecommunications and broadband. This policy outlines a multi-pronged approach to achieve “connectivity for all” by encouraging investment in telecommunications infrastructure development and fostering competition among service providers. Additionally, it aims to establish a regulatory framework that promotes fair competition, protects consumer rights, and ensures affordable access to broadband services.
Bhutan ICT Roadmap
The then-MOIC, with assistance from the World Bank in May 2015, initiated a review of the 2011 Bhutan ICT Roadmap, during PDP’s first term. Building upon the initial roadmap established in 2011, the revised version in 2015 recognizes the transformative potential of ICT in promoting good governance, fostering a shared national consciousness, and driving sustainable economic development. The roadmap outlines initiatives to expand broadband infrastructure, particularly in rural areas, and promote digital literacy programs to equip citizens with the necessary skills to navigate the digital world effectively. By harnessing the power of ICT, the roadmap envisions a knowledge-based society where information is readily accessible, empowering citizens to actively participate in the country’s development.
Bhutan Information, Communications and Media Act
The Bhutan Information, Communications and Media Act fosters a vibrant and dynamic ICT and media sector that contributes to Bhutan’s GNH objectives by promoting technological neutrality. It was enacted during PDP’s first term, to ensure a level playing field for different technologies to compete and flourish. It also encourages innovation by fostering the development and adoption of new technologies and applications. To oversee the sector’s development in a fair, transparent, and accountable manner, the act establishes the Bhutan Infocomm and Media Authority (BICMA) as an independent regulatory body.
e-Governance Policy for the Royal Government of Bhutan
The government has initiated several ICT initiatives to improve public service delivery, but they are often implemented in isolation, leading to duplication of effort and resource wastage. To this effect, the Government approved the e-Governance Policy which aims to iron out the irregularities in effectively delivering public services to its citizens to ensure interoperability, efficiency, and user-friendliness.
Digital Identity Act
The Digital Identity Act of Bhutan 2023, enacted under DNT’s first term, is a significant legislation aimed at revolutionizing the country’s digital landscape. This act establishes a secure National Digital Identity (NDI) system, empowering citizens with easier access to online services and fostering digital inclusivity. The NDI system is expected to streamline access to government services, social programs, and financial transactions, potentially unlocking economic growth and enhancing citizens’ experiences in the digital age. Additionally, the Act establishes a legal framework for digital transactions, ensuring trust and security in online interactions. However, some challenges remain, such as gaining judicial acceptance of digital documents, which will be crucial for the NDI’s full impact.
Child Online Protection Guidelines
During PDP’s current tenure, the Bhutan Computer Incident Response Team (BtCIRT) collaborated with ITU and UNICEF Bhutan to adopt the ITU’s COP guidelines 2020 to redress existing gaps in the COP efforts in Bhutan. These guidelines outline measures to safeguard children’s rights and well-being in the digital space and define responsibilities for parents, educators, policymakers, and industry representatives in creating a safer online environment for children. The guidelines further went on to address key issues such as cyberbullying, online harassment, and exposure to inappropriate content.
It is pertinent to note that under PDP’s leadership, Bhutan witnessed the formulation of its key ICT policies. This showcases their commitment to bridging the digital divide with a focus on providing nationwide connectivity and universal access thereby, ensuring a secure digital environment.
Digital Drukyul Flagship Program
During the 14th convocation of the Royal University of Bhutan in May 2018, His Majesty Jigme Khesar Namgyel Wangchuck voiced his apprehensions regarding the rapid advancements in technology and their potential to leave Bhutan behind. He emphasized the importance of embracing and harnessing technology, cautioning against the consequences of failing to do so. In line with the King’s wishes, the then MOIC launched the “Digital Drukyul” flagship program in 2019 as part of their 12th Five-year plan. This ambitious initiative aims to leverage ICT for seamless online government services, ensuring equitable citizen access regardless of location. The key objective includes digital inclusion, technology adoption, and capacity development, among others.
Since its inception, the said program has been able to connect 1,578 government agencies and institutes with the Fibre Optic Government Network as well as train 6,039 Bhutanese through the ICT Capacity Building Project in addition to around 50 small and cottage industry entrepreneurs. Further, the program encompasses several key projects, some of the significant ones are as follows:
- National Digital Identity (NDI): Launched in 2023, the NDI provides a unique digital identity for citizens, allowing secure online authentication and transactions. Unlike traditional systems, NDI does not collect or store user information, ensuring robust data protection.
- e-Patient Information System (e-PIS): Launched in April 2023, e-PIS creates a digital health record system. The e-PIS data can be used for health analytics, informing policy decisions and potentially improving overall health outcomes.
- Bhutan Integrated Tax System (BITS): This project aims to digitize the Goods and Services Tax (GST) system, streamlining registration, payments, and refunds. A fully functional BITS will improve tax data collection, enabling better risk management and more efficient tax administration.
This Program represents a significant step towards a more digitally connected and efficient Bhutan. Its focus is on user-centricity, data privacy, and cutting-edge technologies thereby, positioning Bhutan as a leader in innovative governance practices. In November 2022, while answering a question during the National Assembly, Karma Donnen Wangdi, the then-InfoComm Minister, reported that 72% of the flagship Digital Drukyul Program is complete, with the Integrated Citizen Service project reaching 86% completion. Progress on other key projects was also well on track. However, Minister Wangdi expressed concern that BITS may not be completed within the DNT tenure. The said system was supposed to be effective from July 1, 2022, but the audit pointed out certain deficiencies in project planning, capacity assessment of consultants, and monitoring and evaluation as key reasons for the failure to implement to date. Lastly, certain shortcomings such as frequent power outages, unreliable Internet services, shortage of computers, and lack of budget, pose significant challenges to this Program.
Bhutan’s Cybersecurity Landscape
Bhutan’s cyber landscape is constantly changing and becoming unpredictable as more people, governments, devices, systems, and networks are getting interconnected.
In Bhutan, the primary law for cybersecurity and ICT is the ICM Act. This act covers online and offline privacy, data protection, and cybersecurity while outlining the penalties for computer crimes. However, the Act might not specify penalties for all cyber offenses. In such cases, other laws come into play such as the Penal Code (Amendment) Act of Bhutan 2011. Furthermore, investigations into cybercrimes rely on a combination of laws besides the ICM Act which include the Civil and Criminal Procedure Code (Amendment) Act of Bhutan, 2011, and the Evidence Act of 2005.
Bhutan’s first National Cybersecurity Strategy (NCS) began in 2012 with a readiness assessment conducted by ITU to measure not only the cybersecurity maturity level of the Kingdom of Bhutan but also its cyber threat landscape. This development led to the establishment of the BtCIRT in 2016. After several issues, the first version of the NCS was finalized in October 2020, consequently leading to the formation of three working groups.
The legal group will assess cybersecurity legislation, the Child Online Protection group will develop guidelines, and the Technical group will develop relevant security requirements and guidelines. All activities will be monitored monthly by BtCIRT. However, due to the scarcity of technical human resources and capacity, the BtCIRT might not perform properly in incident reports and handling as well as enhancing knowledge sharing.
While developing NCS’s first draft, policymakers faced various challenges such as low cybersecurity awareness, management misunderstanding, and stakeholder engagement among others. However, to address them, the Joint Sitting of the Parliament called for better cybersecurity by strengthening the institutional and regulatory framework. To this effect, the Joint Sitting adopted all five recommendations on the preparedness for cybersecurity unanimously. The recommendations include establishing coordinating leadership, providing strategic direction, and empowering related agencies for cybersecurity while implementing the draft National Cybersecurity Strategy with an implementation plan, budget, monitoring, and evaluation framework. Presenting the Performance Audit Report on the Preparedness for Cybersecurity from 2016 to 2022, the Chairperson of the Public Accounts Committee (PAC), Gyambo Tshering assessed the government’s efforts to ensure a safe, secure, and resilient cyberspace in Bhutan. The House recommended allocating adequate budget and legal officers to effectively create a legal framework, as presently the agency is looked after by enforcement agencies and regulators as well as creating the country’s own data system.
It is pertinent to note here that the PDP manifesto is silent on all the aspects related to cybersecurity, whereas DNT, places importance on protecting critical information infrastructure from physical and cyber threats with a probable outcome of enhancing the cybersecurity maturity index to high levels. Similarly, there is no specific mandate for Artificial Intelligence (AI) in the PDP manifesto whereas the DNT’s manifesto talks about introducing new technology in the market to enhance productivity and claims to add 1,000 jobs in the digital economy annually by 2024 to increase the share of the digital economy from 1% to 10% of the GDP by 2029. With the PDP taking over as the ruling party and the DNT not having a seat in the National Assembly, it raises further uncertainty about the execution of the National Cybersecurity Strategy.
Deepfakes
Bhutan’s digital landscape is confronting a new and concerning challenge: the proliferation of deepfakes. These AI-generated manipulated videos are raising significant concerns regarding consent, content authenticity, and the ethical development of AI. Recent incidents have underscored these issues indicating an unsafe digital environment evident with a recent controversy sparked by a local AI startup, NoMindBhutan, which created deepfakes of prominent figures without their consent. Additionally, a Bhutanese woman residing abroad faced emotional distress when her image was used in deepfake pornography. Despite seeking help from authorities, her options for recourse were limited.
These incidents highlight emerging issues in Bhutan’s digital landscape. The ease with which deepfakes can blur the lines between real and fabricated content, demands greater skepticism from online audiences. Furthermore, existing legal frameworks struggle to adequately address deepfake-related crimes, leaving victims vulnerable and without discernible avenues for justice. The psychological impact on victims can be severe, underscoring the urgent need for robust support mechanisms.
To address this growing threat, civil society organizations are calling for the promotion of media literacy and AI education to empower citizens to navigate the digital world safely. Law enforcement agencies also need to be better equipped to identify and handle deepfake crimes. Additionally, clear legal frameworks are also necessary to deter the misuse of deepfake technology and protect individuals from the harms associated with its proliferation.
Bhutan’s Digital Transformation: Progress Amidst Challenges
While Bhutan has made significant strides in digital transformation, several hurdles remain to be addressed. Here’s a breakdown of the key challenges:
- Resource Constraints: Securing funding for ICT development projects is a challenge for a small developing nation. Maintaining existing projects and adapting to new technologies requires ongoing investment in research and development (R&D) and skilled personnel.
- Infrastructure and Connectivity: Bhutan struggles with slow Internet speeds and frequent outages, hindering service delivery and technology adoption.
- Human Capital: A shortage of skilled ICT professionals, particularly with recent talent outflows, impedes progress in digital transformation initiatives.
- Digital Divide: Limited digital literacy among citizens restricts their ability to fully utilize digital technologies. Bridging this gap is crucial for inclusive participation in the digital economy. Bhutan’s Digital Literacy Rate (49%) highlights the need for innovative training programs.
- Cybersecurity Risks: The expanding digital ecosystem creates vulnerabilities such as data breaches and cyberattacks. A comprehensive strategy involving all stakeholders (government, businesses, individuals) is needed to address these threats. The ongoing efforts by GovTech to develop data management guidelines and best practices are a positive step toward data protection.
Bhutan’s digital transformation journey is commendable, but navigating these challenges is crucial for sustained progress. Overcoming these hurdles requires a multi-pronged approach. Public-private partnerships can address resource constraints, while strategic investments in fiber optics and alternative technologies can improve connectivity. Investing in training programs and promoting STEM education will create a future generation of tech wizards. Bridging the digital divide means reaching out to communities, translating resources, and finding affordable tech solutions. Finally, strong cybersecurity laws, training programs, and a national strategy are essential to keep everyone safe online. By addressing these challenges, Bhutan can unlock the full potential of digital technologies to achieve a more inclusive, efficient, and prosperous society. The combined efforts of the government, businesses, and citizens will be vital in shaping Bhutan’s digital future. PDP should also prioritize the development of Artificial Intelligence (AI) capabilities to further enhance Bhutan’s digital landscape. This can involve establishing research centers, fostering partnerships with international AI experts, and incorporating AI into existing initiatives.
Lastly, if we analyze the impact of changing regimes on digital policies; it is discernible that most of the ICT-related developments were undertaken during the erstwhile PDP tenure with few of them initiated under the DNT regime. However, for the citizens of Bhutan to have a safe, secure, reliable, resilient, and interoperable Internet, all the stakeholders need to work together to showcase the potential of their model based on GNH, duly recognized in the 21st century as a development model worthy of emulation worldwide.
Written by Ankita Rathi (Edited by Sameer Gahlot)