This Joint Staff Advisory Note focuses on the Poverty Reduction Strategy Paper (PRSP) Progress Report for Bhutan. Bhutan’s PRSP aims to galvanize the poverty reduction efforts of the Royal Government of Bhutan, building on past achievements. It targets an average growth rate of 8¼ percent during 2004/05–2006/07, which is about 1¾ percentage points above that experienced during the Eighth Plan and the first two years of the Ninth Plan. Pushing the economy to this higher growth trajectory will be a challenge; however, some increase in the growth rate can be expected over the medium term.

The overarching objective of Bhutan’s Tenth Five-Year Plan (10FYP)—which is also the Royal Government of Bhutan’s Poverty Reduction Strategy Paper (PRSP)—is to sustain this trajectory and reduce poverty further. Political stability, prudent economic management, and development of the hydropower sector delivered robust economic growth during the 9FYP. Favorable economic performance was underpinned by sound macroeconomic policies. The 10FYP forecasts an average fiscal deficit of about 3 percent of GDP, the same as in the 9FYP and in line with the Royal Government of Bhutan (RGoB)'s strategic fiscal policy goals.

This timely book reviews how South Asia is rising to the challenge of globalization. In particular, how are South Asian countries maximizing the benefits of globalization whilst minimizing its costs? What lessons have these countries learned from the East Asian financial crisis? What actions have they taken at the national, regional, and global level? Some important topics covered in this book include policy reforms and economic integration in South Asia, comparisons between South Asia (mainly India) and China, and economic linkages between South Asia and East Asia including the possibility of an integrated Pan-Asia similar to the European Union. Academics, researchers, students, policymakers and observers of South Asian, and more broadly Asian, economic development and integration will want to read this book.

This Poverty Reduction Strategy Paper for the Kingdom of Lesotho presents a determined plan in pursuance of high and sustainable equity-based economic growth. It contains medium-term objectives and strategies to address the major challenges facing the country. These challenges include employment creation and income generation, and improving quality of and access to education and health services. Lesotho plans to deal boldly with its trading and investment partners by exploiting the opportunities inherent in the process of globalization under such mechanisms as the Africa Growth and Opportunities Act.