Green Horizons: Decoding Bhutan’s Visionary Green City Initiative

Renée Vincent . #2408 . International Affairs Perspective . 25 June 2024 .

Renée Vincent examines the Gelephu Smart City’s nature and plans, focusing on its potential economic and inter-regional benefits for Bhutan. This innovative urban development could foster trade and investment opportunities across sectors like tourism, agriculture, and technology, while also impacting India, especially Assam. By enhancing connectivity between these regions, the Gelephu Smart City initiative could bolster Bhutan’s economy and strengthen ties with neighboring states, paving the way for a prosperous future.

Introduction

The innovative Gelephu Smart City project in Bhutan integrates sustainable development principles with the advantages of inter-regional integration, attracting significant international attention. Planners conduct a comprehensive evaluation of the socio-economic regional implications for the South Asia region due to its planned location on the border with India. This exploration examines how the Gelephu Smart City project can contribute to Bhutan’s economic recovery in the wake of the Covid-19 pandemic.

Additionally, we are considering its potential to enhance international trade, attract foreign direct investment, and mitigate the ecological impact associated with globalization. While Bhutan promotes green living, the Green City initiative is expected to further contribute to these efforts, especially as environmental degradation and climate change present pressing global concerns.

This commentary explores the Gelephu Smart City and its plans, highlighting the economic and inter-regional benefits it will bring to Bhutan. It discusses how this initiative can positively impact India, particularly Assam, by facilitating the exchange of sustainability practices and enhancing environmental protection.

Bhutan’s Green City Initiative

On the 17th of December, 2023, in commemoration of Bhutan’s 116th National Day, King Jigme Khesar Namgyel Wangchuck declared the establishment of an environmentally conscious and enduring ‘International City’ within a 1,000 square kilometer expanse along Bhutan’s southern frontier with India, with the focal point being the town of Gelephu in Bhutan’s Sarpang district. This innovative Gelephu Smart City project in Bhutan is aimed at integrating sustainable development principles with the advantages of inter-regional integration.

The decision of the Bhutanese government to build a green city along its southern border with Assam exemplifies a progressive and farsighted mindset, emblematic of the country that quantified the concept of happiness. The importance of the project is reflected in the words of the King of Bhutan, Jigme Khesar Namgyel Wangchu, who described it as “an inflection point, a moment in history that is very important for us.”

Bhutan, like many countries, faced economic challenges due to the COVID-19 pandemic. The adverse effects included a rise in national debt, a decline in tourism revenue, and an increase in unemployment leading to the outflow of human capital. In response to these challenges, the country announced the decision of the potential creation of an urban green city. This initiative aims to not only address environmental concerns but also to stimulate economic growth.

The proposed urban green city aims to serve as a catalyst for new markets by boosting investment and stimulating capital infusion. If we implement it successfully, it can significantly enhance Bhutan’s economy and aid its recovery from the economic setbacks caused by the pandemic.

King Wangchu’s plans announce that the ‘International City,’ also called the ‘Gelephu Smart City,’ envisions a harmonious blend of sustainable growth that harnesses the benefits of international trade and urbanization. Importantly, the Green City will serve as a Special Administrative Region (SAR), granting it legal and executive autonomy with favorable economic policies. Bhutan aims to replicate the successful strategy of Macau, a SAR of China, as the Green City project seeks to achieve economic diversification while balancing sustainability goals.

‘Mindfulness City’

In its essence, the objective of the green city is to effectively synchronize economic advancement with environmental protection, allowing only industries dedicated to placing environmental conservation at the forefront. In line, the project plans include zero-emission industries, a ‘mindfulness city,’ and sustainable infrastructure development.

The mindfulness city combines urban architecture with biodiversity protection. It features eleven neighborhoods and paddy fields located alongside rivers to prevent flooding. The city includes parks, railroads, green public space, wildlife corridors meant to protect flora and fauna, and hydroelectric power projects.

Moreover, Bhutan demonstrates its commitment to environmental conservation through its status as a carbon-neutral country, which adds credibility to this project by serving as a positive example of environmental stewardship and sustainable practices. With its rich spiritual heritage, Bhutan embodies the essence of a mindfulness city perfectly.

Economic Implications

The economic ramifications of the project are aimed at leveraging investments and infrastructure development. Bhutan has recently shed its least developed country status, along with its certain special trade privileges.

The World Trade Organization recognizes specific countries as Least Developed Countries (LDC) and grants them preferential treatment through its agreements, which include special and differential treatment provisions. These provisions provide extended timeframes, enhance trading opportunities, and require all WTO members to protect the trade interests of developing countries while facilitating capacity building.

With Bhutan no longer able to access such protection, it can now benefit from the extensive marketing networks, foreign investments, and job opportunities that come with regional economic integration.

Domestically the country is fighting the three evils of unemployment (3.5% in 2023), inflation (4.2% in 2023), and public debt (Nu 279.93 billion), the entire purpose behind the Green City project is to stimulate extensive marketing networks, foreign investments, and job opportunities.

Moreover, green cities are attractive tourist destinations, which works in Bhutan’s favor. In the year 2019, the tourism industry generated $120.00 million billion USD, 4.4% of the Gross National Product. These receipts fell to $84.00 million billion USD in 2020 due to the pandemic. The Green City is expected to draw in more tourists, foster job creation, and safeguard the kingdom’s natural treasures.

Regional Integration with India

As for regional integration, the prior announcement of the Gelephu-Kokrajhar railway link, the first cross-border railway between Bhutan and India has already set the stage for a deeper bilateral relationship between the two countries. The to-be geographically strategic location of the green city is undoubtedly a carefully crafted strategic initiative, with it being heralded for connecting the two regions.

Establishing an economically sustainable city, coupled with strategic avenues for collaboration with India, underscores the enduring significance of India as a key development partner for Bhutan. Notably, the two countries have already collaborated on hydro-electric power projects; the Mangdechhu Hydroelectric project (HEP), the Kurichhu HEP, Tala HEP, and Chuka HEP, and further projects in pipeline include the 1200 MW Punatsangchhu-I, the 1020 MW Punatsangchhu-II and the 600 MW Kholongchhu.

In short, the initiation of the Gelephu-Kokrajhar railway link, along with ongoing hydro-power cooperation and a proposed second rail link, signals that India and Bhutan are fostering positive bilateral relations.

Bhutan’s ambitious plan for a green city significantly enhances regional integration in South Asia, especially with India. This potential manifests in the exchange of ideas around sustainability goals and standards. Guwahati, located in Assam state of India and recognized as one of the country’s greenest cities, actively participates in the Government of India’s Smart City initiative, which aims to transform 100 Indian cities.

Through the Smart City plan, the Guwahati Development Department advocates for strategic investment in watershed management, revitalizes riverfronts, and creates greenways while emphasizing proper sanitation, solid waste treatment infrastructure, and the transformation of stormwater drains.

Given Bhutan’s status as a carbon-neutral country, Assam can draw inspiration from its neighbor to enhance its sustainability efforts. A potential partnership between Bhutan and Assam can exemplify a shared commitment to environmental stewardship and foster a strong urban future while promoting regional integration.

Moreover, the 2030 Agenda for Sustainable Development recognizes that sustainable cities play a crucial role in exchanging cultural principles. It also asserts that these cities act as conduits for successfully achieving the triple bottom line. Bilateral engagement with sustainable cities is expected to foster the exchange of indigenous values, practices, and characteristics.

Bhutan and India should seize this opportunity to strengthen para-diplomacy between Bhutan and Assam. This approach can facilitate a steady flow of ideas, diverse perspectives, and resources, creating a progressive environment that encourages collaboration.

Conclusion

In conclusion, Bhutan’s visionary initiative to build a green city along its southern border with Assam showcases a progressive and farsighted mindset and reflects a commitment to harmonizing economic growth with environmental preservation. By focusing on sustainability and economic diversification, the projects have the potential to significantly contribute to Bhutan’s recovery from the economic setbacks caused by the COVID-19 pandemic.

Further, as Bhutan embarks on this ambitious endeavor, it can foster regional collaboration and exchange ideas, particularly with India’s Smart City initiatives and plans for Guwahati’s transformation. We will see how well Bhutan leverages the geo-political significance of this project to strengthen diplomatic ties, attract international investments, and propel sustainable economic growth.

Overall, Bhutan’s forward-thinking approach positions the Green City project as a catalyst for positive change, symbolizing a harmonious balance between economic development and environmental stewardship.

Ms. Renée Vincent is a Post-Graduate Student at the Department of International Studies in Stella Maris College (Autonomous), Chennai, India.

Views expressed are of the author and do not necessarily reflect the views of the CHSIA.