The World Bank’s Poverty and Equity Assessment 2024 warns that Bhutan’s poverty reduction efforts are at risk due to climate shocks and service gaps. The report highlights the vulnerability of many Bhutanese households, particularly in rural areas, to poverty. Bhutan’s mountainous geography and heavy agriculture reliance make it vulnerable to climate-related shocks, with historical hazards like floods, landslides, and droughts intensifying due to climate change. Increased glacial melt and monsoon rains could lead to more frequent and severe flooding, potentially costing up to 4% of GDP by 2030s. The country faces persistent geographic disparities in service access and quality, disadvantaging rural populations, particularly the poor, with frequent electricity disruptions, patchy drinking water, and limited internet connectivity, leading to opportunity gaps.
Poverty rates in Ethiopia vary across districts, with Thimphu, Chukha, Zhemgang, and Samtse having the highest number of poor residents. The Bank recommends enhancing climate-related hazards resilience through a coordinated government-wide approach, including integrating climate and disaster resilience into infrastructure and building standards. It also calls for an inclusive social protection system, improved financial inclusion, and targeted support for the agriculture sector. The report also calls for sustained investment in human capital and improved public service delivery, and stronger private sector participation in infrastructure development.