Recently, during a panel discussion, leading experts and government officials highlighted the country’s digital advancements and the challenges it faces in achieving an inclusive, secure, and resilient digital ecosystem at the Bhutan Innovation Forum.
This transformation is driven by the integration of technology into public services, aligning with Bhutan’s Gross National Happiness (GNH) philosophy. While there have been significant gains in internet accessibility, particularly mobile internet, several challenges remain in ensuring inclusivity and security for all citizens.
With mobile internet now available to 95 percent of the population, digital access has expanded rapidly. This connectivity is a key enabler of Bhutan’s broader ambitions, where the government is focusing on digitizing essential public services. The goal is to improve transparency and streamline operations in sectors such as healthcare, education, and business, thereby improving citizens lives.
Jacques von Beneche, Chief Financial Officer of Druk Holding and Investments (DHI), opened the discussion by emphasizing how Bhutan’s digital transformation is essential to modernizing its economy. He said that digital tools are being used to enhance public services and make them more accessible to all Bhutanese, in line with the country’s GNH values.
This approach, he said, integrates modern technology with Bhutan’s traditional values, creating a sustainable path to development.
Florian Marcus, a digital transformation expert, emphasized the need for citizen-centric digital services. He explained that at the heart of any successful digital transformation is the improvement of state-citizen relations. Digital services should be designed to be simple, transparent, and accessible to all.
He cited an example where digital processes could notify citizens automatically about their pensions without requiring manual applications or navigating complex bureaucratic systems.
“Governments must reduce the friction between citizens and services. The fewer interactions, the better,” Florian Marcus said.
He said that simplifying services not only enhances user experience but also builds trust between the government and its citizens, reinforcing accountability and efficiency.
Tenzing Norbu, Head of Connectivity and Access Policy for Asia Pacific, brought a unique perspective to the panel. Having returned to Bhutan after years abroad, she spoke about how Bhutan’s digital transformation is deeply aligned with the country’s pursuit of GNH and its goal of achieving high-income status by 2034.
“For Bhutan, digital transformation is not just about technology it’s about enabling better lives for its people,” she said.
She explained how technology could create opportunities for higher standards of living, better employment, and a thriving economy. However, she also acknowledged that for Bhutan to fully leverage these opportunities, a people-focused approach is critical. This includes using design-thinking to deliver services that meet citizens’ needs efficiently while eliminating outdated processes like legal stamp requirements for administrative procedures.
She further called for reforms that would streamline services and reduce bureaucratic hurdles, suggesting that new technologies like artificial intelligence, blockchain, and cloud computing could help accelerate Bhutan’s progress.
As Bhutan moves forward in its digital journey, ensuring the security and privacy of its citizens is paramount. Jigme Tenzing, Secretary of Bhutan’s Government Technology Agency, discussed the risks of digital transformation, such as identity theft and data breaches. He outlined how Bhutan is addressing these concerns with its National Digital Identity (NDI) system.
“We have designed the NDI system to safeguard personal information while ensuring that citizens maintain full control over their data,” he said.
He also said that this model significantly reduces the chances of unauthorized access and data leaks, a growing concern in today’s digital world.
While Bhutan has made remarkable progress, the panelists acknowledged that challenges remain. Tenzing Norbu emphasized the importance of building resilience, particularly in response to emerging issues such as cyberbullying, identity theft, and online scams. She urged for greater collaboration between the government, private sector, and civil society to create a safer digital environment.
In addition, the panelists discussed the importance of ensuring that all Bhutanese, regardless of their location or technological literacy, benefit from the digital transformation. This includes making services accessible to those in rural areas and providing digital literacy programs to close the gap between urban and rural populations.
Jigme Tenzing underlined the importance of inclusivity, particularly in a country where a significant portion of the population is engaged in agriculture and may lack access to digital tools. One solution the government is exploring is a guardianship wallet, which allows digitally literate individuals to apply for services on behalf of others, ensuring that no one is left behind in country’s digital journey.
Florian Marcus, who has worked with the Estonian government, highlighted Estonia’s success as a model for Bhutan. He noted similarities between the two countries, particularly their small populations and geographic challenges, making them ideal candidates for efficient, centralized digital systems. Estonia’s experience shows that shared infrastructure and a once-only data policy where citizens provide their data once and it is shared across agencies can streamline services while maintaining security and privacy.
He also emphasized the need for a strong legal framework to support digital transformation, drawing from Estonia’s example where privacy is a fundamental design principle. He advocated for Bhutan to adopt similar policies that allow citizens to track how their data is used, ensuring transparency and accountability in digital services.