ICT, Law and Sustainable and Equitable Socio-Economic Development in Bhutan

Abstract

This paper aims to analyze the impacts of Information and Communication Technology (ICT) with a good law in achieving sustainable and equitable socio-economic development in Bhutan. The adoption of Information and Communication Technology in Bhutan has given free-hand opportunities to everyone and has boosted growth, expanded opportunities, and improved service delivery, reduced economic isolation, lessened trade barriers, promoted tourism, and improved mobility. It argues that ICT with good policy and regulatory leads in place, having specific technology legal frameworks, and a special agency to monitor ICT promotes participatory, transparent, responsive, and inclusive sustainable and equitable socio-economic developments in the country. The accessibility of ICT creates an open ground for citizens to effectively take social and economic activities at all levels. Therefore, it recommends that the government make its laws and policies more comprehensive and facilitate and accelerate the adoption of ICT and digital literacy to enable conditions for sustainable and equitable socio-economic development in Bhutan. 

Introduction

‘A group of people found themselves at the intersection of many paths, deep in a valley named “Economy”. After a night spent in pursuit of delights other than the knowledge that derived from study, or the Enlightenment that may result from meditation, they looked around and saw many signs pointing in every direction. “Where are we?” asked one. “I’m not quite sure,” said another, “Where did we come from?” And the third: “Where are we going?” “I can’t remember,” said the first, “if I knew where we were coming from, perhaps I could remember where we were going!” And, as in all such stories, because they were wise and thoughtful, they sat down on the ground, took some deep breaths, and tried to figure out together where they had come from, where they were at the moment, and where they wanted to go. To a very real extent, we are them.’ writes Professor Marks Mancall in his essay on GNH Economy. 

Like the rich history about the creation of Bhutan as a nation-state, the same questions can be put forward for deep contemplation when the world is on the verge of the “Fourth Industrial Revolution”. That is, where we have come with respect to the advent of Information and Communication Technology Infrastructures (Hereinafter referred to as “ICT”), the crossroads we are at and map out a path for ICT developments that would create conditions for the “Gross National Happiness”. 

For the purpose of this research, it will specifically touch on the interplay between the impact of ICT, and a comprehensive and overarching law in the “Sustainable and Equitable Socio-Economic Developments'' in Bhutan. The author understands the inextricable links and ties between each pillar, each domain, and its subsequent variables and that they are not standalone indicators for Gross National Happiness (Hereinafter referred to as “GNH”). However, the scope of the research is primarily focused on how ICT impacts sustainable and equitable socio-economic developments notably from the microeconomics perspectives, with modest macroeconomic standpoints when it comes to government interventions, on social transformations brought in the community, and finally the analysis of how laws related to ICT can facilitate a conducive environment for Socio-Economic Development that is sustainable and equitably distributed. The body of knowledge on the impact of ICT and its laws on the pillars of GNH including Sustainable and Equitable Socio-Economic Development is scarce. It would be interesting to explore how the advancement of ICT can achieve Sustainable and Equitable Socio-Economic Development if the infrastructures are developed well and used with some positive regulations. This paper employs the Qualitative Research approach to gather an in-depth understanding of the impacts and experiences of having ICT infrastructures on sustainable and equitable socio-economic developments with the help of literature reviews, a select few case studies and analysis of primary legal resources. 

ICT has boosted growth, expanded opportunities, and improved service delivery, reduced economic isolation, lessened barriers to trade, promoted tourism, and improved mobility. These new developments are giving free-hand opportunities to everyone in Bhutan to pave their own standard of living and well-being. 

Sustainable and Equitable Socio-Economic Development

To have better insights on the subject matter of this research, firstly let us understand the concept of “Sustainable and Equitable Socio-Economic Developments” from the GNH standpoint. Bhutan, like any other country in the world, has initiated its development process through a series of five-year plans trying to envision a self-reliant future based on a premise that economic self-reliance is a hallmark of national sovereignty. To give life to this vision, it was adopted as one of the four pillars of the GNH, “Sustainable and Equitable Socio-Economic Developments”. Socioeconomic development can be simply understood as the transformation of a society with regard to social and economic dimensions. Socio-economic development incorporates public concerns in developing social policy and economic initiatives. The principal goal of socioeconomic development is to create sustained improvement in the well-being and economic standard of living of the individual, groups, family, community, society, and the state at large. 

Sustainability can be defined as the intergenerational equity principle where we have a responsibility to ensure that our comforts do not come at the cost of less opportunities and resources for future generations. The principle of sustainability urges moderation of consumption on the basis of real needs. Equity means that the benefits of development must be equitably distributed across all social settings--at the regional and community levels in the country. The prima facie understanding is such that the socio-economic development must be sustainable and equitably distributed to its people. Sustainable and equitable socio-economic development are both ambiguous terms whose content depends on arrays of national goals or priorities, we set for the kind of society we create.

Information and Communications Technology (ICT) and Laws

Information and Communication Technologies (ICTs) is a general term for Information Technology (IT) that makes communication and information sharing possible through electronic means. Two decades ago, in 1999, Bhutan had its first-ever television broadcast. A Multipurpose Community Telecentre (MCT) was established in Bumthang by the International Telecommunication Union (ITU). The need to “establish multiple telecentres in every Gewog” is stated in the Information and Communications Technology Policy and Strategies of Bhutan 2004. In July 2009, the Government mandated the Ministry of Information and Communication (MoIC) to “establish a community information center in every Gewog''. The government, through the use of ICT, initiated the Public Service Delivery (PSD) and G2C initiative to strengthen and make the delivery of public services fast and efficient. Then in 2012, it launched the first eGovernment ICT Master Plan and revised the e-Gov Master Plan for Bhutan 2015. Today, we have 205 community centers in the country. The MoIC reports 741,999 mobile cellular subscribers in the country and 681,239, 3G and 4G internet subscribers in 2020. With the introduction of ICT Infrastructure, Bhutan needs effective laws and policies in place. Bhutan currently, among others, has a Social Media Policy, Bhutan Information and Communications Technology Policy and Strategies, Revised Bhutan ICT Roadmap, Bhutan e-Government Master Plan 2014, Information, Communications and Media Act of Bhutan 2018, Guidelines on E-Commerce 2019, and other related plans and strategies. 

ICT and its Impact on Socio-Economic Growth

ICT and its Impact on Sustainable and Equitable Economic Development

In the farthest eastern part of the country, in the village of Tsangchuthama (Samdrup Jongkhar), Dorji, a 50 years old man runs a general shop that sells a range of products from every day groceries to internet data and talk-time recharge. You’d see a QR code affixed on the shopping counter for the customers to pay using the banking app. This was not possible a few years back possibly in 2013. If you want to get an internet data pack or a talk-time balance for the phone, Dorji would ask for a phone number and recharge the said amount in real time. 

From the anecdote above, you can imagine how easy it is to have ICT technology to make your life convenient. This story pervades every nook and cranny of Bhutan. You’d see people increasingly accepting payments digitally and getting into all kinds of economic activities. ICT Infrastructures both provided by the government and owned by individuals have given free hand opportunity in various ways. The most self-evident example can be the usage of ICT in the communities to communicate, and its usage in the shops and businesses. Consider, for instance, a person with a large Facebook following who has a beekeeping business. It does not take much to write a post on beekeeping and sell his product on Facebook. This is a notable practice everywhere in Bhutan. Life is much easier when you can take any legal economic activities on Facebook groups and pages, WeChat and WhatsApp. It lifted the living standard of the people that has made livelihood easier. 

According to Wade, today, ICT infrastructures are profoundly transforming the way business is being conducted and they have already disrupted many industries and are even threatening to disrupt many more. This was impossible years ago when only a few affluent people had the capacity to own a good phone with internet access. Now, as noted earlier, 681,239 people have 3G and 4G-connected smartphones. While looking at the ICT infrastructure, looking no further than ownership of smartphones suffice. The opportunity to take any socio-economic activities is available to everyone. The question is how can they use ICT infrastructure like smartphones for employment and pursue a good standard of living. 

The government recognizes that “economic growth is essential to support and nurture the spiritual and social needs of the community.” Further, economic growth should be balanced and equitable so as to prevent wide disparities in income and opportunities, with the benefits of development distributed equally through different income groups and different regions. This will promote “social harmony, stability and unity”. The government in their ‘Revised ICT Roadmap’ recognises ICT as a key enabler for sustainable economic development goals. To achieve this, they have set a goal to cater:  

i) Ubiquitous, Affordable and Reliable ICT Infrastructure

ii) Investment-Friendly Environment

iii) Vibrant and Sustainable ICT Industry

iv) Businesses Leveraging ICT for Competitiveness and Innovation

 The goals listed above are pursuant to the ICT vision of the country to create an “ICT-enabled knowledge society as a foundation for Gross National Happiness”, the Department of Information Technology and Telecom (DITT) under the Ministry of Information and Communication was set up to frame ICT policies, regulations, standards, and legislation, drive innovation, development and adoption of ICTs, promote ICT as an industry and overarching enabler of national development, support development of reliable ICT infrastructure, determine appropriate technologies and systems suitable to unique Bhutanese conditions, facilitate promotion of good governance and shared national consciousness through the use of ICT and develop sustainable and affordable ICT facilities and services for all Bhutanese to improve their living standard.

ICT and Sustainable and Equitable Social Development

The International Telecommunication Union (ITU) stated that mastering the digital transformation in the country is going to be the defining core competency of the 21st century and that the ICT revolution has the potential to catalyze a country’s innovation, growth, and development. It further states that governments can make or break this transformation. Arguably, ICT means opening doors to the nearly unlimited possibilities to exchange information on a scale never before imagined. Access to digital technologies has enhanced social interaction and democratic expression that represents part of ‘the new wealth of the 21st century’ in a way never imagined before. Even though there is a noticeable digital divide in terms of access to ICT facilities, good internet access and ICT literacy, the need for smartphones has become more imperative for everyone. Today you can use the internet in the remotest Laya to the farthest in Jomotsangkha in the east as you can use the internet in Thimphu. This means you can do exactly the same thing as you can do in Thimphu. 

The ICT infrastructure has connected people across the communities and mountains in unprecedented ways. The everyday usage of smartphones and the internet shows that new technology and the internet occupy the cultural, social and political space more frequently. There are higher chances of contributing to the public sphere.

The information exchanged may lead to the new and redefined public spheres. The public sphere is an area in social life where citizens can come together to openly discuss and identify societal issues, and through that discussion and knowledge based discourses influence political action. It has become apparent that more social discussion takes place using ICT as a medium.

One most noticeable impacts of ICT on society is how news and information sharing take place. The role of traditional media is changing rapidly and, like in any other country, in Bhutan, the print and broadcast media are not the sole source of news and information. There are mainstream media sites like BBS, KuenselOnline, The Bhutanese and Facebook, Twitter, and other social media through which news is being shared. In Bhutan, Facebook has become a go-to place for all citizens because one would go for news on Facebook more than on any site. The notifications and information starting from the Office to the Prime Minister of Bhutan (PMO) to schools to popular media are posted on Facebook. It is evident that social media has its concerns and its advantages but it is no doubt that it has made Bhutanese people more aware of what is happening around them. The above practices and customs, it has made Bhutan more informed and hauled up the life of its citizens at par with the other nations. This is undoubtedly an equitable development of a progressive society. Sustainable development through best practices of using ICT would depend on the national goals, the developmental plans, the ICT legal and policy frameworks, and ultimately in their implementations. 

Analysis of Present Law(s) on ICT and its Impacts on Socio-Economic Development

How can ICT-related law(s) enable sustainable socio-economic development? To answer this question, it is important to look into current legal and policy frameworks and its issues. The author agrees that the legal frameworks are not the only enabling factors for socio-economic development but the laws, policies, and strategies based on the idea of social and distributive justice is the starting point for a conducive playground for bringing sustainable and equitable socio-economic development through ICT infrastructures.

The most prominent and comprehensive law that oversees the usage of ICT is the Information Communication and Media Act of Bhutan, 2018. To comprehend the impact and the inadequacy of the present laws, it is necessary to look at the real-world outcomes and environment created by these laws. To assess this, I will primarily focus on the ICM Act 2018, e-Commerce Guidelines 2019, and Revised Bhutan ICT Roadmap 2015 because these are the most important laws, policies and strategies that would impact the sustainable and equitable socio-economic developments based on the five distinct areas of ICT legal issues assessed by the United Nations to develop a guide for ICT Policy and Legal Issues for Central Asia. 

The guide distinguishes ICT legal issues into five distinct areas which can be comparatively studied in Bhutan to understand if our policy and laws check the gaps formed in these areas. Only, then, could our law create enabling conditions for sustainable and equitable development with the use of ICT. It must be noted, again, that the legal framework is not the sole condition but the most important infrastructure that enables sustainable and equitable socio-economic development. These five legal issues would hopefully highlight the areas in which there must be a legal intervention from a legal perspective.

i) Legal infrastructure: This considers some of the key legal and regulatory facilitators for electronic commerce, from adherence to law reform principles such as ‘technology neutrality’, to regulatory structures and market liberalization. For Bhutan, the revised Bhutan ICT roadmap lays down the plans for building ICT infrastructure. From this roadmap, it is expected that the ICTs are used for good governance, for enabling a shared national consciousness, and as a key enabler for sustainable economic development. To achieve these outcomes, various proposals and plans are outlined in the document. However, the main issues in implementation become a major setback to achieving those outcomes owing to limited expertise, budget constraints, and low adoption rates--being the main reasons among others.

The ICM Act 2018 covers most important issues related to media and ICT. For example, it lays down the provisions for good use of ICT, cybersecurity, data protection and privacy, electronic commerce, and electronic signatures. 

ii) Legal certainty: This examines the legal status of electronic communications and forms of contracting, specifically the need to explicitly recognize the validity, enforceability and admissibility of electronic means of executing legal activities. For Bhutan, even though there is a provision for digital signatures, it is still not used for common transactions. The validity of electronic means of signing contracts is still uncertain. Most services require a legally verifiable identity. You must have observed that even for e-services, required documents are to be physically signed and notarised, which further needed to be scanned and uploaded, creating additional inconveniences. This unreasonable need undermines the purpose of online services. Thus, drawing a curtain on free and convenient transactions on socio-economic activities. 

The e-commerce regulation in Bhutan is still ambiguous and unenforceable. With an increasing number of people making use of online platforms to do business without a license, questions of business ethics and legality are being raised by the Ministry of Economic Affairs (MoEA). The ministry warns businesses without a license will be imposed a penalty and barred from obtaining a license in the future. The guideline seems to recognize all legal platform operators, including social media, however, it has little authority on overseeing what is happening on social media. There is uncertainty on tax and protection of consumer data used for e-commerce purposes. 

iii) Legal security: This examines the security risks inherent in an electronic environment and considers the methods used to overcome these, in particular the use of digital signatures and certification services. The ICM Act 2018 despite its comprehensiveness, there are many loopholes when it comes to sentencing. The knowledge of cybersecurity and online frauds and scams is benign in Bhutanese society. There have been countless occasions where people were victims of online fraud, scams, and hacking. Section 418 of the ICM Act 2018 provides that for identity theft, the person is liable for an offence of misdemeanor. Whereas in other jurisdictions like in the US, it is a serious case. Identity theft or identity fraud is guilty of an indictable offence and liable to imprisonment for a term of not more than five years. The Cybersecurity Strategy for Bhutan is still in development and there is no comprehensive strategy to mitigate cybercrime other than spreading awareness and doing advocacy programs.  

iv) Legal protection: Reviews intellectual property rights and how such intangible property is protected in an online environment, as well as the consumer protection issues which the Internet raises. IP Laws and Copyright Laws play an important role in providing exclusive rights and protections to creators of intellectual property in order to protect their work and promote creativity, innovation and learning. Bhutan currently has the Industrial Property Act 2001 and Copyright Act 2001 to enable a free and safe environment for the protection of the rights and fuel individual innovations. The protection of the data of users in an online environment is still questionable in Bhutan.

iv) Legal deterrence: Examines the development of cybercrime and the regulatory approaches to criminalizing such harmful conduct and ensuring that law enforcement is able to investigate and prosecute offenders. The National Cybersecurity Strategy for Bhutan is still in development.  

From the above analysis, two things become evident. First, the law is not comprehensive—there is ambiguity and lacuna in the important provisions which makes the use of ICT disadvantageous and unsafe for both social and economic purposes. Second, even though the laws and policies are in place, there is an issue with implementation. It becomes obvious that the ICT infrastructure is a propeller of socio-economic development, the law to monitor and regulate the activities related to it becomes more paramount these days. 

Conclusion and Recommendations--ICT as an Enabler of Sustainable and Equitable Socio-Economic Development

After years and a series of planned development and 12 Five-Year Plans–if you ask where we have reached. Our economy is still vulnerable, with the sole focus on hydropower and limited employment creation leaving us at the mercy of imports. The other menacing threat is that the glaciers are in fact melting at a pace never experienced before. According to a World Bank report, focusing on hydropower alone for economic growth will prove to be dangerous for Bhutan. Looking beyond is critically necessary. For this matter, the right and timely investment in ICT has the potential to expand markets and bring socio-economic developments to the country.

We already have most of the legal infrastructures in place. This suggests that the first and foremost thing a government must do is review them and make the necessary amendments so that it can be safe and beneficial to all strata of society. The Covid-19 pandemic has highlighted the undeniable growing significance of the digital economy, and the government’s effort in the ICT sector will drive a new way of doing things that is inevitable and undeniable as the world moves fast toward to progressive and innovative ways of living. His Majesty the King in his address to the graduates of the Royal Institute of Management in 2019, said, “Being a small nation makes us a smart nation, this is not out of choice but out of necessity. Technology is an indispensable tool that will be necessary to realize this aspiration.” Therefore, notwithstanding the other integral factors, ICT with proper laws and regulations and strong implementation is a foremost step to enable sustainable and equitable socio-economic development.

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