Smith on Bhutan Essay Example

state is dependent on whether the country has been able to satisfactorily utilize the industry most productive to them, in this case is Bhutan’s agrarian characteristic. If the country is happy, Smith might have thought that this is due to the fact that Bhutan was able to extract what is useful to these resources and that this industry wherein the country mostly holds potential for growth is given right dose of encouragement, priority and support from the state.The most affluent of all nations during this circa are those who are agrarian and more labor intensive, considering that the proper tenets of division of labor is being employed, which in this case is exemplified in Bhutan at this era.However, on the downside of Bhutan’s economy being highly agricultural, it can suffer from the limited extent of market. This in turn shall minimize the level of Bhutan’s population to mobilize, since the only industry that is highly cultivated and motivated in the country is based on agriculture. Given the small arena for employment, the people might have the incapacity to find more than one employment aside from the jobs that can be generated from the agriculture industry.

Smith Proposed Policies

Given the density of Bhutan, and based on the works of Smith elaborated in the Wealth of Nations, Bhutan must respond to the growing population in order for their country to ensure contentment and happiness among the people. Bhutan must expand the capability of the people residing in the country, enhance their skills in such a way that they deliver the services required of them in the most superior way possible.Given the agrarian quality of their economy, they must

find a way to continuously enhance the agriculture industry since this is the primary source of wealth for their nation. Agriculture being the highest source of income for them, must in turn be the highest priority, though not in a way that they totally neglect other industries as well.

In accordance, the people must learn continuously better and more improved ways of cultivating their lands in order to extract the full potentials of their lands.It is also in this light that people must be properly trained to increase their capacity and skills. To increase the sustainability of the influx of the products and the ensure stability of the sector, the people must be well guided to attain the maximum level of skillfulness towards the most productive industry or profession that they can work with. Sustain and increase their capability at which they are most highly productive and consistent.

Smith on Possible Threats

Given the traditional agrarian resources of Bhutan, the country may face the threat of excessive use of their lands, which may render their resources barren. Although natural resources may replenish over time, if lands will be used excessively and extensively over time, it may be pushed to its limits and may take time for it to be replenished and made conducive again for practical use.Another threat that Bhutan may face is the extinction of agrarian industry in the world economy. Although it may never get totally extinct, over time, industries will learn to progress and may leave agriculture inferior to other industries. In this light, they must be prepared and one a time make policies or reforms that shall nourish other industries to fill the vacuum

that agriculture may leave, come the time that technological advancements may arise.

Another threat for Bhutan’s economy, is the market’s limited capabilities. given the extensive manner by which agriculture is give high priority, this may render Bhutan’s market to be incapable of extending the market’s capability of providing employment for all. Given the fact that Bhutan is populated, the state must ensure that they can generate employment out of agriculture sector. the fact that market has a limited extent to generate jobs out of a single industry only, they must explore other  industries that shall aid in providing more jobs, i.e employing one’s surplus job to provide for another job.

Employment must be generated in all other industries as well. This issue calls for Bhutan to increase the knowledge of their work force, apart from their usual participation in the division of labor. They must start gaining additional knowledge to compensate for the lack of advancement in their industry, that may also serve as preparation towards the emancipation of other industry sectors.Therefore, in order to attain equal development among industries, Bhutan must concentrate into beating the market odds.

People must be properly trained towards reaching their full potentials in participating in the division of labor, while keeping the facets for further development whenever they feel like exploring their own capabilities.ReferenceSmith, Adam. Wealth of Nations.