Insufficient analytical underpinnings led to formal rather than substantive compliance with tranche release conditions. Joint undertakings with other donors and RGoB might have strengthened the substantive analysis of policies and the robustness of the dialogue with RGoB. 60 For example, requiring that RGoB formulate an FDI policy, without engaging substantively on the substance of that policy, was not useful. A policy was written and adopted, but a new attempt was being made to formulate a workable policy in 2009. If ADB wishes to influence FDI policy in Bhutan, it needs to contribute to public and official awareness of the benefits of FDI, partly by supporting research on the experience in Bhutan to date and making known the lessons from other small economies. Other policy measures where underlying analysis was lacking included the approval of commercial legislation and interest rate liberalization.
Financial Sector Intermediation Facility and Equity Investment in Bhutan National Bank