Blending Happiness, Hazelnuts and Finance in Bhutan

Growing trees takes patience—and patient capital. In 2015, the International Finance Corporation (IFC) teamed up with the Asian Development Bank (ADB) and the Global Agriculture and Food Security Program (GAFSP) to make a long-term, $12 million investment in a project to promote hazelnut production by smallholder farmers across Bhutan. An initiative of a company called Mountain Hazelnuts, the project has the potential to improve the lives of fully 15% of the entire population of this tiny Himalayan country, which pioneered the concept of Gross National Happiness. Besides guaranteeing extra income to farmers, the project stands to provide long-term social and environmental benefits. But if the potential rewards are high, so are the risks. Concessional finance support was critical to close the deal.