Decentralization has been the driving force of major reforms during the reign of the Fourth King. In 1981, the Dzongkhag Yargye Tshogchung (DYT) or the District Development Committee was established, shifting the policy making decisions from the centre to the 20 districts of Bhutan.

The Dzongda, sector heads and Gups represent the people at the DYT which is guided by a Chathrim. The formation of DYT gave greater role and participation to the people in drawing up and implementing development plans. It also ensured the successful implementation of plans enhancing rural livelihood, prosperity and bringing about uniformity in socio-economic development.

With the participation of the people in formulating the plans the people identify themselves with the plan and take greater responsibilities.