In 1865, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding some border land to British India. Under British influence, a monarchy was set up in 1907; three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs and Bhutan allowed Britain to direct its foreign affairs. This role was assumed by independent India after 1947. Two years later, a formal Indo-Bhutanese accord returned the areas of Bhutan annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. A refugee issue of some 100,000 Bhutanese in Nepal remains unresolved; 90% of the refugees are housed in seven United Nations Office of the High Commissioner for Refugees (UNHCR) camps. In March 2005, King Jigme Singye WANGCHUCK unveiled the government's draft constitution - which would introduce major democratic reforms - and pledged to hold a national referendum for its approval. A referendum date has yet to be named, but should occur in 2008. In December 2006, the King abdicated the throne to his son, Jigme Khesar Namgyel WANGCHUCK, in order to give him experience as head of state before the democratic transition.
Location
Southern Asia, between China and India
Geographic coordinates
27 30 N, 90 30 E
Map references
Asia
Area
total
47,000 sq km
land
47,000 sq km
water
0 sq km
Area - comparative
about half the size of Indiana
Land boundaries
total
1,075 km
border countries
China 470 km, India 605 km
Coastline
0 km (landlocked)
Maritime claims
none (landlocked)
Climate
varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas
Terrain
mostly mountainous with some fertile valleys and savanna
Elevation extremes
lowest point
Drangme Chhu 97 m
highest point
Kula Kangri 7,553 m
Natural resources
timber, hydropower, gypsum, calcium carbonate
Land use
arable land
2.3%
permanent crops
0.43%
other
97.27% (2005)
Irrigated land
400 sq km (2003)
Natural hazards
violent storms from the Himalayas are the source of the country's name, which translates as Land of the Thunder Dragon; frequent landslides during the rainy season
National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)
Constitution
none; note - a draft constitution was unveiled in March 2005 and is expected to be adopted following the election of a new National Assembly in 2008
Legal system
based on Indian law and English common law; has not accepted compulsory ICJ jurisdiction
Suffrage
each family has one vote in village-level elections
Executive branch
chief of state
King Jigme Khesar Namgyel WANGCHUCK (since 14 December 2006); note - King Jigme Singye WANGCHUCK abdicated the throne on 14 December 2006 and his son immediately succeeded him
head of government
Prime Minister Khandu WANGCHUK (since 7 September 2006)
cabinet
Council of Ministers (Lhengye Shungtsog) nominated by the monarch, approved by the National Assembly; members serve fixed, five-year terms; note - there is also a Royal Advisory Council (Lodoi Tsokde), members nominated by the monarch
elections
none; the monarch is hereditary, but democratic reforms in July 1998 grant the National Assembly authority to remove the monarch with two-thirds vote; election of a new National Assembly is expected in 2008
Legislative branch
unicameral National Assembly or Tshogdu (150 seats; 105 members elected from village constituencies, 10 represent religious bodies, and 35 are designated by the monarch to represent government and other secular interests; to serve three-year terms)
elections: first election to be held in 2008; note - local elections last held August 2005 (next to be held in 2008)
election results: NA
Judicial branch
Supreme Court of Appeal (the monarch); High Court (judges appointed by the monarch)
Political parties and leaders
no legal parties
Political pressure groups and leaders
Buddhist clergy; ethnic Nepalese organizations leading militant antigovernment campaign; Indian merchant community; United Front for Democracy (exiled)
International organization participation
AsDB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, IDA, IFAD, IFC, IMF, Interpol, IOC, IOM (observer), ISO (correspondent), ITSO, ITU, NAM, OPCW, SAARC, SACEP, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)
Diplomatic representation in the US
none; note - the Permanent Mission to the UN for Bhutan has consular jurisdiction in the US; address
2 United Nations Plaza, 27th Floor, New York, NY 10017; telephone [1] (212) 826-1919; FAX [1] (212) 826-2998
consulate(s) general
New York
Diplomatic representation from the US
the US and Bhutan have no formal diplomatic relations, although informal contact is maintained between the Bhutanese and US Embassy in New Delhi (India)
Flag description
divided diagonally from the lower hoist side corner; the upper triangle is yellow and the lower triangle is orange; centered along the dividing line is a large black and white dragon facing away from the hoist side
Economy - overview
The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. The industrial sector is technologically backward, with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Bhutan's hydropower potential and its attraction for tourists are key resources. Model education, social, and environment programs are underway with support from multilateral development organizations. Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment.
GDP (purchasing power parity)
$2.9 billion (2003 est.)
GDP (official exchange rate)
$840.5 million (2005 est.)
GDP - real growth rate
8.8% (2005 est.)
GDP - per capita (PPP)
$1,400 (2003 est.)
GDP - composition by sector
agriculture
24.7%
industry
37.2%
services
38.1% (2005)
Labor force
NA
note: major shortage of skilled labor
Labor force - by occupation
agriculture
63%
industry
6%
services
31% (2004 est.)
Unemployment rate
2.5% (2004)
Population below poverty line
31.7% (2003)
Household income or consumption by percentage share
lowest 10%
NA%
highest 10%
NA%
Inflation rate (consumer prices)
5.5% (2005 est.)
Budget
revenues
$272 million
expenditures
$350 million; including capital expenditures of $NA
note
the government of India finances nearly three-fifths of Bhutan's budget expenditures (2005)
fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Imports - partners
India 75.3%, Hong Kong 16.1%, Mexico 4.9% (2006)
Debt - external
$593 million (2004)
Economic aid - recipient
$78 million; note - substantial aid from India (2004)
Currency (code)
ngultrum (BTN); Indian rupee (INR)
Currency code
BTN; INR
Exchange rates
ngultrum per US dollar - 45.279 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003), 48.61 (2002)
note: the ngultrum is pegged to the Indian rupee
Fiscal year
1 July - 30 June
Telephones - main lines in use
32,700 (2005)
Telephones - mobile cellular
37,800 (2005)
Telephone system
general assessment
telecommunications facilities are poor
domestic
very low teledensity; domestic service is very poor especially in rural areas; wireless service available since 2003
international
country code - 975; international telephone and telegraph service via landline and microwave relay through India; satellite earth station - 1 (2005)
Radio broadcast stations
AM 0, FM 9, shortwave 1 (2006)
Radios
37,000 (1997)
Television broadcast stations
1 (2006)
Televisions
11,000 (1997)
Internet country code
.bt
Internet hosts
7,567 (2006)
Internet Service Providers (ISPs)
NA
Internet users
25,000 (2005)
Airports
2 (2006)
Airports - with paved runways
total
1
1,524 to 2,437 m
1 (2006)
Airports - with unpaved runways
total
1
914 to 1,523 m
1 (2006)
Roadways
total
8,050 km
paved
4,991 km
unpaved
3,059 km (2003)
Military branches
Royal Bhutan Army: Royal Bodyguard, Royal Bhutan Police (2005)
Military service age and obligation
18 years of age for voluntary military service; no conscription (2001)
Manpower available for military service
males age 18-49
483,860
females age 18-49
453,683 (2005 est.)
Manpower fit for military service
males age 18-49
314,975
females age 18-49
296,833 (2005 est.)
Manpower reaching military service age annually
males age 18-49
23,939
females age 18-49
21,979 (2005 est.)
Military expenditures - percent of GDP
1% (2005 est.)
Disputes - international
over 100,000 Bhutanese Lhotshampas (Hindus) have been confined in seven UN Office of the High Commissioner for Refugees camps since 1990; Bhutan cooperates with India to expel Indian Nagaland separatists; lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a boundary alignment to resolve substantial cartographic discrepancies, the largest of which lies in Bhutan's northwest
