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 over 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. 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. In early 2007, India and Bhutan renegotiated their treaty to allow Bhutan greater autonomy in conducting its foreign policy, although Thimphu continues to coordinate policy decisions in this area with New Delhi. In July 2007, seven ministers of Bhutan's ten-member cabinet resigned to join the political process, and the cabinet acted as a caretaker regime until democratic elections for seats to the country's first parliament were completed in March 2008. The king ratified the country's first constitution in July 2008.

Southern Asia, between China and India

27 30 N, 90 30 E

Asia

about one-half the size of Indiana

0 km (landlocked)

none (landlocked)

varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas

mostly mountainous with some fertile valleys and savanna

timber, hydropower, gypsum, calcium carbonate

400 sq km (2003)

95 cu km (1987)

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

soil erosion; limited access to potable water

landlocked; strategic location between China and India; controls several key Himalayan mountain passes

699,847

1.236% (2010 est.)

19.62 births/1,000 population (2010 est.)

7.25 deaths/1,000 population (July 2010 est.)

NA

2.29 children born/woman (2010 est.)

less than 0.1% (2007 est.)

fewer than 100 (2007 est.)

NA

Bhote 50%, ethnic Nepalese 35% (includes Lhotsampas - one of several Nepalese ethnic groups), indigenous or migrant tribes 15%

Lamaistic Buddhist 75%, Indian- and Nepalese-influenced Hinduism 25%

Dzongkha (official), Bhotes speak various Tibetan dialects, Nepalese speak various Nepalese dialects

7% of GDP (2005)

constitutional monarchy

20 districts (dzongkhag, singular and plural); Bumthang, Chhukha, Chirang, Daga, Gasa, Geylegphug, Ha, Lhuntshi, Mongar, Paro, Pemagatsel, Punakha, Samchi, Samdrup Jongkhar, Shemgang, Tashigang, Tashi Yangtse, Thimphu, Tongsa, Wangdi Phodrang

1907 (became a unified kingdom under its first hereditary king)

National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)

ratified 18 July 2008

based on Indian law and English common law; has not accepted compulsory ICJ jurisdiction

18 years of age; universal

bicameral Parliament consists of the non-partisan National Council (25 seats; 20 members elected by each of the 20 electoral districts (dzongkhags) for four-year terms and 5 members nominated by the King); and the National Assembly (47 seats; members elected by direct, popular vote for five-year terms)

Supreme Court of Appeal (the monarch); High Court (judges appointed by the monarch); note - the draft constitution establishes a Supreme Court that will serve as chief court of appeal

Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa) or DPT [Jigme THINLEY]; People's Democratic Party or PDP [Tshering TOBGAY]

United Front for Democracy (exiled); Druk National Congress (exiled)

ADB, 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, WFTU, WHO, WIPO, WMO, WTO (observer)

none; note - the Permanent Mission to the UN for Bhutan has consular jurisdiction in the US; the permanent representative to the UN is Daw PENJO; address: 763 First Avenue, New York, NY 10017; telephone [1] (212) 682-2268; FAX [1] (212) 661-0551

the US and Bhutan have no formal diplomatic relations, although informal contact is maintained between the Bhutanese and US Embassy in New Delhi (India)

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

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. 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. Hydropower exports to India have boosted Bhutan's overall growth. New hydropower projects will be the driving force behind Bhutan's ability to create employment and sustain growth in the coming years.

$3.763 billion (2009 est.)

$3.584 billion (2008 est.)

$2.994 billion (2007 est.)

$1.493 billion (2009 est.)

5% (2009 est.)

19.7% (2008 est.)

6.4% (2007 est.)

$5,400 (2009 est.)

$5,300 (2008 est.)

$4,400 (2007 est.)

299,900

4% (2009)

2.5% (2004)

23.2% (2008)

57.8% of GDP (2009)

81.4% of GDP (2004)

8% (2008 est.)

4.9% (2007 est.)

NA%

NA% (31 December 2008)

14% (31 December 2007)

$NA (31 December 2008)

$381.1 million (31 December 2007)

$NA (31 December 2008)

$220.3 million (31 December 2007)

$NA (31 December 2008)

$169.9 million (31 December 2007)

$NA

rice, corn, root crops, citrus, foodgrains; dairy products, eggs

cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism

NA%

1.48 billion kWh (2009 est.)

184 million kWh (2009 est.)

1.296 billion kWh (2009 est.)

0 kWh (2009 est.)

0 bbl/day (2008 est.)

1,250 bbl/day (2008 est.)

0 bbl/day (2008 est.)

1,250 bbl/day (2008 est.)

0 bbl (1 January 2009 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (1 January 2009 est.)

$164 million (2008 est.)

$116 million (2007 est.)

$513 million (2008)

$350 million (2006)

electricity (to India), ferrosilicon, cement, calcium carbide, copper wire, manganese, vegetable oil

India 86.3%, Bangladesh 8.1%, Italy 1.5% (2008)

$533 million (2008)

$320 million (2006)

fuel and lubricants, passenger cars, machinery and parts, fabrics, rice (2008)

India 63%, Japan 12.3%, China 5.1% (2008)

$836 million (2009)

$713.3 million (2006)

ngultrum (BTN) per US dollar - 46.6 (2009), 41.487 (2007), 45.279 (2006), 44.101 (2005), 45.317 (2004)

27,500 (2008)

251,000 (2008)

AM 0, FM 9, shortwave 1 (2007)

1 (2007)

.bt

9,096 (2009)

40,000 (2008)

2 (2009)

Royal Bhutan Army (includes Royal Bodyguard and Royal Bhutan Police) (2009)

18 years of age for voluntary military service; no conscription (2008)

1% of GDP (2005 est.)

Bhutan cooperates with India to expel Indian Nagaland separatists; lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a common boundary alignment to resolve territorial disputes arising from substantial cartographic discrepancies, the largest of which lie in Bhutan's northwest and along the Chumbi salient