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Introduction | Bhutan

Background: | 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, leaving the remaining cabinet to act as a caretaker regime until a new government assumes power following parliamentary elections. Bhutan will complete its transition to full democracy in 2008, when its first fully democratic elections to a new parliament - expected to be completed by March 2008 - and a concomitant referendum on the draft constitution will take place.

Geography | Bhutan

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 one-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)
Total renewable water resources: | 95 cu km (1987)
Freshwater withdrawal (domestic/industrial/agricultural): | total: 0.43 cu km/yr (5%/1%/94%) per capita: 199 cu m/yr (2000)
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
Environment - current issues: | soil erosion; limited access to potable water
Environment - international agreements: | party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes signed, but not ratified: Law of the Sea
Geography - note: | landlocked; strategic location between China and India; controls several key Himalayan mountain passes

People | Bhutan

Population: | 682,321 note: the Factbook population estimate is consistent with the first modern census of Bhutan, conducted in 2005; previous Factbook population estimates for this country, which were on the order of three times the total population reported here, were based on Bhutanese government publications that did not include the census (July 2008 est.)
Age structure: | 0-14 years: 30.8% (male 107,360/female 103,093) 15-64 years: 63.7% (male 231,323/female 203,649) 65 years and over: 5.4% (male 19,561/female 17,335) (2008 est.)
Median age: | total: 23.5 years male: 24.1 years female: 22.8 years (2008 est.)
Population growth rate: | 1.301% (2008 est.)
Birth rate: | 20.56 births/1,000 population (2008 est.)
Death rate: | 7.54 deaths/1,000 population (2008 est.)
Net migration rate: | NA
Sex ratio: | at birth: 1.05 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 1.14 male(s)/female 65 years and over: 1.13 male(s)/female total population: 1.11 male(s)/female (2008 est.)
Infant mortality rate: | total: 51.92 deaths/1,000 live births male: 53.1 deaths/1,000 live births female: 50.69 deaths/1,000 live births (2008 est.)
Life expectancy at birth: | total population: 65.53 years male: 64.75 years female: 66.35 years (2008 est.)
Total fertility rate: | 2.48 children born/woman (2008 est.)
HIV/AIDS - adult prevalence rate: | less than 0.1% (2001 est.)
HIV/AIDS - people living with HIV/AIDS: | fewer than 100 (1999 est.)
HIV/AIDS - deaths: | NA
Major infectious diseases: | degree of risk: intermediate food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever vectorborne diseases: malaria water contact disease: leptospirosis (2008)
Nationality: | noun: Bhutanese (singular and plural) adjective: Bhutanese
Ethnic groups: | Bhote 50%, ethnic Nepalese 35% (includes Lhotsampas - one of several Nepalese ethnic groups), indigenous or migrant tribes 15%
Religions: | Lamaistic Buddhist 75%, Indian- and Nepalese-influenced Hinduism 25%
Languages: | Dzongkha (official), Bhotes speak various Tibetan dialects, Nepalese speak various Nepalese dialects
Literacy: | definition: age 15 and over can read and write total population: 47% male: 60% female: 34% (2003 est.)

Government | Bhutan

Country name: | conventional long form: Kingdom of Bhutan conventional short form: Bhutan local long form: Druk Gyalkhap local short form: Druk Yul
Government type: | in transition to constitutional monarchy; special treaty relationship with India
Capital: | name: Thimphu geographic coordinates: 27 29 N, 89 36 E time difference: UTC+6 (11 hours ahead of Washington, DC during Standard Time)
Administrative divisions: | 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
Independence: | 1907 (became a unified kingdom under its first hereditary king)
National holiday: | 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 by the new National Assembly in 2008
Legal system: | based on Indian law and English common law; has not accepted compulsory ICJ jurisdiction
Suffrage: | 18 years of age; universal
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 Jigme THINLEY (since 9 April 2008) 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: 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 occured in March 2008; the leader of the majority party is nominated as the prime minister
Legislative branch: | new 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) elections: National Council elections last held on 31 December 2007 and 29 January 2008 (next to be held by December 2012); National Assembly elections last held on 24 March 2008 (next to be held by March 2013) election results: National Council - NA; National Assembly - percent of vote by party - DPT 67%, PDP 33%; seats by party - DPT 45, PDP 2
Judicial branch: | Supreme Court of Appeal (the monarch); High Court (judges appointed by the monarch); note - the draft constitution establishes a Supreme Court, which will serve as chief court of appeal
Political parties and leaders: | Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa) or DPT [Jigme THINLEY]; People's Democratic Party or PDP [Sangay NGEDUP]
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: | 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, 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: 763 First Avenue, New York, NY 10017; telephone [1] (212) 682-2268; FAX [1] (212) 661-0551 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 | Bhutan

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. 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 had a major impact on growth in 2007.
GDP (purchasing power parity): | $3.359 billion (2007 est.)
GDP (official exchange rate): | $1.308 billion (2007 est.)
GDP - real growth rate: | 22.4% (2007 est.)
GDP - per capita (PPP): | $5,200 (2007 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): | 4.9% (2007 est.)
Budget: | revenues: $272 million expenditures: $350 million note: the government of India finances nearly three-fifths of Bhutan's budget expenditures (2005)
Public debt: | 81.4% of GDP (2004)
Agriculture - products: | rice, corn, root crops, citrus, foodgrains; dairy products, eggs
Industries: | cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Industrial production growth rate: | 9.3% (1996 est.)
Electricity - production: | 2 billion kWh (2005)
Electricity - production by source: | fossil fuel: 0.1% hydro: 99.9% nuclear: 0% other: 0% (2001)
Electricity - consumption: | 380 million kWh (2005)
Electricity - exports: | 1.5 billion kWh (2005)
Electricity - imports: | 20 million kWh (2005)
Oil - production: | 0 bbl/day (2005)
Oil - consumption: | 1,200 bbl/day (2005 est.)
Oil - exports: | 0 bbl/day (2004)
Oil - imports: | 1,138 bbl/day (2004)
Oil - proved reserves: | 0 bbl (1 January 2006 est.)
Natural gas - production: | 0 cu m (2005 est.)
Natural gas - consumption: | 0 cu m (2005 est.)
Natural gas - exports: | 0 cu m (2005 est.)
Natural gas - imports: | 0 cu m (2005)
Natural gas - proved reserves: | 0 cu m (1 January 2006 est.)
Current account balance: | $116 million (2007 est.)
Exports: | $350 million f.o.b. (2006)
Exports - commodities: | electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Exports - partners: | India 67%, Hong Kong 29.8%, Thailand 1% (2006)
Imports: | $320 million c.i.f. (2006)
Imports - commodities: | fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Imports - partners: | India 60.7%, Japan 9.5%, Germany 5% (2006)
Economic aid - recipient: | $90.02 million; note - substantial aid from India (2005)
Debt - external: | $593 million (2004)
Market value of publicly traded shares: | $NA
Currency (code): | ngultrum (BTN); Indian rupee (INR)
Currency code: | BTN; INR
Exchange rates: | ngultrum per US dollar - 41.487 (2007), 45.279 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003) note: the ngultrum is pegged to the Indian rupee
Fiscal year: | 1 July - 30 June

Communications | Bhutan

Telephones - main lines in use: | 31,500 (2006)
Telephones - mobile cellular: | 82,100 (2006)
Telephone system: | general assessment: urban towns and district headquarters have telecommunications services 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 Intelsat (2007)
Radio broadcast stations: | AM 0, FM 9, shortwave 1 (2007)
Radios: | 37,000 (1997)
Television broadcast stations: | 1 (2007)
Televisions: | 11,000 (1997)
Internet country code: | .bt
Internet hosts: | 9,180 (2007)
Internet Service Providers (ISPs): | NA
Internet users: | 30,000 (2006)

Transportation | Bhutan

Airports: | 2 (2007)
Airports - with paved runways: | total: 1 1,524 to 2,437 m: 1 (2007)
Airports - with unpaved runways: | total: 1 914 to 1,523 m: 1 (2007)
Roadways: | total: 8,050 km paved: 4,991 km unpaved: 3,059 km (2003)

Military | Bhutan

Military branches: | Royal Bhutan Army (includes Royal Bodyguard and Royal Bhutan Police) (2008)
Military service age and obligation: | 18 years of age for voluntary military service; no conscription (2008)
Manpower available for military service: | males age 16-49: 190,104 females age 16-49: 167,289 (2008 est.)
Manpower fit for military service: | males age 16-49: 146,063 females age 16-49: 131,193 (2008 est.)
Manpower reaching militarily significant age annually: | males age 16-49: 7,847 females age 16-49: 7,530 (2008 est.)
Military expenditures - percent of GDP: | 1% (2005 est.)

Transnational Issues | Bhutan

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

This page was last updated on 19 June, 2008