Bhutan

 

Bureau of South and Central Asian Affairs                                     
July 2007                                                                     
                                                                       
  Background Note: Bhutan                                                     
                                               
  Sunset over hills surrounding                                               
  Thimphu, Bhutan, March 22, 2001. [©                                         
  AP Images]                                                                  
                                                                 
  Flag of Bhutan is divided diagonally from lower hoist side corner into yellow
  upper triangle, orange lower triangle; centered along dividing line is black
  and white dragon facing away from hoist side.                               
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Kingdom of Bhutan                                                           
                                                                       
  Geography                                                                   
  Area: 46,500 sq. km.                                                        
  Cities: Capital--Thimphu (pop. approx. 55,000) Other significant cities     
  --Paro, Phoentsholing, Punakha, Bumthong.                                   
  Terrain: Mountainous, from the Himalayas to lower-lying foothills and some  
  savannah.                                                                   
  Climate: Alpine to temperate to subtropical with monsoon season from June to
  September.                                                                  
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Bhutanese.                                 
  Population: Approximately 672,425 (according to the 2005 census).           
  Annual growth rate: 2.12% (2006 est.). Density--14 per sq. km.              
  Ethnic groups: Drukpa 50% (which is also inclusive of Sharchops), as well as
  ethnic Nepalese (Lhotsampas) 35%, and indigenous or migrant tribes 15%.     
  Religions: Lamaistic Buddhist 75% (state religion), Indian- and             
  Nepalese-influenced Hinduism 25%.                                           
  Languages: Dzongka (official language), English (medium of instruction),    
  Sharchop, Nepali.                                                           
  Education: Years compulsory--11. Literacy--54% (est.). Primary school gross 
  enrollment rate (2004)--81%. Women's literacy (2004)--34%.                  
  Health: Infant mortality rate (2006 est.)--total: 98.41 deaths/1,000 live   
  births; female: 100.79 deaths/1,000 live births; male: 96.14 deaths/1,000   
  live births. Life expectancy (2006 est.)--total population 54.78 years; male
  55.02 years; female 54.53 years.                                            
  Work force (2002): Agriculture--93%; industry--2%; services--5%. There is a 
  high unemployment rate.                                                     
                                                                       
  Government                                                                  
  Type: Evolving from a monarchy to a constitutional monarchy. The Royal      
  Government, prompted by the King, released a draft constitution in March    
  2005. The King and Crown Prince conducted consultations on the constitution 
  in all 20 dzongkhag (districts) in 2005 and 2006. Bhutan will adopt the     
  constitution in early 2008.                                                 
  National Day: December 17 (1907).                                           
  Branches: Executive--King or Druk Gyalpo (chief of state), Prime Minister   
  (head of government), Council of Ministers, Royal Advisory Council (together
  they make the Cabinet or Lhengye Zhungtsho). Advisory--Monastic Order (or   
  Monk Body-Dratshang). Legislative--National Assembly (Tshogdu). Judicial    
  --High Court (Thrimkhang Gogma), District Courts, and local area arbitration.
  Administrative subdivisions: 20.                                            
  Political parties: None.                                                    
  Suffrage: Registered resident with legitimate citizenship, age 21 and above.
                                                                       
  Economy                                                                     
  GDP (purchasing power parity 2003): U.S. $2.9 billion.                      
  Real growth rate (2004): 6.5%.                                              
  Per capita GDP (2004): U.S. $929.60.                                        
  Natural resources: Hydroelectric power, construction, timber, gypsum, calcium
  carbide.                                                                    
  Agriculture and forestry (all figs., 2001): 33.8% of GDP.                   
  Construction: 11.8% of GDP.                                                 
  Finance: 10.3% of GDP.                                                      
  Transport and communication: 10% of GDP.                                    
  Electricity: 9.9% of GDP.                                                   
  Government service: 9.9% of GDP.                                            
  Manufacturing: 9.8% of GDP.                                                 
  Trade: Exports (2001-2002)--U.S. $97.7 million: hydroelectricity, vegetables
  and fruits, processed foods, minerals, wood products, textiles, machinery.  
  Imports (2001-2002)--U.S. $188.4 million: machinery, mechanical appliances  
  and electronics, plastics and rubber products, textiles, whiskies and       
  prepared foodstuffs, medicines and pharmaceuticals, vegetable oils and      
  foodstuffs. Major trade partners--India, Bangladesh, Japan, Singapore,      
  Denmark.                                                                    
                                                                       
  PEOPLE                                                                      
  The people of Bhutan can be divided into three broad ethnic                 
  categories--Ngalops, Sharchops, and Lhotsampas. The Ngalops make up the     
  majority of the population, living mostly in the western and central areas. 
  The Ngalops are thought to be of Tibetan origin, arriving in Bhutan during  
  the 8th and 9th centuries A.D. and bringing Buddhism with them. Most Ngalops
  follow the Drukpa Kagyupa discipline of Mahayana Buddhism. In a country that
  is deeply rooted within the Buddhist religion, many people's sect of        
  religion, as opposed to their ethnic group, characterizes them. The Ngalops 
  predominate in the government, and the civil service and their cultural norms
  have been declared by the monarchy to be the standard for all citizens.     
                                                                       
  The Sharchops, who live in the eastern section of Bhutan, are considered to 
  be descendants of the earliest major group to inhabit Bhutan. Most follow the
  Ningmapa discipline of Mahayana Buddhism. Sharchop is translated as "people 
  of the east." The Ngalops, Sharchops, and the indigenous tribal people are  
  collectively known as Drukpas and account for about 65% of the population.  
  The national language is Dzongka, but English is the language of instruction
  in schools and an official working language for the government.             
                                                                       
  The Lhotsampas are people of Nepali descent, currently making up 35% of the 
  population. They came to Bhutan in the 19th and 20th centuries, mostly      
  settling in the southern foothills to work as farmers. They speak a variety 
  of Nepali dialects and are predominantly Hindu.                             
                                                                       
  HISTORY                                                                     
  Bhutan's early history is steeped in mythology and remains obscure. It may  
  have been inhabited as early as 2000 B.C., but not much was known until the 
  introduction of Tibetan Buddhism in the 9th century A.D. when turmoil in    
  Tibet forced many monks to flee to Bhutan. In the 12th century A.D., the    
  Drukpa Kagyupa school was established and remains the dominant form of      
  Buddhism in Bhutan today. The country's political history is intimately tied
  to its religious history and the relations among the various monastic schools
  and monasteries.                                                            
                                                                       
  The consolidation of Bhutan occurred in 1616 when Ngawana Namgyal, a lama   
  from Tibet, defeated three Tibetan invasions, subjugated rival religious    
  schools, codified an intricate and comprehensive system of law, and         
  established himself as ruler (shabdrung) over a system of ecclesiastical and
  civil administrators. After his death, infighting and civil war eroded the  
  power of the shabdrung for the next 200 years when in 1885, Ugyen Wangchuck 
  was able to consolidate power and cultivated closer ties with the British in
  India.                                                                      
                                                                       
  In 1907, Ugyen Wangchuck was elected as the hereditary ruler of Bhutan,     
  crowned on December 17, 1907, and installed as the head of state Druk Gyalpo
  (Dragon King). In 1910, King Ugyen and the British signed the Treaty of     
  Punakha which provided that British India would not interfere in the internal
  affairs of Bhutan if the country accepted external advice in its external   
  relations. When Ugyen Wangchuck died in 1926, his son Jigme Wangchuck became
  the next ruler, and when India gained independence in 1947, the new Indian  
  Government recognized Bhutan as an independent country. In 1949, India and  
  Bhutan signed the Treaty of Peace and Friendship, which provided that India 
  would not interfere in Bhutan's internal affairs but would be guided by India
  in its foreign policy. Succeeded in 1952 by his son Jigme Dorji Wangchuck,  
  Bhutan began to slowly emerge from its isolation and began a program of     
  planned development. Bhutan became a member of the United Nations in 1971,  
  and during his tenure the National Assembly was established and a new code of
  law, as well as the Royal Bhutanese Army and the High Court.                
                                                                       
  In 1972, Jigme Singye Wanchuck ascended the throne at age 16. He emphasized 
  modern education, decentralization of governance, the development of        
  hydroelectricity and tourism and improvements in rural developments. He was 
  perhaps best known internationally for his overarching development philosophy
  of "Gross National Happiness." It recognizes that there are many dimensions 
  to development and that economic goals alone are not sufficient. Satisfied  
  that Bhutan's democratization process was well in train, he abdicated in    
  December 2006 rather than wait until the promulgation of the new constitution
  in 2008. His son, Jigme Khesar Namgvel Wangchuck became King upon his       
  abdication.                                                                 
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  Traditionally a decentralized theocracy and, since 1907, a monarchy, Bhutan 
  is evolving into a constitutional monarchy with a representative government.
  In 2002, the election laws were changed so that each citizen over the age of
  21 could vote by secret ballot for a representative to the National Assembly
  (Tshongdu); previously, only one vote per family was allowed. The Tshongdu is
  composed of about 150 members, including some appointed from the Monk Body as
  well as some senior government representatives. They in turn elect the      
  Council of Ministers. Prior to 2003, the Council had six members and rotated
  the responsibility as prime minister and head of government between each one
  for a period of one year, but in 2003, the National Assembly elected four   
  additional ministers and also selected the prime minister.                  
                                                                       
  The spiritual head of Bhutan, the Je Khempo--the only person besides the king
  who wears the saffron scarf, an honor denoting his authority over all       
  religious institutions--is nominated by monastic leaders and appointed by the
  king. The Monk Body is involved in advising the government on many levels.  
                                                                       
  Bhutan is divided into 20 districts or dzongkhags, each headed by a district
  officer (dzongda) who must be elected. In addition, each district also is   
  broken into smaller areas known as geog (village), led by a locally elected 
  leader called a gup. There are 201 elected gups. In 2002, the National      
  Assembly created a new structure for local governance at the geog level. Each
  local area is responsible for creating and implementing its own development 
  plan, in coordination with the district.                                    
                                                                       
  Principal Government Officials                                              
  Head of State--King Jigme Khesar Namgyel Wangchuck                          
  Prime Minister (Head of Government and Minister of Foreign Affairs)--Lyonpo 
  Khandu Wangchuk                                                             
  Minister for Trade and Industry--Lyonpo Yeshey Zimba                        
  Minister for Home and Cultural Affairs--Lyonpo Jigmi Y. Thinley             
  Minister for Finance--Lyonpo Wangdi Norbu                                   
  Minister for Education--Lyonpo Thinley Gyamtsho                             
  Minister for Health--Lyonpo (Dr.) Jigme Singay                              
  Minister for Labor and Human Resources--Lyonpo Ugyen Tshering               
  Minister for Works and Human Settlements--Lyonpo (Dr.) Kizang Dorji         
  Minister for Information and Communications--Lyonpo Leki Dorji              
  Minister for Agriculture--Lyonpo Sangay Ngedup                              
  Ambassador to the United Nations Headquarters--Lyonpo Daw Penjo             
                                                                       
  The United States and the Kingdom of Bhutan have not established formal     
  diplomatic relations; however, the two governments have informal and cordial
  relations.                                                                  
                                                                       
  Bhutan maintains a Permanent Mission to the United Nations in New York. The 
  address is 763 First Avenue, New York, NY 10017; tel: 212-682-2268, fax:    
  212-661-0551.                                                               
                                                                       
  ECONOMY                                                                     
  The economy, one of the world's smallest and least developed, is based on   
  agriculture, forestry, and hydroelectricity. Rugged terrain makes it        
  difficult to develop roads and other infrastructure. Despite this constraint,
  hydroelectricity and construction continue to be the two major industries of
  growth for the country. As these two areas are increasing productivity, there
  continues to be a positive outlook for development throughout Bhutan. The   
  economic program in the current 5-year-plan (2002-07) places a strong       
  emphasis on improving education and infrastructure with a special emphasis on
  increasing activities in the sectors of information and communication       
  technology, energy, and tourism. After the global slowdown within the travel
  industry, Bhutan's tourist industry is beginning to show signs of recovery. 
                                                                       
  Bhutan's economy has been on an upturn due to recent subregional economic   
  cooperation efforts. Already this plan has strengthened the current trade   
  relations with India, as well as opened an avenue of trade with Bangladesh. 
  In May 2003, the Bilateral Free Trade Agreement between Bangladesh and Bhutan
  was re-signed. Bangladesh is Bhutan's second largest trade partner, after   
  India. In January 2004, as a member of the South Asian Association for      
  Regional Cooperation (SAARC), Bhutan also joined the South Asian Free Trade 
  Agreement (SAFTA). In February 2004 Bhutan joined the Bangladesh, Indian,   
  Myanmar, Singapore, and Thailand Economic Cooperation Forum (BIMSTEC). Bhutan
  has applied for membership in the World Trade Organization and is in the    
  process of developing clear legal and regulatory systems designed to promote
  business development                                                        
                                                                       
  FOREIGN RELATIONS                                                           
                                                                       
  India                                                                       
  Relations between India and Bhutan are governed by the 1949 Treaty of Peace 
  and Friendship. The treaty ensures India's neutrality in Bhutan's internal  
  affairs, in exchange for Bhutan's agreement to be guided by India in foreign
  policy matters. But in practice, Bhutan exercises sovereignty on many issues.
  India is Bhutan's largest donor and supplies approximately 80% of Bhutan's  
  foreign assistance. In recent years, insurgents on the Indian side of the   
  border from the United Liberation Front of Assam (ULFA) and the Bodos have  
  used Bhutan as a safe haven. In December 2003, Bhutan military troops       
  expelled Indian insurgents from Assam. Through this joint effort with India,
  Bhutan strengthened border security and continued cooperation with the Indian
  military.                                                                   
                                                                       
  China                                                                       
  Bhutan and China do not have diplomatic relations, although border talks    
  between the two nations have occurred.                                      
                                                                       
  Nepal                                                                       
  These two countries established diplomatic relations in 1983. Nepal and     
  Bhutan are currently negotiating to resolve a 16-year-old refugee situation,
  in which 100,000 refugees are residing in seven UNHCR camps in Nepal. Most of
  the refugees claim they are Bhutanese citizens, while Bhutan alleges that   
  most are non-nationals or "voluntary emigrants," who forfeited their        
  citizenship rights. In 2003, a joint Bhutan-Nepal verification team         
  categorized refugees from one camp into four groups, but progress remains   
  stalled.                                                                    
                                                                       
  United Nations                                                              
  Bhutan became a member of the United Nations in 1971. Bhutan does not have  
  diplomatic relations with any of the permanent members of the UN Security   
  Council. Bhutan was elected to the UN Commission on Human Rights in 2003 and
  served until 2006.                                                          
                                                                       
  Other Countries                                                             
  Bhutan enjoys diplomatic relations with seven European nations, which form  
  The "Friends of Bhutan" group, together with Japan. These countries are     
  Switzerland, Denmark, Sweden, Norway, the Netherlands, Finland, and Austria.
  Also known as donor nations, they contribute generously to Bhutanese        
  development and social programs. Bhutan also has diplomatic relations with  
  South Korea, Canada, Australia, Kuwait, Thailand, Bahrain, Bangladesh, the  
  Maldives, Sri Lanka, and Pakistan.                                          
                                                                       
  DEFENSE                                                                     
  Bhutan has 8,000 members in five military branches: the Royal Bhutan Army,  
  Royal Bodyguard, National Militia, Royal Bhutan Police, and Forest Guards. In
  FY 2002, the Bhutanese Government spent 1.9% of its GDP on the military or  
  U.S. $9.3 million. India maintains a permanent military training presence in
  Bhutan through IMTRAT, the Indian Military Training Team.                   
                                                                       
  U.S.-BHUTAN RELATIONS                                                       
  The U.S. Embassy in New Delhi, India, has consular responsibilities for     
  Bhutan, but U.S. citizens also may request assistance from U.S. Embassies in
  Kathmandu, Nepal, or Dhaka, Bangladesh. The United States and Bhutan do not 
  have diplomatic relations, and the United States does not give foreign      
  assistance to Bhutan. Informal contact is maintained through the U.S. Embassy
  and the Bhutanese Embassy in New Delhi. Bhutan does participate in a regional
  program for South Asia sponsored by the U.S. Agency for International       
  Development (USAID) that helps countries develop their power infrastructure 
  (SARI-E). A few Bhutanese military officers have attended courses at the    
  Asia-Pacific Center for Security Studies. The U.S. Government annually brings
  several Bhutanese participants to United States through its International   
  Visitors Program.                                                           
                                                                       
  Principal U.S. Officials (U.S. Embassy, India)                              
  Ambassador--David C. Mulford                                                
  Deputy Chief of Mission--Geoffrey Pyatt                                     
  Public Affairs--Larry Schwartz                                              
  Political Affairs--Ted Osius                                                
  Economic Affairs--John Davison                                              
  Scientific Affairs--Dr. Satish V. Kulkarni                                  
  Commercial Affairs--Carmine D'Aloisio                                       
  Agricultural Affairs--Holly Higgins                                         
  Management Affairs--James Forbes                                            
  Consular Affairs--Peter Kaestner                                            
  USAID Mission, Director--George Deikun                                      
                                                                       
  The U.S. Embassy in India is located on Shantipath, Chanakyapuri, New Delhi 
  110021 (tel. 91-11-2419-8000) (fax: 91-11-24190017). Embassy and consulate  
  working hours are Monday to Friday, 8:30 a.m. to 5:30 p.m. Visa application 
  hours are Monday to Friday, 8:30 a.m. to 10:00 a.m. Please consult the      
  Consular Affairs Web site. Further information about Bhutan also can be     
  obtained at the official Web site of Bhutan's Tourism Corporation.          
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
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  For the latest security information, Americans living and traveling abroad  
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  Further Electronic Information                                              
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