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 Bhutan (2007)Bhutan (2008)
 BhutanBhutan
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 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. 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. 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.
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
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
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. 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 drove GDP growth to over 20% in 2007
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
ngultrum per US dollar - NA (2007), 45.279 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003)


note: the ngultrum is pegged to the Indian rupee
Exports NA bbl/day 0 bbl/day (2004)
Imports NA bbl/day 1,138 bbl/day (2004)
Independence 8 August 1949 (from India) 1907 (became a unified kingdom under its first hereditary king)
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) 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)
Judicial branch Supreme Court of Appeal (the monarch); High Court (judges appointed by the monarch) 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
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
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); note - a new bicameral parliament will be established in 2008


elections: first elections to be held in December 2007 and spring 2008; note - local elections last held August 2005 (next to be held in 2008)


election results: NA
Military branches Royal Bhutan Army: Royal Bodyguard, Royal Bhutan Police (2005) Royal Bhutan Army (includes Royal Bodyguard and Royal Bhutan Police) (2008)
Political parties and leaders no legal parties Druk Pheunsum Tshogpa or DPT [Jigme THINLEY]; People's Democratic Party or PDP [Sangay NGEDUP]
Radio broadcast stations AM 0, FM 9, shortwave 1 (2006) AM 0, FM 9, shortwave 1 (2007)
Suffrage each family has one vote in village-level elections 18 years of age; universal
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)
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)
Television broadcast stations 1 (2006) 1 (2007)
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