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 to Bhutan the areas annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. In March 2005, King Jigme Singye WANGCHUCK unveiled the government's draft constitution - which introduced major democratic reforms - and pledged to hold a national referendum for its approval. In December 2006, the King abdicated the throne in favor of 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, eliminating the clause that stated that Bhutan would be "guided by" India in conducting its foreign policy, although Thimphu continues to coordinate closely with New Delhi. Elections for seating the country's first parliament were completed in March 2008; the king ratified the country's first constitution in July 2008. Bhutan experienced a peaceful turnover of power following parliamentary elections in 2013, which routed the incumbent party. The disposition of some 30,000 Bhutanese refugees - housed in two UN refugee camps in Nepal - remains unresolved.
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
note:the Factbook population estimate is consistent with the first modern census of Bhutan, conducted in 2005; previous Factbook population estimates for Bhutan, 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 2014 est.)
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; the nearly two-year delay between the former King's abdication and his son's coronation on 6 November 2008 was to ensure an astrologically auspicious coronation date and to give the new king, who had limited experience, deeper administrative expertise under the guidance of his father
head of government:
Prime Minister Tshering TOBGAY (since July 2013)
cabinet:
Council of Ministers (Lhengye Zhungtshog) nominated by the monarch in consultation with the prime minister and approved by the National Assembly; members serve fixed, five-year terms; the leader of the majority party is nominated as the prime minister
elections:
the monarchy is hereditary, but the 2008 constitution grants the Parliament authority to remove the monarch with two-thirds vote; election of a National Assembly last occurred in July 2013, resulting in the transfer of power to the former opposition party
bicameral Parliament or Chi Tshog consists of the non-partisan National Council or Gyelyong Tshogde (25 seats; 20 members elected by each of the 20 administrative districts (dzongkhags) for four-year terms and 5 members appointed by the king); and the National Assembly or Tshogdu (47 seats; members nominated by the two parties and elected by direct, popular vote for five-year terms)
elections:
National Council election last held on 23 April 2013 (next to be held in 2017); National Assembly election (first round) held on 31 May 2013; second round on 13 July 2013
election results:
National Council - independents 20; note - all candidates required to run as independents; National Assembly - first round poll held on 31 May 2013 - percent of vote by party - DPT 44.52%; PDP 32.53%; DNT 17.04%; DCT 5.9%; second round poll held on 13 July 2013 - percent of vote by party - PDP 54.88%, DPT 45.12%; seats by party - PDP 32, DPT 15
highest court(s):
Supreme Court (consists of 5 justices including the chief justice )
note - the Supreme Court has sole jurisdiction in constitutional matters
judge selection and term of office:
Supreme Court chief justice appointed by the monarch upon the advice of the National Judicial Commission, a 4-member body to include the Legislative Committee of the National Assembly, the attorney general, the Chief Justice of Bhutan and the senior Associate Justice of the Supreme Court; other judges (drangpons) appointed by the monarch from among the High Court judges selected by the National Judicial Commission; chief justice serves a 5-year term or until reaching age 65 years, whichever is earlier; the four other judges serve 10-year terms or until age 65, whichever is earlier
subordinate courts:
High Court (first appellate court); District or Dzongkhag Courts; sub-district or Dungkhag Courts
Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa) or DPT [Jigme THINLEY]; Bhutan Kuen-Nyam Party or BNK [Sonam TOBGAY]; People's Democratic Party or PDP [Tshering TOBGAY]; Druk Nymrub Tshogpa or DNT; Druck Chirwang Tshogpa or DCT
none; note - the Permanent Mission to the UN for Bhutan has consular jurisdiction in the US; the permanent representative to the UN is Kunzang C. NAMGYEL (since February 2014); address: 343 East 43rd Street, New York, NY 10017; telephone [1] (212) 682-2268; FAX [1] (212) 661-0551
the US and Bhutan have no formal diplomatic relations, although frequent informal contact is maintained via the US embasssy in New Delhi (India) and Bhutan's Permanent Mission to the UN
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 dragon, called the Druk (Thunder Dragon), is the emblem of the nation; its white color stands for purity and the jewels in its claws symbolize wealth; the background colors represent spiritual and secular powers within Bhutan: the orange is associated with Buddhism, while the yellow denotes the ruling dynasty
Bhutan's economy, small and less developed, is based largely on agriculture and forestry, which provide the main livelihood for more than half of the population. Because rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive, industrial production is primarily of the cottage industry type. The economy is closely aligned with India's through strong trade and monetary links and is dependent on India for financial assistance and migrant laborers for development projects, especially for road construction. Multilateral development organizations administer most educational, social, and environment programs, and take 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. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. Bhutan’s largest export - hydropower to India - is creating employment and will probably sustain growth in the coming years. Only 5% of Bhutan’s 30,000 megawatt hydropower potential is currently tapped. The large amount of equipment needed to import materials to build hydropower plants has expanded Bhutan's trade and current account deficits. Bhutan’s GDP has rebounded strongly since the global recession began in 2008. Bhutan hopes to play a larger role in regional economic integration as a member of the South Asia Association for Regional Cooperation and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.
general assessment:
urban towns and district headquarters have telecommunications services
domestic:
low teledensity; domestic service is poor especially in rural areas; mobile-cellular service, started in 2003, is now widely available
international:
country code - 975; international telephone and telegraph service via landline and microwave relay through India; satellite earth station - 1 Intelsat (2012)
state-owned TV station established in 1999; cable TV service offers dozens of Indian and other international channels; first radio station, privately launched in 1973, is now state-owned; 5 private radio stations are currently broadcasting (2012)
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