International Security Bulletin

Bhutan

Kingdom of Bhutan

Capital: Thimphu

History

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 to allow Bhutan greater autonomy in conducting its foreign policy, although Thimphu continues to coordinate policy decisions in this area 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. The disposition of some 43,000 Bhutanese refugees - housed in two UN refugee camps in Nepal - remains unresolved.

Geography

Metric Units

Total Area 38,394 sq km
Land Boundaries 1,075 km
Border Countries China 470 km, India 605 km
Coastline 0 km
Terrain mostly mountainous with some fertile valleys and savanna
Minimum Elevation 97 m
Maximum Elevation 7,570 m
Climate varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas
Natural Resources timber, hydropower, gypsum, calcium carbonate
Arable Land 2.49%
Permanent Crops 0.46%

Economy

Gross Domestic Product $4.81 billion
GDP (per capita) $6,500
GDP Growth 9.9%
Unemployment Rate 4%
Population in Poverty 23.2%
GINI Index No data

Budget & Debt

Expenditures $610.6 million
Revenue $581.5 million
Current Account Balance $-312.1 million
External Debt $1.28 billion

Trade

Exports $725.2 million
Export Items electricity (to India), ferrosilicon, cement, calcium carbide, copper wire, manganese, vegetable oil
Export Partners No data
Imports $1.28 billion
Import Items fuel and lubricants, passenger cars, machinery and parts, fabrics, rice
Import Partners No data

People

Population 725,296
Population Growth 1.15%
Ethnic Groups Bhote 50%, ethnic Nepalese 35% (includes Lhotsampas - one of several Nepalese ethnic groups), indigenous or migrant tribes 15%
Religion Lamaistic Buddhist 75%, Indian- and Nepalese-influenced Hinduism 25%
Life Expectancy 68.44 years
Infant Mortality 1.1 deaths/1,000 live births
Maternal Mortality 3.7 deaths/100,000 live births

Energy

Electricity Production 6.83 billion kWh
Electricity Consumption 1.16 billion kWh
From Fossil Fuels 1.1%
From Nuclear 0%
From Hydroelectric 98.9%
From Renewable Sources 0%