Bhutan

§1. Bhutan Introduction

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.

§2. Bhutan Geography

Location:
  Southern Asia, between China and India

Geographic coordinates:
  27 30 N, 90 30 E

Map references:
  Asia

Area:
  total: 47,000 km²
  land: 47,000 km²
  water: 0 km²

Area - comparative:
  about 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 km² (1998 est.)

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,
    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

§3. Bhutan People

Population:
  2,279,723
  note: other estimates range as low as 810,000 (July 2006 est.)

Age structure:
  0-14 years: 38.9% (male 458,801/female 426,947)
  15-64 years: 57.1% (male 671,057/female 631,078)
  65 years and over: 4% (male 46,217/female 45,623) (2006 est.)

Median age:
  total: 20.4 years
  male: 20.2 years
  female: 20.6 years (2006 est.)

Population growth rate:
  2.1% (2006 est.)

Birth rate:
  33.65 births/1,000 population (2006 est.)

Death rate:
  12.7 deaths/1,000 population (2006 est.)

Net migration rate:
  0 migrant(s)/1,000 population (2006 est.)

Sex ratio:
  at birth: 1.05 male(s)/female
  under 15 years: 1.07 male(s)/female
  15-64 years: 1.06 male(s)/female
  65 years and over: 1.01 male(s)/female
  total population: 1.07 male(s)/female (2006 est.)

Infant mortality rate:
  total: 98.41 deaths/1,000 live births
  male: 96.14 deaths/1,000 live births
  female: 100.79 deaths/1,000 live births (2006 est.)

Life expectancy at birth:
  total population: 54.78 years
  male: 55.02 years
  female: 54.53 years (2006 est.)

Total fertility rate:
  4.74 children born/woman (2006 est.)

HIV/AIDS - adult prevalence rate:
  less than 0.1% (2001 est.)

HIV/AIDS - people living with HIV/AIDS:
  less than 100 (1999 est.)

HIV/AIDS - deaths:
  NA

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.)

§4. Bhutan Government

Country name:
  conventional long form: Kingdom of Bhutan
  conventional short form: Bhutan

Government type:
  monarchy; special treaty relationship with India

Capital:
  Thimphu

Administrative divisions:
  18 districts (dzongkhag, singular and plural); Bumthang, Chhukha, Chirang,
  Dagana, Geylegphug, Ha, Lhuntshi, Mongar, Paro, Pemagatsel, Punakha,
  Samchi, Samdrup Jongkhar, Shemgang, Tashigang, Thimphu, Tongsa, Wangdi
  Phodrang
  note: there may be two new districts named Gasa and Yangtse

Independence:
  8 August 1949 (from India)

National holiday:
  National Day (Ugyen WANGCHUCK became first hereditary king), 17 December
  (1907)

Constitution:
  no written constitution or bill of rights; note - in 2001, the king
  commissioned the drafting of a constitution, and in March 2005 publicly
  unveiled it; is awaiting national referendum

Legal system:
  based on Indian law and English common law; has not accepted compulsory ICJ
  jurisdiction

Suffrage:
  each family has one vote in village-level elections; note - in late 2003
  Bhutan's legislature passed a new election law

Executive branch:
  chief of state: King Jigme Singye WANGCHUCK (since 24 July 1972)
  head of government: Chairman of the Council of Ministers Sangay NGEDUP
    (since 5 September 2005)
  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: none; the monarch is hereditary, but democratic reforms in July
    1998 grant the National Assembly authority to remove the monarch with
    two-thirds vote

Legislative branch:
  unicameral National Assembly or Tshogdu (150 seats; 105 elected from
  village constituencies, 10 represent religious bodies, and 35 are
  designated by the monarch to represent government and other secular
  interests; members serve three- year terms)
  elections: local elections last held August 2005 (next to be held in 2008)
  election results: NA

Judicial branch:
  Supreme Court of Appeal (the monarch); High Court (judges appointed by the
  monarch)

Political parties and leaders:
  no legal parties

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:
  AsDB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, IDA, IFAD, IFC, IMF, Interpol,
  IOC, IOM (observer), ISO (correspondent), ITU, NAM, OPCW, SAARC, SACEP, UN,
  UNCTAD, UNESCO, UNIDO, UPU, WCO, WHO, WIPO, WMO, WToO, WTO (observer)

Diplomatic representation in the US:
  none; note - Bhutan has a Permanent Mission to the UN; address: 2 United
    Nations Plaza, 27th Floor, New York, NY 10017; telephone [1] (212)
    826-1919; FAX [1] (212) 826-2998; the Bhutanese mission to the UN has
    consular jurisdiction in the US
  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

§5. Bhutan Economy

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
  90% 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 like industrial
  licensing, trade, labor, and finance continue to hamper foreign investment.

GDP (purchasing power parity):
  $2.9 billion (2003 est.)

GDP (official exchange rate):
  NA

GDP - real growth rate:
  5.3% (2003 est.)

GDP - per capita (PPP):
  $1,400 (2003 est.)

GDP - composition by sector:
  agriculture: 45%
  industry: 10%
  services: 45% (2002 est.)

Labor force:
  NA
  note: major shortage of skilled labor

Labor force - by occupation:
  agriculture 93%, industry and commerce 2%, services 5%

Unemployment rate:
  NA%

Population below poverty line:
  NA%

Household income or consumption by percentage share:
  lowest 10%: NA%
  highest 10%: NA%

Inflation rate (consumer prices):
  3% (2002 est.)

Budget:
  revenues: $146 million
  expenditures: $152 million; including capital expenditures of $NA
  note: the government of India fi$NAnces nearly three-fifths of Bhutan's
    budget expenditures (FY95/96 est.)

Agriculture - products:
  rice, corn, root crops, citrus, foodgrains; dairy products, eggs

Industries:
  cement, wood products, processed fruits, alcoholic beverages, calcium
  carbide

Industrial production growth rate:
  9.3% (1996 est.)

Electricity - production:
  1.882 billion kWh (2003)

Electricity - consumption:
  250.3 million kWh (2003)

Electricity - exports:
  1.51 billion kWh (2003)

Electricity - imports:
  10 million kWh (2003)

Oil - production:
  0 bbl/day (2003)

Oil - consumption:
  1,100 bbl/day (2003 est.)

Oil - exports:
  NA bbl/day

Oil - imports:
  NA bbl/day

Natural gas - production:
  0 m³ (2003 est.)

Natural gas - consumption:
  0 m³ (2003 est.)

Exports:
  $154 million f.o.b. (2000 est.)

Exports - commodities:
  electricity (to India), cardamom, gypsum, timber, handicrafts, cement,
  fruit, precious stones, spices

Exports - partners:
  India 85.6%, Bangladesh 6.7%, Japan 4.3% (2004)

Imports:
  $196 million c.i.f. (2000 est.)

Imports - commodities:
  fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice

Imports - partners:
  Germany 41.8%, India 35.5%, Japan 9.2%, Austria 4.3% (2004)

Debt - external:
  $245 million (2000)

Economic aid - recipient:
  substantial aid from India and other nations

Currency (code):
  ngultrum (BTN); Indian rupee (INR)

Exchange rates:
  ngultrum per US dollar - 44.101 (2005), 45.317 (2004), 46.583 (2003), 48.61
  (2002), 47.186 (2001)

Fiscal year:
  1 July - 30 June

§6. Bhutan Communications

Telephones - main lines in use:
  30,300 (2004)

Telephones - mobile cellular:
  22,000 (2005)

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)

Radio broadcast stations:
  AM 0, FM 1, shortwave 1 (2004)

Television broadcast stations:
  1 (2005)

Internet country code:
  .bt

Internet hosts:
  3 (2005)

Internet users:
  20,000 (2005)

§7. Bhutan Transportation

Airports:
  2 (2005)

Airports - with paved runways:
  total: 1
  1,524 to 2,437 m: 1 (2005)

Airports - with unpaved runways:
  total: 1
  914 to 1,523 m: 1 (2005)

Roadways:
  total: 8,050 km
  paved: 4,991 km
  unpaved: 3,059 km (2003)

§8. Bhutan Military

Military branches:
  Royal Bhutan Army (includes Royal Bodyguard and Royal Bhutan Police) (2005)

Military service age and obligation:
  18 years of age for voluntary military service; no conscription (2001)

Manpower available for military service:
  males age 18-49: 483,860 (2005 est.)

Manpower fit for military service:
  males age 18-49: 314,975 (2005 est.)

Manpower reaching military service age annually:
  males: 23,939 (2005 est.)

Military expenditures - dollar figure:
  $8.29 million (2005 est.)

Military expenditures - percent of GDP:
  1% (2005 est.)

§9. Bhutan Transnational Issues

Disputes - international:
  approximately 105,000 Bhutanese have lived decades as refugees in Nepal,
  90% of whom reside in seven UN Office of the High Commissioner for Refugees
  camps; Bhutan cooperates with India to expel Indian separatists


<Factbook 2006>
