Bhutan: 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.
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Flag Description of Bhutan: 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

Map of Bhutan

Bhutan, Thimphu, monks outside Thimphu Memorial Chorten
200465153-001 Photographers Choice Royalty Free Photograph

Bhutan, Tongsa, Tongsa Dzong, elevated view
200465160-001 Photographers Choice Royalty Free Photograph

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.

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Introduction Bhutan
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.
Geography Bhutan
Location:
Southern Asia, between China and India
Geographic coordinates:
27 30 N, 90 30 E
Map references:
Asia
Area:
total: 47,000 sq km
land: 47,000 sq km
water: 0 sq km
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 sq km (2003)
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, Desertification, 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
People Bhutan
Population:
2,327,849
note: other estimates range as low as 810,000 (July 2007 est.)
Age structure:
0-14 years: 38.6% (male 465,340/female 433,184)
15-64 years: 57.4% (male 688,428/female 647,134)
65 years and over: 4% (male 47,123/female 46,640) (2007 est.)
Median age:
total: 20.5 years
male: 20.4 years
female: 20.7 years (2007 est.)
Population growth rate:
2.082% (2007 est.)
Birth rate:
33.28 births/1,000 population (2007 est.)
Death rate:
12.46 deaths/1,000 population (2007 est.)
Net migration rate:
0 migrant(s)/1,000 population (2007 est.)
Sex ratio:
at birth: 1.05 male(s)/female
under 15 years: 1.074 male(s)/female
15-64 years: 1.064 male(s)/female
65 years and over: 1.01 male(s)/female
total population: 1.066 male(s)/female (2007 est.)
Infant mortality rate:
total: 96.37 deaths/1,000 live births
male: 94.09 deaths/1,000 live births
female: 98.77 deaths/1,000 live births (2007 est.)
Life expectancy at birth:
total population: 55.17 years
male: 55.38 years
female: 54.96 years (2007 est.)
Total fertility rate:
4.67 children born/woman (2007 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.)
Government Bhutan
Country name:
conventional long form: Kingdom of Bhutan
conventional short form: Bhutan
local long form: Druk Gyalkhap
local short form: Druk Yul
Government type:
absolute monarchy; special treaty relationship with India; note - transition to a constitutional monarchy is expected in 2008
Capital:
name: Thimphu
geographic coordinates: 27 28 N, 89 39 E
time difference: UTC+6 (11 hours ahead of Washington, DC during Standard Time)
Administrative divisions:
20 districts (dzongkhag, singular and plural); Bumthang, Chhukha, Chirang, Daga, Gasa, Geylegphug, Ha, Lhuntshi, Mongar, Paro, Pemagatsel, Punakha, Samchi, Samdrup Jongkhar, Shemgang, Tashigang, Tashi Yangtse, Thimphu, Tongsa, Wangdi Phodrang
Independence:
8 August 1949 (from India)
National holiday:
National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)
Constitution:
none; note - a draft constitution was unveiled in March 2005 and is expected to be adopted following the election of a new National Assembly in 2008
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
Executive branch:
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
head of government: Prime Minister Khandu WANGCHUK (since 7 September 2006)
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; election of a new National Assembly is expected in 2008
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
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), ITSO, ITU, NAM, OPCW, SAARC, SACEP, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)
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
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
Economy Bhutan
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.
GDP (purchasing power parity):
$2.9 billion (2003 est.)
GDP (official exchange rate):
$840.5 million (2005 est.)
GDP - real growth rate:
8.8% (2005 est.)
GDP - per capita (PPP):
$1,400 (2003 est.)
GDP - composition by sector:
agriculture: 24.7%
industry: 37.2%
services: 38.1% (2005)
Labor force:
NA
note: major shortage of skilled labor
Labor force - by occupation:
agriculture: 63%
industry: 6%
services: 31% (2004 est.)
Unemployment rate:
2.5% (2004)
Population below poverty line:
31.7% (2003)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices):
5.5% (2005 est.)
Budget:
revenues: $272 million
expenditures: $350 million; including capital expenditures of $NA
note: the government of India finances nearly three-fifths of Bhutan's budget expenditures (2005)
Public debt:
81.4% of GDP (2004)
Agriculture - products:
rice, corn, root crops, citrus, foodgrains; dairy products, eggs
Industries:
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Industrial production growth rate:
9.3% (1996 est.)
Electricity - production:
2.05 billion kWh (2004)
Electricity - production by source:
fossil fuel: 0.1%
hydro: 99.9%
nuclear: 0%
other: 0% (2001)
Electricity - consumption:
526.5 million kWh (2004)
Electricity - exports:
1.4 billion kWh (2004)
Electricity - imports:
20 million kWh (2004)
Oil - production:
0 bbl/day (2004)
Oil - consumption:
1,160 bbl/day (2004 est.)
Oil - exports:
NA bbl/day
Oil - imports:
NA bbl/day
Natural gas - production:
0 cu m (2004 est.)
Natural gas - consumption:
0 cu m (2004 est.)
Natural gas - proved reserves:
0 cu m (1 January 2005 est.)
Exports:
$186 million f.o.b. (2005)
Exports - commodities:
electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Exports - partners:
India 69.2%, Japan 9.1%, Germany 3.7% (2006)
Imports:
$410 million c.i.f. (2005)
Imports - commodities:
fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Imports - partners:
India 75.3%, Hong Kong 16.1%, Mexico 4.9% (2006)
Debt - external:
$593 million (2004)
Economic aid - recipient:
$78 million; note - substantial aid from India (2004)
Currency (code):
ngultrum (BTN); Indian rupee (INR)
Currency code:
BTN; INR
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
Fiscal year:
1 July - 30 June
Communications Bhutan
Telephones - main lines in use:
32,700 (2005)
Telephones - mobile cellular:
37,800 (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 9, shortwave 1 (2006)
Radios:
37,000 (1997)
Television broadcast stations:
1 (2006)
Televisions:
11,000 (1997)
Internet country code:
.bt
Internet hosts:
7,567 (2006)
Internet Service Providers (ISPs):
NA
Internet users:
25,000 (2005)
Transportation Bhutan
Airports:
2 (2006)
Airports - with paved runways:
total: 1
1,524 to 2,437 m: 1 (2006)
Airports - with unpaved runways:
total: 1
914 to 1,523 m: 1 (2006)
Roadways:
total: 8,050 km
paved: 4,991 km
unpaved: 3,059 km (2003)
Military Bhutan
Military branches:
Royal Bhutan Army: Royal Bodyguard, 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
females age 18-49: 453,683 (2005 est.)
Manpower fit for military service:
males age 18-49: 314,975
females age 18-49: 296,833 (2005 est.)
Manpower reaching military service age annually:
males age 18-49: 23,939
females age 18-49: 21,979 (2005 est.)
Military expenditures - percent of GDP:
1% (2005 est.)
Transnational Issues Bhutan
Disputes - international:
over 100,000 Bhutanese Lhotshampas (Hindus) have been confined in seven UN Office of the High Commissioner for Refugees camps since 1990; Bhutan cooperates with India to expel Indian Nagaland separatists; lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a boundary alignment to resolve substantial cartographic discrepancies, the largest of which lies in Bhutan's northwest
 

Information gathered from the Central Intelligence Agency

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