Introduction
Background
Following Britain’s victory in the 1865 Duar War, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding land to British India. Ugyen WANGCHUCK - who had served as the de facto ruler of an increasingly unified Bhutan and had improved relations with the British toward the end of the 19th century - was named king 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. Bhutan negotiated a similar arrangement with independent India in 1949. The Indo-Bhutanese Treaty of Friendship returned to Bhutan a small piece of the territory annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. Under a succession of modernizing monarchs beginning in the 1950s, Bhutan joined the UN in 1971 and slowly continued its engagement beyond its borders.
In 2005, King Jigme Singye WANGCHUCK unveiled the draft of Bhutan's first constitution - which introduced major democratic reforms - and held a national referendum for its approval. The King abdicated the throne in 2006 in favor of his son, Jigme Khesar Namgyel WANGCHUCK. In 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. In 2008, Bhutan held its first parliamentary election in accordance with the constitution. Bhutan experienced a peaceful turnover of power following a parliamentary election in 2013, which resulted in the defeat of the incumbent party. In 2018, the incumbent party again lost the parliamentary election. Of the more than 100,000 ethnic Nepali - predominantly Lhotshampa - refugees who fled or were forced out of Bhutan in the 1990s, about 6,500 remain displaced in Nepal.
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Geography
Location
Southern Asia, between China and India
Geographic coordinates
27 30 N, 90 30 E
Map references
Asia
Area - comparative
slightly larger than Maryland; about one-half the size of Indiana
Land boundaries
total: 1,136 km
border countries (2): China 477 km, India 659 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
highest point: Gangkar Puensum 7,570 m
lowest point: Drangeme Chhu 97 m
mean elevation: 2,220 m
Natural resources
timber, hydropower, gypsum, calcium carbonate
Land use
agricultural land: 13.6% (2018 est.)
arable land: 2.6% (2018 est.)
permanent crops: 0.3% (2018 est.)
permanent pasture: 10.7% (2018 est.)
forest: 85.5% (2018 est.)
other: 0.9% (2018 est.)
Irrigated land
320 sq km (2012)
Total renewable water resources
78 billion cubic meters (2017 est.)
Natural hazards
violent storms from the Himalayas are the source of the country's Bhutanese name, which translates as Land of the Thunder Dragon; frequent landslides during the rainy season
Environment - international agreements
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Desertification, Endangered Species, Hazardous Wastes, Nuclear Test Ban, Ozone Layer Protection, Wetlands
signed, but not ratified: Law of the Sea
Geography - note
landlocked; strategic location between China and India; controls several key Himalayan mountain passes
People and Society
Nationality
noun: Bhutanese (singular and plural)
adjective: Bhutanese
Ethnic groups
Ngalop (also known as Bhote) 50%, ethnic Nepali 35% (predominantly Lhotshampas), indigenous or migrant tribes 15%
Languages
Sharchopkha 28%, Dzongkha (official) 24%, Lhotshamkha 22%, other 26% (includes foreign languages) (2005 est.)
Religions
Lamaistic Buddhist 75.3%, Indian- and Nepali-influenced Hinduism 22.1%, other 2.6% (2005 est.)
Age structure
0-14 years: 24.52% (male 98,113/female 93,740)
15-24 years: 17.77% (male 70,768/female 68,211)
25-54 years: 44.72% (male 184,500/female 165,374)
55-64 years: 6.39% (male 26,714/female 23,280)
65 years and over: 6.6% (male 26,797/female 24,821) (2020 est.)
Dependency ratios
total dependency ratio: 45.1
youth dependency ratio: 36.1
elderly dependency ratio: 9
potential support ratio: 11.1 (2020 est.)
Median age
total: 29.1 years
male: 29.6 years
female: 28.6 years (2020 est.)
Urbanization
urban population: 43% of total population (2021)
rate of urbanization: 2.52% annual rate of change (2020-25 est.)
Major urban areas - population
203,000 THIMPHU (capital) (2018)
Sex ratio
at birth: 1.05 male(s)/female
0-14 years: 1.05 male(s)/female
15-24 years: 1.04 male(s)/female
25-54 years: 1.12 male(s)/female
55-64 years: 1.15 male(s)/female
65 years and over: 1.08 male(s)/female
total population: 1.08 male(s)/female (2020 est.)
Maternal mortality rate
183 deaths/100,000 live births (2017 est.)
country comparison to the world: 51Infant mortality rate
total: 35.99 deaths/1,000 live births
male: 38.49 deaths/1,000 live births
female: 33.37 deaths/1,000 live births (2021 est.)
Life expectancy at birth
total population: 71.5 years
male: 70.1 years
female: 72.98 years (2021 est.)
Contraceptive prevalence rate
65.6% (2010)
Drinking water source
improved: urban: 99.3% of population
rural: 100% of population
total: 99.7% of population
unimproved: urban: 0.7% of population
rural: 0% of population
total: 0.3% of population (2017 est.)
Current Health Expenditure
3.1% (2018)
Physicians density
0.42 physicians/1,000 population (2018)
Hospital bed density
1.7 beds/1,000 population (2012)
Sanitation facility access
improved: urban: 87.5% of population
rural: 72.1% of population
total: 78.3% of population
unimproved: urban: 12.5% of population
rural: 27.9% of population
total: 21.7% of population (2017 est.)
HIV/AIDS - deaths
<100 (2020)
Children under the age of 5 years underweight
12.7% (2010)
Literacy
definition: age 15 and over can read and write
total population: 66.6%
male: 75%
female: 57.1% (2017)
School life expectancy (primary to tertiary education)
total: 13 years
male: 13 years
female: 14 years (2018)
Unemployment, youth ages 15-24
total: 10.7%
male: 8.2%
female: 12.7% (2015 est.)
Environment
Environment - current issues
soil erosion; limited access to potable water; wildlife conservation; industrial pollution; waste disposal
Environment - international agreements
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Desertification, Endangered Species, Hazardous Wastes, Nuclear Test Ban, Ozone Layer Protection, Wetlands
signed, but not ratified: Law of the Sea
Air pollutants
particulate matter emissions: 35.32 micrograms per cubic meter (2016 est.)
carbon dioxide emissions: 1.26 megatons (2016 est.)
methane emissions: 1.11 megatons (2020 est.)
Total water withdrawal
municipal: 17 million cubic meters (2017 est.)
industrial: 3 million cubic meters (2017 est.)
agricultural: 318 million cubic meters (2017 est.)
Total renewable water resources
78 billion cubic meters (2017 est.)
Climate
varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas
Land use
agricultural land: 13.6% (2018 est.)
arable land: 2.6% (2018 est.)
permanent crops: 0.3% (2018 est.)
permanent pasture: 10.7% (2018 est.)
forest: 85.5% (2018 est.)
other: 0.9% (2018 est.)
Revenue from forest resources
forest revenues: 1.89% of GDP (2018 est.)
country comparison to the world: 37Urbanization
urban population: 43% of total population (2021)
rate of urbanization: 2.52% annual rate of change (2020-25 est.)
Waste and recycling
municipal solid waste generated annually: 111,314 tons (2007 est.)
municipal solid waste recycled annually: 957 tons (2016 est.)
percent of municipal solid waste recycled: 0.9% (2016 est.)
Government
Country name
conventional long form: Kingdom of Bhutan
conventional short form: Bhutan
local long form: Druk Gyalkhap
local short form: Druk Yul
etymology: named after the Bhotia, the ethnic Tibetans who migrated from Tibet to Bhutan; "Bod" is the Tibetan name for their land; the Bhutanese name "Druk Yul" means "Land of the Thunder Dragon"
Government type
constitutional monarchy
Capital
name: Thimphu
geographic coordinates: 27 28 N, 89 38 E
time difference: UTC+6 (11 hours ahead of Washington, DC, during Standard Time)
etymology: the origins of the name are unclear; the traditional explanation, dating to the 14th century, is that "thim" means "dissolve" and "phu" denotes "high ground" to express the meaning of "dissolving high ground," in reference to a local deity that dissolved before a traveler's eyes, becoming a part of the rock on which the present city stands
Administrative divisions
20 districts (dzongkhag, singular and plural); Bumthang, Chhukha, Dagana, Gasa, Haa, Lhuentse, Mongar, Paro, Pemagatshel, Punakha, Samdrup Jongkhar, Samtse, Sarpang, Thimphu, Trashigang, Trashi Yangtse, Trongsa, Tsirang, Wangdue Phodrang, Zhemgang
Independence
17 December 1907 (became a unified kingdom under its first hereditary king); 8 August 1949 (Treaty of Friendship with India maintains Bhutanese independence)
National holiday
National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)
Constitution
history: previous governing documents were various royal decrees; first constitution drafted November 2001 to March 2005, ratified 18 July 2008
amendments: proposed as a motion by simple majority vote in a joint session of Parliament; passage requires at least a three-fourths majority vote in a joint session of the next Parliament and assent by the king
Legal system
civil law based on Buddhist religious law
International law organization participation
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
Citizenship
citizenship by birth: no
citizenship by descent only: the father must be a citizen of Bhutan
dual citizenship recognized: no
residency requirement for naturalization: 10 years
Suffrage
18 years of age; universal
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 to his son
head of government: Prime Minister Lotay TSHERING (since 7 November 2018)
cabinet: Council of Ministers or Lhengye Zhungtshog members nominated by the monarch in consultation with the prime minister and approved by the National Assembly; members serve 5-year terms
elections/appointments: the monarchy is hereditary but can be removed by a two-thirds vote of Parliament; leader of the majority party in Parliament is nominated as the prime minister, appointed by the monarch
Legislative branch
description: bicameral Parliament or Chi Tshog consists of:
non-partisan National Council or Gyelyong Tshogde (25 seats; 20 members directly elected in single-seat constituencies by simple majority vote and 5 members appointed by the king; members serve 5-year terms)
National Assembly or Tshogdu (47 seats; members directly elected in single-seat constituencies in a two-round majoritarian voting system; members serve 5-year terms)
elections:
National Council election last held on 20 April 2018 (next to be held in 2023)
National Assembly - first round held on 15 September 2018 and second round held on 18 October 2018 (next to be held in 2023)
election results:
National Council - seats by party - independent 20 (all candidates ran as independents); composition - men 23, women 2, percent of women 8%
National Assembly - first round - percent of vote by party - DNT 31.9%, DPT 30.9%, PDP 27.4%, BKP 9.8%; second round - percent of vote by party - NA; seats by party - DNT 30, DPT 17; composition - men 40, women 7, percent of women 14.9%; note - total Parliament percent of women 12.5%
Judicial branch
highest courts: Supreme Court (consists of the chief justice and 4 associate justices); 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 4 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
Political parties and leaders
Bhutan Kuen-Nyam Party or BKP
Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa) or DPT [Pema GYAMTSHO] (Druk Chirwang Tshogpa or DCT merged with DPT in March 2018)
People's Democratic Party or PDP [Tshering TOBGAY]
United Party of Bhutan (Druk Nyamrup Tshogpa) or DNT [Lotay TSHERING]
International organization participation
ADB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, IDA, IFAD, IFC, IMF, Interpol, IOC, IOM (observer), IPU, ISO (correspondent), ITSO, ITU, MIGA, NAM, OPCW, SAARC, SACEP, UN, UNCTAD, UNESCO, UNIDO, UNTSO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)
Diplomatic representation in the US
chief of mission: none; the Permanent Mission to the UN for Bhutan has consular jurisdiction in the US; the permanent representative to the UN is Doma TSHERING (since 13 September 2017); address: 343 East 43rd Street, New York, NY 10017; telephone [1] (212) 682-2268; FAX [1] (212) 661-0551
consulate(s) general: New York
Diplomatic representation from the US
embassy: none; frequent informal contact is maintained via the US embassy in New Delhi (India) and Bhutan's Permanent Mission to the UN
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; 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
National symbol(s)
thunder dragon known as Druk Gyalpo; national colors: orange, yellow
National anthem
name: "Druk tsendhen" (The Thunder Dragon Kingdom)
lyrics/music: Gyaldun Dasho Thinley DORJI/Aku TONGMI
note: adopted 1953
Economy
Economic overview
Bhutan's small economy is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half 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. Bhutan signed a pact in December 2014 to expand duty-free trade with Bangladesh.
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 is cautious in its expansion of the tourist sector, restricing visits to 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 - could spur sustainable growth in the coming years if Bhutan resolves chronic delays in construction. Bhutan’s hydropower exports comprise 40% of total exports and 25% of the government’s total revenue. Bhutan currently taps only 6.5% of its 24,000-megawatt hydropower potential and is behind schedule in building 12 new hydropower dams with a combined capacity of 10,000 megawatts by 2020 in accordance with a deal signed in 2008 with India. The high volume of imported materials to build hydropower plants has expanded Bhutan's trade and current account deficits. Bhutan also signed a memorandum of understanding with Bangladesh and India in July 2017 to jointly construct a new hydropower plant for exporting electricity to Bangladesh.
Real GDP growth rate
7.4% (2017 est.)
7.3% (2016 est.)
6.2% (2015 est.)
Inflation rate (consumer prices)
5.8% (2017 est.)
7.6% (2016 est.)
Real GDP (purchasing power parity)
$9.029 billion (2019 est.)
$8.561 billion (2018 est.)
$8.307 billion (2017 est.)
note: data are in 2017 dollars
GDP (official exchange rate)
$2.405 billion (2017 est.)
Real GDP per capita
$11,832 (2019 est.)
$11,348 (2018 est.)
$11,142 (2017 est.)
note: data are in 2017 dollars
Gross national saving
19.2% of GDP (2019 est.)
21.7% of GDP (2018 est.)
27.9% of GDP (2017 est.)
GDP - composition, by sector of origin
agriculture: 16.2% (2017 est.)
industry: 41.8% (2017 est.)
services: 42% (2017 est.)
GDP - composition, by end use
household consumption: 58% (2017 est.)
government consumption: 16.8% (2017 est.)
investment in fixed capital: 47.2% (2017 est.)
investment in inventories: 0% (2017 est.)
exports of goods and services: 26% (2017 est.)
imports of goods and services: -48% (2017 est.)
Ease of Doing Business Index scores
Overall score: 66 (2020)
Starting a Business score: 86.4 (2020)
Trading score: 94.2 (2020)
Enforcement score: 70 (2020)
Agricultural products
milk, rice, maize, potatoes, roots/tubers, oranges, areca nuts, chillies/peppers, spices, ginger
Industries
cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Labor force
397,900 (2017 est.)
note: major shortage of skilled labor
Labor force - by occupation
agriculture: 58%
industry: 20%
services: 22% (2015 est.)
Population below poverty line
8.2% (2017 est.)
Gini Index coefficient - distribution of family income
37.4 (2017 est.)
38.1 (2007)
Household income or consumption by percentage share
lowest 10%: 2.8%
highest 10%: 30.6% (2012)
Budget
revenues: 655.3 million (2017 est.)
expenditures: 737.4 million (2017 est.)
note: the Government of India finances nearly one-quarter of Bhutan's budget expenditures
Fiscal year
1 July - 30 June
Current account balance
-$547 million (2017 est.)
-$621 million (2016 est.)
Exports - partners
India 94% (2019)
Exports - commodities
iron alloys, dolomite, refined iron, cement, silicon carbides (2019)
Imports - partners
India 85%, Thailand 5% (2019)
Imports - commodities
refined petroleum, iron products, delivery trucks, cars, wood charcoal (2019)
Reserves of foreign exchange and gold
$1.206 billion (31 December 2017 est.)
$1.127 billion (31 December 2016 est.)
Debt - external
$2.671 billion (31 December 2017 est.)
$2.355 billion (31 December 2016 est.)
Exchange rates
ngultrum (BTN) per US dollar -
64.97 (2017 est.)
67.2 (2016 est.)
67.2 (2015 est.)
64.15 (2014 est.)
61.03 (2013 est.)
Energy
Electricity access
electrification - total population: 100% (2020)
Electricity - installed generating capacity
1.632 million kW (2016 est.)
country comparison to the world: 120Electricity - from fossil fuels
1% of total installed capacity (2016 est.)
country comparison to the world: 211Electricity - from nuclear fuels
0% of total installed capacity (2017 est.)
country comparison to the world: 51Electricity - from hydroelectric plants
99% of total installed capacity (2017 est.)
country comparison to the world: 2Electricity - from other renewable sources
0% of total installed capacity (2017 est.)
country comparison to the world: 176Refined petroleum products - consumption
3,000 bbl/day (2016 est.)
country comparison to the world: 188Carbon dioxide emissions from consumption of energy
604,900 Mt (2017 est.)
Communications
Telephones - fixed lines
total subscriptions: 21,581
subscriptions per 100 inhabitants: 2.57 (2019 est.)
Telephones - mobile cellular
total subscriptions: 729,239
subscriptions per 100 inhabitants: 86.79 (2019 est.)
Telecommunication systems
general assessment:
Bhutan’s telecom market is dominated by the mobile sector for voice and data connections due to poor fixed-line infrastructure and topographic issues; investment is focused on mobile infrastructure and an emergency telecom network for natural disasters; extended LTE to 60% of all mobile Internet users; regulator developing 5G plan; international communication through landline and microwave relay; nascent satellite service; importer of broadcast equipment from India (2021)
(2020)domestic: 3 to 100 fixed-line, 96 to 100 mobile cellular; domestic service inadequate, notably in rural areas (2019)
international: country code - 975; international telephone and telegraph service via landline and microwave relay through India; satellite earth station - 1 Intelsat
note: the COVID-19 pandemic continues to have a significant impact on production and supply chains globally; since 2020, some aspects of the telecom sector have experienced downturn, particularly in mobile device production; many network operators delayed upgrades to infrastructure; progress towards 5G implementation was postponed or slowed in some countries; consumer spending on telecom services and devices was affected by large-scale job losses and the consequent restriction on disposable incomes; the crucial nature of telecom services as a tool for work and school from home became evident, and received some support from governments
Broadcast media
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)
Internet users
total: 368,714
percent of population: 48.11% (July 2018 est.)
Broadband - fixed subscriptions
total: 8,774
subscriptions per 100 inhabitants: 1.04 (2019 est.)
Transportation
National air transport system
number of registered air carriers: 2 (2020)
inventory of registered aircraft operated by air carriers: 6
annual passenger traffic on registered air carriers: 275,849 (2018)
annual freight traffic on registered air carriers: 690,000 mt-km (2018)
Airports - with paved runways
total: 2 (2017)
1,524 to 2,437 m: 1 (2017)
914 to 1,523 m: 1 (2017)
Airports - with unpaved runways
total: 1 (2012)
914 to 1,523 m: 1 (2012)
Military and Security
Military and security forces
Royal Bhutan Army (includes Royal Bodyguard, an air wing); National Militia; Ministry of Home and Cultural Affairs: Royal Bhutan Police (2020)
note - the Royal Bhutan Army is a lightly armed infantry force focused on border protection and internal security; India is responsible for military training, arms supplies, and the air defense of Bhutan
Military and security service personnel strengths
the Royal Bhutan Army has an estimated 8,000 personnel (2020)
Military equipment inventories and acquisitions
India has provided most of the Royal Bhutan Army's equipment (2020)
Military service age and obligation
18 years of age for voluntary military service; no conscription; militia training is compulsory for males aged 20-25, over a 3-year period (2019)
Transnational Issues
Disputes - international
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 most contentious of which lie in Bhutan's west along China’s Chumbi salient
Trafficking in persons
current situation: human traffickers exploit domestic and foreign victims in Bhutan and Bhutanese abroad; some traffickers posing as recruiters use the lure of well-paying jobs overseas to exploit Bhutanese citizens for forced labor; some Bhutanese working in hospitality, retail, and service industries in the Gulf states and India, Thailand, and the UK reported trafficking indicators, including illegal recruitment fees, wage deductions, restricted movement, passport retention, and non-payment of wages; Bhutanese women and girls working as domestics, caregivers, and entertainers are subject to sex and labor trafficking domestically; Bhutanese and Indian women may be forced to work in hotels, massage parlors, and nightclubs, while male Indian workers face unauthorized deductions and non-payment of wages in the construction and hydropower sectors
tier rating:
Tier 2 Watch List — Bhutan does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so; among its accomplishments, Bhutan convicted one trafficker, appealed the dismissal of trafficking charges in a second case, finalized and disseminated standard operating procedures for victim identification and referral, and initiated an investigation into reports of labor exploitation; the government also continued to work with an international organization on anti-trafficking training and public awareness events; however, Bhutanese courts continued to dismiss and refile on lesser charges human trafficking cases due to inconsistencies between Bhutanese law and the international definition of trafficking; additionally, authorities did not identify any trafficking victims during the reporting period and did not provide protective services to Bhutanese victims of forced labor abroad (2020)