About
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. 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 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.
More...
Source: The World Factbook
Population: 2,232,291
other estimates range as low as 810,000 (July 2005 est.)
Capital: Thimphu
Languages: Dzongkha (official), Bhotes speak
various Tibetan dialects, Nepalese speak various Nepalese dialects
Religions: Lamaistic Buddhist 75%, Indian- and Nepalese-influenced Hinduism 25%
Government: monarchy; special treaty relationship with India
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
Geography: landlocked; strategic location between China and India; controls several key Himalayan mountain passes
Ethnic groups: Bhote 50%, ethnic Nepalese 35% (includes Lhotsampas - one of several Nepalese ethnic groups),
indigenous or migrant tribes 15%
Economy: 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 per capita: purchasing power parity - $1,400 (2003 est.)
GDP real growth: 5.3% (2003 est.)
Unemployment rate: NA
Internet country code: .bt
Dial code: +975
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Local currency is the Bhutan Ngultrum
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