Updated March 23, 2020
The Kingdom of Bhutan
Background
were best served by elected leaders. The first election went
The Kingdom of Bhutan, also known as the Land of the
smoothly in 2008, and the second, in 2013, brought a
Thunder Dragon, is a small, landlocked Himalayan country
situated between India and China. The mountainous
Figure 1.Bhutan in Brief
kingdom is about half the size of Indiana, with an estimated
population of 782,000, approximately 115,000 of them in
and around the capital city, Thimphu. Bhutan’s economy
has grown primarily as a result of hydropower, agriculture,
and forestry development. The United States has no
significant trade relations with Bhutan, and its foreign aid
mission and bilateral consular affairs are handled by the
U.S. Embassy in New Delhi, India. Deputy Secretary of
State John Sullivan visited Bhutan in August, 2019. Bhutan
has participated in a U.S. Agency for International
Development (USAID) regional program for South Asia
directed at developing power infrastructure, and it has
implemented programs intended to help mitigate some of
the effects of climate change. With 70% forest cover and
extensive hydropower, Bhutan is a carbon negative country.
The Constitution, Elections, and the King
The constitution of Bhutan establishes three branches of
Source: CIA World Factbook, Economist Intel igence Unit, Media
government: legislative, executive, and judicial. The
bicameral legislature, or Chi Tshog, includes the National
Assembly (Tshogdu), with 47 elected representatives, and
peaceful transition of power in which the opposition
the National Council (Gyelyong Tshongde), with 25
People’s Democratic Party won 32 of the 42 elected
members, 5 of which are selected by the king. Legislators
National Assembly seats. Lotay Tshering’s Bhutan United
serve five-year terms. The executive branch includes the
Party won the 2018 National Assembly elections with 30 of
“Dragon King” (Druk Gyalpo), currently King Jigme
47 seats.
Khesar Namgyel Wangchuck, as Head of State, and the
prime minister, presently Lotay Tshering, as Head of
The birth of the hereditary Wangchuck dynasty in 1907 has
Government. The king is hereditary and appoints the
shaped Bhutan’s democracy. The first ruler, King Ugyen
majority leader in the parliament as prime minister. There is
(1907-1926), introduced reforms and Western education.
also a Council of Ministers (Lhengye Zhungtshog), whose
The second ruler, King Jigme (1926-1952), continued his
members are nominated by the king, in consultation with
father’s moderation and centralization efforts by building
the prime minister, and approved by the National
more schools and roads and bringing public institutions
Assembly. Ministers serve five-year terms. The judiciary
under government control. Two generations later, the third
consists of the Supreme Court, the High Court, District
ruler, King Jigme Dorji (1952-1972), established a high
Courts (Dzongkhag), and Sub-District Courts (Dungkhag).
court, introduced a bicameral legislative branch, set up a
The Supreme Court has five members. The Chief Justice,
planning commission, and created the Council of Ministers.
appointed by the king, serves up to two five-year terms, and
The sudden death of the third king brought his son, King
the four Associate Justices (Drangpons) serve up to two 10-
Jigme Singye (1972-2006), to power, and, like his
year terms.
forefathers, King Jigme Singye continued his father’s
legacy. In 2006, the fourth King abdicated in favor of his
Bhutan’s path to democracy was not spurred by a popular
son, Jigme Khesar Namgyel, who started a top-down
movement but rather was initiated and encouraged by the
democratic process. In July 2008, Bhutan’s political system
fourth and fifth kings of the Wangchuck dynasty.
changed from an absolute monarchy to constitutional
According to Bhutan’s first prime minister, Jigme Y.
monarchy with a parliamentary form of government.
Thinley, who came to power in the country’s first election
of 2008, the Bhutanese people were apprehensive about the
Ethnic, Religious, and Refugee Issues
new system because “in many of the countries, democracy
Bhutan has four ethnic groups: the Ngalops (westerners),
had failed or was in the process of failing, and leading to
the Sharchop (easterners), aboriginal people, and the
tremendous upheavals, strife among the people.” The king,
Lhotshampa (southerners). The Ngalops migrated from
however, insisted that the long-term interests of the people
Tibet to Bhutan around the ninth century. They introduced
Tibetan culture and Mahayana Buddhism to Bhutan. The
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The Kingdom of Bhutan
Ngalops are the majority in central, western, and northern
treaties promised the policy of “no interference in the
Bhutan, and they dominate cultural, religious, and political
internal administration of Bhutan” and provided protection
elements in modern Bhutan. The Sharchops are thought to
from external encroachment. India is Bhutan’s key strategic
have originated from Assam, in present-day India, or
and economic partner. India and Bhutan signed another
perhaps Burma, and they also practice Mahayana
Treaty of Friendship in 2007 granting Bhutan more
Buddhism. Several aboriginal groups (Drokpa, Lepcha,
independence in its foreign and defense relations. Bhutan
Doya) live and practice Hinduism throughout Bhutan.
has joined a number of international organizations and
Hindu Nepali settlers, the fourth group, are the majority in
entered into several international agreements. It was a co-
the south. These southerners, or Lhotshampa, arrived from
founding member of the South Asian Association for
Nepal. Many of the Lhotshampa settlers are not legal
Regional Cooperation (SAARC) in 1985 and joined the
residents of Bhutan.
South Asian Free Trade Agreement in 2004. Bhutan is also
a member of the Bay of Bengal Initiative for Multi-sectoral
During the late 1980s and early 1990s, the Thimphu
Technical and Economic Cooperation (BIMSTEC). Bhutan
government viewed the Lhotshampa, which made up about
has representation at the United Nations, which it joined in
28% of the population, as a threat to the country’s cultural
1971. Bhutan also joined 174 other countries to sign the
identity. Many Lhotshampa were expelled or voluntarily
Paris Agreement on Climate Change in 2016. Bilateral
emigrated to India and Nepal, evading government attempts
relations with the United States are limited, with no formal
to forcibly integrate them into mainstream Bhutanese
diplomatic relations. According to the U.S. Department of
culture. This tension led to unrest in the south of Bhutan in
State, however, “the two countries maintain warm informal
the early 1990s and resulted in an estimated 107,000 Hindu
relations.” The United States has helped resettle
Nepali settlers returning to Nepal as refugees.
Lhotshampa refugees residing in Nepal. China and Bhutan
do not have formal diplomatic relations.
Economic Development and “Gross
National Happiness (GNH)”
Doklam
In recent years, Bhutan has experienced consistent
With a population of less than 1 million, Bhutan is dwarfed
economic growth. New hydropower plants are expected to
by India (1.3 billion) and China (1.4 billion), and since the
come online while past hydropower profits have been
1962 border war between China and India periodic tensions
invested by the government in public health care,
between the two powers have complicated Bhutan’s
contributing to an increase in Bhutanese life expectancy.
external situation. Border tensions between China and India
Bhutan fits the low middle-income group profile. In
escalated in mid-June 2017, while Indian Prime Minister
contrast to Gross Domestic Product (GDP), the concept of
Modi was in Washington, DC, to meet with President
measuring Gross National Happiness (GNH) has a deep-
Trump. Possibly intending to signal displeasure over
rooted history in Bhutanese culture. In 1987, the fourth king
developing ties between India and the United States, China
stated, “We are convinced that we must aim for
extended an unpaved road near Doklam on the disputed
contentment and happiness.” The king’s vision of happiness
border between China and Bhutan, high in the Himalayas.
has since been enshrined in Article 9 of the 2008
China’s road-building activity was first revealed by a Royal
Constitution of Bhutan, which reads, “The State shall strive
Bhutan Army Patrol that sought to dissuade the Chinese
to promote those conditions that will enable the pursuit of
from continuing. Indian military personnel subsequently
Gross National Happiness.” Established by the Royal
moved to the border area and a standoff ensued until a de-
Government of Bhutan, the Centre for Bhutan Studies &
escalation of tensions in August, 2017. Doklam is located in
Gross National Happiness Research (CBS & GNH), which
territory disputed by Bhutan and China to the north of the
describes itself as “an autonomous research institute” based
Siliguri Corridor. The corridor, also known as the
in the capital Thimphu, is mandated by the government to
“chicken’s neck” and 20 miles wide at its narrowest, links
study the GNH concept and develop indicators for the
central India with its seven northeastern states. Chinese
Royal Government of Bhutan’s Gross National Happiness
control of the corridor would isolate 45 million Indians in
Commission (GNHC), which is responsible for integrating
an area the size of the United Kingdom.
“GNH into national planning process.” The GNHC chair
and vice chair are the prime minister and finance minister,
Other Security Concerns
respectively. GNHC ensures all government policies “are
Bhutan has also experienced other security challenges. In
formulated and implemented in line with the principles of
the 1990s, Indian separatist militants (the United Liberation
GNH including: (a) developing a dynamic economy as the
Front of Assam and others) established bases in southern
foundation for a vibrant democracy, (b) living in harmony
Bhutan. The National Assembly discussed peaceful and
with tradition and nature, (c) effective and good
military options to drive out the groups. After five rounds
governance, and (d) investing in our people, the nation’s
of talks with the militants failed, the National Assembly
greatest asset.” Despite the focus on GNH, income
approved “Operation All Clear” in 2003 to remove the
inequality is a growing issue in Bhutan’s domestic politics.
groups forcefully. The operation captured or killed 650
militants, including top ULFA leaders. Other security
Foreign Relations
threats emerged prior to the March 2008 election, as several
Bhutan’s external relations have been influenced by the
bombs exploded in Thimphu and other districts. The United
United Kingdom, and more recently India, for much of the
Revolutionary Front of Bhutan (URFB), claimed
past century. The 1910 Treaty of Punakha and 1949 Treaty
responsibility for the bombings to highlight the rights of
of Friendship allowed the British and Indian governments,
Lhotshampa.
respectively, to direct Bhutan’s external affairs. Both
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The Kingdom of Bhutan
IF10660
Bruce Vaughn, Specialist in Asian Affairs
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