Updated June 22, 2021
The Kingdom of Bhutan
Background
however, insisted that the long-term interests of the people
The Kingdom of Bhutan, also known as the Land of the
were best served by elected leaders. The 2008 election went
Thunder Dragon, is a small, landlocked Himalayan country
smoothly. Parliamentary elections were also held in 2013
situated between India and China. The mountainous
and 2018. In 2018, the Druk Nyamrup Tshogpa Party won
kingdom is about half the size of Indiana, with an estimated
30 of 47 seats. The next election is due in 2023.
population of 857,423, approximately 115,000 of them in
and around the capital city, Thimphu. Bhutan’s economy
Figure 1. Bhutan in Brief
has grown primarily as a result of hydropower, agriculture,
and forestry development. Hydropower exports account for
40% of total exports and 25% of government revenue. 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.
Geopolitical tensions between China and India along their
Himalayan border have generally increased U.S.
policymakers’ interest in the region. 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.
Ninety-three percent of eligible adults in Bhutan reportedly
received COVID-19 vaccine by April 2021.
Source: CIA World Factbook, Economist Intel igence Unit, media.
The Constitution, Elections, and the King The birth of the hereditary Wangchuck dynasty in 1907 has
The constitution of Bhutan establishes three branches of
shaped Bhutan’s democracy. The first ruler, King Ugyen
government: legislative, executive, and judicial. The
(1907-1926), introduced reforms and Western education.
bicameral legislature, or Chi Tshog, includes the National
The second ruler, King Jigme (1926-1952), continued his
Assembly (Tshogdu), with 47 elected representatives, and
father’s moderation and centralization efforts by building
the National Council (Gyelyong Tshongde), with 25
more schools and roads and bringing public institutions
members, 5 of which are selected by the king. Legislators
under government control. Two generations later, the third
serve five-year terms. The executive branch includes the
ruler, King Jigme Dorji (1952-1972), established a high
“Dragon King” (Druk Gyalpo), currently King Jigme
court, introduced a bicameral legislative branch, set up a
Khesar Namgyel Wangchuck, as Head of State, and the
planning commission, and created the Council of Ministers.
prime minister, presently Lotay Tshering, as Head of
The sudden death of the third king brought his son, King
Government. The king is hereditary and appoints the
Jigme Singye (1972-2006), to power and King Jigme
majority leader in the parliament as prime minister. The
Singye continued his father’s legacy. In 2006, the fourth
king can be forced to abdicate by a two-thirds vote in the
King abdicated in favor of his son, Jigme Khesar Namgyel,
National Assembly. There is also a Council of Ministers
who started the top-down democratic transition. In July
(Lhengye Zhungtshog), whose members are nominated by
2008, Bhutan’s political system changed from an absolute
the king, in consultation with the prime minister, and
monarchy to constitutional monarchy with a parliamentary
approved by the National Assembly. The judiciary consists
form of government.
of the Supreme Court, the High Court, District Courts
(Dzongkhag), and Sub-District Courts (Dungkhag).
Ethnic, Religious, and Refugee Issues
Bhutan has four ethnic groups: the Ngalops (westerners),
Bhutan’s path to democracy was not spurred by a popular
the Sharchop (easterners), aboriginal people, and the
movement but rather was initiated and encouraged by the
Lhotshampa (southerners). The Ngalops migrated from
fourth and fifth kings of the Wangchuck dynasty.
Tibet to Bhutan around the ninth century. They introduced
According to Bhutan’s first prime minister, Jigme Y.
Tibetan culture and Mahayana Buddhism to Bhutan. The
Thinley, who came to power in the country’s first election
Ngalops are the majority in central, western, and northern
in 2008, the Bhutanese people were apprehensive of the
Bhutan, and they dominate cultural, religious, and political
new system because “in many of the countries, democracy
elements in modern Bhutan. The Sharchops are thought to
had failed or was in the process of failing, and leading to
have originated from Assam, in present-day India, or
tremendous upheavals, strife among the people.” The king,
perhaps Burma, and they also practice Mahayana
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The Kingdom of Bhutan
Buddhism. Several aboriginal groups (Drokpa, Lepcha,
Bhutan signed another Treaty of Friendship in 2007.
Doya) live and practice Hinduism throughout Bhutan.
Bhutan has joined a number of international organizations
Hindu Nepali settlers, the fourth group, are the majority in
and entered into several international agreements. It was a
the south. These southerners, or Lhotshampa, arrived from
co-founding member of the South Asian Association for
Nepal.
Regional Cooperation (SAARC) in 1985 and joined the
South Asian Free Trade Agreement in 2004. Bhutan is also
During the late 1980s and early 1990s, the Thimphu
a member of the Bay of Bengal Initiative for Multi-sectoral
government viewed the Lhotshampa, which made up about
Technical and Economic Cooperation (BIMSTEC). Bhutan
28% of the population, as a threat to the country’s cultural
has representation at the United Nations, which it joined in
identity. Many Lhotshampa were expelled or voluntarily
1971. Bhutan also joined 174 other countries to sign the
emigrated to India and Nepal, evading government attempts
Paris Agreement on Climate Change in 2016. Bilateral
to forcibly integrate them into mainstream Bhutanese
relations with the United States are limited. According to
culture. This tension led to unrest in the south of Bhutan in
the U.S. Department of State, however, “the two countries
the early 1990s and resulted in an estimated 107,000 Hindu
maintain warm informal relations.”
Nepali settlers returning to Nepal as refugees. The United
States resettled some of the Lhotshampa refugees residing
Doklam and Sakteng
in Nepal.
With a population of less than 1 million, Bhutan is dwarfed
by India (1.3 billion) and China (1.4 billion), and since the
Economic Development and “Gross
1962 border war between China and India periodic tensions
National Happiness (GNH)”
between the two powers have complicated Bhutan’s
In recent years, Bhutan has experienced consistent
external relations. Border tensions between China and India
economic growth. New hydropower plants are expected to
escalated in June 2017, while Indian Prime Minister
come online while past hydropower profits have been
Narendra Modi was in Washington, DC, to meet with
invested by the government in public health care,
President Donald Trump. Possibly intending to signal
contributing to an increase in Bhutanese life expectancy.
displeasure over developing ties between India and the
Bhutan fits the low middle-income group profile. In
United States, China extended an unpaved road near
contrast to Gross Domestic Product (GDP), the concept of
Doklam on the disputed border between China and Bhutan,
measuring Gross National Happiness (GNH) has a deep-
high in the Himalayas. China’s road-building activity was
rooted history in Bhutanese culture. In 1987, the fourth king
first revealed by a Royal Bhutan Army Patrol that sought to
stated, “We are convinced that we must aim for
dissuade the Chinese from continuing. Indian military
contentment and happiness.” The king’s vision of happiness
personnel subsequently moved to the border area and a
has since been enshrined in Article 9 of the 2008
standoff ensued until a de-escalation of tensions in August,
Constitution of Bhutan, which reads, “The State shall strive
2017. Doklam is located in territory disputed by Bhutan and
to promote those conditions that will enable the pursuit of
China to the north of the Siliguri Corridor. The corridor, 20
Gross National Happiness.” Established by the Royal
miles wide at its narrowest, links central India with its
Government of Bhutan, the Centre for Bhutan Studies &
seven northeastern states. Chinese control of the corridor
Gross National Happiness Research (CBS & GNH), which
would isolate 45 million Indians in an area the size of the
describes itself as “an autonomous research institute” based
United Kingdom. China made a new claim to the Sakteng
in the capital Thimphu, is mandated by the government to
Wildlife Sanctuary in Bhutan’s east in the summer of 2020.
study the GNH concept and develop indicators for the
This land of approximately 285 sq. miles had not previously
Royal Government of Bhutan’s Gross National Happiness
been considered disputed. Previous border talks between
Commission (GNHC), which is responsible for integrating
Bhutan and China have focused on disputed areas along
“GNH into national planning process.” The GNHC chair
Bhutan’s northern and western borders with China. Some
and vice chair are the prime minister and finance minister,
observers claim that China has established new settlements
respectively. GNHC ensures all government policies “are
on Bhutan’s territory, and view China’s encroachments as
formulated and implemented in line with the principles of
aimed at pressing Bhutan to yield territory in Bhutan’s
GNH including: (a) developing a dynamic economy as the
west.
foundation for a vibrant democracy, (b) living in harmony
with tradition and nature, (c) effective and good
Other Security Concerns
governance, and (d) investing in our people, the nation’s
Bhutan has also experienced other security challenges. In
greatest asset.” Despite the focus on GNH, income
the 1990s, Indian separatist militants (the United Liberation
inequality is a growing issue in Bhutan’s domestic politics.
Front of Assam and others) established bases in southern
Bhutan. After five rounds of talks with the militants failed,
Foreign Relations
the National Assembly approved “Operation All Clear” in
Bhutan’s external relations have been heavily influenced by
2003 to remove the groups forcefully. The operation
the United Kingdom, and more recently India, for much of
captured or killed 650 militants, including top ULFA
the past century. The 1910 Treaty of Punakha and 1949
leaders. Other security threats emerged prior to the March
Treaty of Friendship allowed the British and Indian
2008 election, as several bombs exploded in Thimphu and
governments, respectively, to direct Bhutan’s external
other districts. The United Revolutionary Front of Bhutan
affairs. Both treaties promised the policy of “no
(URFB), claimed responsibility for the bombings to
interference in the internal administration of Bhutan” and
highlight the rights of Lhotshampa.
provided protection from external encroachment. India is
Bhutan’s key strategic and economic partner. India and
Bruce Vaughn, Specialist in Asian Affairs
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The Kingdom of Bhutan
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