Bhutan is the country to emulate in development practices. it was Bhutan’s King, His Excellency Jigme Singye Wangchuck who first internationally propounded the Philosophy of Gross National Happiness in 1979. The theory contains some very noble and wholesome elements such as Harmony with Nature, Harmony with Culture, Environmental Conservation, Ecological Diversity, Equitable Development, Good Governance, Health, Education, Cultural Diversity, Resilience and Psychological Well Being. We see that Underdevelopment is the key challenge confronting the South Asian region. All progressives of the region have to address the problem of underdevelopment.Bhutan can be an excellent model for emulation for the South Asian countries. This page offers space for discussing the key developmental challenges facing the various areas of Bhutan. It also discusses the people of Bhutan have addressed those challenges and what other countries can learn from their experience. Feel free to join this debate by posting your articles, research papers, podcasts and video clips on the relevant issues related to this subject on this site. Share them with us for posting on our Website. We start the debate with a brief introduction the wonderful country of Bhutan.
Bhutan: An Introductory Profile
Introduction
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 after 1947. Two years later, a formal Indo-Bhutanese accord 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 March 2005, King Jigme Singye WANGCHUCK unveiled the government’s draft constitution—which introduced major democratic reforms—and held a national referendum for its approval. In December 2006, the King abdicated the throne in favor of his son, Jigme Khesar Namgyel WANGCHUCK. In early 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. Elections for seating the country’s first parliament were completed in March 2008; the king ratified the country’s first constitution in July 2008. Bhutan experienced a peaceful turnover of power following parliamentary elections in 2013, which resulted in the defeat of the incumbent party. The disposition of some 18,000 refugees of the roughly 100,000 who fled or were forced out of Bhutan in the 1990s—and who are housed in two UN refugee camps in Nepal—remains unresolved.
Geography and Locations
Geographic coordinates: 27 30 N, 90 30 E
Area: total: 38,394 sq km
land: 38,394 sq km
water: 0 sq km
country comparison to the world: 137
Land boundaries: total: 1,136 km
border countries (2): China 477 km, India 659 km
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: mean elevation: 2,220 m
elevation extremes: lowest: point: Drangeme Chhu 97 m
highest point: Gangkar Puensum 7,570 m
Natural resources: timber, hydropower, gypsum, calcium carbonate
Land use: agricultural land: 13.6%
arable land: 2.6%
permanent crops: 0.3%
permanent pasture: 10.7%
forest: 85.5%
other: 0.9% (2011 est.)
Irrigated land: 320 sq km (2012)
Total renewable water resources: 78 cu km (2011)
Fresh Water Withdrawal
domestic/industrial/agricultural): total: 0.34 cu km/yr (5%/1%/94%)
per capita: 458 cu m/yr (2008)
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—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, Ozone Layer Protection
signed, but not ratified: Law of the Sea
Geography—note: landlocked; strategic location between China and India; controls several key Himalayan mountain passes
People
Ethnic groups: Ngalop (also known as Bhote) 50%, ethnic Nepalese 35% (includes Lhotsampas—one of several Nepalese ethnic groups), indigenous or migrant tribes 15%
Languages: Sharchhopka 28%, Dzongkha (official) 24%, Lhotshamkha 22%, other 26% (includes foreign languages) (2005 est.)
Religions: Lamaistic Buddhist 75.3%, Indian- and Nepalese-influenced Hinduism 22.1%, other 2.6% (2005 est.)
Population: 741,919 (July 2015 est.)
country comparison to the world: 165
Age structure: 0–14 years: 26.76% (male 101,418/female 97,132)
15–24 years: 19.68% (male 74,373/female 71,600)
25–54 years: 41.6% (male 164,520/female 144,089)
55–64 years: 5.85% (male 23,271/female 20,144)
65 years and over: 6.12% (male 23,754/female 21,618) (2015 est.)
Dependency ratios:
total dependency ratio: 46.9%
youth dependency ratio: 39.5%
elderly dependency ratio: 7.4%
potential support ratio: 13.4% (2015 est.)
Median age:
total: 26.7 years
male: 27.2 years
female: 26.1 years (2015 est.)
country comparison to the world: 144
Population growth rate: 1.11% (2015 est.)
country comparison to the world: 112
Birth rate: 17.78 births/1,000 population (2015 est.)
country comparison to the world: 106
Death rate: 6.69 deaths/1,000 population (2015 est.)
country comparison to the world: 141
Net migration rate: 0 migrant(s)/1,000 population (2015 est.)
country comparison to the world: 105
Urbanization: urban population: 38.6% of total population (2015)
rate of urbanization: 3.69% annual rate of change (2010–15 est.)
Major urban areas—population: THIMPHU (capital) 152,000 (2014)
Sex ratio: at birth: 1.05 male(s)/female
total population: 1.09 male(s)/female (2015 est.)
Maternal mortality rate: 148 deaths/100,000 live births (2015 est.)
country comparison to the world: 59
Infant mortality rate: total: 35.91 deaths/1,000 live births
male: 36.27 deaths/1,000 live births
female: 35.53 deaths/1,000 live births (2015 est.)
country comparison to the world: 61
Life expectancy at birth: total population: 69.51 years
male: 68.56 years
female: 70.51 years (2015 est.)
country comparison to the world: 158
Total fertility rate: 1.97 children born/woman (2015 est.)
country comparison to the world: 128
Health expenditures: 3.6% of GDP (2013)
country comparison to the world: 167
Physicians density: 0.26 physicians/1,000 population (2012)
Hospital bed density: 1.8 beds/1,000 population (2012)
Drinking water source:
improved:
urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved:
urban: 0% of population
rural: 0% of population
total: 0% of population (2015 est.)
Sanitation facility access:
improved:
urban: 77.9% of population
rural: 33.1% of population
total: 50.4% of population
unimproved:
urban: 22.1% of population
rural: 66.9% of population
total: 49.6% of population (2015 est.)
Major infectious diseases: degree of risk: high food or waterborne
diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever
vectorborne diseases: dengue fever and malaria (2013)
Children under the age of 5 years underweight:12.8% (2010)
country comparison to the world: 59
Education expenditures: 5.9% of GDP (2014)
country comparison to the world: 86
Literacy: definition: age 15 and over can read and write
total population: 64.9%
male: 73.1%
female: 55% (2015 est.)
School life expectancy (primary to tertiary education): total: 13 years
male: 12 years
female: 13 years (2013)
Child labor—children ages 5–14: total number: 25,801
percentage: 18% (2010 est.)
Unemployment, youth ages 15–24: total: 9.6%
male: 9.2%
female: 9.9% (2013 est.)
country comparison to the world: 119
Government and Politics
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
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: 1907 (became a unified kingdom under its first hereditary king)
National holiday: National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)
Constitution: previous governing documents were various royal decrees; first constitution drafted November 2001-March 2005, ratified 18 July 2008; amended 2011 (2016)
Legal system: civil law based on Buddhist religious law
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 Tshering TOBGAY (since July 2013)
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-third 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 the 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) and the National Assembly or Tshogdu (47 seats; members directly elected in single-seat constituencies by proportional representation vote to serve 5-year terms)
elections: National Council election last held on 23 April 2013 (next to be held in 2018); National Assembly election first round held on 31 May 2013 and second round on 13 July 2013
election results: National Council—seats by pary—independent 20 (all candidates required to run as independents; National Assembly—first round—percent of vote by party—DPT 44.5%; PDP 32.5%; DNT 17.0%; DCT 5.9%; second round—percent of vote by party—PDP 54.9%, DPT 45.1%; seats by party—PDP 32, DPT 15
Judicial branch: highest court(s): Supreme Court (consists of 5 justices including the chief justice); 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 Dung khag Courts
Political parties and leaders: Bhutan Kuen-Nyam Party or BKP [Sonam TOBGAY]
Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa) or DPT [Pema GYAMTSHO]
Druck Chirwang Tshogpa or DCT
Druk Nymrub Tshogpa or DNT
People’s Democratic Party or PDP [Tshering TOBGAY]
Political pressure groups and leaders: Druk National Congress (exiled)
United Front for Democracy (exiled)
other: Buddhist clergy; ethnic Nepali-Bhutanese organizations (exiled)
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)
Flag description: divided diagonally from the lower hoist-side corner; the upper triangle is yellow and the lower triangle is orangecentered 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
Economy—overview: Bhutan’s economy, small and less developed, is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half of 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 inked a pact in December 2014 to expand duty-free trade with Bangladesh, the only trade partner with which Bhutan enjoys a surplus. 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, in its cautious expansion of the tourist sector, encourages visits by upscale, 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 currently taps only 5% of its 30,000-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. However, Bhutan and India in April 2014 agreed to begin four additional hydropower projects, which would generate 2,120 megawatts in total. Bhutan also is exploring energy exports to Bangladesh.
GDP (purchasing power parity): $6.385 billion (2015 est.)
$5.93 billion (2014 est.)
$5.93 billion (2014 est.)
$5.573 billion (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 168
GDP (official exchange rate): $2.214 billion (2015 est.)
GDP—real growth rate: 7.7% (2015 est.)
6.4% (2014 est.)
4.9% (2013 est.)
country comparison to the world: 11
GDP—per capita (PPP): $8,200 (2015 est.)
$7,700 (2014 est.)
$7,400 (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 148
GDP—composition, by sector of origin:
agriculture: 16.8%
industry: 40.5%
services: 42.7% (2014 est.)
Agriculture—products: rice, corn, root crops, citrus; dairy products, eggs
Industries: cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Industrial production growth rate: 6% (2015 est.)
country comparison to the world: 21
Labor force: 348,800
note: major shortage of skilled labor (2015 est.)
country comparison to the world: 161
Labor force—by occupation: agriculture: 57%
industry: 21%
services: 22% (2014 est.)
Unemployment rate: 2.6% (2014 est.)
2.9% (2013 est.)
country comparison to the world: 17
Population below poverty line: 12% (2012 est.)
Household income or consumption by percentage share: lowest: 10%: 2.8%
highest: 10%: 30.6% (2012)
Distribution of family income—Gini index: 38.7 (2012)
38.1 (2007)
country comparison to the world: 73
Budget: revenues: $608 million
expenditures: $692.7 million
note: The government of India finances nearly one-quarter of Bhutan’s budget expenditures (2015 est.)
Taxes and other revenues: 26.9% of GDP (2015 est.)
country comparison to the world: 103
Budget surplus (+) or deficit (–): -3.2% of GDP (2015 est.)
country comparison to the world: 122
Public debt: 98.5% of GDP (2015 est.)
91.2% of GDP (2014 est.)
country comparison to the world: 18
Fiscal year: 1 July—30 June
Inflation rate (consumer prices): 7.2% (2015 est.)
9.6% (2014 est.)
country comparison to the world: 195
Market value of publicly traded shares: $320 million (31 December 2013)
$283.4 million (31 December 2012)
country comparison to the world: 115
Current account balance: -$591 million (2015 est.)
-$459 million (2014 est.)
country comparison to the world: 106
Exports: $375 million (2015 est.)
$409.2 million (2014 est.)
country comparison to the world: 179
Exports—commodities: electricity (to India), ferrosilicon, cement, calcium carbide, copper wire, manganese, vegetable oil
Exports—partners: India 83.8%, Hong Kong 10.8% (2013 est.)
Imports: $965 million (2015 est.)
$927.6 million (2014 est.)
country comparison to the world: 180
Imports—commodities: fuel and lubricants, passenger cars, machinery and parts, fabrics, rice
Imports—partners: India 72.3%, South Korea 6% (2013 est.)
Debt—external: $1.855 billion (31 December 2014 est.)
$1.844 billion (31 December 2014 est.)
country comparison to the world: 152
Stock of direct foreign investment—at home:$173.8 million (31 December 2015 est.)
$145.4 million (31 December 2014 est.)
country comparison to the world: 116
Exchange rates: ngultrum (BTN) per US dollar—
63.9 (2015 est.)
60.98 (2014 est.)
60.98 (2014 est.)
61.03 (2013 est.)
53.44 (2012 est.)
46.67 (2011 est.)
Energy
Electricity—production: 7.147 billion kWh (2014 est.)
country comparison to the world: 109
Electricity—consumption: 2.085 billion kWh (2014 est.)
country comparison to the world: 141
Electricity—exports: 5.147 billion kWh (2014 est.)
country comparison to the world: 31
Electricity—imports: 159 million kWh (2014 est.)
country comparison to the world: 90
Electricity—installed generating capacity: 1.499 million kW (2014 est.)
country comparison to the world: 120
Electricity—from fossil fuels: 0.7% of total installed capacity (2013 est.)
country comparison to the world: 210
Electricity—from hydroelectric plants: 99.3% of total installed capacity (2013 est.)
country comparison to the world: 4
Electricity—from other renewable sources: 0% of total installed capacity (2013 est.)
country comparison to the world: 162
Refined petroleum products—consumption: 2,000 bbl/day (2013 est.)
country comparison to the world: 188
Refined petroleum products—imports: 1,870 bbl/day (2013 est.)
country comparison to the world: 183
Carbon dioxide emissions from consumption of energy: 320,800 Mt (2012 est.)
country comparison to the world: 188
Communications and Transport
Telephones—fixed lines: total subscriptions: 23,800
subscriptions per 100 inhabitants: 3 (2014 est.)
country comparison to the world: 176
Telephones—mobile cellular: total: 628,300
subscriptions per 100 inhabitants: 86 (2014 est.)
country comparison to the world: 165
Telephone system: general assessment: urban towns and district headquarters have telecommunications services
domestic: low teledensity; domestic service is poor especially in rural areas; mobile-cellular service, started in 2003, is now widely available
international: country code—975; international telephone and
telegraph service via landline and microwave relay through India; satellite earth station—1 Intelsat (2012)
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)
Radio broadcast stations: AM 0, FM 9, shortwave 1 (2007)
Television broadcast stations: 1(2007)
Internet country code: .bt
Internet hosts: 14,590 (2012)
country comparison to the world: 126
Internet users: total: 203,100
percent of population: 27.7% (2014 est.)
country comparison to the world: 155
Airports: 2 (2013)
country comparison to the world: 198
Airports—with paved runways: total: 2
1,524 to 2,437 m: 1
914 to 1,523 m: 1 (2013)
Airports—with unpaved runways: total: 1
914 to 1,523 m: 1 (2012)
Roadways: total: 10,578 km
paved: 2,975 km (includes 2,180 km of national highways)
unpaved: 7,603 km (2013)
country comparison to the world: 135
Defense and Security
Military branches: Royal Bhutan Army (includes Royal Bodyguard and Royal Bhutan Police) (2009)
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 (2012)
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 largest of which lie in Bhutan’s northwest and along the Chumbi salient.
