Bhutan

Bhutan, officially the Kingdom of Bhutan (Druk Gyalkhap), is a small, landlocked nation in the eastern Himalayas, situated between India and China. Known locally as Druk Yul, or the Land of the Thunder Dragon, Bhutan is celebrated for its distinctive model of governance that balances economic growth with spiritual and environmental well-being through its guiding philosophy of Gross National Happiness (GNH). The kingdom combines deep-rooted Buddhist traditions with gradual modernisation, maintaining its cultural identity while engaging selectively with global institutions.

Historical Background and Political Evolution

Bhutan’s early history is intertwined with Tibetan Buddhism and the rise of religious leadership in the region. Though Buddhist influence reached the area as early as the seventh century, Bhutan’s recorded political consolidation began in the seventeenth century under Shabdrung Ngawang Namgyal, who unified various valleys and established a dual system of governance combining religious and secular authority.
Modern Bhutan’s political structure took shape in the late nineteenth and early twentieth centuries. Following the British victory in the Duar War (1865), Bhutan signed the Treaty of Sinchulu, ceding border lands in exchange for an annual subsidy. By the late 1800s, Ugyen Wangchuck, the Penlop (governor) of Trongsa, emerged as Bhutan’s dominant leader, known for mediating relations with British India. In 1907, he was enthroned as Bhutan’s first hereditary monarch, establishing the Wangchuck dynasty that continues to rule today.
The Treaty of Punakha (1910) confirmed British non-interference in Bhutan’s domestic affairs, while granting Britain a role in advising on foreign relations. After India’s independence in 1947, the Indo-Bhutan Treaty of Friendship (1949) reaffirmed Bhutan’s sovereignty while providing for Indian guidance in defence and foreign affairs. The treaty’s 2007 revision granted Bhutan full autonomy in external relations while preserving close strategic ties with India.
Under King Jigme Dorji Wangchuck (1952–1972), Bhutan entered a phase of reform and modernisation—abolishing serfdom, creating the National Assembly, and cautiously opening to international diplomacy. Bhutan joined the United Nations in 1971, marking its emergence as a sovereign state on the global stage.
His successor, King Jigme Singye Wangchuck (1972–2006), institutionalised the concept of Gross National Happiness and introduced major political reforms, culminating in the transition to democracy. The 2008 Constitution established Bhutan as a constitutional monarchy, and King Jigme Khesar Namgyel Wangchuck, who ascended the throne in 2006, has since guided the nation through peaceful democratic transitions. The most recent elections in 2024 reaffirmed Bhutan’s stability, with the People’s Democratic Party (PDP), led by Prime Minister Tshering Tobgay, returning to power.

Geography and Natural Environment

Bhutan covers an area of 38,394 square kilometres, sharing borders with China (477 km) to the north and India (659 km) to the south, east, and west. Its landscape consists of steep mountain ranges, deep valleys, and subtropical plains in the south. The kingdom’s highest peak, Gangkar Puensum (7,570 m), remains the world’s highest unclimbed mountain, a testament to Bhutan’s reverence for nature and spiritual traditions.
The climate varies from tropical in the southern foothills to alpine cold in the north, influenced by the monsoon. Bhutan is prone to landslides, floods, and glacial lake outburst floods, shaped by its rugged Himalayan geography.
Approximately 71.6% of the country is forested, and Bhutan’s constitution mandates that no less than 60% of the territory remain under forest cover at all times. The nation is rich in hydropower resources, timber, gypsum, and limestone, but its economic policy prioritises sustainability over exploitation.
Bhutan remains carbon negative, absorbing more carbon dioxide than it emits. It relies entirely on hydroelectric power, which also forms a cornerstone of its export revenue, and has committed to maintaining its ecological balance as a constitutional obligation.

People, Language, and Culture

As of 2024, Bhutan’s population is estimated at 884,500, with about 44% living in urban areas. The capital, Thimphu, houses around 203,000 people.
Ethnic composition:

• Ngalop (Bhote): ~50%, mainly in the central and western regions
• Lhotshampa (Nepali origin): ~35%, concentrated in the south
• Sharchop and other groups: ~15%, primarily in the east

The official language is Dzongkha, while Sharchopkha and Lhotshamkha (Nepali) are also spoken. Buddhism (75%) is the state religion, coexisting with Hinduism (22%) and minor faiths.
Bhutanese society is deeply influenced by Mahayana Buddhism, which underpins the kingdom’s ethical and aesthetic values. Traditional dzong architecture, monastic festivals (Tshechus), and the national dress—gho for men and kira for women—remain integral to cultural life.
Social progress has advanced rapidly: literacy reached 67% (2017), and life expectancy is 73.7 years (2024). Access to clean water (99%), sanitation (88%), and universal healthcare reflects Bhutan’s investment in human development. Education and health services are provided largely free of charge.

Political System and Governance

Bhutan operates as a constitutional monarchy under the Wangchuck dynasty, with King Jigme Khesar Namgyel Wangchuck as head of state. The 2008 Constitution divides powers among executive, legislative, and judicial branches, guided by principles of accountability, decentralisation, and cultural preservation.
The Parliament (Chi Tshog) consists of:

• National Assembly (Tshogdu): 47 directly elected members (five-year terms)
• National Council (Gyelyong Tshogde): 25 members (20 elected, 5 appointed by the King)

The People’s Democratic Party (PDP) currently governs, emphasising economic resilience and environmental sustainability. Bhutan’s judiciary is rooted in Buddhist civil law traditions, with the Supreme Court as the apex body, followed by the High Court and Dzongkhag (district) courts.
Corruption remains low by regional standards, and public institutions enjoy high levels of trust, reflecting the country’s cohesive political culture.

Economy and Development

Bhutan’s economy, valued at US$3.02 billion (2023), is small but steadily modernising. GDP growth reached 4.9% in 2023, driven by hydropower exports, tourism, and public investment. GDP per capita (PPP) was US$14,600.
Economic structure (2023):

• Agriculture: 15%
• Industry: 29.6%
• Services: 52.7%

Hydropower is Bhutan’s economic backbone, supplying 100% of domestic electricity and exporting surplus energy—mostly to India, which accounts for over 90% of Bhutan’s trade. Other industries include cement, ferroalloys, wood processing, and fruit products.
Bhutan follows a “high-value, low-volume” tourism policy, attracting visitors seeking cultural authenticity and natural beauty while minimising environmental strain.
Unemployment: 2.9% (2024)Youth unemployment: 13.8%Poverty rate: 12.4%Public debt: 111% of GDP (mostly hydropower-related)Inflation: 2.8% (2024)Foreign reserves: US$941 million
The national currency, the ngultrum (BTN), is pegged to the Indian rupee, reflecting Bhutan’s economic interdependence with India.

Foreign Relations and Security

Bhutan’s foreign policy prioritises sovereignty, environmental cooperation, and regional stability. Its closest strategic partner is India, bound by deep historical, economic, and security ties under the 1949 and 2007 treaties. India remains Bhutan’s largest investor and trading partner, particularly in hydropower and infrastructure projects.
Bhutan maintains limited diplomatic engagement, lacking formal relations with China and the United States, though it sustains friendly informal ties via the UN and other multilateral frameworks. Bhutan is a member of the United Nations, SAARC, BIMSTEC, and several international environmental organisations.
The Royal Bhutan Army (RBA), numbering about 7,000–8,000 personnel, handles national defence and disaster response. The kingdom has no air force but operates a small air wing for logistics and medical evacuation. Bhutan contributes to UN peacekeeping operations, notably in the Central African Republic.

Society, Development Philosophy, and Gross National Happiness

Bhutan’s defining national policy is Gross National Happiness (GNH)—a holistic development framework that integrates socio-economic growth with cultural preservation, environmental protection, and good governance. Introduced by King Jigme Singye Wangchuck, GNH rejects materialism as the sole measure of progress, instead promoting spiritual and communal well-being.
The GNH Commission evaluates all policies and projects against these principles. Education (5.8% of GDP) emphasises values, sustainability, and civic consciousness, while public health and environmental care are treated as moral obligations.
Bhutan’s continued focus on balance between tradition and progress has made it a model for sustainable and inclusive development worldwide.

National Identity and Symbols

• Flag: Divided diagonally into yellow (monarchy) and orange (Buddhism), featuring a white dragon (Druk) symbolising purity and unity.
• National anthem: “Druk Tsendhen” (The Thunder Dragon Kingdom).
• National emblem: A white dragon holding jewels, symbolising prosperity and spiritual power.
• National day: 17 December, commemorating the coronation of the first king in 1907.

Contemporary Outlook

Modern Bhutan represents a rare synthesis of cultural authenticity and democratic evolution. Under the leadership of King Jigme Khesar Namgyel Wangchuck and Prime Minister Tshering Tobgay, Bhutan continues to pursue modernisation anchored in its spiritual and ecological ethos.
With rising literacy, digital expansion, and increasing urbanisation, Bhutan faces new challenges—economic diversification, youth employment, and climate adaptation—but remains a global exemplar of peaceful governance, environmental stewardship, and happiness-based development.