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 in 1949. The Indo-Bhutanese Treaty of Friendship 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.
LAND
46,600 km2; 15% agricultural, 15% desert, waste, urban, 70% forested
Land boundaries: about 870 km
PEOPLE
Population: 1,364,000 (July 1982), average annual growth rate 2.3%
Nationality: noun—Bhutanese (sing., pl.); adjective—Bhutanese
Ethnic divisions: 60% Bhotias, 25% ethnic Nepalese, 15% indigenous or migrant tribes
Religion: 75% Lamaistic Buddhism, 25% Buddhist-influenced Hinduism
Language: Bhotias speak various Tibetan dialects—most widely spoken dialect is Dzongkha, the official language; Nepalese speak various Nepalese dialects
Literacy: insignificant
Labor force: 300,000; 99% agriculture, 1% industry; massive lack of skilled labor
GOVERNMENT
Official name: Kingdom of Bhutan
Type: monarchy; special treaty relationship with India
Capital: Thimphu
Political subdivisions: 4 regions (east, central, west, south), further divided into 15-18 subdivisions
Legal system: based on Indian law and English common law; in 1964 the monarch assumed full power—no constitution existed beforehand; a Supreme Court hears appeals from district administrators; has not accepted compulsory ICJ jurisdiction
National holiday: 17 December
Branches: appointed Ministers and indirectly elected Assembly consisting of village elders, monastic representatives, and all district and senior government administrators
Government leader: King Jigme Singye WANGCHUCK
Suffrage: each family has one vote
Elections: popular elections on village level held every three years
Political parties: all parties illegal
Communists: no overt Communist presence
Other political or pressure groups: Buddhist clergy
Member of: Colombo Plan, G-77, IBRD, IFAD, IMF, NAM, UPU, UN
ECONOMY
GNP: $116 million (FY81), $97 per capita; 3.6% growth in FY81
Agriculture: rice, barley, wheat, potatoes, fruit
Major industries: handicrafts (particularly textiles)
Electric power: 3,000 kW capacity (1981); 8 million kWh produced (1981), 6 kWh per capita
Exports: $12 million (FY81); fruit and vegetables, timber, coal, and cardamom
Imports: about $19 million (FY81); textiles, cereals, vehicles
Major trade partner: India
Aid: economic—India (FY61-72), $180 million
Budget: domestic revenue $12.9 million, expenditures $39.3 million (FY81 est.)
Monetary conversion rate: both ngultrums and Indian rupees are legal tender; 9.16 ngultrums=9.16 Indian rupees=US$1 as of October 1981
Fiscal year: 1 April-31 March
COMMUNICATIONS
Highways: 1,304 km total; 418 km surfaced, 515 km improved, 371 km unimproved earth
Freight carried: not available, very light traffic
Civil air: no major transport aircraft
Airfields: 2 total; 2 usable; 1 with runways 1,220-2,439 m
Telecommunications: facilities inadequate; 1,300 telephones (0.1 per 100 popl.); 6,000 est. radio sets; no TV sets; 1 AM station and no TV stations
DEFENSE FORCES
Military manpower: males 15-49, 332,000; 178,000 fit for military service; about 16,000 reach military age (18) annually
Supply: Bhutan is dependent on India
