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.

Southern Asia, between China and India

27 30 N, 90 30 E

Asia

about one-half the size of Indiana

0 km (landlocked)

none (landlocked)

varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas

mostly mountainous with some fertile valleys and savanna

highest point: Gangkar Puensum 7,570 m

timber, hydropower, gypsum, calcium carbonate

arable land 2.6%; permanent crops 0.3%; permanent pasture 10.7%

320 sq km (2012)

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

soil erosion; limited access to potable water

landlocked; strategic location between China and India; controls several key Himalayan mountain passes

750,125 (July 2016 est.)

Ngalop (also known as Bhote) 50%, ethnic Nepalese 35% (includes Lhotsampas - one of several Nepalese ethnic groups), indigenous or migrant tribes 15%

Sharchhopka 28%, Dzongkha (official) 24%, Lhotshamkha 22%, other 26% (includes foreign languages) (2005 est.)

Lamaistic Buddhist 75.3%, Indian- and Nepalese-influenced Hinduism 22.1%, other 2.6% (2005 est.)

1.09% (2016 est.)

17.5 births/1,000 population (2016 est.)

6.6 deaths/1,000 population (2016 est.)

0 migrant(s)/1,000 population (2016 est.)

THIMPHU (capital) 152,000 (2014)

148 deaths/100,000 live births (2015 est.)

1.93 children born/woman (2016 est.)

65.6% (2010)

3.6% of GDP (2014)

0.26 physicians/1,000 population (2012)

1.8 beds/1,000 population (2012)

urban: 100% of population

rural: 100% of population

total: 100% of population

urban: 0% of population

rural: 0% of population

total: 0% of population (2015 est.)

urban: 77.9% of population

rural: 33.1% of population

total: 50.4% of population

urban: 22.1% of population

rural: 66.9% of population

total: 49.6% of population (2015 est.)

0.13% (2013 est.)

600 (2013 est.)

NA

5.9% (2014)

12.8% (2010)

7.4% of GDP (2015)

constitutional monarchy

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

17 December 1907 (became a unified kingdom under its first hereditary king)

National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)

previous governing documents were various royal decrees; first constitution drafted November 2001 - March 2005, ratified 18 July 2008; amended 2011 (2016)

civil law based on Buddhist religious law

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

18 years of age; universal

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]

Druk National Congress (exiled)

United Front for Democracy (exiled)

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)

none; note - the Permanent Mission to the UN for Bhutan has consular jurisdiction in the US; the permanent representative to the UN is Kunzang C. NAMGYEL (since February 2014); address: 343 East 43rd Street, New York, NY 10017; telephone [1] (212) 682-2268; FAX [1] (212) 661-0551

the US and Bhutan have no formal diplomatic relations, although frequent informal contact is maintained via the US embassy in New Delhi (India) and Bhutan's Permanent Mission to the UN

divided diagonally from the lower hoist-side corner; the upper triangle is yellow and the lower triangle is orange; centered 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

thunder dragon known as Druk Gyalpo; national colors: orange, yellow

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.

$6.432 billion (2016 est.)

$6.066 billion (2015 est.)

$5.766 billion (2014 est.)

$2.085 billion (2015 est.)

6% (2016 est.)

5.2% (2015 est.)

3.8% (2014 est.)

$8,100 (2016 est.)

$7,800 (2015 est.)

$7,500 (2014 est.)

37.1% of GDP (2016 est.)

31.6% of GDP (2015 est.)

35% of GDP (2014 est.)

rice, corn, root crops, citrus; dairy products, eggs

cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism

6.5% (2016 est.)

348,800

2.6% (2014 est.)

2.9% (2013 est.)

12% (2012 est.)

38.7 (2012)

38.1 (2007)

30.7% of GDP (2016 est.)

-3% of GDP (2016 est.)

30% of GDP (2016 est.)

27.3% of GDP (2015 est.)

1 July - 30 June

2.9% (2016 est.)

4.5% (2015 est.)

NA%

13.7% (31 December 2016 est.)

13.75% (31 December 2015 est.)

$710.3 million (31 December 2016 est.)

$669.9 million (31 December 2015 est.)

$1.25 billion (31 December 2016 est.)

$1.174 billion (31 December 2015 est.)

$929.6 million (31 December 2016 est.)

$1.031 billion (31 December 2015 est.)

$320 million (31 December 2013)

$283.4 million (31 December 2012)

-$579 million (2016 est.)

-$581 million (2015 est.)

$500 million (2016 est.)

$580.3 million (2015 est.)

electricity (to India), ferrosilicon, cement, calcium carbide, copper wire, manganese, vegetable oil

India 83.8%, Hong Kong 10.8% (2013 est.)

$1.1 billion (2016 est.)

$997 million (2015 est.)

fuel and lubricants, passenger cars, machinery and parts, fabrics, rice

India 72.3%, South Korea 6% (2013 est.)

$2.261 billion (31 December 2016 est.)

$1.911 billion (31 December 2015 est.)

$267.1 million (31 December 2016 est.)

$238 million (31 December 2015 est.)

ngultrum (BTN) per US dollar -

68.39 (2016 est.)

64.15 (2015 est.)

64.15 (2014 est.)

61.03 (2013 est.)

53.44 (2012 est.)

7.2 billion kWh (2014 est.)

2.085 billion kWh (2014 est.)

5.147 billion kWh (2014 est.)

200 million kWh (2014 est.)

1.499 million kW (2014 est.)

0.7% of total installed capacity (2013 est.)

0% of total installed capacity (2013 est.)

99.3% of total installed capacity (2013 est.)

0% of total installed capacity (2013 est.)

0 bbl/day (2015 est.)

0 bbl/day (2013 est.)

0 bbl/day (2013 est.)

0 bbl (1 January 2016 es)

0 bbl/day (2013 est.)

3,000 bbl/day (2014 est.)

0 bbl/day (2013 est.)

3,135 bbl/day (2013 est.)

0 cu m (2013 est.)

0 cu m (2013 est.)

0 cu m (2013 est.)

0 cu m (2013 est.)

0 cu m (1 January 2014 es)

300,000 Mt (2013 est.)

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)

.bt

A5 (2016)

2 (2013)

Royal Bhutan Army (includes Royal Bodyguard and Royal Bhutan Police) (2009)

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)

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