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Updated June 22, 2021

The Kingdom of Bhutan

Background
The Kingdom of Bhutan, also known as the Land of the
Thunder Dragon, is a small, landlocked Himalayan country
situated between India and China. The mountainous
kingdom is about half the size of Indiana, with an estimated
population of 857,423, approximately 115,000 of them in
and around the capital city, Thimphu. Bhutan's economy
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.
The Constitution, Elections, and the King
The constitution of Bhutan establishes three branches of
government: legislative, executive, and judicial. The
bicameral legislature, or Chi Tshog, includes the National
Assembly (Tshogdu), with 47 elected representatives, and
the National Council (Gyelyong Tshongde), with 25
members, 5 of which are selected by the king. Legislators
serve five-year terms. The executive branch includes the
Dragon King (Druk Gyalpo), currently King Jigme
Khesar Namgyel Wangchuck, as Head of State, and the
prime minister, presently Lotay Tshering, as Head of
Government. The king is hereditary and appoints the
majority leader in the parliament as prime minister. The
king can be forced to abdicate by a two-thirds vote in the
National Assembly. There is also a Council of Ministers
(LhengyeZhungtshog), whose members are nominated by
the king, in consultation with the prime minister, and
approved by the National Assembly. The judiciary consists
of the Supreme Court, the High Court, District Courts
(Dzongkhag), and Sub-District Courts (Dungkhag).
Bhutan's path to democracy was not spurred by a popular
movement but rather was initiated and encouraged by the
fourth and fifth kings of the Wangchuck dynasty.
According to Bhutan's first prime minister, Jigme Y.
Thinley, who came to power in the country's first election
in 2008, the Bhutanese people were apprehensive of the
new system because in many of the countries, democracy
had failed or was in the process of failing, and leading to
tremendous upheavals, strife among the people. The king,

however, insisted that the long-term interests of the people
were best served by elected leaders. The 2008 election went
smoothly. Parliamentary elections were also held in 2013
and 2018. In 2018, the Druk Nyamrup Tshogpa Party won
30 of 47 seats. The next election is due in 2023.
Figure I. Bhutan in Brief

Source: CIA World Factbook, Economist Intelligence Unit, media.
The birth of the hereditary Wangchuck dynasty in 1907 has
shaped Bhutan's democracy. The first ruler, King Ugyen
(1907-1926), introduced reforms and Western education.
The second ruler, King Jigme (1926-1952), continued his
father's moderation and centralization efforts by building
more schools and roads and bringing public institutions
under government control. Two generations later, the third
ruler, King Jigme Dorji (1952-1972), established a high
court, introduced a bicameral legislative branch, set up a
planning commission, and created the Council of Ministers.
The sudden death of the third king brought his son, King
Jigme Singye (1972-2006), to power and King Jigme
Singye continued his father's legacy. In 2006, the fourth
King abdicated in favor of his son, Jigme Khesar Namgyel,
who started the top-down democratic transition. In July
2008, Bhutan's political system changed from an absolute
monarchy to constitutional monarchy with a parliamentary
form of government.
Ethnic, Religious, and Refugee Issues
Bhutan has four ethnic groups: the Ngalops (westerners),
the Sharchop (easterners), aboriginal people, and the
Lhotshampa (southerners). The Ngalops migrated from
Tibet to Bhutan around the ninth century. They introduced
Tibetan culture and Mahayana Buddhism to Bhutan. The
Ngalops are the majority in central, western, and northern
Bhutan, and they dominate cultural, religious, and political
elements in modern Bhutan. The Sharchops are thought to
have originated from Assam, in present-day India, or
perhaps Burma, and they also practice Mahayana

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