Background: Under British influence a monarchy was set up in 1907; three years later a treaty was signed whereby the country became a British protectorate. Independence was attained in 1949 with India subsequently guiding foreign relations and supplying aid.

Geographic coordinates: 27 30 N, 90 30 E

Map reference: Asia

Area
Total: 47,000 km²
Land: 47,000 km²
Water: 0 km²
Comparative: about half the size of Indiana

Land boundaries
Total: 1,075 km
Border countries: (2) China 470 km; , India 605 km

Coastline: 0 km (landlocked)

Maritime claims: none (landlocked)

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
Extremes lowest point: Dangme Chu 97 m
Extremes highest point: Khula Kangri I 7,553 m

Natural resources: timber, hydropower, gypsum, calcium carbide

Land use
Arable land: 2%
Permanent crops: 0%
Permanent pastures: 6%
Forests and woodland: 66%
Other: 26% (1993 est.)

Irrigated land: 340 km² (1993 est.)

Natural hazards: violent storms coming down from the Himalayas are the source of the country's name which translates as Land of the Thunder Dragon; frequent landslides during the rainy season

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

Population: 1,865,191 (July 1997 est.)
Note: other estimates range as low as 600,000
Growth rate: 2.3% (1997 est.)

Nationality
Noun: Bhutanese (singular and plural)
Adjective: Bhutanese

Ethnic groups: Bhote 50%, ethnic Nepalese 35%, indigenous or migrant tribes 15%

Languages: Dzongkha (official), Bhotes speak various Tibetan dialects, Nepalese speak various Nepalese dialects

Religions: Lamaistic Buddhism 75%, Indian- and Nepalese-influenced Hinduism 25%

Age structure
0-14 years: 40% (male 387,721; female 359,857)
15-64 years: 56% (male 536,797; female 507,551)
65 years and over: 4% (male 37,249; female 36,016) (July 1997 est.)

Population growth rate: 2.3% (1997 est.)

Birth rate: 37.91 births/1000 population (1997 est.)

Death rate: 14.94 deaths/1000 population (1997 est.)

Net migration rate: 0 migrant(s)/1000 population (1997 est.)

Environment
Current issues: soil erosion; limited access to potable water

Sex ratio
At birth: 1.05 male(s)/female
Under 15 years: 1.08 male(s)/female
15-64 years: 1.06 male(s)/female
65 years and over: 1.03 male(s)/female
Total population: 1.06 male(s)/female (1997 est.)

Infant mortality rate: 114 deaths/1000 live births (1997 est.)

Life expectancy at birth
Total population: 51.88 years
Male: 52.37 years
Female: 51.37 years (1997 est.)

Total fertility rate: 5.27 children born/woman (1997 est.)

Literacy
Definition: age 15 and over can read and write
Total population: 42.2%
Male: 56.2%
Female: 28.1% (1995 est.)

Country name
Conventional long form: Kingdom of Bhutan
Conventional short form: Bhutan

Government type: monarchy; special treaty relationship with India

Capital: Thimphu

Administrative divisions: 18 districts (dzongkhag, singular and plural; Bumthang, Chhukha, Chirang, Daga, Geylegphug, Ha, Lhuntshi, Mongar, Paro, Pemagatsel, Punakha, Samchi, Samdrup Jongkhar, Shemgang, Tashigang, Thimphu, Tongsa, Wangdi Phodrang

Independence: 8 August 1949 (from India)

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

Constitution: no written constitution or bill of rights
Note: Bhutan uses 1953 Royal decree for the Constitution of the National Assembly

Legal system: based on Indian law and English common law; has not accepted compulsory ICJ jurisdiction

Suffrage: each family has one vote in village-level elections

Executive branch
Chief of state: King Jigme Singye WANGCHUCK (since 24 July 1972); note - the king is both the chief of state and head of government
Head of government: King Jigme Singye WANGCHUCK (since 24 July 1972); note - the king is both the chief of state and head of government
Cabinet: Council of Ministers (Lhengye Shungtsog) appointed by the king
Note: there is also a Royal Advisory Council (Lodoi Tsokde), members nominated by the king
Elections: none; the king is a hereditary monarch

Legislative branch: unicameral National Assembly or Tshogdu (150 seats; 105 elected from village constituencies, 12 represent religious bodies, and 33 are designated by the king to represent government and other secular interests; members serve three-year terms)
Elections: last held NA (next to be held NA)
Election results: NA

Judicial branch: the Supreme Court of Appeal is the king; High Court, judges appointed by the king

International organization participation: AsDB, CP, ESCAP, FAO, G-77, IBRD, ICAO, IDA, IFAD, IMF, Intelsat, IOC, ITU, NAM, SAARC, UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO

Diplomatic representation
In the us: none
In the us note: Bhutan has a Permanent Mission to the UN headed by Ugyen TSERING
In the us address: 2 United Nations Plaza, 27th Floor, New York, NY 10,017; telephone [1] (212) 826-1919; the Bhutanese mission to the UN has consular jurisdiction in the US
In the us consulates general: New York
In the us honorary consulates: San Francisco; Washington, DC
From the us: the US and Bhutan have no formal diplomatic relations, although informal contact is maintained between the Bhutanese and US Embassy in New Delhi (India)

Flag description: 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

Economy overview: The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for 90% of the population and account for about 40% of GDP. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India's through strong trade and monetary links. The industrial sector is small and technologically backward, with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Bhutan's hydropower potential and its attraction for tourists are key resources; however, the government limits the number of tourists to 4,000 per year to minimize foreign influence. The Bhutanese Government has made some progress in expanding the nation's productive base and improving social welfare, but growth continues to be constrained by the government's desire to protect the country's environment and cultural traditions. Growth picked up in 1995 and the country's balance of payments remained strong with comfortable reserves. The cautious fiscal stance planned for FY95/96 suggests continued economic stability in 1996. However, excessive controls and uncertain policies in areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment.

Real gdp growth rate: 6.9% (1995 est.)

Real gdp per capita: purchasing power parity - $730 (1995 est.)

Gdp composition by sector of origin
Agriculture: 42%
Industry: 31%
Services: 27%

Agriculture products: rice, corn, root crops, citrus, foodgrains; dairy products, eggs

Industries: cement, wood products, processed fruits, alcoholic beverages, calcium carbide

Industrial production growth rate: 7.6% (1992 est.)

Labor force: NA
By occupation agriculture: 93%
By occupation services: 5%
By occupation industry and commerce: 2%
Note: massive lack of skilled labor

Unemployment rate: NA%

Budget
Revenues: $52 million
Expenditures: $150 million, including capital expenditures of $95 million (FY93/94 est.)
Note: the government of India finances nearly three-fifths of Bhutan's budget expenditures

Fiscal year: 1 July - 30 June

Exports
Total value: $70.9 million (f.o.b., FY94/95 est.)
Commodities: cardamom, gypsum, timber, handicrafts, cement, fruit, electricity (to India), precious stones, spices
Partners: India 94%, Bangladesh

Imports
Total value: $113.6 million (c.i.f., FY94/95 est.)
Commodities: fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice
Partners: India 77%, Japan, UK, Germany, US

Debt external: $141 million (October 1994)

Exchange rates: ngultrum (Nu) per US$1 - 35.872 (January 1997), 35.433 (1996), 32.427 (1995), 31.374 (1994), 30.493 (1993), 25.918 (1992; note - the Bhutanese ngultrum is at par with the Indian rupee

Electricity
Capacity: 351,000 kW (1989)
Production: 1.67 billion kWh (1994)
Production note: exports electricity to India
Consumption per capita: 79 kWh (1995 est.)

Telephones: 4,620 (1991 est.)

Telephone system
Domestic: domestic telephone service is very poor with very few telephones in use
International: international telephone and telegraph service is by landline through India; a satellite earth station was planned (1990)

Military expenditures
Dollar figure: $NA
Percent of gdp: NA%

Airports: 2 (1996 est.)
With paved runways total: 1
With paved runways 15-24 to 2437 m: 1 (1996 est.)
With unpaved runways total: 1
With unpaved runways 914 to 1523 m: 1 (1996 est.)

Railways: 0 km

Disputes international: none