Background: In 1865 Britain and Bhutan signed the Treaty of Sinchulu under which Bhutan would receive an annual subsidy in exchange for ceding some border land. Under British influence a monarchy was set up 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. This role was assumed by independent India after 1947. Two years later a formal Indo-Bhutanese accord returned the areas of Bhutan annexed by the British formalized the annual subsidies the country received and defined India's responsibilities in defense and foreign relations. A refugee issue of some 100,000 Bhutanese in Nepal remains unresolved; 90% of the refugees are housed in seven United Nations Office of the High Commissioner for Refugees (UNHCR) camps. Maoist Assamese separatists from India who have established themselves in the southeast portion of Bhutan have drawn Indian cross-border incursions.

Geographic coordinates: 27 30 N 90 30 E

Map reference: Asia

Area
Total: 47,000 km²
Water: 0 km²
Land: 47,000 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: Drangme Chhu 97 m
Extremes highest point: Kula Kangri 7,553 m

Natural resources: timber hydropower gypsum calcium carbide

Land use
Arable land: 2.98%
Permanent crops: 0.43%
Other: 96.59% (1998 est.)

Irrigated land: 400 km² (1998 est.)

Natural hazards: violent storms 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
Note: other estimates range as low as 810,000 (July 2003 est.)
Growth rate: 2.14% (2003 est.)
Below poverty line: NA%

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

Ethnic groups: Bhote 50% ethnic Nepalese 35% (includes Lhotsampas--one of several Nepalese ethnic groups) indigenous or migrant tribes 15%

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

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

Age structure
0-14 years: 39.6% (male 438,784; female 407,919)
15-64 years: 56.4% (male 621,666; female 585,550)
65 years and over: 4% (male 43,262; female 42,368) (2003 est.)

Median age
Total: 20.1 years
Male: 19.9 years
Female: 20.3 years (2002)

Population growth rate: 2.14% (2003 est.)

Birth rate: 34.82 births/1000 population (2003 est.)

Death rate: 13.47 deaths/1000 population (2003 est.)

Net migration rate: 0 migrant(s)/1000 population (2003 est.)

Environment
Current issues: soil erosion; limited access to potable water
International agreements party to: Biodiversity, Climate Change, Nuclear Test Ban
International agreements signed but not ratified: Law of the Sea

Sex ratio
At birth: 1.05 male/female
Under 15 years: 1.08 male/female
15-64 years: 1.06 male/female
65 years and over: 1.02 male/female
Total population: 1.07 male/female (2003 est.)

Infant mortality rate
Total: 104.68 deaths/1000 live births
Female: 106.97 deaths/1000 live births (2003 est.)
Male: 102.49 deaths/1000 live births

Life expectancy at birth
Total population: 53.58 years
Male: 53.9 years
Female: 53.25 years (2003 est.)

Total fertility rate: 4.94 children born/woman (2003 est.)

Hivaids
Adult prevalence rate: less than 0.1% (2001 est.)
People living with hivaids: less than 100 (1999 est.)
Deaths: NA

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
Note: there may be two new districts named Gasa and Yangtse

Independence: 8 August 1949 (from India)

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

Constitution: no written constitution or bill of rights; note - the King commissioned a committee to draft a constitution in 2001 but has yet to be approved

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)
Elections: none; the monarch is hereditary, but democratic reforms in July 1998 grant the National Assembly authority to remove the monarch with two-thirds vote
Head of government: Chairman of the Council of Ministers Lyonpo Jigme Y. THINLEY (since 30 August 2003)
Cabinet: Council of Ministers (Lhengye Shungtsog) nominated by the monarch, approved by the National Assembly; members serve fixed, five-year terms; note - there is also a Royal Advisory Council (Lodoi Tsokde), members nominated by the monarch

Legislative branch
Elections: local elections last held November 2002 (next to be held NA 2005)
Election results: NA

Judicial branch: Supreme Court of Appeal (the monarch); High Court (judges appointed by the monarch)

Political parties and leaders: no legal parties

International organization participation: AsDB CP ESCAP FAO G-77 IBRD ICAO IDA IFAD IMF IOC IOM (observer) ITU NAM OPCW (signatory) SAARC UN UNCTAD UNESCO UNIDO UPU WCO WHO WIPO WTrO (observer)

Diplomatic representation
In the us consulates general: New York
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 providing the main livelihood for more than 90% of the population. 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 and dependence on India's financial assistance. The industrial sector is 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. The government has made some progress in expanding the nation's productive base and improving social welfare. Model education social and environment programs are underway with support from multilateral development organizations. Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. Detailed controls and uncertain policies in areas like industrial licensing trade labor and finance continue to hamper foreign investment.

Real gdp growth rate: 7.7% (2002 est.)

Real gdp per capita: purchasing power parity - $1300 (2002 est.)

Gdp composition by sector of origin
Agriculture: 45%
Industry: 10%
Services: 45% (2002 est.)

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: 9.3% (1996 est.)

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

Unemployment rate: NA%

Population below poverty line: NA%

Household income or consumption by percentage share
Lowest 10: NA%
Highest 10: NA%

Budget
Revenues: $146 million
Expenditures: $152 million, including capital expenditures of NA
Note: the government of India finances nearly three-fifths of Bhutan's budget expenditures (FY95/96 est.)

Fiscal year: 1 July - 30 June

Inflation rate consumer prices: 3% (2002 est.)

Exports: $154 million f.o.b. (2000 est.)
Commodities: electricity (to India) cardamom gypsum timber handicrafts cement fruit precious stones spices
Partners: US 24.1% UK 23.9% Pakistan 23.1% France 13.9% (2002)

Imports: $196 million c.i.f. (2000 est.)
Commodities: fuel and lubricants grain machinery and parts vehicles fabrics rice
Partners: Japan 44.5% Germany 12.2% UK 8.5% Singapore 6% South Korea 5% US 4.2% (2002)

Debt external: $245 million (2000)

Exchange rates: ngultrum per US dollar - 48.61 (2002) 47.19 (2001) 44.94 (2000) 43.06 (1999) 41.26 (1998)

Electricity
Production: 1.896 billion kWh (2001)
Production by source fossil fuel: 0.1%
Production by source hydro: 99.9%
Production by source other: 0% (2001)
Production by source nuclear: 0%
Consumption: 379.5 million kWh (2001)
Exports: 1.4 billion kWh (2001)
Imports: 16 million kWh (2001)

Telephones
Main lines in use: 6,000 (1997)
Mobile cellular: NA

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

Internet
Country code: .bt
Service providers isps: NA
Users: 2,500 (2002)

Military expenditures
Dollar figure: $9.3 million (FY02)
Percent of gdp: 1.9% (FY02)

Airports: 2 (2002)
With paved runways total: 1
With paved runways 15-24 to 2437 m: 1 (2002)
With unpaved runways total: 1
With unpaved runways 914 to 1523 m: 1 (2002)

Railways: 0 km

Waterways: none

Disputes international: approximately 100,000 Bhutanese refugees living in Nepal 90% of whom reside in seven UN Office of the High Commissioner for Refugees camps place decades-long strains on Nepal