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 to British India. 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 to Bhutan the areas annexed by the British formalized the annual subsidies the country received and defined India's responsibilities in defense and foreign relations. In March 2005 King Jigme Singye WANGCHUCK unveiled the government's draft constitution - which introduced major democratic reforms - and pledged to hold a national referendum for its approval. In December 2006 the King abdicated the throne in favor of his son Jigme Khesar Namgyel WANGCHUCK in order to give him experience as head of state before the democratic transition. 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 routed the incumbent party. The disposition of some 30,000 Bhutanese refugees - housed in two UN refugee camps in Nepal - remains unresolved.

Geographic coordinates: 27 30 N 90 30 E

Area
Rank: 137
Land: 38,394 km²
Water: 0 km²
Comparative: about one-half the size of Indiana

Land boundaries
Border countries: (2) China 477 km; India 659 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 highest point: Gangkar Puensum 7,570 m

Natural resources: timber hydropower gypsum calcium carbonate

Land use
Permanent crops: 0.46%
Other: 97.06% (2011)

Irrigated land: 319.1 km² (2010)

Total renewable water resources: 78 km³ (2011)

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: 733,643
Rank: 166
Growth rate: 1.13% (2014 est.)
Growth rate rank: 106
Below poverty line: 12% (2012)

Nationality
Adjective: Bhutanese

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

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

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

Age structure
15-24 years: 20.1% (male 75,327/female 72,472)
25-54 years: 40.8% (male 159,868/female 139,236)
55-64 years: 5.8% (male 22,769/female 19,699)
65 years and over: 6% (male 23,153/female 21,000) (2014 est.)

Dependency ratios
Youth dependency ratio: 40.8 %
Elderly dependency ratio: 7.2 %
Potential support ratio: 13.8 (2014 est.)

Median age
Male: 26.8 years
Female: 25.6 years (2014 est.)

Population growth rate: 1.13% (2014 est.)
Rank: 106

Birth rate: 18.12 births/1000 population (2014 est.)
Rank: 106

Death rate: 6.78 deaths/1000 population (2014 est.)
Rank: 140

Net migration rate: 0 migrant(s)/1000 population (2014 est.)
Rank: 100

Urbanization
Rate of urbanization: 3.65% annual rate of change (2010-15 est.)

Major urban areas
Population: THIMPHU (capital) 99,000 (2011)

Environment
Current issues: soil erosion; limited access to potable water
International agreements signed but not ratified: Law of the Sea

Sex ratio
0-14 years: 1.04 male(s)/female
15-24 years: 1.04 male(s)/female
25-54 years: 1.15 male(s)/female
55-64 years: 1.09 male(s)/female
65 years and over: 1.11 male(s)/female
Total population: 1.1 male(s)/female (2014 est.)

Infant mortality rate
Rank: 61
Male: 38.34 deaths/1000 live births
Female: 37.42 deaths/1000 live births (2014 est.)

Life expectancy at birth
Rank: 157
Male: 68.06 years
Female: 69.95 years (2014 est.)

Total fertility rate: 2.02 children born/woman (2014 est.)
Rank: 121

Contraceptive prevalence rate: 65.6% (2010)

Drinking water source:

Physicians density: 0.07 physicians/1000 population (2008)

Hospital bed density: 1.8 beds/1000 population (2011)

Sanitation facility access:

Hivaids
Adult prevalence rate: 0.2% (2012 est.)
Adult prevalence rate rank: 109
People living with hivaids: 1100 (2012 est.)
People living with hivaids rank: 143
Deaths: 100 (2012 est.)
Deaths rank: 127

Major infectious diseases
Food or waterborne diseases: bacterial and protozoal diarrhea hepatitis A and typhoid fever
Vectorborne diseases: dengue fever and malaria (2013)

Obesity adult prevalence rate: 5.3% (2008)
Rank: 154

Children under the age of 5 years underweight: 12.8% (2010)
Rank: 59

Education expenditures: 4.7% of GDP (2011)
Rank: 86

Literacy
Total population: 52.8%
Male: 65%
Female: 38.7% (2005 est.)

School life expectancy primary to tertiary education
Male: 13 years
Female: 13 years (2012)

Country name
Conventional short form: Bhutan
Local long form: Druk Gyalkhap
Local short form: Druk Yul

Government type: constitutional monarchy

Capital
Geographic coordinates: 27 28 N 89 38 E
Time difference: UTC+6 (11 hours ahead of Washington DC during Standard Time)

Administrative divisions: 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

Independence: 1907 (became a unified kingdom under its first hereditary king)

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

Constitution: previous (various royal decrees); first constitution drafted November 2001 - March 2005 ratified 18 July 2008 (2011)

Legal system: civil law based on Buddhist religious law

International law organization participation: has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

Suffrage: 18 years of age; universal

Executive branch
Head of government: Prime Minister Tshering TOBGAY (since July 2013)
Cabinet: Council of Ministers (Lhengye Zhungtshog) nominated by the monarch in consultation with the prime minister and approved by the National Assembly; members serve fixed five-year terms; the leader of the majority party is nominated as the prime minister
Elections: the monarchy is hereditary but the 2008 constitution grants the Parliament authority to remove the monarch with two-thirds vote; election of a National Assembly last occurred in July 2013 resulting in the transfer of power to the former opposition party

Legislative branch: bicameral Parliament or Chi Tshog consists of the non-partisan National Council or Gyelyong Tshogde (25 seats; 20 members elected by each of the 20 administrative districts (dzongkhags) for four-year terms and 5 members appointed by the king); and the National Assembly or Tshogdu (47 seats; members nominated by the two parties and elected by direct popular vote for five-year terms)
Elections: National Council election last held on 23 April 2013 (next to be held in 2017); National Assembly election (first round) held on 31 May 2013; second round on 13 July 2013
Election results: National Council - independents 20; note - all candidates required to run as independents; National Assembly - first round poll held on 31 May 2013 - percent of vote by party - DPT 44.52%; PDP 32.53%; DNT 17.04%; DCT 5.9%; second round poll held on 13 July 2013 - percent of vote by party - PDP 54.88% DPT 45.12%; seats by party - PDP 32 DPT 15

Judicial branch: note - the Supreme Court has sole jurisdiction in constitutional matters
Judge selection and term of office: Supreme Court chief justice appointed by the monarch upon the advice of the National Judicial Commission a 4-member body to include the Legislative Committee of the National Assembly the attorney general the Chief Justice of Bhutan and the senior Associate Justice of the Supreme Court; other judges (drangpons) appointed by the monarch from among the High Court judges selected by the National Judicial Commission; chief justice serves a 5-year term or until reaching age 65 years whichever is earlier; the four other judges serve 10-year terms or until age 65 whichever is earlier
Subordinate courts: High Court (first appellate court); District or Dzongkhag Courts; sub-district or Dungkhag Courts

Political parties and leaders: Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa) or DPT [Jigme THINLEY]; Bhutan Kuen-Nyam Party or BNK [Sonam TOBGAY]; People's Democratic Party or PDP [Tshering TOBGAY]; Druk Nymrub Tshogpa or DNT; Druck Chirwang Tshogpa or DCT

International organization participation: ADB BIMSTEC CP FAO G-77 IBRD ICAO IDA IFAD IFC IMF Interpol IOC IOM (observer) ISO (correspondent) ITSO ITU NAM OPCW SAARC SACEP UN UNCTAD UNESCO UNIDO UNWTO UPU WCO WHO WIPO WMO WTO (observer)

Diplomatic representation
In the us: 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 10,017; telephone [1] (212) 682-2,268; FAX [1] (212) 661-0551
In the us consulate general: New York
From the us: the US and Bhutan have no formal diplomatic relations although frequent informal contact is maintained via the US embasssy in New Delhi (India) and Bhutan's Permanent Mission to the UN

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; 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

National symbols: thunder dragon known as Druk

National anthem
Lyrics and music: Gyaldun Dasho Thinley DORJI/Aku TONGMI

Economy overview: Bhutan's economy small and less developed is based largely on 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. 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 - is creating employment and will probably sustain growth in the coming years. Only 5% of Bhutan’s 30,000 megawatt hydropower potential is currently tapped. The large amount of equipment needed to import materials to build hydropower plants has expanded Bhutan's trade and current account deficits. Bhutan’s GDP has rebounded strongly since the global recession began in 2008. Bhutan hopes to play a larger role in regional economic integration as a member of the South Asia Association for Regional Cooperation and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.

Real gdp purchasing power parity:
Rank: 170

Real gdp growth rate:
Rank: 39

Real gdp per capita:
Rank: 142

Gross national saving:
Rank: 29

Gdp composition by end use
Government consumption: 21.3%
Investment in fixed capital: 64%
Investment in inventories: -0.1%
Exports of goods and services: 28.6%
Imports of goods and services: -51.7%: (2013 est.)

Gdp composition by sector of origin
Industry: 41.2%
Services: 45% (2013 est.)

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

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

Industrial production growth rate: 7% (2013 est.)
Rank: 35

Labor force: 336,400
Rank: 162
By occupation industry: 19%
By occupation services: 19% (2012 est.)

Unemployment rate: 4% (2009)
Rank: 17

Population below poverty line: 12% (2012)

Household income or consumption by percentage share
Highest 10: 37.6% (2003)

Distribution of family income gini index: 38.1
Rank: 70

Budget
Expenditures: $639.5 million
Surplus or deficit: -2.4% of GDP (2013 est.)
Surplus or deficit rank: 100

Taxes and other revenues: 27.6% of GDP (2013 est.)
Rank: 106

Public debt: 44.1% of GDP (2012 est.)
Rank: 93

Fiscal year: 1 July - 30 June

Inflation rate consumer prices: 10.9% (2012 est.)
Rank: 210

Central bank discount rate: NA%

Commercial bank prime lending rate: 14% (31 December 2012 est.)
Rank: 50

Stock of narrow money: $191.9 million (31 December 2012 est.)
Rank: 174

Stock of broad money: $1.062 billion (31 December 2012 est.)
Rank: 167

Stock of domestic credit: $874.4 million (31 December 2012 est.)
Rank: 155

Market value of publicly traded shares: $283.4 million
Rank: 104

Current account balance: -$311.6 million (2012 est.)
Rank: 53

Exports: $662.2 million (2011 est.)
Rank: 167
Commodities: electricity (to India) ferrosilicon cement calcium carbide copper wire manganese vegetable oil
Partners: India 83.8% Hong Kong 10.8% (2013 est.)

Imports: $1.185 billion (2011 est.)
Rank: 175
Commodities: fuel and lubricants passenger cars machinery and parts fabrics rice
Partners: India 72.3% South Korea 6% (2013 est.)

Debt external: $836 million (2009)
Rank: 155

Stock of direct foreign investment at home: $63.5 million
Rank: 108

Exchange rates:

Electricity
Production: 7.23 billion kWh (2010 est.)
Production rank: 108
Consumption: 1.68 billion kWh (2010 est.)
Consumption rank: 144
Exports: 5.4 billion kWh (2010 est.)
Exports rank: 27
Imports: 20 million kWh (2010 est.)
Imports rank: 105
Installed generating capacity: 1.505 million kW (2010 est.)
Installed generating capacity rank: 116
Generation sources fossil fuels: 1.1% of total installed capacity (2010 est.)
Generation sources fossil fuels rank: 205
Generation sources nuclear: 0% of total installed capacity (2010 est.)
Generation sources nuclear rank: 56
Generation sources hydroelectricity: 98.9% of total installed capacity (2010 est.)
Generation sources hydroelectricity rank: 6
Generation sources other renewable sources: 0% of total installed capacity (2010 est.)
Generation sources other renewable sources rank: 161

Petroleum
Petroleum total petroleum production: 0 bbl/day (2012 est.)
Petroleum total petroleum production rank: 157
Crude oil exports: 0 bbl/day (2010 est.)
Crude oil exports rank: 91
Crude oil imports: 0 bbl/day (2010 est.)
Crude oil imports rank: 165
Crude oil proven reserves: 0 bbl (1 January 2013 est.)
Crude oil proven reserves rank: 111

Refined petroleum
Products production: 0 bbl/day (2010 est.)
Products production rank: 126
Products consumption: 1719 bbl/day (2011 est.)
Products consumption rank: 193
Products exports: 0 bbl/day (2010 est.)
Products exports rank: 158
Products imports: 1998 bbl/day (2010 est.)
Products imports rank: 181

Natural gas
Production: 0 m³ (2011 est.)
Production rank: 108
Consumption: 0 m³ (2010 est.)
Consumption rank: 125
Exports: 0 m³ (2011 est.)
Exports rank: 71
Imports: 0 m³ (2011 est.)
Imports rank: 166
Proven reserves: 0 m³ (1 January 2013 est.)
Proven reserves rank: 118

Carbon dioxide emissions
From consumption of energy: 335,700 Mt (2011 est.)

Telephones
Main lines in use: 27,000 (2012)
Main lines in use rank: 179
Mobile cellular: 560,000 (2012)
Mobile cellular rank: 165

Telephone system
Domestic: low teledensity; domestic service is poor especially in rural areas; mobile-cellular service started in 2003 is now widely available
International: country code - 975; international telephone and telegraph service via landline and microwave relay through India; satellite earth station - 1 Intelsat (2012)

Broadcast media: 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)

Internet
Country code: .bt
Hosts: 14,590 (2012)
Hosts rank: 126
Users: 50,000 (2009)
Users rank: 174

Military service age and obligation: 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)

Airports: 2 (2013)
Rank: 198
With paved runways 15-24 to 2437 m: 1
With paved runways 914 to 1523 m: 1 (2013)
With unpaved runways 914 to 1523 m: 1 (2012)

Roadways
Rank: 140
Paved: 4,991 km (includes 622 km of expressways)
Unpaved: 3,059 km (2003)

Disputes international: 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