development was heavily influenced by its religious history. Various sub-sects of Buddhism emerged which were patronized by the various Mongol warlords. After the decline of the Mongols in the 14th century, these sub-sects vied with each other for supremacy in the political and religious landscape, eventually leading to the ascendancy of the Drukpa sub-sect by the 16th century. Until the early 17th century, Bhutan existed as a patchwork of minor warring fiefdoms, when the area was unified by the Tibetan lama and military leader Shabdrung Ngawang Namgyal who fled religious persecution in Tibet. To defend the country against intermittent Tibetan forays, Namgyal built a network of impregnable dzong (fortresses), and promulgated a code of law that helped to bring local lords under centralized control. Many such dzong still exist and are active centers of religion and district administration. Portuguese Jesuit Estκvγo Cacella and another priest were the first recorded Europeans to visit Bhutan on their way to Tibet. They met with Ngawang Namgyal, presented him with firearms, gunpowder and a telescope, and offered him their services in the war against Tibet, but the Shabdrung declined the offer. After a stay of nearly eight months Cacella wrote a long letter from the Chagri Monastery reporting on his travels. This is a rare extant report of the Shabdrung.[13] After Namgyal's death in 1651, Bhutan fell into civil war. Taking advantage of the chaos, the Tibetans attacked Bhutan in 1710, and again in 1730 with the help of the Mongols. Both assaults were successfully thwarted, and an armistice was signed in 1759. Map of Bhutan. A thrikheb (throne cover) from the 19th century. Throne covers were placed atop the temple cushions used by high lamas. The central circular swirling quadrune is the Gankyil in its mode as the "Four Joys". In the 18th century, the Bhutanese invaded and occupied the kingdom of Cooch Behar to the south. In 1772, Cooch Behar appealed to the British East India Company which assisted them in ousting the Bhutanese, and later in attacking Bhutan itself in 1774. A peace treaty was signed in which Bhutan agreed to retreat to its pre-1730 borders. However, the peace was tenuous, and border skirmishes with the British were to continue for the next 100 years. The skirmishes eventually led to the Duar War (1864–1865), a confrontation for control of the Bengal Duars. After Bhutan lost the war, the Treaty of Sinchula was signed between British India and Bhutan. As part of the war reparations, the Duars were ceded to the United Kingdom in exchange for a rent of Rs. 50,000. The treaty ended all hostilities between British India and Bhutan. During the 1870s, power struggles between the rival valleys of Paro and Tongsa led to civil war in Bhutan, eventually leading to the ascendancy of Ugyen Wangchuck, the ponlop (governor) of Tongsa. From his power base in central Bhutan, Ugyen Wangchuck defeated his political enemies and united the country following several civil wars and rebellions in the period 1882–1885. In 1907, an epochal year for the country, Ugyen Wangchuck was unanimously chosen as the hereditary king of the country by an assembly of leading Buddhist monks, government officials, and heads of important families. The British government promptly recognized the new monarchy, and in 1910 Bhutan signed a treaty which "let" Great Britain "guide" Bhutan's foreign affairs. In reality, this did not mean much given Bhutan's historical reticence. It also did not seem to apply to Bhutan's traditional relations with Tibet. After India gained independence from the United Kingdom on 15 August 1947, Bhutan became one of the first countries to recognize India's independence. A treaty similar to that of 1910 in which Britain gained power with respect to Bhutan's foreign relations was signed 8 August 1949 with the newly independent India.[citation needed] The Trongsa Dzong. In 1953, King Jigme Dorji Wangchuck established the country's legislature – a 130-member National Assembly – to promote a more democratic form of governance. In 1965, he set up a Royal Advisory Council, and in 1968 he formed a Cabinet. In 1971, Bhutan was admitted to the United Nations, having held observer status for three years. In July 1972, Jigme Singye Wangchuck ascended to the throne at the age of 16 after the death of his father, Dorji Wangchuck. Beginning in 1985 Bhutan expelled nearly 100,000 ethnic Nepalis, the status of whom has been a source of ongoing debate; many claim to be descended from 19th and early 20th century Nepali immigrants, whereas the government of Bhutan claims they are recent illegal immigrants. The Bhutanese refugees were granted refuge in neighboring Nepal. Beginning early 2008 the refugees are being relocated in various countries such as the USA, Canada, Australia, Denmark, New Zealand, Norway and the Netherlands. In late 2003, the Bhutanese army successfully launched a large-scale operation to flush out anti-India insurgents who were operating training camps in southern Bhutan. It is called Operation: All Clear and the Royal Bhutan Army drove out the United Liberation Front of Asom (ULFA), National Democratic Front of Bodoland (NDFB), and Kamtapur Liberation Organization (KLO) insurgent groups hiding in Bhutan's jungles. Democratic reform and modernization King Jigme Singye Wangchuck introduced significant political reforms, transferring most of his administrative powers to the Council of Cabinet Ministers and allowing for impeachment of the King by a two-thirds majority of the National Assembly.[14] In 1999, the government lifted a ban on television and the Internet, making Bhutan one of the last countries to introduce television. In his speech, the King said that television was a critical step to the modernisation of Bhutan as well as a major contributor to the country's Gross National Happiness (Bhutan is the only country to measure happiness[15]), but warned that the "misuse" of television could erode traditional Bhutanese values.[16] A new constitution was presented in early 2005. In December 2005, Jigme Singye Wangchuck announced that he would abdicate the throne in his son's favor in 2008. On 14 December 2006, he announced that he would be abdicating immediately. Bhutan has now entered a new era of democracy, starting with its first national parliamentary elections in December 2007 and March 2008. On November 6, 2008, 28-year old Jigme Khesar Namgyel Wangchuck, eldest son of King Jigme Singye Wangchuck, was crowned King, thus marking a new era in the history of this Himalayan kingdom.[17] Government and politics Main article: Politics of Bhutan View of Tashichoedzong, Thimphu, seat of the Bhutanese government since 1952. Bhutan's political system has developed from an absolute monarchy into a constitutional monarchy. In 1999, the fourth king of Bhutan created a body called the Lhengye Zhungtshog (Council of Ministers). The 'Druk Gyalpo' (King of Druk Yul) is head of state. Executive power is exercised by the Lhengye Zhungtshog, the council of ministers. Legislative power was vested in both the government and the former Grand National Assembly. On the 17th of December 2005, the 4th King, Jigme Singye Wangchuck, announced to a stunned nation that the first general elections would be held in 2008, and that he would abdicate the throne in favor of his eldest son, the crown prince.[18] King Jigme Khesar Namgyal Wangchuck took the throne on December 14, 2006 upon his father's abdication. Jigme Khesar Namgyel Wangchuck was adorned with Bhutan's Raven Crown at an ornate coronation ceremony in Thimphu on Thursday, November 6, 2008, becoming the world's youngest reigning monarch and head of the newest democracy.[19] The new democratic system comprises an upper and lower house, the latter based on political party affiliations. Elections for the upper house (National Council) were held on December 31, 2007, while elections for the lower house, the 47-seat National Assembly, were held on March 24, 2008. Two political parties, the People's Democratic Party (PDP) headed by Sangay Ngedup, and the Druk Phuensum Tshogpa (DPT) headed by Jigmi Thinley, competed in the National Assembly election. The Druk Phuensum Tshogpa won the elections taking 45 out of 47 seats in the parliament.[20] Judicial power is vested in the courts of Bhutan. The Chief Justice is the administrative head of the Judiciary. Military and foreign affairs Main articles: Military of Bhutan and Foreign relations of Bhutan The Royal Bhutan Army is Bhutan's military service. It includes the Royal Bodyguard and the Royal Bhutan Police. Membership is voluntary, and the minimum age for recruitment is 18. The standing army numbers about 16,000 and is trained by the Indian Army.[21] It has an annual budget of about US$13.7 million — 1.8 percent of the GDP. Being a landlocked country, Bhutan has no navy. In 2007, Bhutan and India signed a new treaty that clarified that Bhutan was master of its own foreign relations, superseding the treaty signed in 1949. The superseded treaty is still sometimes misinterpreted to mean that India controls Bhutan's foreign affairs, but the government of Bhutan handles all of its own foreign affairs, including the sensitive (to India) border demarcation issue with China. Bhutan has diplomatic relations with 21 countries, and with the European Union, with missions in India, Bangladesh, Thailand, and Kuwait. It has two UN missions, one in New York and one in Geneva. Only India and Bangladesh have residential embassies in Bhutan, while Thailand has a consulate office in Bhutan. By a long standing treaty, Indian and Bhutanese citizens may travel to each other's countries without a passport or visa using their national identity cards instead. Bhutanese citizens may also work in India without legal restriction. Bhutan does not have formal diplomatic ties with its northern neighbour, the People's Republic of China, although exchanges of visits at various levels between the two have significantly increased in recent times. The first bilateral agreement between China (PRC) and Bhutan was signed in 1998, and Bhutan has also set up honorary consulates in Macau and Hong Kong. Bhutan’s border with China is largely not demarcated and thus disputed in some places. Approximately 269 square kilometers remain under discussion between China and Bhutan.[22] On 13 November 2005, Chinese soldiers crossed into the disputed territories between China and Bhutan, and began building roads and bridges.[23] Bhutanese Foreign Minister Khandu Wangchuk took up the matter with Chinese authorities after the issue was raised in the Bhutanese parliament. In response, Foreign Ministry spokesman Qin Gang of the People's Republic of China has said that the border remains in dispute and that the two sides are continuing to work for a peaceful and cordial resolution of the dispute.[24] An Indian intelligence officer has said that a Chinese delegation in Bhutan told the Bhutanese that they were "overreacting." The Bhutanese newspaper Kuensel has said that China might use the roads to further Chinese claims along the border.[23] On 8 February 2007, the Indo-Bhutan Friendship TreatyPDF (30.6 KB) was substantially revised. In the Treaty of 1949 Article 2 states: "The Government of India undertakes to exercise no interference in the internal administration of Bhutan. On its part the Government of Bhutan agrees to be guided by the advice of the Government of India in regard to its external relations." In the revised treaty it now reads as "In keeping with the abiding ties of close friendship and cooperation between Bhutan and India, the Government of the Kingdom of Bhutan and the Government of the Republic of India shall cooperate closely with each other on issues relating to their national interests. Neither government shall allow the use of its territory for activities harmful to the national security and interest of the other." The revised treaty also includes this preamble: "Reaffirming their respect for each other's independence, sovereignty and territorial integrity", an element that was absent in the earlier version. The Indo-Bhutan Friendship Treaty of 2007 clarifies Bhutan's status as an independent and sovereign nation. Bhutan has no formal relations with the United States,[25] Russia, China, the United Kingdom or France. Informal contact with the United States is made through the U.S. Embassy in New Delhi.[25] Geography Main article: Geography of Bhutan Topographic map of Bhutan Gangkhar Puensum from Ura La, Bhutan The northern region of the country consists of an arc of Eastern Himalayan alpine shrub and meadows reaching up to glaciated mountain peaks with an extremely cold climate at the highest elevations. Most peaks in the north are over 7,000 metres (23,000 ft) above sea level; the highest point in Bhutan is Gangkhar Puensum, which has the distinction of being the highest unclimbed mountain in the world, at 7,570 metres (24,840 ft). [26] The lowest point is in the valley of Drangme Chhu, where the river crosses the border with India. Watered by snow-fed rivers, alpine valleys in this region provide pasture for livestock, tended by a sparse population of migratory shepherds. The Black Mountains in the central region of Bhutan form a watershed between two major river systems: the Mo Chhu and the Drangme Chhu. Peaks in the Black Mountains range between 1,500 and 2,700 metres (4,900 and 8,900 ft) above sea level, and fast-flowing rivers have carved out deep gorges in the lower mountain areas. The forests of the central Bhutan mountains consist of Eastern Himalayan subalpine conifer forests in higher elevations and Eastern Himalayan broadleaf forests in lower elevations. Woodlands of the central region provide most of Bhutan's forest production. The Torsa, Raidak, Sankosh, and Manas are the main rivers of Bhutan, flowing through this region. Most of the population lives in the central highlands. Jacaranda trees in Bhutan In the south, the Shiwalik Hills are covered with dense Himalayan subtropical broadleaf forests, alluvial lowland river valleys, and mountains up to around 1,500 metres (4,900 ft) above sea level. The foothills descend into the subtropical Duars Plain. Most of the Duars is located in India, although a 10 to 15 kilometres (6.2 to 9.3 mi) wide strip extends into Bhutan. The Bhutan Duars is divided into two parts: the northern and the southern Duars. The northern Duars, which abuts the Himalayan foothills, has rugged, sloping terrain and dry, porous soil with dense vegetation and abundant wildlife. The southern Duars has moderately fertile soil, heavy savannah grass, dense, mixed jungle, and freshwater springs. Mountain rivers, fed by either the melting snow or the monsoon rains, empty into the Brahmaputra River in India. Data released by the Ministry of Agriculture showed that the country had a forest cover of 64% as of October 2005. Terraced farming in the Punakha valley The climate in Bhutan varies with altitude, from subtropical in the south to temperate in the highlands and polar-type climate, with year-round snow, in the north. Bhutan experiences five distinct seasons: summer, monsoon, autumn, winter and spring. Western Bhutan has the heavier monsoon rains; southern Bhutan has hot humid summers and cool winters; central and eastern Bhutan is temperate and drier than the west with warm summers and cool winters. Economy Main article: Economy of Bhutan The Ngultrum is the currency of Bhutan The Ngultrum is the currency of Bhutan and its value is pegged to the Indian rupee. The rupee is also accepted as legal tender in the country. Though Bhutan's economy is one of the world's smallest, it has grown rapidly in recent years, by eight percent in 2005 and 14 percent in 2006. In 2007, Bhutan had the second fastest growing economy in the world, with an annual economic growth rate of 22.4 percent. This was mainly due to the commissioning of the gigantic Tala Hydroelectricity project. As of March 2006, Bhutan's per capita income was US$1,321. Bhutan's economy is based on agriculture, forestry, tourism and the sale of hydroelectric power to India. Agriculture provides the main livelihood for more than 80 percent of the population. Agrarian practices consist largely of subsistence farming and animal husbandry. Handicrafts, particularly weaving and the manufacture of religious art for home altars, are a small cottage industry. A landscape that varies from hilly to ruggedly mountainous has made the building of roads and other infrastructure difficult and expensive. This, and a lack of access to the sea, has meant that Bhutan has not been able to benefit from significant trading of its produce. Bhutan does not have any railways, though Indian Railways plans to link southern Bhutan to its vast network under an agreement signed in January 2005.[27] Bhutan and India signed a 'free trade' accord in 2008, which additionally allowed Bhutanese imports and exports from third markets to transit India without tariffs.[28] The historic trade routes over the high Himalayas, which connected India to Tibet, have been closed since the 1950 military takeover of Tibet (although smuggling activity still brings Chinese goods into Bhutan). The industrial sector is in a nascent stage, and though most production comes from cottage industry, larger industries are being encouraged and some industries such as cement, steel, and ferroalloy have been set up. Most development projects, such as road construction, rely on Indian contract labour. Agricultural produce includes rice, chilies, dairy (some yak, mostly cow) products, buckwheat, barley, root crops, apples, and citrus and maize at lower elevations. Industries include cement, wood products, processed fruits, alcoholic beverages and calcium carbide. Incomes of over Nu 100,000 per annum are taxed, but very few wage and salary earners qualify. Bhutan's inflation rate was estimated at about three percent in 2003. Bhutan has a Gross Domestic Product of around USD 2.913 billion (adjusted to Purchasing Power Parity), making it the 162nd largest economy in the world. Haa Valley in Bhutan Per capita income is around $1,400,[1] ranked 124th. Government revenues total $272 million, though expenditures amount to $350 million. 60 percent of the budget expenditure, however, is financed by India's Ministry of External Affairs.[29] Bhutan's exports, principally electricity, cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones and spices, total €128 million (2000 est.). Imports, however, amount to €164 million, leading to a trade deficit. Main items imported include fuel and lubricants, grain, machinery, vehicles, fabrics and rice. Bhutan's main export partner is India, accounting for 58.6 percent of its export goods. Hong Kong (30.1 percent) and Bangladesh (7.3 percent) are the other two top export partners.[1] As its border with Tibet is closed, trade between Bhutan and China is now almost non-existent. Bhutan's import partners include India (74.5 percent), Japan (7.4 percent) and Sweden (3.2 percent). In a response to accusations in 1987 by a journalist from UK's Financial Times that the pace of development in Bhutan was slow, the King said that "Gross National Happiness is more important than Gross National Product."[30] This statement appears to have presaged recent findings by western economic psychologists, including 2002 Nobel Laureate Daniel Kahneman, that question the link between levels of income and happiness. The statement signaled his commitment to building an economy that is appropriate for Bhutan's culture and people, based on Buddhist spiritual values, and has served as a unifying vision for the economy. In a survey in 2005, 45 percent of Bhutanese reported being very happy, 52 percent reported being happy and only three perce