the United States, a viable solution to this problem proves to be still elusive. At present, the United States is working towards resettling around 70,000 of these refugees in the US.[2] In 1998, 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.[3] 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. 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), but warned against the misuse of television which may erode traditional Bhutanese values. Some believe it has indeed affected Bhutan in a negative way.[4] The Taktshang Monastery, also known as the "Tiger's Nest". Bhutan is a predominantly Buddhist country, with the religion forming an integral part of everyday life. A new constitution was presented in early 2005. In December 2005, His Majesty Jigme Singye Wangchuck announced that he would abdicate the throne in his son's favour in 2008 . On December 14, 2005, he stunned his countrymen by announcing 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. Despite the popular appeal of the King to the people of Bhutan and general reservations towards the politics of democracy, it is by royal decree that the country will undergo this drastic change in its political system. [edit] Government and politics Main article: Politics of Bhutan Over the past decade, 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 favour of his eldest son, the crown prince.[5] King Jigme Khesar Namgyal Wangchuck took the throne on December 14, 2006 upon his father's abdication. The Crowning ceremony is expected to be held in May 2008 and the Coronation Celebrations later in the year. 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 Bhutan Peace and Prosperity Party (DPT - Druk Phuensum Tshogpa) headed by Jigmi Thinley, competed in the National Assembly election. The Bhutan Peace and Prosperity Party won the elections taking 45 out of 47 seats in the parliament.[6] Judicial power is vested in the courts of Bhutan. The Chief Justice is the administrative head of the Judiciary. [edit] 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 6,000 and is trained by the Indian Army.[7] It has an annual budget of about US$13.7 million—1.8% of the GDP. Though the 1949 treaty with India is still sometimes misinterpreted to mean that India controlled Bhutan's foreign affairs, Bhutan handled all of its foreign affairs itself including the sensitive (to India) border demarcation issue with China. The 1949 treaty has been superseded by the 2007 treaty with India which made de-jure what was de-facto, that Bhutan was master of its own foreign relations. Bhutan has diplomatic relations with 22 countries, including 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, China, although exchanges of visits at various levels between the two have significantly increased in the recent past. The first bilateral agreement between China and Bhutan was signed in 1998, and Bhutan has also set up consulates in Macau and Hong Kong. Bhutan’s border with China is largely not demarcated and thus disputed in some places.[citations needed] [8] On November 13, 2005, Chinese soldiers crossed into Bhutan under the pretext that environmental conditions had forced their retreat south from the Himalayas. The Bhutanese government allowed this incursion (after the fact) on humanitarian grounds.[citation needed] Soon after, the Chinese began building roads and bridges within Bhutanese territory.[9] Bhutanese Foreign Minister Khandu Wangchuk took up the matter with Chinese authorities after the issue was raised in Bhutanese parliament. In response, Foreign Ministry spokesman Qin Gang of the People's Republic of China has said that the border remains in dispute (completely ignoring the original official pretext for the incursion) and that the two sides continue to work for a peaceful and cordial resolution of the dispute.[10] 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.[11] On February 8, 2007, the Indo-Bhutan Friendship TreatyPDF (30.6 KiB) was substantially revised. Whereas in the Treaty of 1949 Article 2 read as "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 in it the 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 strengthens Bhutan's status as an independent and sovereign nation. Bhutan has no formal relations with the United States,[12] Russia, the United Kingdom or France. Informal contact with the United States is made through the U.S. embassy in New Delhi.[12] [edit] Geography Main article: Geography of Bhutan Topographic map of Bhutan Gangkhar Puensum from Ura La, Bhutan The northern region consists of an arc of glaciated mountain peaks with an extremely cold climate at the highest elevations. Most peaks in the north are over 23,000 feet (7,000 m) above sea level; the highest point is claimed to be the Kula Kangri, at 24,780 feet (7,553 m), but detailed topographic studies claim Kula Kangri is wholly in Tibet and modern Chinese measurements claim that Gangkhar Puensum, which has the distinction of being the highest unclimbed mountain in the world, is higher at 24,835 feet (7,570 m). 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 central Bhutan form a watershed between two major river systems: the Mo Chhu and the Drangme Chhu. Peaks in the Black Mountains range between 4,900 feet and 8,900 feet (1,500 m and 2,700 m) above sea level, and fast-flowing rivers have carved out deep gorges in the lower mountain areas. 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 Terraced farming in the Punakha valley. In the south, the Shiwalik Hills are covered with dense, deciduous forests, alluvial lowland river valleys, and mountains up to around 4,900 feet (1,500 m) above sea level. The foothills descend into the subtropical Duars Plain. Most of the Duars is located in India, although a 6–9 mile (10–15 km) 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. 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. [edit] Economy 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 very rapidly with about 8% in 2005 and 14% in 2006. 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 making it one of the fastest growing in South Asia. Bhutan's standard of living is growing faster than that of its neighboring countries and is one of the highest in South Asia.[citation needed] 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% 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 and a source of income for some. 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.[13] The historic trade routes over the high Himalayas, which connected India to Tibet, have been closed since the 1959 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 is cottage-industry type larger industries are being encouraged and some industries such as cement, steel, ferro alloy, etc 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 3% 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, September, 2006 Per capita income is around $1,1827, ranked 124th. Government revenues total €122 million, though expenditures amount to $190.5 million. 60% of the budget expenditure, however, is financed by India's Ministry of External Affairs.[14] Bhutan's exports, principally electricity, cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones and spices, total €128 million (2000 est.). Imports, however, amount to $256.1 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 87.9% of its export goods. Bangladesh (4.6%) and the Philippines (2%)[citation needed] are the other two top export partners. As its border with Tibet is closed, trade between Bhutan and China is now almost non-existent. Bhutan's import partners include India (71.3%), Japan (7.8%) and Austria (3%). 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."[15] 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 unique culture, based on Buddhist spiritual values, and has served as a unifying vision for the economy. While no trend data is yet available, the policy seems to be reaping the desired results. In a survey in 2005, 45% of Bhutanese reported being very happy, 52% reported being happy and only 3% reported not being happy. Compare that, for example, with the USA, where only 30% report being very happy, 58% being pretty happy and 12% were not too happy (based on data from the General Social Survey). Based on this data, the Happy Planet Index estimates that the average level of life satisfaction in Bhutan is within the top 10% of nations worldwide, and certainly higher than other nations with similar levels of GDP per capita. [edit] Districts Main article: Districts of Bhutan Bhutan is divided into four dzongdey (administrative zones). Each dzongdey is further divided into dzongkhag (districts). There are twenty dzongkhag in Bhutan. Large dzongkhags are further divided into subdistricts known as dungkhag. At the basic level, groups of villages form a constituency called gewog and are administered by a gup, who is elected by the people. Dzongkhags(districts) of Bhutan. Bumthang Chukha (old spelling: Chhukha) Dagana Gasa Haa Lhuntse Mongar Paro Pemagatshel (Pemagatsel) Punaka Samdrup Jongkhar Samtse (Samchi) Sarpang Thimphu Trashigang (Tashigang) Trashiyangste Trongsa (Tongsa) Tsirang (Chirang) Wangdue Phodrang (Wangdi Phodrang) Zhemgang (Shemgang) [edit] Cities and towns Jakar, the administrative headquarters of Bumthang District and the place where Buddhism entered Bhutan. Mongar, the eastern commercial hub of the country. Paro, Bhutan, site of the international airport. Punakha, the old capital. Phuentsholing, Bhutan's commercial hub. Samdrup Jongkhar Thimphu, the largest city and capital of Bhutan. Trashigang, the most populous district in the country. Trongsa, in central Bhutan which has the largest and the most magnificent of all the dzongs in Bhutan. [edit] Demographics Main article: Demographics of Bhutan Senior Bhutanese man in national dress. Among the Bhutanese people, several principal ethnic groups may be distinguished. The second dominant group is the Ngalops, a Buddhist group based in the western part of the country. Their culture is closely related to that of Tibet. Much the same could be said of the Sharchops ("Easterners"), the dominant group, who are associated with the eastern part of Bhutan (but who traditionally follow the Nyingmapa rather than the official Drukpa Kagyu form of Himalayan Buddhism). They are called the Western Bhutanese and Eastern Bhutanese respectively. In modern times, with improved transportation infrastructure, there has been much intermarriage between these groups. In the early 1970s, intermarriage between the Lhotshampas and main stream Bhutanese society was encouraged by the government. The national language is Dzongkha, one of 53 languages in the Tibetan language family. The script, here called Chhokey ("Dharma Language"), is identical to classical Tibetan. In the schools English is the medium of instruction and Dzongkha is taught as the national language. Ethnologue lists 24 languages currently spoken in Bhutan, all of them in the Tibeto-Burman family, except Nepali, an Indo-Aryan language. Until the 1980s, the government sponsored the teaching of Nepali in schools in Southern Bhutan. However, after the armed uprising in the south, Nepali was dropped from the curriculum. The languages of Bhutan are still not well-characterized, and several have yet to be recorded in an in-depth academic grammar. Bhutan religiosity religion percent Buddhism  ? 75% Hinduism  ? 24% Others  ? 1% The literacy rate is 59.5% [5]. The country has a median age of 22.3 years (World Population Prospects- The 2006 Revision, United Nations Department of Economic and Social Affairs, Population Division). Bhutan has a life expectancy of 62.2 years (61 for males and 64.5 for females) according to the latest data from the World Bank. There are 1,070 males to every 1,000 females in the country. It is estimated that between two third and three quarter of the Bhutanese population follow Mahayana Buddhism, which is also the state religion. About one quarter to one third are followers of Hinduism. Muslim and non-religious communities account for less then 1 % of the population.[16] The current legal framework in principal guarantees freedom of religion, proselytism however is forbidden by a Royal Government decision.[16] [edit] Culture Main article: Culture of Bhutan Bhutanese thanka of Mt. Meru and the Buddhist Universe, 19th century, Trongsa Dzong, Trongsa, Bhutan Bhutan has a rich and unique cultural heritage that has largely remained intact due to its isolation from the rest of the world until the early 1960s. One of the main attractions for tourists is the country's culture and traditions. Bhutanese tradition is deeply steeped in its Buddhist heritage [6]. Hinduism is the second dominant religion in Bhutan, being most prevalent in the southern regions. Both religions co-exist peacefully and receive support from the government [7], and enjoy royal patronage. The government is increasingly maki