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  Bhutan   Flag of Bhutan
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  Map of Bhutan

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.
Location:

Southern Asia, between China and India
Geographic coordinates:

27 30 N, 90 30 E
Map references:

Asia
Area:

total: 47,000 sq km
water: 0 sq km
land: 47,000 sq km
Area - comparative:

about half the size of Indiana
Land boundaries:

total: 1,075 km
border countries: 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
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 sq km (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
Environment - current issues:

soil erosion; limited access to potable water
Environment - international agreements:

party to: Biodiversity, Climate Change, Nuclear Test Ban
signed, but not ratified: Law of the Sea
Geography - note:

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

2,139,549
note: other estimates range as low as 810,000 (July 2003 est.)
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/1,000 population (2003 est.)
Death rate:

13.47 deaths/1,000 population (2003 est.)
Net migration rate:

0 migrant(s)/1,000 population (2003 est.)
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: 1.02 male(s)/female
total population: 1.07 male(s)/female (2003 est.)
Infant mortality rate:

total: 104.68 deaths/1,000 live births
female: 106.97 deaths/1,000 live births (2003 est.)
male: 102.49 deaths/1,000 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.)
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%
Religions:

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

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

definition: age 15 and over can read and write
total population: 42.2%
male: 56.2%
female: 28.1% (1995 est.)
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.
GDP:

purchasing power parity - $2.7 billion (2002 est.)
GDP - real growth rate:

7.7% (2002 est.)
GDP - per capita:

purchasing power parity - $1,300 (2002 est.)
GDP - composition by sector:

agriculture: 45%
industry: 10%
services: 45% (2002 est.)
Population below poverty line:

NA%
Household income or consumption by percentage share:

lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices):

3% (2002 est.)
Labor force:

NA
note: massive lack of skilled labor
Labor force - by occupation:

agriculture 93%, services 5%, industry and commerce 2%
Unemployment rate:

NA%
Budget:

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

cement, wood products, processed fruits, alcoholic beverages, calcium carbide
Industrial production growth rate:

9.3% (1996 est.)
Electricity - production:

1.896 billion kWh (2001)
Electricity - production by source:

fossil fuel: 0.1%
hydro: 99.9%
other: 0% (2001)
nuclear: 0%
Electricity - consumption:

379.3 million kWh (2001)
Electricity - exports:

1.4 billion kWh (2001)
Electricity - imports:

16 million kWh (2001)
Oil - production:

0 bbl/day (2001 est.)
Oil - consumption:

1,020 bbl/day (2001 est.)
Oil - exports:

NA (2001)
Oil - imports:

NA (2001)
Agriculture - products:

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

$154 million f.o.b. (2000 est.)
Exports - commodities:

electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Exports - partners:

India 95%, Bangladesh 4% (1997)
Imports:

$196 million c.i.f. (2000 est.)
Imports - commodities:

fuel and lubricants, grain, machinery and parts, vehicles, fabrics, rice
Imports - partners:

India 82%, Japan 3% (1997)
Debt - external:

$245 million (2000)
Economic aid - recipient:

substantial aid from India and other nations
Currency:

ngultrum (BTN); Indian rupee (INR)
Currency code:

BTN; INR
Exchange rates:

ngultrum per US dollar - 48.6103 (2002), 47.1864 (2001), 44.9416 (2000), 43.0554 (1999), 41.2594 (1998)
Fiscal year:

1 July - 30 June