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Bhutan
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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 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. In March 2005, King Jigme Singye WANGCHUCK unveiled the government's draft constitution - which would introduce major democratic reforms - and pledged to hold a national referendum for its approval. A referendum date has yet to be named, but should occur in 2008. In December 2006, the King abdicated the throne to his son, Jigme Khesar Namgyel WANGCHUCK, in order to give him experience as head of state before the democratic transition.
Geography and Environmental
Capital:  name: Thimphu
geographic coordinates: 27 28 N, 89 39 E
time difference: UTC+6 (11 hours ahead of Washington, DC during Standard Time)
Area Total:  47,000 sq km
Area Land:  47,000 sq km
Area Water:  0 sq km
Area Comparative:  about half the size of Indiana
Coastline:  0 km (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
Elevation Extremes Highest Point:  Kula Kangri 7,553 m
Natural Resources:  timber, hydropower, gypsum, calcium carbonate
Land Use Arable Land:  2.3%
Land Use Permanent Crops:  0.43%
Land Use Other:  97.27% (2005)
Irrigated Land:  400 sq km (2003)
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
Geography Note:  landlocked; strategic location between China and India; controls several key Himalayan mountain passes
Population
Population:  2,327,849
note: other estimates range as low as 810,000 (July 2007 est.)
Age Structure 0 to 14 Years:  38.6% (male 465,340/female 433,184)
Age Structure 15 to 64 Years:  57.4% (male 688,428/female 647,134)
Age Structure 65 Years And Over:  4% (male 47,123/female 46,640) (2007 est.)
Median Age Total:  20.5 years
Median Age Male:  20.4 years
Median Age Female:  20.7 years (2007 est.)
Population Growth Rate:  2.082% (2007 est.)
Birth Rate:  33.28 births/1,000 population (2007 est.)
Death Rate:  12.46 deaths/1,000 population (2007 est.)
Sex Ratio At Birth:  1.05 male(s)/female
Sex Ratio Under 15 Years:  1.074 male(s)/female
Sex Ratio 15 to 64 Years:  1.064 male(s)/female
Sex Ratio 65 Years And Over:  1.01 male(s)/female
Sex Ratio Total Population:  1.066 male(s)/female (2007 est.)
Infant Mortality Rate Total:  96.37 deaths/1,000 live births
Infant Mortality Rate Male:  94.09 deaths/1,000 live births
Infant Mortality Rate Female:  98.77 deaths/1,000 live births (2007 est.)
Life Expectancy At BirthTotalPopulation:  55.17 years
Life Expectancy At Birth Male:  55.38 years
Life Expectancy At Birth Female:  54.96 years (2007 est.)
Total Fertility Rate:  4.67 children born/woman (2007 est.)
HIV AIDS Adult Prevalence Rate:  less than 0.1% (2001 est.)
HIV AIDS People Living With HIV AIDS:  less than 100 (1999 est.)
HIV AIDS Deaths:  NA
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
Literacy Total Population:  47%
Literacy Male:  60%
Literacy Female:  34% (2003 est.)
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
Legal System:  based on Indian law and English common law; has not accepted compulsory ICJ jurisdiction
Economy
Overview:  The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for more than 60% 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. 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. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment.
GDP Purchasing Power Parity:  $2.9 billion (2003 est.)
GDP Real Growth Rate:  8.8% (2005 est.)
GDP Composition By Sector Agriculture:  24.7%
GDP Composition By Sector Industry:  37.2%
GDP Composition By Sector Services:  38.1% (2005)
Labor Force:  NA
note: major shortage of skilled labor
Labor Force By Occupation:  agriculture: 63%
industry: 6%
services: 31% (2004 est.)
Unemployment Rate:  2.5% (2004)
Household Income Or Consumption By Percentage Share:  lowest 10%: NA%
highest 10%: NA%
Inflation Rate Consumer Prices:  5.5% (2005 est.)
Industries:  cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
Industrial Production Growth Rate:  9.3% (1996 est.)
Energy
Electricity Production:  2.05 billion kWh (2004)
Electricity Production By Source Fossil Fuel:  0.1%
Electricity Production By Source Hydro:  99.9%
Electricity Production By Source Nuclear:  0%
Electricity Production By Source Other:  0% (2001)
Electricity Consumption:  526.5 million kWh (2004)
Electricity Exports:  1.4 billion kWh (2004)
Electricity Imports:  20 million kWh (2004)
Oil Production:  0 bbl/day (2004)
Oil Consumption:  1,160 bbl/day (2004 est.)
Natural Gas Production:  0 cu m (2004 est.)
Natural Gas Consumption:  0 cu m (2004 est.)
Natural Gas Proved Reserves:  0 cu m (1 January 2005 est.)
Exports:  $186 million f.o.b. (2005)
Exports Commodities:  electricity (to India), cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones, spices
Exports Partners:  India 75.3%, Hong Kong 16.1%, Mexico 4.9% (2005)
Imports:  $410 million c.i.f. (2005)
Imports Commodities:  fuel and lubricants, grain, aircraft, machinery and parts, vehicles, fabrics, rice
Imports Partners:  India 69.2%, Japan 9.1%, Germany 3.7% (2005)
Debt External:  $593 million (2004)
Economic Aid Recipient:  $78 million; note - substantial aid from India (2004)
Communications
Telephones Main Lines In Use:  32,700 (2005)
TelephonesMobileCellular:  37,800 (2005)
Telephone System General Assessment:  telecommunications facilities are poor
Telephone System Domestic:  very low teledensity; domestic service is very poor especially in rural areas; wireless service available since 2003
Telephone System International:  country code - 975; international telephone and telegraph service via landline and microwave relay through India; satellite earth station - 1 (2005)
Radio Broadcast Stations:  AM 0, FM 9, shortwave 1 (2006)
Radios:  37,000 (1997)
Television Broadcast Stations:  1 (2006)
Televisions:  11,000 (1997)
Internet Service Providers-ISPs:  NA
Internet Users:  25,000 (2005)
Transportation
Airports:  2 (2006)
Military Expenditures Percent Of GDP:  1% (2005 est.)
Disputes International:  over 100,000 Bhutanese Lhotshampas (Hindus) have been confined in seven UN Office of the High Commissioner for Refugees camps since 1990; Bhutan cooperates with India to expel Indian Nagaland separatists; lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a boundary alignment to resolve substantial cartographic discrepancies, the largest of which lies in Bhutan's northwest