SAARC Country Profile

The Kingdom of Bhutan

The Kingdom of Bhutan is a landlocked nation in South Asia. It is located amid the eastern end of the Himalaya Mountains and is bordered to the south, east and west by India and to the north by China. Bhutan is separated from Nepal by the Indian state of Sikkim. The Bhutanese call their country Druk Yul (land of the thunder dragon).

“Bhutan” may be derived from the Sanskrit word Bhu-Utthan (highlands). In another theory of Sanskritisation, Bhots-ant means “End of Tibet”, as Bhutan is immediately to Tibet’s south.

Bhutan is one of the most isolated nations in the world. Foreign influences and tourism are regulated by the government to preserve the nation’s traditional culture, identity and the environment.

In 2006, however, Business Week rated Bhutan the happiest country in Asia and the eighth happiest country in the world. The landscape ranges from subtropical plains in the south to the Himalayan heights in the north, with some peaks exceeding 7,000 metres (23,000 ft).

The state religion is Vajrayana Buddhism, and the population is predominantly Buddhist, with Hinduism being the second-largest religion. The capital and largest city is Thimphu.

After centuries of direct monarchic rule, Bhutan held its first democratic elections in March 2008. Bhutan is a member of the South Asian Association for Regional Cooperation (SAARC).

History

Stone tools, weapons, elephants, and remnants of large stone structures provide evidence that Bhutan was inhabited as early as 2000 BCE, although there are no existing records from that time.

Historians have theorized that the state of Lhomon (literally, “southern darkness”), or Monyul (“Dark Land”, a reference to the Monpa, the aboriginal peoples of Bhutan) may have existed between 500 BCE and 600 CE.

The names Lhomon Tsendenjong (Sandalwood Country), and Lhomon Khashi, or Southern Mon (country of four approaches) have been found in ancient Bhutanese and Tibetan chronicles. The earliest transcribed event in Bhutan was the passage of the Buddhist saint Padma Sambhava (also known as Guru Rinpoche) in 747.

After India gained independence from the United Kingdom on August 15, 1947, Bhutan became one of the first countries to recognise India’s independence. A treaty similar to the one of 1910 was signed August 8, 1949 with the newly independent India.

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.

In the 1980s, in order to strengthen Bhutan’s identity as a nation, the “one nation, one people” campaign was started to foster greater integration of the peripheral ethnic and cultural groups into mainstream Bhutanese society. The age-old code of conduct, known as Driglam namzha, and usage of the official national language, Dzongkha, was promoted.

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.

King Jigme Khesar Namgyal Wangchuck took the throne on December 14, 2005 upon his father’s abdication.

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 Parliament.

Judicial power is vested in the courts of Bhutan.

The Chief Justice is the administrative head of the Judiciary.

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 per cent in 2005 and 14 percent 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. 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.

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.

Traditions

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.”

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 signalled his commitment to building an economy that is appropriate for Bhutan’s culture, 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 percent reported not being happy.

Based on this data, the Happy Planet Index estimates that the average level of life satisfaction in Bhutan is within the top 10 percent of nations worldwide, and certainly higher than other nations with similar levels of GDP per capita.

Bhutan is divided into four dzongdey (administrative zones). Each dzongdey is further divided into dzongkhag (districts). There are 20 dzongkhag in Bhutan.

Large dzongkhags are further divided into sub-districts 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.

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. 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, and enjoy royal patronage.

The Government is increasingly making efforts to preserve and sustain the current culture and traditions of the country. Due to its largely unspoilt natural environment and cultural heritage, Bhutan has aptly been referred to as The Last Shangri-la.

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Prime Minister Jigme Thinley

Lyonpo Jigme Yoser Thinley (born 1952) has been the Prime Minister of Bhutan since April 2008. “Lyonpo” is a title, meaning “minister”.

Thinley was born in Bumthang and joined the civil service in 1974.

In February 1987, Thinley was awarded the title of Dasho and the Red Scarf, and in 1990, under the zonal system, he became administrator of the Eastern Zone.

He then became secretary in the Ministry of Home Affairs in 1992 before being appointed as Deputy Minister of Home Affairs in January 1994, at which time he was also awarded the Orange Scarf. Later in 1994, he was appointed as Bhutan’s Permanent Representative to the United Nations office and other international organizations in Geneva.

Prior to the beginning of democracy, he was Prime Minister twice, from July 20, 1998 to July 9, 1999 and from 30 August 2003 to August 20, 2004.

During this period, chairmanship of the council was based on rotation for a duration of one year, with the order of rotation decided by the number of votes secured during the time of election to the council.

Jigme was also the Minister of Foreign Affairs of Bhutan from 1998 until 2003 and subsequently served as Minister of Home and Cultural Affairs.

On June 2, 1999, Thinley was awarded the Druk Thuksey and Coronation medals.

In March 2008, he stood as leader of the political party Druk Phuensum Tshogpa in Bhutan’s first democratic election.

His party won 45 of the 47 seats in the National Assembly of Bhutan, which enabled Jigme Thinley to become Bhutan’s first ever elected Prime Minister. He took office on April 9.

Federal Democratic Republic of Nepal

Nepal, officially the Federal Democratic Republic of Nepal, is a landlocked country in South Asia. It is bordered by China to the north and by India to the south, east and west.

The Himalaya mountain range runs across Nepal’s northern and western parts, and eight of the world’s ten highest mountains, including the highest, Mount Everest, are within its territory.

The modern state was formed with the Unification of Nepal by Prithvi Narayan Shah on December 21, 1768. Prior to 2006, Nepal was a kingdom.

It was also the only modern nation with Hinduism as its official religion Nepal is now a federal democratic republic.

Its recent history has involved struggles for democratic government with periods of direct monarchic rule. From 1995 until 2006, Nepal suffered from a Civil War between government forces and guerrillas of the Communist Party of Nepal (Maoist).

Multi-cultural

On December 28, 2007, the Interim Parliament passed a bill and declared Nepal to be a Federal Democratic Republic. The first meeting of the Constituent Assembly officially implemented that declaration on May 28, 2008.

Nepal is a multi-cultural, multi-linguistic and multi religious country. For a relatively small country, Nepal has a diverse landscape, ranging from the humid Terai plains in the south to the mountainous Himalayas in the north, which makes it a major tourist destination.

Hinduism is practised by a huge majority of the people, but the country also has a strong Buddhist tradition; Lumbini, the birthplace of Buddha Siddhartha Gautama is located in the Terai, one of the three regions of Nepal.

The capital Kathmandu is the largest city in the country. The official language is Nepali and the state currency is the Nepalese Rupee (NPR). Nepal’s Flag is the only national flag in the world that is non-quadrilateral in shape.

It is believed that Lord Vishnu had organized the Nepali people and given them this flag, with the sun and moon as emblems on it.

Hindu Purana

In a Hindu Purana, it is written that it was Lord Shiva who handed the flag to Lord Vishnu, and then Lord Vishnu to Lord Indra, for the purpose for battling demons.

The official version of the flag states the two ruling families in Nepal, the Shahs and the Ranas.

The upper crescent sun signifies the Shah ruling faction and the below Sun signifies the Rana family.

However, over the years the flag signifies the importance of Nepal as a Hindu country and Nepal will continue to exists as long as the sun and the moon. Nepal has seen rapid political changes during the last two decades. Until 1990, Nepal was an absolute monarchy running under the executive control of the king.

Faced with a people’s movement against the absolute monarchy, King Birendra, in 1990, agreed to large-scale political reforms by creating a parliamentary monarchy with the king as the Head of State and a prime minister as the head of the government.

Nepal’s legislature was bicameral, consisting of a House of Representatives called the Pratinidhi Sabha and a National Council called the Rastriya Sabha.

The House of Representatives consisted of 205 members directly elected by the people.

The National Council had sixty members: ten nominated by the king, thirty-five elected by the House of Representatives and the remaining fifteen elected by an electoral college made up of chairs of villages and towns.

The legislature had a five-year term, but was dissolvable by the king before its term could end. All Nepali citizens 18 years and older became eligible to vote.

The executive comprised the King and the Council of Ministers (the Cabinet).

The leader of the coalition or party securing the maximum seats in an election was appointed as the Prime Minister. The Cabinet was appointed by the king on the recommendation of the Prime Minister.

The movement in April, 2006, brought about a change in the nation’s governance: an interim constitution was promulgated, with the King giving up power, and an interim House of Representatives was formed with Maoist members after the new government held peace talks with the Maoist rebels.

The number of Parliamentary seats was also increased to 330. In April, 2007, the Communist Party of Nepal (Maoist) joined the interim government of Nepal. On 28 December 2007, the interim parliament passed a bill that would make Nepal a federal republic, with the Prime Minister becoming head of state.

The bill was passed by the Constituent Assembly on May 28, 2008.

On 10 April 2008, there was the first election in Nepal for the Constitutional Assembly.

The Maoist party led the poll results, but failed to gain a simple majority in the parliament.

On 28 May 2008, lawmakers in Nepal legally abolished the monarchy and declared the country a republic, ending 239 years of royal rule in the Himalayan nation. The newly elected assembly, led by the former communist rebels, adopted the resolution at its first meeting by an overwhelming majority. King Gyanendra left former Royal Palace on June 11.

Election

On 26 June 2008, Prime Minister Girija Prasad Koirala tendered his resignation to the Nepalese Constituent Assembly, which is also functioning as Nepalese Parliament, however a new Prime Minister has yet to be elected by the Nepalese Constituent Assembly.

On 19 July 2008, the first round of voting for the election of the country’s president and vice president took place in the Constituent Assembly. Parmanand Jha became the first vice president of Nepal.

However, the two presidential frontrunners, Dr. Ram Baran Yadav of Nepali Congress and the Maoist-backed candidate Ram Raja Prasad Singh, both failed to gain the minimum 298 votes needed to be elected, with Yadav receiving 283 votes and Singh receiving 270. 578 out of 594 CA members registered in the voter list had cast their votes, of which 24 were invalid.

On July 21, 2008, the second round of voting was held. Yadav received 308 votes of the 590 votes casted, securing his election as President.

Domestic product

Nepal’s gross domestic product (GDP) for the year 2005 was estimated at just over US$39 billion (adjusted to Purchasing Power Parity), making it the 83rd-largest economy in the world.

Agriculture accounts for about 40% of Nepal’s GDP, services comprise 41% and industry 22%. Agriculture employs 76% of the workforce, services 18% and manufacturing/craft-based industry 6%.

Agricultural produce, mostly grown in the Terai region bordering India, includes tea, rice, corn, wheat, sugarcane, root crops, milk, and water buffalo meat. Industry mainly involves the processing of agricultural produce, including jute, sugarcane, tobacco, and grain.

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Prime Minister Girija Prasad Koirala

Born in 1925, Girija Prasad Koirala is the Prime Minister of Nepal and was also Acting Head of State from January 2007 to July 2008. He has been Prime Minister of Nepal four times, serving from 1991 to 1994, 1998 to 1999, 2000 to 2001, and again since April 2006. He is also the President of the Nepali Congress and leader of the Seven Party Alliance (SPA).

He has been active in politics for over 60 years and is a pioneer of Nepalese labour movement for starting labour movement in the Jute mills of his hometown Biratnagar. In 1991 he became the only democratically elected Prime Minister of Nepal since 1959, when his brother B. P. Koirala and the Nepali Congress party had swept the country’s first democratic election.

In 1948 Koirala founded the Nepal Mazdoor Congress, later known as the Nepal Trade Union Congress. Later, in 1952 he became the President of the Morang district Nepali Congress and held that office until he was arrested and imprisoned by King Mahendra following the 1960 royal coup.

Upon his release in 1967, Girija Prasad Koirala, along with other leaders and workers of the party, was exiled in India until his return to Nepal in 1979.

Koirala was General Secretary of the Nepali Congress Party from 1975 to 1991. Koirala was actively involved in the 1990 Jana Andolan which led to the abrogation of the Panchayat rule and the introduction of a multi-party politics in the country.

On April , 2007, Koirala was re-elected as Prime Minister to head a new government composed of the SPA and the CPN (Maoist).

Following the April 2008 Constituent Assembly election, the Constituent Assembly voted to declare Nepal a republic on 28 May 2008. Koirala, speaking to the Constituent Assembly shortly before the vote, said that Nepal was entering a “new era” and that “the nation’s dream has come true”.