The tiny mountain kingdom of Bhutan lies high on the slopes of the eastern Himalayas. Nearly the entire country is covered by rugged, steep mountains; in the far north, some peaks are over 7300 metres (24,000 feet) high. These mountains are thickly forested, and cut through by deep river valleys. Along Bhutan’s southern border, the land levels out into warm, humid plains. The climate of the northern mountains is extremely cold and dry.

People

Bhutan’s population is split between Buddhist people of indigenous or Tibetan origin, and people of Nepali origin who are largely Hindu. In the late 1980s and 90s, the Bhutanese government ordered thousands of Nepali-Bhutanese to leave, a measure intended to keep Bhutan a Buddhist country. Today, some tensions remain, but Bhutanese people are legally free to practise any religion.
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Bhutan is the only country in the world that officially uses the happiness of its people (Gross National Happiness, GNH, rather than Gross Domestic Product, GDP) to measure how successfully it is developing. Since 2008, any decision to do with the economy— such as whether to cut down a forest to sell as timber—is considered with Bhutanese people’s views in mind. If the forest is more valuable to people’s contentment than the money is valuable to the government, it has to stay.

Economy

More than half of people in Bhutan make a living from farming. In high northern regions, farmers keep yaks for their milk, hair and meat; rice, maize and vegetables are grown at lower altitudes. Because of Bhutan’s mountainous landscape, transport between towns and villages can take a long time. Most of Bhutan’s trade is with neighbouring India, with which it supplies hydro-electricity produced by its mountain rivers.

Modernization

For much of its history, Bhutan has been isolated from the rest of the world. Since the 1960s, the country has opened up and begun to modernize. Tourism was allowed for the first time in 1974, although it has been tightly controlled: tourists must pay a daily fee and can visit only as part of a pre-booked tour group. The ban on television and the internet was lifted in 1999.

The current king (Bhutan's king is officially known as the Druk Gyalpo or Dragon King), Jigme Khesar Namgyel Wangchuck (since 2006), has overseen the process of Bhutan becoming a democratic country.

Facts about Bhutan

Population 786,385 (2023 estimate)

Area 38,394 sq km (14,824 sq miles)

Highest point Gangkhar Puensum 7570 m (24,836 ft)

Capital Thimphu (population 144,197)

Other major cities Phuntsholing (27,658)

Languages Dzongkha (official language), Nepali, Tshangla

Religions Buddhism 75%, Hinduism 22%, other 3%

Ethnicity Ngalop/Bhote 50%, Nepali 35%, other 15%

Currency Bhutanese ngultrum (BTN)

Chief exports Electricity, copper, chemicals, cement, oranges, vegetables and vegetable oil