Stone tools, weapons, elephants, and remnants of large stone structures provide evidence that Bhutan was inhabited as early as 2000 BC, although there are no existing records from that time. Historians have theorized that the state of Lhomon (literally, "southern darkness", a reference to the indigenous Mon religion), or Monyul ("Dark Land", a reference to the Monpa, the aboriginal peoples of Bhutan) may have existed between 500 BC and AD 600. 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.
View of Taschioedzong Thimphu, seat of the Bhutanese government since 1952
The earliest transcribed event in Bhutan was the passage of the Buddhist saint Padma Sambhava (also known as Guru Rinpoche) in 747. Bhutan's early history is unclear, because most of the records were destroyed after fire ravaged the ancient capital, Punakha, in 1827. By the 10th century, Bhutan's political development was heavily influenced by its religious history. However, there is no sufficient information stating that all historical records were available before the fire. Various sub-sects of Buddhism emerged which were patronised by the various Mongol warlords. After the decline of the Mongols in the 14th century, these sub-sects vied with each other for supremacy in the political and religious landscape, eventually leading to the ascendancy of the Drukpa sub-sect by the 16th century.
Until the early 17th century, Bhutan existed as a patchwork of minor warring fiefdoms, when the area was unified by the Tibetan lama and military leader Shabdrug Ngawang Namgyal who fled religious persecution in Tibet. To defend the country against intermittent Tibetan forays, Namgyal built a network of impregnable dzong (fortresses), and promulgated a code of law that helped to bring local lords under centralised control. Many such dzong still exist and are active centers of religion and district administration. After Namgyal's death in 1651, Bhutan fell into civil war. Taking advantage of the chaos, the Tibetans attacked Bhutan in 1710, and again in 1730 with the help of the Mongols. Both assaults were successfully thwarted, and an armistice was signed in 1759.
In the 18th century, the Bhutanese invaded and occupied the kingdom of Cooch Behar to the south. In 1772, Cooch Behar appealed to the British East India Company which assisted them in ousting the Bhutanese, and later in attacking Bhutan itself in 1774. A peace treaty was signed in which Bhutan agreed to retreat to its pre-1730 borders. However, the peace was tenuous, and border skirmishes with the British were to continue for the next 100 years. The skirmishes eventually led to the Duar War (1864–1865), a confrontation for control of the Bengal Duars.
After Bhutan lost the war, the Treaty of Sinchula was signed between British India and Bhutan. As part of the war reparation, the Duars were ceded to the United Kingdom in exchange for a rent of Rs. 50,000. The treaty ended all hostilities between British India and Bhutan.
During the 1870s, power struggles between the rival valleys of Paro and Tongsa led to civil war in Bhutan, eventually leading to the ascendancy of Ugyen Wangchuck, the ponlop (governor) of Tongsa. From his power base in central Bhutan, Ugyen Wangchuck defeated his political enemies and united the country following several civil wars and rebellions in the period 1882–1885.
In 1907, an epochal year for the country, Ugyen Wangchuck was unanimously chosen as the hereditary king of the country by an assembly of leading Buddhist monks, government officials, and heads of important families. The British government promptly recognised the new monarchy, and in 1910 Bhutan signed a treaty which "let" Great Britain "guide" Bhutan's foreign affairs. In reality, this did not mean much given Bhutan's historical reticence. It also did not seem to apply to Bhutan's traditional relations with Tibet. The greatest impact of this treaty seems to be the perception that it meant Bhutan was not totally sovereign..
After India gained independence from the United Kingdom on 15 August 1947, Bhutan became one of the first countries to recognise India's independence. A treaty similar to the one of 1910 was signed 8 August 1949 with the newly independent India.
The Trongsa Dzong.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 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.
Expulsion of Lhotshampa
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. At around the same time, a nationwide census revealed a large population of Nepali origin (Lhotshampa) in southern Bhutan. The national census showed that there was rampant illegal immigration of ethnic Nepalese into Bhutan and steps were taken to identify all the illegal settlers, who were later deported. When the government attempted to remove the illegal settlers, there was a violent backlash. In order to re-establish order in the south, the government recruited many young men and able-bodied civil servants into a militia force. Many southern Bhutanese, including a number of political dissidents, fled to Nepal along with the illegal settlers, where they were admitted into camps run by the United Nations High Commission for Refugees (UNHCR). The UNHCR's primary failing in this was in not having any procedure of verifying whether the refugees were from Bhutan or whether they were at all Bhutanese, making it difficult for third parties to establish whether the Bhutanese state's actions amount to "ethnic cleansing" or a mere massive, militia-backed external deportation of illegal immigrants and their descendants.
As the governments of Bhutan and Nepal could not agree on any terms for repatriation or resettlement in Nepal the refugees remained in their camps in Nepal for 17 years. In 2007 the US government announced that around 60,000 of these refugees would be settled in the US in a third country settlement programme.
Democratic reform and modernization
In 1998, King Jigme Singye Wangchuk 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.
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 that the "misuse" of television could erode traditional Bhutanese values.
A new constitution was presented in early 2005. In December 2005, Jigme Singye Wangchuck announced that he would abdicate the throne in his son's favour in 2008. On Dec 14, 2006, he announced that he would be abdicating immediately. Bhutan has now entered a new era of democracy, starting with its first national parlimentary election in Dec 2007 and March 2008..
On November 6, 20008 , 28-year old Jigme Khesar Namgyel Wangchuk, eldest son of King Jigme Singye Wangchuk was crowned King of the Himalayan Kingdom.