Government and politics
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 Wangchuk, announced to a stunned nation that the first general elections would be held in 2008, and that he would abdicate the throne in favor of his eldest son, the crown prince. King Jigme Khesar Mangyal Wangchuck took the throne on December 14, 2006 upon his father's abdication. Jigme Khesar Namgyel Wangchuck was adorned with Bhutan's Raven Crown at an ornate coronation ceremony in Thimphu on Thursday November 6,2008, becoming the world's youngest reigning monarch and head of the newest democracy.
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 the parliament.
Judicial Power is vested in the courts of Bhutan. The Chief Justice is the administrative head of the Judiciary.
Military and foreign affairs
The Royal Bhutan Army is Bhutan's military service. It includes the Royal Bodyguard and the Royal Bhutan Police. Membership is voluntary, and the minimum age for recruitment is 18. The standing army numbers about 6,000 and is trained by the Indian Army. It has an annual budget of about US$13.7 million — 1.8 percent of the GDP. Being a landlocked country, Bhutan has no navy.
Though the 1949 treaty with India is still sometimes misinterpreted to mean that India controls Bhutan's foreign affairs, Bhutan handles all of its foreign affairs itself, including the sensitive (to India) border demarcation issue with China. The 1949 treaty has been superseded by the 2007 treaty with India which clarified that Bhutan was master of its own foreign relations. Bhutan has diplomatic relations with 21 countries, and with the European Union, with missions in India, Bangladesh, Thailand, and Kuwait. It has two UN missions, one in New York and one in Geneva. Only India and Bangladesh have residential embassies in Bhutan, while Thailand has a consulate office in Bhutan. By a long standing treaty, Indian and Bhutanese citizens may travel to each other's countries without a passport or visa using their national identity cards instead. Bhutanese citizens may also work in India without legal restriction. Bhutan does not have formal diplomatic ties with its northern neighbour, the People’s Republic of China, although exchanges of visits at various levels between the two have significantly increased in recent times. The first bilateral agreement between China (PRC) and Bhutan was signed in 1998, and Bhutan has also set up consulates in Macau and Hong Kong. Bhutan’s border with China is largely not demarcated and thus disputed in some places. There's about 269 square kilometers left to be discussed between China and Bhutan.
On 13 November 2005, Chinese soldiers crossed into Bhutan under the pretext that environmental conditions had forced their retreat south from the Himalayas. The Bhutanese government allowed this incursion (after the fact) on humanitarian grounds. Soon after, the Chinese began building roads and bridges within Bhutanese territory. Bhutanese Foreign Minister Khandu Wangchuk took up the matter with Chinese authorities after the issue was raised in Bhutanese parliament. In response, Foreign Ministry spokesman Qin Gang of the People's Republic of China has said that the border remains in dispute and that the two sides continue to work for a peaceful and cordial resolution of the dispute. An Indian intelligence officer has said that a Chinese delegation in Bhutan told the Bhutanese that they were "overreacting." The Bhutanese newspaper Kuensel has said that China might use the roads to further Chinese claims along the border.
On 8 February 2007, the Indo-Bhutan Friendship Treaty was substantially revised. Whereas in the Treaty of 1949 Article 2 read as "The Government of India undertakes to exercise no interference in the internal administration of Bhutan. On its part the Government of Bhutan agrees to be guided by the advice of the Government of India in regard to its external relations."
In the revised treaty it now reads as "In keeping with the abiding ties of close friendship and cooperation between Bhutan and India, the Government of the Kingdom of Bhutan and the Government of the Republic of India shall cooperate closely with each other on issues relating to their national interests. Neither government shall allow the use of its territory for activities harmful to the national security and interest of the other." The revised treaty also includes in it the preamble "Reaffirming their respect for each other's independence, sovereignty and territorial integrity", an element that was absent in the earlier version. The Indo-Bhutan Friendship Treaty of 2007 strengthens Bhutan's status as an independent and sovereign nation.
Bhutan has no formal relations with the United States, Russia, China, the United Kingdom or France. Informal contact with the United States is made through the U.S. embassy in New Delhi.
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