Geography
The northern region consists of an arc of glaciated mountain peaks with an extremely cold climate at the highest elevations. Most peaks in the north are over 23,000 feet (7,000 m) above sea level; the highest point is claimed to be the Kula Kangri, at 24,780 feet (7,553 m), but detailed topographic studies claim Kula Kangri is wholly in Tibet, and modern Chinese measurements claim that Gangkhar Puensum, which has the distinction of being the highest unclimbed mountain in the world, is higher at 24,835 feet (7,570 m). Watered by snow-fed rivers, alpine valleys in this region provide pasture for livestock, tended by a sparse population of migratory shepherds.
The Black Mountains in central Bhutan form a watershed between two major river systems: the Mo Chhu and the Drangme Chhu. Peaks in the Black Mountains range between 4,900 feet (1,500 m) and 8,900 feet (1,500 m and 2,700 m) above sea level, and fast-flowing rivers have carved out deep gorges in the lower mountain areas. Woodlands of the central region provide most of Bhutan's forest production. The Torsa, Raidak, Sankosh, and Manas are the main rivers of Bhutan, flowing through this region. Most of the population lives in the central highlands.
In the south, the Shiwalik Hills are covered with dense, deciduous forests, alluvial lowland river valleys, and mountains up to around 4,900 feet (1,500 m) above sea level. The foothills descend into the subtropical Duars Plain. Most of the Duars is located in India, although a 6–9 mile (10–15 km) wide strip extends into Bhutan. The Bhutan Duars is divided into two parts: the northern and the southern Duars. The northern Duars, which abuts the Himalayan foothills, has rugged, sloping terrain and dry, porous soil with dense vegetation and abundant wildlife. The southern Duars has moderately fertile soil, heavy savannah grass, dense, mixed jungle, and freshwater springs. Mountain rivers, fed by either the melting snow or the monsoon rains, empty into the Brahmaputra River in India. Data released by the Ministry of Agriculture showed that the country had a forest cover of 64% as of October 2005.
The climate in Bhutan varies with altitude, from subtropical in the south to temperate in the highlands and polar-type climate, with year-round snow, in the north. Bhutan experiences five distinct seasons: summer, monsoon, autumn, winter and spring. Western Bhutan has the heavier monsoon rains; southern Bhutan has hot humid summers and cool winters; central and eastern Bhutan is temperate and drier than the west with warm summers and cool winters.
Tuesday, April 7, 2009
Bhutan - Economy
The Ngultrum is the currency of Bhutan.
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 percent in 2005 and 14 percent in 2006. In 2007, Bhutan had the second fastest growing economy in the world, with an annual economic growth rate of 22.4 percent. 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. A landscape that varies from hilly to ruggedly mountainous has made the building of roads and other infrastructure difficult and expensive. This, and a lack of access to the sea, has meant that Bhutan has not been able to benefit from significant trading of its produce. Bhutan does not have any railways, though Indian Railways plans to link southern Bhutan to its vast network under an agreement signed in January 2005. Bhutan and India signed a 'free trade' accord in 2008, which additionally allowed Bhutanese imports and exports from third markets to transit India without tariffs. The historic trade routes over the high Himalayas, which connected India to Tibet, have been closed since the 1950 military takeover of Tibet (although smuggling activity still brings Chinese goods into Bhutan).
The industrial sector is in a nascent stage, and though most production comes from cottage industry, larger industries are being encouraged and some industries such as cement, steel, ferro alloy etc., have been set up. Most development projects, such as road construction, rely on Indian contract labour. Agricultural produce includes rice, chilies, dairy (some yak, mostly cow) products, buckwheat, barley, root crops, apples, and citrus and maize at lower elevations. Industries include cement, wood, products, processed fruits, alcoholic beverages and calcium carbide.
Incomes of over Nu 100,000 per annum are taxed, but very few wage and salary earners qualify. Bhutan's inflation rate was estimated at about three percent in 2003. 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.
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 percent in 2005 and 14 percent in 2006. In 2007, Bhutan had the second fastest growing economy in the world, with an annual economic growth rate of 22.4 percent. 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. A landscape that varies from hilly to ruggedly mountainous has made the building of roads and other infrastructure difficult and expensive. This, and a lack of access to the sea, has meant that Bhutan has not been able to benefit from significant trading of its produce. Bhutan does not have any railways, though Indian Railways plans to link southern Bhutan to its vast network under an agreement signed in January 2005. Bhutan and India signed a 'free trade' accord in 2008, which additionally allowed Bhutanese imports and exports from third markets to transit India without tariffs. The historic trade routes over the high Himalayas, which connected India to Tibet, have been closed since the 1950 military takeover of Tibet (although smuggling activity still brings Chinese goods into Bhutan).
The industrial sector is in a nascent stage, and though most production comes from cottage industry, larger industries are being encouraged and some industries such as cement, steel, ferro alloy etc., have been set up. Most development projects, such as road construction, rely on Indian contract labour. Agricultural produce includes rice, chilies, dairy (some yak, mostly cow) products, buckwheat, barley, root crops, apples, and citrus and maize at lower elevations. Industries include cement, wood, products, processed fruits, alcoholic beverages and calcium carbide.
Incomes of over Nu 100,000 per annum are taxed, but very few wage and salary earners qualify. Bhutan's inflation rate was estimated at about three percent in 2003. 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.
Bhutan - Districts and Cities
Districts
Bhutan is divided into four dzongdey (administrative zones). Each dzongdey is further divided into dzongkhag (districts). There are twenty dzongkhag in Bhutan. Large dzongkhags are further divided into subdistricts 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.
Dzongkhags (Districts) of Bhutan
1) Bumthang
2) Chukha
3) Dagana
4) Gasa
5) Haa
6) Lhuntse
7) Mongar
8) Paro
9) Pemagatshel (Pemagatsel)
10) Punakha
11) Samdrup Jongkhar
12) Samtse (Samchi)
13) Sarpang
14) Thimphu
15) Trashigang (Tashigang)
16) Trashiyangtse
17) Trongsa (Tongsa)
18) Tsirang (Chirang)
19) Wangdue Phodrang (Wangdi Phodrang)
20) Zhemgang (Shemgang)
Cities and towns
Jakar, the administrative head quarter of Bumthang District and the place where Buddhism entered Bhutan
Mongar, the easter commercial hub of the country.
Paro, site of the international airport
Phuentsholing, Bhutan's commercial hub.
Punakha, the old capital
Samdrup Jongkhar
Thimphu, the largest city and capital of Bhutan.
Trashigang, the most populous district in the country.
Trongsa, in central Bhutan which has the largest and the most magnificent of all the dzongs in Bhutan.
Few interesting places in Bhutan
Paro (7000 ft)
A trip to Bhutan normally begins and ends at Paro ..... and there can be few charming valleys in the kingdom. As you disembark your Druk aircraft and take your first breath of Bhutanese air, you will be struck by the clean air and peaceful atmosphere.
Rinpung Dzong
Built in 1646 by Shabdrung Ngawang Namgyal , the first spiritual and temporal ruler of Bhutan , the Dzong houses the monastic body of Paro, the office of the Dzongda (district administrative head) and Thrimpon (judge) of Paro district.
The approach to the Dzong is through a traditional covered bridge called Nemi Zam. A walk through the bridge, over a stone inlaid path, offers a good view of the architectural wonder of the Dzong as well as life around it. It is also the venue of Paro Tshechu, held once a year in the spring.
THIMPU (7000 ft)
Thimphu is a small, charming capital city sandwiched in the heart of the Himalayas . It sits in its own valley fanning out from the river. The skyline hardly changes as new buildings are all constructed under zoning regulations. Thimphu 's development is strictly monitored and buildings cannot exceed a certain height, nor can they be designed in anything but the traditional Bhutanese style. In fact, Thimphu 's first and only traffic light was enshrined in a chorten ! (a small Buddhist temple). Not being suitable to the nature of Thimphu , the traffic light was removed on the King's orders.
Trashichhodzong
Also known as ‘fortress of the glorious religion', it was initially built in 1641 and later rebuilt in its present form by King Jigme Dorji Wangchuk in 1965.
The Dzong houses, main secretariat building which houses the throne room of His Majesty, the King of Bhutan.
The National Assembly Hall is housed in a modern building on the other side of the river from the Dzong. During the warmer summer months, the monk body headed by His Holiness, the Je Khenpo, makes its home in the Dzong.
Memorial Chorten
This stupa was built in 1974 in the memory of Bhutan ‘s third King, His Late Majesty, King Jigme Dorji Wangchuk, who is popularly regarded as Father of modern Bhutan . The paintings and statues inside the monument provide a deep insight into Buddhist philosophy.
National Library
The history of Bhutan lies imprinted in archaic texts, which are preserved at the National Library. Besides thousands of manuscripts and ancient texts, the library also has modern academic books and printing blocks for prayer flags.
PUNAKHA (4420 ft)
Punakha served as the capital of Bhutan until and still it is the winter seat of Je Khnep (the chief abbot). Blessed with temperate climate and owing to its natural drainage from Pho Chhu (male) and Mo Chhu (female) rivers, the Punakha valley produces abundant crops and fruits. There are splendid views of the distant Himalayas at Dochula pas (alt. 3,050m) on Thimphu – Punakha road.
Bhutan is divided into four dzongdey (administrative zones). Each dzongdey is further divided into dzongkhag (districts). There are twenty dzongkhag in Bhutan. Large dzongkhags are further divided into subdistricts 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.
Dzongkhags (Districts) of Bhutan
1) Bumthang
2) Chukha
3) Dagana
4) Gasa
5) Haa
6) Lhuntse
7) Mongar
8) Paro
9) Pemagatshel (Pemagatsel)
10) Punakha
11) Samdrup Jongkhar
12) Samtse (Samchi)
13) Sarpang
14) Thimphu
15) Trashigang (Tashigang)
16) Trashiyangtse
17) Trongsa (Tongsa)
18) Tsirang (Chirang)
19) Wangdue Phodrang (Wangdi Phodrang)
20) Zhemgang (Shemgang)
Cities and towns
Jakar, the administrative head quarter of Bumthang District and the place where Buddhism entered Bhutan
Mongar, the easter commercial hub of the country.
Paro, site of the international airport
Phuentsholing, Bhutan's commercial hub.
Punakha, the old capital
Samdrup Jongkhar
Thimphu, the largest city and capital of Bhutan.
Trashigang, the most populous district in the country.
Trongsa, in central Bhutan which has the largest and the most magnificent of all the dzongs in Bhutan.
Few interesting places in Bhutan
Paro (7000 ft)
A trip to Bhutan normally begins and ends at Paro ..... and there can be few charming valleys in the kingdom. As you disembark your Druk aircraft and take your first breath of Bhutanese air, you will be struck by the clean air and peaceful atmosphere.
Rinpung Dzong
Built in 1646 by Shabdrung Ngawang Namgyal , the first spiritual and temporal ruler of Bhutan , the Dzong houses the monastic body of Paro, the office of the Dzongda (district administrative head) and Thrimpon (judge) of Paro district.
The approach to the Dzong is through a traditional covered bridge called Nemi Zam. A walk through the bridge, over a stone inlaid path, offers a good view of the architectural wonder of the Dzong as well as life around it. It is also the venue of Paro Tshechu, held once a year in the spring.
THIMPU (7000 ft)
Thimphu is a small, charming capital city sandwiched in the heart of the Himalayas . It sits in its own valley fanning out from the river. The skyline hardly changes as new buildings are all constructed under zoning regulations. Thimphu 's development is strictly monitored and buildings cannot exceed a certain height, nor can they be designed in anything but the traditional Bhutanese style. In fact, Thimphu 's first and only traffic light was enshrined in a chorten ! (a small Buddhist temple). Not being suitable to the nature of Thimphu , the traffic light was removed on the King's orders.
Trashichhodzong
Also known as ‘fortress of the glorious religion', it was initially built in 1641 and later rebuilt in its present form by King Jigme Dorji Wangchuk in 1965.
The Dzong houses, main secretariat building which houses the throne room of His Majesty, the King of Bhutan.
The National Assembly Hall is housed in a modern building on the other side of the river from the Dzong. During the warmer summer months, the monk body headed by His Holiness, the Je Khenpo, makes its home in the Dzong.
Memorial Chorten
This stupa was built in 1974 in the memory of Bhutan ‘s third King, His Late Majesty, King Jigme Dorji Wangchuk, who is popularly regarded as Father of modern Bhutan . The paintings and statues inside the monument provide a deep insight into Buddhist philosophy.
National Library
The history of Bhutan lies imprinted in archaic texts, which are preserved at the National Library. Besides thousands of manuscripts and ancient texts, the library also has modern academic books and printing blocks for prayer flags.
PUNAKHA (4420 ft)
Punakha served as the capital of Bhutan until and still it is the winter seat of Je Khnep (the chief abbot). Blessed with temperate climate and owing to its natural drainage from Pho Chhu (male) and Mo Chhu (female) rivers, the Punakha valley produces abundant crops and fruits. There are splendid views of the distant Himalayas at Dochula pas (alt. 3,050m) on Thimphu – Punakha road.
Bhutan - Demographics
Among the Bhutanese people, several principal ethnic groups may be distinguished. The largest group are the Bhutia or Bhotiya people, who can be subdivided into Ngalops and Scharchops respectively. The second dominant group is the Ngalops, a Buddhist group based in the western part of the country. Their culture is closely related to that of Tibet. Much the same could be said of the Sharchops ("Easterners"), the dominant group, who are associated with the eastern part of Bhutan (but who traditionally follow the Nyingmapa rather than the official Drukpa Kagyu form of Tibetan Buddhism. They are called the Western Bhutanese and Eastern Bhutanese respectively. In modern times, with improved transportation infrastructure, there has been much intermarriage between these groups. In the early 1970s, intermarriage between the Lhotshampas and mainstream Bhutanese society was encouraged by the government.
Languages of Bhutan
The national language is Dzongkha, one of 53 languages in the Tibetan Languages family. The script, here called Chhokey ("Dharma Language"), is identical to classical Tibetan. In the schools English is the medium of instruction and Dzongkha is taught as the national language. Ethnologue lists 24 languages currently spoken in Bhutan, all of them in the Tibeto-Burman family, except Nepali, an Indo-Aryan Language. Until the 1980s, the government sponsored the teaching of Nepali in schools in Southern Bhutan. However, after the armed uprising in the south, Nepali was dropped from the curriculum. The languages of Bhutan are still not well-characterized, and several have yet to be recorded in an in-depth academic grammar.
Religions of Bhutan
Religion Percentage
Buddhism 75%
Hinduism 24%
Other 1%
Literacy
The literacy rate is 59.5 percent. The country has a median age of 22.3 years.[ Bhutan has a life expectancy of 62.2 years (61 for males and 64.5 for females) according to the latest data from the World Bank. There are 1,070 males to every 1,000 females in the country.
It is estimated that between two thirds and three quarters of the Bhutanese population follow Vajrayana Buddhism, which is also the state religion. About one quarter to one third are followers of Hinduism. Muslim and non-religious communities account for less than 1% of the population. The current legal framework, in principle guarantees freedom of religion; proselytism, however, is forbidden by a royal government decision.
Languages of Bhutan
The national language is Dzongkha, one of 53 languages in the Tibetan Languages family. The script, here called Chhokey ("Dharma Language"), is identical to classical Tibetan. In the schools English is the medium of instruction and Dzongkha is taught as the national language. Ethnologue lists 24 languages currently spoken in Bhutan, all of them in the Tibeto-Burman family, except Nepali, an Indo-Aryan Language. Until the 1980s, the government sponsored the teaching of Nepali in schools in Southern Bhutan. However, after the armed uprising in the south, Nepali was dropped from the curriculum. The languages of Bhutan are still not well-characterized, and several have yet to be recorded in an in-depth academic grammar.
Religions of Bhutan
Religion Percentage
Buddhism 75%
Hinduism 24%
Other 1%
Literacy
The literacy rate is 59.5 percent. The country has a median age of 22.3 years.[ Bhutan has a life expectancy of 62.2 years (61 for males and 64.5 for females) according to the latest data from the World Bank. There are 1,070 males to every 1,000 females in the country.
It is estimated that between two thirds and three quarters of the Bhutanese population follow Vajrayana Buddhism, which is also the state religion. About one quarter to one third are followers of Hinduism. Muslim and non-religious communities account for less than 1% of the population. The current legal framework, in principle guarantees freedom of religion; proselytism, however, is forbidden by a royal government decision.
Government and Politics
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.
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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