Bhutan

The Kingdom of Bhutan ({{IPA2|bu?'t??n}} {{Audio|Bhutan.ogg|Listen}}) is a landlocked nation in the Himalaya Mountains, sandwiched between India and the People's Republic of China in South Asia. The local name for the country is Druk Yul. It is also called Druk Tsendhen (land of the thunder dragon), because the thunder there is said to be the sound of roaring dragons. Historically Bhutan was known by many names, such as Lho Mon (southern land of darkness), Lho Tsendenjong (southern land of the cypress), and Lhomen Khazhi (southern land of four approaches). The origins of the name Bhutan are unclear; historians have suggested that it may have originated in variations of the Sanskrit words Bhota-ant (the end of Bhot – another word for Tibet), or Bhu-uttan (highlands). The word Bhutan as a name for the country dates from the late 19th century.

Economy

Bhutan's economy is one of the world's smallest and least developed, and is based on agriculture, forestry, and the sale of hydroelectric power to India. Agriculture provides the main livelihood for more than 90% of the population. Agrarian practices consist largely of subsistence farming and animal husbandry. Handicrafts are a small cottage industry and a source of income for many. Sculpting of religious figurines is a popular occupation, and gilded Buddha statues and Buddhist saints are sold to tourists. 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 never been able to benefit from significant trading of its produce. Bhutan currently does not have a railway system, though the Indian Railways plans to link up southern Bhutan with its vast network under an agreement signed in January 2005.{{ref|IR}} Historically, there have been well patronised trading routes from the Tibetan plateau to the Indian subcontinent through Bhutan, but haulage has been limited to human porters and livestock. The industrial sector is minimal, production being of the cottage-industry type. Most development projects, such as road construction, rely on Indian contract labour. Agricultural produce includes rice, corn, root crops, citrus, food grains, dairy products and eggs. Industries include cement, wood products, processed fruits, alcoholic beverages and calcium carbide.{{inote|CIA factbook|CIA-1}}

Related Topics:
Agriculture - Forestry - Hydroelectric power - Subsistence farming - Animal husbandry - Buddha - Infrastructure - Railway system - Indian Railways - January 2005 - Cottage-industry - Cement - Wood - Calcium carbide

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Bhutan's currency, the ngultrum, is pegged to the Indian Rupee. The rupee is also accepted as legal tender in the country. 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 3% 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. Per capita income is around $1,400, ranked 124th. Government revenues total $146 million, though expenditures amount to $152 million. 60%{{inote|CIA factbook|CIA-economy}} of the budget expenditure, however, is financed by India's Ministry of External Affairs.{{ref|MEA}} Bhutan's exports of mainly electricity, cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones and spices total $154 million (2000 est.). Imports, however, total $196 million, leading to a trade deficit. Main items imported include fuel and lubricants, grain, machinery, vehicles, fabrics and rice. Bhutan's main export partner is India, exporting 87.9% of its goods to that country. Bangladesh (4.6%) and the Philippines (2%) are the other two top exporting partners. As its border with Tibet is closed, trade between Bhutan and China is now almost non-existent. Bhutan's import partners include India (71.3%), Japan (7.8%) and Austria (3%).{{inote|CIA factbook|CIA-2}}

Related Topics:
Ngultrum - Indian Rupee - Legal tender - Per annum - Gross Domestic Product - USD - Purchasing Power Parity - Cardamom - Gypsum - Timber - Spices - 2000 - Fuel - Lubricant - Grain - Machinery - Rice - Bangladesh - Philippines - Japan - Austria

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In a response to accusations in 1987 by a journalist from UK's Financial Times that the pace of development Bhutan was slow, the King said that "Gross National Happiness is more important than Gross National Product." {{ref|yoga}} 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. It signalled his commitment to building an economy that is appropriate for Bhutan's unique culture, based on Buddhist spiritual values, and has served as a unifying vision for the economy.

Related Topics:
UK's - Financial Times - Gross National Happiness - Daniel Kahneman

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