The Bhutanese call their country Druk-yul, the land of the Drukpas (the people) and of the Druk (Thunder Dragon as in the national flag of Bhutan). The ancient history of the kingdom remains shrouded in mystery. Since the 8th century A.D., however, it is clear that Buddhism has played a large part in shaping the course of Bhutan’s history. Although Bhutan was unified under a central authority in the 17th century, evidence strongly suggests that it had existed as an independent entity from very early times.

Bhutan ’s population currently stands at 638,000 people. The people of Bhutan may be divided into two main groups – the Drukpas, who are of Mongoloid origin and are Buddhists, and the Lhotsampas, or the southerners, of Nepali origin, mainly Hindus.

Bhutan is a monarchy, ruled by the Wangchuck dynasty, which was founded in 1907 by King Ugyen Wangchuck. Over the years, the monarchs of Bhutan have been the fountainhead of far-reaching and often dramatic changes in the legislative, judicial and administrative systems in the country.

With over 80% of the people dependent on subsistence farming, the Bhutanese economy is predominantly rural. The share of the agriculture sector in the gross domestic product has dropped to less than 50% with the increase in the contribution of hydroelectric power generation and sale which now accounts for over 30 percent. The country has the potential to generate 30,000 MW of power from its rivers. Besides electricity, Bhutan exports calcium carbide, wood products and cement.