Bhutan

Map Courtesy CIA World Factbook

The Kingdom of Bhutan is a small, landlocked nation of South Asia, located in the Himalaya Mountains, sandwiched between India and the People's Republic of China. The local name for the country, Druk Yul , means "land of the dragon". It is also called Druk Tsendhen, "land of the thunder dragon", as the thunder there is said to be the sound of roaring dragons.

A Buddhist theocracy was established in Bhutan in the early 17th century. In 1865, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding some border land. Under British influence, a monarchy was set up in 1907; three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs and Bhutan allowed Britain to direct its foreign affairs. This role was assumed by independent India after 1947. Two years later, a formal Indo-Bhutanese accord returned the areas of Bhutan annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations.

A refugee issue of (reportedly) some 100,000 Bhutanese in Nepal remains unresolved; 90% of the refugees are housed in seven UNHCR camps.