Royal Government of Bhutan

The Government of Bhutan has been a constitutional monarchy since 18 July 2008. Between 1907 and the 1950s, Bhutan was an absolute monarchy. The King of Bhutan is head of state. Executive power is exercised by the Lhengye Zhungtshog, or council of ministers, headed by the Prime Minister. Legislative power is vested in the bicameral Parliament, both the upper National Council and the lower National Assembly. A royal edict issued on April 22, 2007 lifted the previous ban on political parties, ordering that they be created, in anticipation of National Assembly elections to be held the following year. In 2008, Bhutan adopted its first modern Constitution, codifying the institutions of government and the legal framework for a democratic multi-party system.

The Bhutanese people have historically never had doubts about their nation's sovereignty. Bhutan in fact has never been colonized. However, to the outside world, namely India and before that the British Raj, Bhutan was viewed as less than sovereign for their own geopolitical interests. Bhutan was treated as a suzerainty by the British Raj, during which time the present monarchy was established. Foreign and defence policy was to be decided by the British according to the 1910 Treaty of Punakha. This did not mean so much to the Bhutanese, however, due to their policy of self-imposed isolation. In 1949, after Indian independence, Bhutan and India agreed to a ten-article, perpetual treaty which effectively continued the relationship, but with India taking the place of the United Kingdom. That is, India agreed not to interfere in Bhutan's internal relations, while Bhutan agreed "to be guided by the advice of the Government of India in regard to its external relations" (Article 2). The treaty also established free trade and full extradition between the two countries.

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