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Bhutanese history traces back to AD450. Guru Rinpoche is believed to have brought Mahayana Buddhism to the area from Tibet during the eighth century. It first became a coherent political entity around the 17th century, under the direction of Tibetan lamas who established an administrative and political structure. Since that time Bhutan has never been conquered or ruled by another foreign power.
However, in 1910, the British government took control of Bhutan's foreign affairs, while agreeing not to interfere with the internal ruling.
In 1947 and 1949, it was agreed that the Indian government would advise Bhutan on external relations. Trade agreements with India, essential to sustain the Bhutanese economy, have been the subject of regular rounds of negotiation.
The presence on Bhutanese territory of Assamese and Bodoland guerrillas, seeking independence for their respective regions of northeast India, has also proved an irritant in bilateral relations. Bhutan has occasionally switched its support to its other great neighbour, China, particularly noticeable in international forums, such as the Non-Aligned Movement and the UN General Assembly, which Bhutan joined in 1971.
Neighbouring Nepal hosts an estimated 100,000 Bhutanese refugees housed in camps in the east of the country. Most are ethnic Nepalis whose citizenship is in dispute. (The Bhutanese population is divided between two main ethnic groups: the Nepalis and the Drupka.) The Nepali government wants them to return to Bhutan; the Bhutanese refuse to take them.
A key reason for Bhutan's stance is that the main domestic challenge to the Bhutanese regime has come from the illegal and Nepali-dominated Bhutan People's Party (BPP).
After centuries of absolute monarchy, Bhutan became a constitutional monarchy and held its first democratic elections in 2007. Despite this new democratic system the people still retain enormous respect for the royal family.
The absence of modern technology and limited contact with the outside world does not seem to be posing a problem for the Bhutanese, who are judged to be the happiest nation in Asia and the eighth happiest in the world.
The official language of Bhutan is Dzongkha but a large number of dialects are spoken, mainly as a result of the isolation of many sparsely populated villages. English has been the official language for education since 1964 and is widely spoken. The state religion is the Drukpa sect of the Kagyupa, making it the last surviving Mahayana Buddhist kingdom. Although about 25% of the population are Hindu, it is Buddhism that has shaped the countries history and which plays a vital role in the daily life of the people.
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