CFR Presents

Asia Unbound

CFR experts give their take on the cutting-edge issues emerging in Asia today.

Print Print Cite Cite
Style: MLA APA Chicago Close


Prime Minister Modi to Bhutan, the Land of the Thunder Dragon

by Alyssa Ayres
June 13, 2014

File photo: Prayer flags hang near the ParoTaktsang Palphug Buddhist monastery, also known as the Tiger's Nest, in Paro district, Bhutan on October 16, 2011 (Adrees Latif/Courtesy: Reuters). File photo: Prayer flags hang near the ParoTaktsang Palphug Buddhist monastery, also known as the Tiger's Nest, in Paro district, Bhutan on October 16, 2011 (Adrees Latif/Courtesy: Reuters).


Next week Prime Minister Narendra Modi will head to Bhutan, Land of the Thunder Dragon, on his first overseas visit, slated for June 14-15. There had been a great deal of speculation that his first visit abroad would be to East Asia, particularly to Japan, a country with which he developed a strong relationship as Gujarat chief minister. But the selection of Bhutan builds perfectly on Prime Minister Modi’s inaugural outreach to the South Asian region, and demonstrates an astute sense of the region’s critical importance to India’s economic dynamism and strategic strength.

Bhutan and India have a unique relationship. Up until just a couple years ago, India was one of a handful of official bilateral relationships the Bhutanese maintained, and certainly its closest partner. Under the Treaty of Friendship between India and Bhutan of 1949, India “guided” Bhutan’s external affairs. Notably, when that treaty was revised in 2007, the clause providing Indian “guidance” on external affairs was not retained—but India remains Bhutan’s closest partner by far. In 2012, Bhutan threw its hat in the ring for a temporary U.N. Security Council seat, and during the process of its outreach around the world, it increased its number of formal diplomatic relations, now up to fifty-two countries and the European Union. (None of the P5 are among them).

Economically, India is the most important country for Bhutan. As I wrote earlier this week in a piece for YaleGlobal,

India is overwhelmingly Bhutan’s major trading partner, especially for electricity generated from hydropower resources. India has assisted with three completed hydropower projects, 10 more are under agreement, and three of those are currently under construction. India and Bhutan have a trade and commerce agreement dating back to 1972, renewed for another 10 years in 2006, and India is also Bhutan’s leading development partner. Of course, India is also closely watching China’s border talks with Bhutan and China’s recent efforts to establish stronger ties with Thimphu.

We can expect that economics will feature prominently in the summit between Prime Ministers Modi and Tobgay, especially discussions of regional economic linkages that deepen the shared futures of India and Bhutan. Bhutan has faced some economic challenges in recent years, including an Indian rupee reserve crunch, which have required some belt-tightening. Last summer, India cut back on the levels of fuel subsidies it provided to Bhutan, which caused great consternation, and the subsidies were quickly restored.

Democracy may be another topic discussed between India and Bhutan. Bhutan’s political transformation from an absolute monarchy to a democratic constitutional monarchy in 2008 has been a rare example of peaceful transition of power to the people. Bhutan’s fourth king decided to step down from the throne, asked his son to succeed him in 2006, and paved the way for national parliamentary elections introduced in 2008. Even more remarkably, in the second national elections which took place in 2013, the opposition party won. So Bhutan has showcased peaceful transitions twice. The Election Commission of India has played a strong role supporting Bhutan’s Election Commission, through training, and through the use of Indian electronic voting machines.

It’s less clear whether Bhutan’s famous Gross National Happiness (GNH) metric will be among the topics of discussion. GNH, a measure of well-being created by the former Bhutanese king, was promoted extensively internationally by the previous government of Bhutan. Two years ago the Bhutanese convened a packed-to-the-rafters “High Level Meeting on Happiness and Well-Being” at the United Nations. (I attended this meeting, and can attest not only to the overflow crowd it attracted, but as well to the diversity of backgrounds represented in the audience, from development economists to religious figures). GNH was a reason Bhutan worked carefully to preserve its environment, and prevent the kind of unchecked development that had resulted in deleterious effects and environmental degradation elsewhere in the world. But Bhutan’s new Prime Minister Tobgay is less focused on GNH, telling the New York Times in an interview last year that, “Rather than talking about happiness, we want to work on reducing the obstacles to happiness.”

With both countries focused on strengthening their ties along with developing their economies, and the energy relationship so central to their cooperation, Prime Ministers Modi and Tobgay should have plenty of near-term opportunities to reduce the obstacles to happiness for the mutual benefit of their citizens.

Follow me on Twitter: @AyresAlyssa

Post a Comment 2 Comments

  • Posted by Imran Riffat

    All power to Prime Ministers Modi and Tobgay as they get together to further strengthen and reinforce the ties between their respective countries. Bhutan – sandwiched between China and India – is strategically very important to the latter and Prime Minister Modi seems to have identified his priorities correctly by making the Kingdom as his first foreign stop. Insofar as knocking down the “obstacles to happiness” in both countries is concerned, the size of the respective populations of Bhutan ( 1,200 million), one wonders how much the two leaders can learn from each other.

    Mr. Modi, who has visited China three times, and Japan four times, as the chief minister of Gujarat state already seems to have a good understanding of Asia as well as the untapped economic potential that lies in the region. On one of his visits to China Mr. Modi was even accorded the distinct honor of being received in The Great Hall of the People; and this was at a time when the United States still had its visa ban in force not allowing him to enter the US. Mr. Modi is a very pragmatic person and one expects that he will not allow his personal disappointment to interfere in the rebuilding of the US-India relationship. Washington has a lot of homework to do in preparation for the Strategic Dialog meeting between the two countries that is expected to take place before the Prime Minister visits the US in September. He is unlikely to relent that India be a mere piece on the chess board with respect to the policy of containing China is concerned. It will also be helpful if the Obama administration is able to nominate an Ambassador to New Delhi and fast-track her/his confirmation on The Hill to have the person in place much before the upcoming Strategic Dialog meeting.

  • Posted by Peter McGill

    This reads like PR or from a government website.

Post a Comment

CFR seeks to foster civil and informed discussion of foreign policy issues. Opinions expressed on CFR blogs are solely those of the author or commenter, not of CFR, which takes no institutional positions. All comments must abide by CFR's guidelines and will be moderated prior to posting.

* Required