Bhutan is a landlocked country in South Asia. Located in the Eastern Himalayas, it is bordered by Tibet Autonomous Region of China in the north, India in the south, the Sikkim state of India and the Chumbi Valley of Tibet in the west, and Arunachal Pradesh state of India in the east and Assam in the south. Bhutan is geopolitically in South Asia and is the region's second least populous nation after the Maldives. Thimphu is its capital and largest city, while Phuntsholing is its financial center.
The independence of Bhutan has endured for centuries, and the territory was never colonized in its history. Situated on the ancient Silk Road between Tibet, the Indian subcontinent and Southeast Asia, the Bhutanese state developed a distinct national identity based on Buddhism. Headed by a spiritual leader known as the Zhabdrung Rinpoche, the territory was composed of many fiefdoms and governed as a Buddhist theocracy. Following a civil war in the 19th century, the House of Wangchuck reunited the country and established relations with the British Empire. Bhutan fostered a strategic partnership with India during the rise of Chinese communism and has a disputed border with the People's Republic of China. In 2008, it transitioned from an absolute monarchy to a constitutional monarchy and held the first election to the National Assembly of Bhutan, that has a two party system characterizing Bhutanese democracy.
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