Bhutan: Between Two Giants

Author(s): SHERPEM SHERPA

Source: World Policy Journal, Vol. 30, No. 4 (Winter 2013 / 2014), pp. 41-44
Published by: Duke University Press
Stable URL: https://www.jstor.org/stable/43290261
Accessed: 03-12-2019 03:17 UTC

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 ^ Bhutan:
Between Two Giants
SHERPEM SHERPA

THIMPHU
THIMPHU Lam, vealsveals Lam,
mošt themoštmainof- oftheAsf^rtwal k thethe
merchandise main
displayse street
streetonmerchandi iisn Bhutan' inin
"Mades past Ěthe onBhutan's
capital shops displcapital
ay Thimphu, liThimphu,
ning is "Made Norzir^Bre-
re- in ^^Ě
China" - shoei, silk, toys, heaters, and kitchen utensils. While m
diplorņatic relations between Bhutan and China have yet to be
established, the market in the capital city is already flooded
with Chinese-made goods. Bhutanese are fast adopting Chi-
nese products and cuisine. Like many countries in the region
and beyond, it might not be long before Thimphu has its own
littl^ Chinatown." Thimphu already has a rather cramped sec-
tion of town popularly known as "Hong Kong market," de-
fine^ by its narrow alleys, tall buildings, and the proliferation
ofHoqg Kong goods sold there. It was once also a hotspot for
/ streey fi^its, alcohol, and gambling.
' History has shown that the northern routes through
20,000-footj passes of the high Himalayas, though tough,
have long sèrved as critical connections for merchants from
Bhutàq^índia, and Tibet. As early as 1773, Bhutan was al-
ready a gateway for trade with Tibet, and the British East
India Company sent many missions to extend and explore

^ L X '
WINTHU2013 / 2

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 ' x '
CASE STUDY ~1 '

r--/
r""%' ^
/
) / /
the frontiers and trade routes to Central Bhutan co
Asia during the British Raj in Indiai' The two c
"In olden days, salt used to be brought: than 50 y
to Bhutan from the township of Phari,'' Tshering T
recalls Dawa Namdu, a 69-year-old busi- ' lations bet
nessman and resident of Thimphu. Pharix ' ally stood
some 14,000 feet above sea level, border- x ' gether. O
ing Bhutan in the east, was and giv
an important frontier town and for
in Yadong County in the Ti- regiqJnal of India
betan Autonomous Region. INTEGRATION Bhutan
It served as the main busi- King J
ness hub for merchants from
WVtH ITS
chuck and India's Prime
both Tibet and Bhutan. But NEIGHBORS Minister Jawaharlal Nehru
as border disputes increased IJAS BECOME launched this special relation-
after the annexation of Ti- ship between the two coun-
bet by China, trading along ÍÍVlPER^TiyE FOR
tries in August 1949. Deeply
this and other towns in the/ rooted in religious, cultural,
BtiUJAN.
northern route diminished. historical, and economic
ties, Bhutan and India signed the Treaty of
Now, most jb¿sfc~5táples, from salt and vegw
^ etables to oil and fuel, come from India. Friendship, calling for "peace and friend-
(^SANDWICHED
r ship" and "free trade and commerce," and
ultimately allowing Bhutan duty-free transit
Bhutan - a landlocked Himalayan across India. Bhutan is, after all, a landlocked
ķingdom sandwiched between the two nation, and it is vital for its economic devel-
political and economic powers, India opment to have access to a seaport.
and China - has long faced challenges to ' Bhutanese-Indian relations strength-
its frontiers from incursions and border ened further after China annexed Tibet in
disputes. In 1865, the country lost ^the /4 950. Tibet's fate was a warning to Bhutan
Duars region to British India. Mòre < that an isolationist policy could place its
recently, in 2007, Bhutan lost its northern^ ' independence in jeopardy. In the wake of
snow-capped mountains to China. The'^Xrpss-^order incursions by Chinese soldiers
Bhutan map, over the years, has changed ļand C^jna's publication of a map show-
significantly in its shape and size. Bhutan, N 7ing /)^eic^d' traditional Sino-Bhutanese
with 14,820 square miles of land area± now MBòrçlers ia ^Hçir favor, Bhutan restricted
looks like a miniature upside-down veļrsion
[cj^sjtí^rd^trade in the north and quietly
of the map of Mongolia, the latíérlsein g e^enpédjits relations with India. Indeed,
more than 40 times larger th^in Bhutan Bhhcan's process of modernization began
and sandwiched between tWcf other major with^je^icœptance of India's assistance in
powers - Russia and China. /^development programs.
-

/ V w
Sherpem Sherpa, a farmer r
(BBS) and DeuÇs^fle Wg''QW

42 '

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 BHUTAN

j
'/ India has repeatedly reiterated its sup- coincidence" as the country had not signed
port for Bhutan's independence. Bhutan, a new agreement with India in the absence
for its part, proved its ability to safeguard of a newly elected government. The subsidy
its sovereignty when, led by His Majesty cut was bad timing as it left many of Bhu-
the Fourth King, the country's armed forc- tan's middle class facing difficult times. For
es conducted operations against the Unit- months during that period, Dawa says, he
ed Liberation Front of Assam insurgents saw the depot where the cooking gas cylin-
who were using Bhutan's land to carry out ders were distributed - thronged by people
attacks on Indian soil. hoping to get their hands on a single cyl-
inder. It also dramatized Bhutan's critical
NATIONAL SECURITY dependence on India.
What followed was a new Friendship
OPENING
Treaty, signed in 2007, replacing the TO BEIJING
provision that required Bhutan acceptcommentators have suggested that
Some
India's guidance on foreign policy. the timing of the subsidy cuts had to do
Under
the new agreement, Bhutan andwith India
the meeting of Chinese Premier Wen
Jiabao
are required to "cooperate closely with and then Prime Minister Jigmi Y.
each other on issues relating toThinley
their in Rio De Janeiro on the sidelines
national interests. Neither Government of the Rio +20 Summit. Xinhua, China's
shall allow the use of its territory for
official news agency, reported both leaders
activities harmful to the national security"expressed willingness to establish formal
and interest of the other." This was seen diplomatic ties" between their countries,
to provide greater freedom for Bhutan adding, "China is willing to complete
to manage its sovereignty and external border demarcation with Bhutan at an

relations. In 2008, welcoming Bhutan's early date and strengthen exchanges in

move towards democracy, India also various fields so as to push bilateral ties to
allowed 16 entry and exit points for a higher level."
Bhutanese trade with other countries A statement from the Bhutanese
(excluding China). Prime Minister's office said the meeting
carried
But many critics see recent events as "great historic significance as it
marks the first meeting between the heads
part of India's continued efforts to expand
of the two governments." While many in
its influence over Bhutan's foreign policy,
the country welcomed the news, calling it
trade, and security. Many people - hoteliers,
shopkeepers, civil servants, journalists -aar-
"good move," it was received with some
considerable skepticism in neighboring
gue that India's warm embrace of Bhutan
India. The meeting - amid a backdrop
is turning increasingly into a stranglehold.
This perception came into focus during of growing border tensions between In-
Bhutan's 2013 national elections. India dia and China - raised the prospects of
cut its subsidy on cooking gas and kero-thawing border disputes between Bhutan
sene - commodities for which Bhutan is and China. For India, the Bhutan-China
highly dependent on India - leaving many border talks are intimately related to its
Bhutanese spending days to stockpile gas own border conflicts with China. India is
cylinders before prices skyrocketed. Some particularly concerned with the territory
diplomats called this "bad timing" and "a in Doklam near the contentious Chumbi

WINTER 2013 /2014 43

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 CASE STUDY

GROWTH ON
valley - strategically located at BOTH
the SIDES
cor-
ner where Bhutan, India, and China
Reflecting back, Dawain-thinks that
tersect. If Bhutan agreesperhaps "the historic
to China and economic ties
s offer
that Bhutan
of territory in the disputed and India established
Jakarlung and early
Pasamlung areas in theonnorth,
led to relations
it between
could the two
mean that India's Siliguri corridor,
countries growingthe over the years, while
the uninhabitable
12 mile wide and 120 mile long corridor northern belt and
surrounded by Nepal, the inconclusive Bangla-
Burma, border talks between
desh, and Bhutan, wouldBhutan
be and China deterred Bhutan from
threatened.
That's why soon afterformalizing
the 2013 its relations
elec- with China."
Bhutan shares a
tions, India's National Security Advisor,260-mile border with
Shivshankar Menon arrivedChina, which
in Thimphu
has yet to be demarcated.
to congratulate the new India,
primewith more than 370 miles of border,
minister,
Tshering Tobgay. Indiacontinues
also just prom-
to be Bhutan's largest trading
ised 50 billion rupees ($810 million)
partner, and accounts for to
over 90 per cent
assist in the implementation of Bhutan's
of its imports.
11th Five Year Plan. During Regionalthat visit,
integration with its neigh-
Shivshankar Menon was bors accompanied
has become imperative for Bhutan
by the Indian Foreign Secretary
in overcoming the Sujatha
hurdles posed by its
Singh - the main purpose of the
small domestic visit
market and lack of capital
clearly to "advise" Bhutan
availableon handling
to take advantage of trade and
border talks with China, with opportunities
commercial the nextin hydropower,
tourism, textiles,
round of negotiations following several and traditional Hima-
weeks later. layan herbs. Therefore, Bhutan will con-
Before the next round oftoboundary
tinue explore any regional cooperation
talks, however, came reports that
that is to its Bhu-
advantage.
tan had acquired 15 Chinese-made buses.
But for the moment, Bhutan's priority
Commuters quickly started taking
regarding advan-
China is to finalize and demarcate
tage of traveling in these modern
its borders. buses,
"Only after that, when the time
the inscription on their back
is right, reading:
we can have formal diplomatic ties
"Take a Ride and Be Happy." One
with China," saysSatur-
Prime Minister Tshering
day morning as these busesTobgay. began oper-
On the other hand, both India and
ating, several critical onlookers near
Bhutan are mindful of the
each other's security
Thimphu bus station were and national
heard interests
com-and will continue,
menting that Bhutan was albeitbeing "taken
cautiously, to strengthen the special
for a ride (by China)," followed by
relationship built help-
upon years of cooperation
less laughter from othersand
gathered
understanding.
around.
#

44 WORLD POLICY JOURNAL

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