On 17 December, Bhutan celebrated its 117th Gyalyong Düchen or National Day, marking the coronation of Ugyen Wangchuck as the first hereditary monarch in 1907. Traditionally a day to honour Bhutan’s journey as a unified kingdom, recent years have seen the day shadowed by the unsettling question of Bhutan’s future.
Thousands of skilled professionals are leaving the country, seeking opportunities and citizenship elsewhere. King Jigme Khesar Namgyel Wangchuck’s National Day address laid bare the growing challenge of brain drain and population erosion.
This exodus is poised to become an existential threat for a country already grappling with underpopulation.
Threat of migration
In his 2023 National Day address, King Wangchuck accepted that the youth of Bhutan was at a crossroads. “Given limited opportunities at home, they are faced with the challenging decision to move abroad for better incomes. Even our professionals—doctors, nurses, engineers, teachers, lawyers, architects and engineers—are in a similar position,” he said.
Similar emotions were evoked in this year’s address as the king mentioned meeting the Bhutanese diaspora during his October visit to Australia.
“It was a bittersweet experience, as on the one hand, it was heartening to see how our people, after many years away from home, are thriving … On the other hand, their deeply emotional welcome showed how much they miss their home and loved ones, and the difficulty of being apart,” King Wangchuck said.
Famed for its pioneering Gross National Happiness (GNH) model, which prioritises well-being over material wealth, Bhutan has long stood as a symbol of progressive governance. Yet, it now faces a critical challenge—an exodus of its skilled population.
A 2023 report in Kuensel—Bhutan’s leading media outlet—highlighted that between January 2018 and March 2023, more than 13,000 Bhutanese migrated to Australia alone. In 2022, a staggering 17,000 people left Bhutan seeking better opportunities abroad. With just 7,00,000 citizens, the impact of this migration is profound.
Observers cite limited career prospects, low wages, the allure of advanced education, and aspirations for a modern lifestyle as the key reasons driving the migration. Meanwhile, the gap between Bhutan’s modest economy and the globalised opportunities abroad continues to widen.
While Bhutan faces limited traditional security threats—though there have been territorial pressures from China recently—the mass exodus of its citizens is emerging as a significant non-traditional security challenge. Unlike conventional threats, this cannot be addressed through traditional means of defence. It demands innovative policy frameworks that provide incentives to retain its people.
This approach raises an even more pressing question: How can Bhutan abide by its values, safeguard its traditions, protect its green cover, and simultaneously develop the infrastructure needed to secure its future?
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Gelephu Mindfulness City
Often termed an isolated kingdom, Bhutan may not be so isolated when it comes to setting examples of development without compromising pristine ecosystems. Across the world, the quest for development often comes with the loss of green cover and drastic exploitation of resources, especially in developing economies. Bhutan has managed not to take that trajectory—meaning a limited service sector and few industries, including tourism, which could boom exponentially considering the country’s scenic Himalayan beauty.
Still, Bhutan remains strictly guided by sustainability policies. While it may be a positive sign for the future, the lack of opportunities at home has resulted in the long-term settlement of citizens in other countries.
The problem was long realised, but the solution has come in the form of Gelephu Mindfulness City (GMC). In his 2023 National Day address, the king of Bhutan announced the development of a new city in Gelephu. A border town closely connected to Northeast India, Gelephu is central to Bhutan’s aim of connecting with Southeast Asia through India.
“To our fellow Bhutanese living abroad, know that you are always in my thoughts. You are part of the reason why we conceived this Gelephu project,” said the king, announcing the plan. “If you could choose, you would be here. The Gelephu project is to enable you to return. In the meantime, please work hard and gain knowledge and skills.”
A first in Bhutan, the GMC will be established under a Special Administrative Region (SAR)—an economic hub in sync with modern global science and tech developments. New hospitals and educational institutions will be built, attracting foreign direct investments (FDI)—mainly from traditional economic partners like India, the US, and Japan—in areas such as technology, agriculture, and forestry. The city will encompass “conscious and sustainable businesses, inspired by Buddhist spiritual heritage, and distinguished by the uniqueness of the Bhutanese identity.”
The GMC will evolve in the next five years with several development activities and modern infrastructure, including an international airport. It is expected to cover an area of 1,000 sq km or 2,50,000 acres—approximately 2.5 per cent of Bhutan’s total surface area.
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Problems with foreign presence
While the GMC may be Bhutan’s most ambitious infrastructure and investment project to date, it will likely necessitate the involvement of foreign experts. This poses a significant challenge for a traditionally closed society that has often been resistant to foreign presence, including tourists.
It is worth recalling that this peaceful Buddhist nation continues to face criticism from international human rights advocacy groups over its treatment of the Lhotshampas. The Nepali-speaking Bhutanese were rendered stateless under Bhutan’s “One Nation, One People” policy, which led to their expulsion. Many of these individuals became refugees overnight. The UNHCR (United Nations High Commissioner for Refugees) resettled them in third countries such as the United States and Australia—a decades-long process. Nevertheless, some remain in refugee camps in Nepal, awaiting resolution.
It was bold of the king to address the potential presence of foreigners in the GMC. “For the project to succeed, attracting adequate foreign investors and expertise will be necessary. We will put in place an effective screening process to ensure that the companies and people who come to Gelephu are sensitive to our culture and traditions, respect our identity, and share our values.”
Whether this system will achieve its intended balance remains to be seen. The actual test lies in how rigorously the screening processes are implemented and how well the invited businesses integrate with, and contribute to, the country’s cultural and economic fabric.
Whether Bhutanese society will be ready to accept the presence of foreigners will depend on government policies that foster trust and inclusivity.
As it attempts to address the existential security threat of migration, Bhutan is at a crossroads—it must carefully navigate the balance between modernity and tradition.
The GMC will take years to develop fully, so the country faces the immediate challenge of managing migration during the interim period. Moreover, whether Bhutan will be able to entice its already-migrated population to return adds another layer of complexity to this ambitious, transformative undertaking.
Rishi Gupta is assistant director, Asia Society Policy Institute, New Delhi. Views are personal.
(Edited by Prasanna Bachchhav)