| Economy - overview: | The economy, oneof the world's smallest and least developed, is based on agricultureand forestry, which provide the main livelihood for more than 60% ofthe population. Agriculture consists largely of subsistence farmingand animal husbandry. Rugged mountains dominate the terrain and makethe building of roads and other infrastructure difficult andexpensive. The economy is closely aligned with India's through strongtrade and monetary links and dependence on India's financialassistance. The industrial sector is technologically backward, withmost production of the cottage industry type. Most developmentprojects, such as road construction, rely on Indian migrant labor.Bhutan's hydropower potential and its attraction for tourists are keyresources. Model education, social, and environment programs areunderway with support from multilateral development organizations.Each economic program takes into account the government's desire toprotect the country's environment and cultural traditions. Forexample, the government, in its cautious expansion of the touristsector, encourages visits by upscale, environmentally conscientioustourists. Detailed controls and uncertain policies in areas such asindustrial licensing, trade, labor, and finance continue to hamperforeign investment. |
Samdrup, Bhutan