When civil war broke out in Pakistan in 1971, Bhutan was among the first nations to recognize the new government of Bangladesh, and formal diplomatic relations were established in 1973. An event in 1975 may have served as a major impetus to Bhutan to speed up reform and modernization. In that year, neighboring Sikkim's monarchy, which had endured for more than 300 years, was ousted following a plebiscite in which the Nepalese majority outvoted the Sikkimese minority. Sikkim, long a protectorate of India, became India's twenty-second state.

To further ensure its independence and international position, Bhutan gradually established diplomatic relations with other nations and joined greater numbers of regional and international organizations. Many of the countries with which Bhutan established relations provided development aid (see Foreign Economic Relations , this ch.). Moderization life brought new problems to Bhutan in the late 1980s (see Political Developments , this ch.).

Data as of September 1991