The hills are alive: (From top) The gateway to Bhutan’s capital; election posters are allowed only in designated places; a picture of king Jigme Khesar Namgyal Wanchuk and his queen; Pics: Debaashish Bhattacharya

In a remote hilltop village in eastern Bhutan, a knot of men and women waits expectantly for Dorji Choden. When the SUV carrying the president of the Druk Nyamrup Tshogpa (DNT), one of the parties contesting Bhutan’s second general election, roars up a mountain road and halts before them, there are loud whoops of joy. For, the DNT leader underlines all that’s new in Bhutan.

If she is elected, she will be Bhutan’s first woman head of the government. “Some in Bhutan find it hard to believe that a woman could lead this country,” says the 53-year-old engineer. “They feel only men can provide leadership.”

The perception will be put to test soon. Next week, four political parties — two new and led by women who are also candidates — will vie for power in Bhutan.

Five years have gone by since the country experimented with democracy, a “gift” from its benevolent fourth king, Jigme Singye Wangchuck. He gave up most of the monarchy’s control of the country and got its first Constitution drafted, paving the way for the 2008 election.

Now, the Himalayan kingdom faces another election. And it is an election that will underline that democracy, despite a few hiccups, has made its presence felt in the Land of the Thunder Dragon that lies wedged between India and China.

A two-tier poll will take place on May 31 (primary round) and July 13 (final round) to select the 47-member National Assembly, the lower house in its Parliament, modelled on India’s. Under Bhutan’s election law, only two parties will go to the final round. The rest will be eliminated in the primary phase. Its Constitution provides for only two parties in Parliament, the ruling and the Opposition, to avoid coalition governments.

The transition from monarchy to democracy has not been easy. In the 2008 election, only two parties fought, with the Druk Phuensum Tshogpa (DPT) defeating the People’s Democratic Party (PDP) in all but two constituencies. “With two Opposition members, we si ply had no say in policy-making in Parliament,” a PDP leader says.

This election is important for several reasons. The strengthening of democracy, of course, is high on every party’s agenda. But it will also test how the people view the mounting economic problems. And it will give India, watching the polls with quiet interest, another reason to hail its ties with its neighbour.

One of the most important features of the poll is that it is taking place amid an unprecedented economic crisis. Economists say rapid economic activities by the DPT government have overheated the country’s import-driven economy, almost depleting its rupee reserve and forcing the government to suspend such imports as construction material, furniture, vehicles and alcohol.

In a bid to contain the crisis, the Royal Monetary Authority, Bhutan’s national bank, too has asked the banks to suspend housing and car loans, hitting the real estate and automobile sectors. Not surprisingly, there is widespread discontent among consumers. To top it, inflation too is at an all-time high. It reached 10.92 per cent in 2012, up by 2.06 per cent from 2011.

A vote for the ruling DPT will mean a continuation of its growth-oriented economic policies. If the Opposition PDP comes to power, it may decentralise power from a centralised authority. Bhutan’s new parties stand explicitly for social democracy — and lay stress on “quality, solidarity and social justice”.

None of the parties refers directly to India in their campaigns, though. India is Bhutan’s largest trading partner, accounting for 76.41 per cent of its imports and 75.82 per cent of exports, according to a 2012 report of Bhutan’s national statistics bureau. But the trade imbalance is all too visible: Bhutan imports goods worth Nu 1,35,190 million from India while exporting goods worth Nu 15,936 million. The Bhutanese currency Ngultrum or Nu and Indian rupee are pegged at the same value and are interchangeable in Bhutan.

“The crunch has happened because Bhutan has walked on a path of rapid economic development without realising the consequences,” says Phub Tshering, secretary general, Bhutan Chamber of Commerce and Industry.

Not surprisingly, across the country, voters talk mostly about the economy. Charges of corruption too have surfaced for the first time in Bhutan, thanks largely to a proliferation of media — the country now has 12 newspapers against three in 2008.

With the country’s Anti-corruption Commission launching a crackdown following media exposes, two senior DPT leaders — who served as Speaker and home minister but have now resigned from the party — are now embroiled in court cases over allotment of plots in an eastern district where they served as district governors more than a decade ago.

While both leaders deny the charges, the DPT says its government should not be linked to the cases since the alleged allotments took place before it came to power.

But with election campaign going on in full swing, few parties are willing to make that distinction. “No matter who says what, the economy and corruption are very much an issue since they affect us all,” maintains Druk Chirwang Tshogpa (DCT) president Lily Wangchuk, another candidate who seeks to “change things”.

To be the fair to the ruling party, Bhutan has indeed made rapid strides over the last five years, with the gross domestic product (GDP) growing by 8 per cent a year and unemployment rate coming down from over 4 per cent to less than 3 per cent.

Remarkably, poverty — anyone earning less than Nu 1,704.84 a month is considered living below the poverty line — came down from 23 per cent of the population in 2008 to 12 per cent in 2013. Road and telecom connectivity have improved too. Almost all 205 blocks are now connected by roads and this is no mean achievement in a mountainous country known for its inaccessibility.

The government, clearly, has been active. An aggressive rural electrification programme — pursued by the DPT government with party president Jigmi Y. Thinley as Prime Minister — has lit up virtually every home, with electricity drawn from a number of hydro-electricity projects funded by India.

“We have built roads and bridges and provided electricity across the nation, giving people access to markets. This has brought down poverty,” says Bhutan’s economic affairs minister Khandu Wangchuk, a senior DPT leader seeking re-election from Paro, where Bhutan’s international airport is located.

Indeed, most people agree that democracy is paying off in Bhutan. “We now know what our rights are as citizens and we need to exercise them carefully,” says Nima Thakchen, a BEd student in Paro.

Among the major changes that have occurred in the last five years is the growth of political parties. Four parties are active in the poll, while the fifth — Bhutan Kuen-Nyam Party (BKP) — has been disqualified for failing to comply with Bhutan’s strict election rules. “We are down but not out,” says BKP president Sonam Tobgay. “We will stay politically active.”

What does it mean for India, the country’s closest ally and biggest donor? Plenty, it seems. “We have been supporting democracy everywhere,” says Indian ambassador V.P. Haran. “We are as happy to work with the elected government as we were with the monarchy.”

For India, the election is important because it wants in power a party that will “protect” its interests in Bhutan.

Presidents of the four political parties contesting the elections

India has so far maintained good relations with both the DPT and the PDP.

What’s more important, though, is that New Delhi has always maintained a close relationship with the Bhutanese monarchy.

Diplomatic sources stress that India, which has been supporting Bhutan’s five-year plans since 1961 and has borne 23 per cent of its last plan between 2008 and 2013 at a cost of Rs 3,400 crore, wants a “stable and secure Bhutan”.

What it doesn’t want is the Himalayan nation to become a “playground” for China, its other neighbour. Thimphu has no diplomatic ties with Beijing although officials from both countries meet regularly to settle their border issues. India was a bit perturbed when Prime Minister Thinley met former Chinese premier Wen Jiabao on the sidelines of a UN conference in Brazil in June, 2012.

Good relations with a friendly government will help India’s domestic politics too. India does not want Bhutan to be a “sanctuary for militant groups such as the ULFA or the KLO”. Further, India is funding a number of hydro projects in Bhutan on the understanding that Thimphu will sell the excess power to India and help meet India’s energy requirements.

But while New Delhi keeps a watch on the polls, in Bhutan there is a sense of disquiet. Sections of people believe that democracy has to be strengthened — especially when it comes to the media, which the ruling establishment is sometimes accused of trying to muzzle.

“We have exposed several official misdeeds as well as political and bureaucratic corruption in Bhutan over the last few years, incurring the wrath of the government,” says Tenzing Lamsang, editor of The Bhutanese, an investigative paper. He says government advertisements were drastically slashed from Nu 10 lakh a month to Nu 3 lakh in April 2012, forcing the paper to cut its staff and expenditure by 50 per cent.

The Opposition parties promise a change if they come to power. “We would like to empower the people and ensure their liberty. We want to see that the centralised power structure goes from the hands of a few ministers to the people,” says Tashi Dorji, a media advisor to the PDP.

Educationist Thubten Gyatsho has no time for party squabbles or election promises. The director of Paro College of Education believes what’s important is that democracy has finally given the people of Bhutan a chance to be heard by government. “And they should make full use of that,” he says.

He adds a word of caution, though. “Let Bhutan jog its way to democracy. Let us not sprint at this stage so that we don’t trip over.”

KNOW YOUR BHUTAN

Area: 38,394 sqkm
Districts: 20
Population: 7,08,265
Voters: 3,81,790
Constituencies: 47
Polling stations: 865

Poll dole

Each candidate in a constituency gets Nu 1.30 lakh in cash for campaign expenses.

State pays for posters, placards and banners.

Only graduates from ‘formal’ universities can run for elections. Online or distant education course degrees are disqualified.

Political rallies are not allowed; nor is the defacing of public or private property with posters, banners or graffiti.

Election Commission organises forums for candidates to interact with voters and arranges debates among all four presidents of the political parties on state-run television, says chief election commissioner Kunzang Wangdi.

Posters can be put up only on election advertisement boards put up by the commission.