DOMESTIC POLITICS: In September 2009 Bhutan's parliament called an extraordinary sitting, during which it passed the Local Government Bill. The bill was meant to have been passed in the July session of parliament, but failed (by a single vote) to get a two-thirds majority. The main stumbling block, a disagreement about the establishment of thromdes (municipalities), was resolved by incorporating changes recommended by a joint committee of the two houses of parliament. The amended bill provides for two types of municipalities based on the total resident population of an area, the density of the resident population, the total geographical area of the thromde, the number of people dependent on non-primary economic activities, the level of local trade and commercial activities, and the tax revenue generated in the area. The Local Government Act was a necessary pre-condition to the holding of long-delayed local elections. The term of office of all incumbent officials has been extended indefinitely until the elections are held. The government is also determining the number of local government seats and the list of eligible voters. The election commission is planning to release several electoral manuals to clarify the election rules and regulations. Meanwhile, the government and the local administrations are also coping with the aftermath of an earthquake that struck eastern Bhutan in September 2009. For these reasons, the government has set no firm date for the local polls.

Source: Bhutan: Country outlook