The major purpose of this book is to analyse and inquire into the dynamics of developmental strategies in Bhutan in the backdrop of the country's processes of social formation and the forces, both internal and external, which tend to influence, shape and modify socio.economic transformations in the country. The inquiry into the political economy of development in this country seeks to analyse the economic role of the Bhutanese state, demystify the nature of the state system as well as limitations of the state power in Bhutan and inqurire how group-conflicts affect politico.economic and social transformations in the country. Since a modern state does not operatein a vacuum and acts as a broker between the international economy and various social groups within a national society, efforts have been made to emphasize the effects of internationalization in Bhutanese society and state's response to such internationalization.Jun19.