Until the 20th century, Bhutan had a dual system of government called Chhoe-Si, meaning religious and secular system, established by Shabdrung Ngawang Namgyal in 1651. Shabdrung created the office of the Druk Desi to look after the temporal administration of the country and the Je Khenpo to manage religious matters.
Today, His Majesty, King Jigme Singye Wangchuk is the head of state. His Majesty formally ascended the Golden Throne on 2 June 1974 and has since then steered the country firmly towards the objectives of economic self-reliance, cultural promotion, regionally balanced development, environmental preservation and good governance.
The National Assembly, the Royal Advisory Council, the Judiciary, the Council of Ministers and the Sectoral Ministries are organizations that play crucial roles in the governance of the Kingdom. At the district, block and village levels exist subsidiary but independent mechanisms to ensure people's participation in all decision making process.
Established in 1953 by His Late Majesty, King Jigme Dorji Wangchuk, its main functions are to enact laws, approve senior appointments in government and advise on all matters of national importance. It meets twice a year and consists of 154 members, composed of 105 elected representatives of the people called chimis with three-year term, 10 representatives of the clergy, also with three-year term, and 39 nominated representatives of the government.
Instituted by His Majesty, since 1992, the Tshogdu has legal authority to conduct vote of confidence in the Druk Gyalpo, the King of Bhutan.
The main functions of the Royal Councilors are to advice the King and his Council of Ministers on all matters of national importance, the welfare of the people and other national interest, to develop friendly and harmonious relations between the government and the people, and to ensure that the laws and resolutions passed by the National assembly are faithfully implemented by the government. Formed in 1965, it consists of nine members, six representing the people, two from clergy and one nominated by the King, who functions as the Chairman.
All the laws of the country have been codified in the Thrimzhung Chhenmo or Supreme Law, enacted by the Tshogdu in 1950s. The judicial system is composed of three-tier hierarchy, the Sub-Divisional Court, the District Court and the High Court. At the lowest level village headmen also judge minor offences. All the courts have both Original and Appellate jurisdiction. The final appeal can be made to the King himself, who delegates the Royal Advisory Council to investigate and ensure that the courts have dispensed justice in keeping with the laws of the country.
Bhutan took a major step in the direction of a modernized administrative system in 1968 when the National Assembly, at the request of the King, approved the formation of a Council of Ministers. The Ministers are responsible to the Cabinet which is an important decision making body, second only in importance to the National Assembly. The Cabinet is presided over by the King and consists of Ministers, Deputy Ministers and all Royal Advisory Councilors. Since political reforms in 1998, the Tshogdu elects lyonpos or ministers, and chairmanship of the Lhengyal Shungtshog, effectively the Prime Minister of the country, is rotated among them.