Bhutan is a poor country with around 720,000 inhabitants and a capital city of Timbu. It currently faces major problems with famine, illiteracy, and AIDS. Bhutan has a democratic constitutional monarchy form of government. The country has remained underdeveloped due to low production and export levels influenced by local religion, culture and beliefs. While Bhutan has not improved much over the past ten years and still struggles with health issues, predictions indicate that its economy will strengthen over the coming decades allowing it to transition to a developing country by 2050.