Bhutan went to the polls on 24 March, 2008 after the King "gifted" a transition to his people which was received with both enthusiasm and fear. The enthusiasm was about joining a democratic exercise mandated by the King, while the fear was about the future of Bhutan as a democracy, and the possibility of instability in the country. Bhutan has come through a process of internal reforms and decentralization, and the transition from absolute monarchy to democratic constitutional monarchy was effected by these elections.

The elections for the National Council were concluded on 29 January 2008 and the results declared thereafter for the five constituencies or Dzongkhags of Thimphu, Ha, Gasa, Lhuntse and Trashi Yangtse. The first leg of the elections, which saw fifteen members elected, was completed on 31 December 2007. Five members to this Upper House of Parliament, which has 25 seats, would be nominated by the King. The voter turnout was 53 per cent, and the elections were monitored by seven officials from the UNDP office in Thimphu and the local media like the Bhutan Broadcasting Service and Bhutan Observer.

The polls on 24 March 2008 were conducted for the 47 seats in the Lower House of Parliament for which there was an enthusiastic 79.4 per cent turnout. The Druk Phuensum Tshogpa (DPT) or the Virtuous Bhutan Party, led by former Prime Minister Jigme Thinley, won a landslide victory by capturing 44 seats. The only other party in the elections, the People's Democratic Party (PDP) managed to win the remaining three seats. The Druk Phuensum Tshogpa is considered to be more royalist than the PDP, with most of its candidates serving as ministers under the present monarch Jigme Khesar Namgyel. The PDP is headed by a former two-time Prime Minister Sangay Ngedup. The DPT, which will form the first ever democratically-elected government, is focused on nurturing and strengthening Bhutan's rich culture and heritage, while committing itself to developmental issues.

The Election Commission of Bhutan had laid down guidelines for the free and fair conduct of the elections. Nearly four lakh voters out of a total population of seven lakh, were eligible to vote. The eligibility age for voters was fixed at 18 years. Electronic Voting Machines (EVM) were used and voter identity cards issued to all voters. The candidates for the elections had to be college graduates which were fixed as the eligibility criteria so as to ensure quality governance. The new parliament would have powers to be determined by the new Constitution. The King would serve as the head of state and the parliament would have the power to impeach him by a two-thirds majority vote.

India's role has been much appreciated in providing men and material for the conduct of the elections in Bhutan. A total of 865 EVMs were gifted by India to be used in the elections. Moreover, India provided helicopter services to deliver election material to remote and inaccessible areas like Lunana and Lingshi.

The debates doing the rounds in Bhutan are about having a federal or unitary structure of governance, and if Bhutan is ready for a multi-party democracy. Only two parties contested the elections but to achieve genuine grassroots democracy, more political parties would need to emerge accompanied by the growth of political education and democratic culture among the people of Bhutan.

Another burning issue during Bhutan's transition to democracy is the question of over a 100,000 people of Nepali origin being ousted from Bhutan on the King's orders and living in relief camps along the Nepal border. They are yet to be rehabilitated and the elections imply their exclusion as citizens of Bhutan, and from the democratic process. These refugees have been sought to be absorbed by the US and other European countries, but there is still much resentment. The question being asked by refugee leaders is how there can be genuine democracy in Bhutan if thousands of people are forcibly ousted and not allowed to return. There were fears that the Nepali refugees could disrupt the election process, as manifested in a series of bomb blasts in several towns of Bhutan in recent months. In fact, the elections were held also under the threat of such attacks and subversion by Indian insurgent groups like the ULFA.

Nevertheless, the transition is welcome and would further accelerate the Gross National Happiness with democratic politics and education reaching the grassroots in Bhutan, perhaps the last Shangri-la on earth. The political aspirations of the people, and developmental initiatives and their efficient delivery would have to be addressed by the people's representatives for the success of the unique Bhutanese experiment based on alternative development.