In many ways, Bhutan seems to teeter between contemporary and medieval: monks transcribe ancient Buddhist texts into laptop computers, traditionally-dressed archers use alloy steel bows and arrows, and video rental shops do a brisk trade while there is no television. Bhutan has been described as 'a living museum' because its ancient dzongs and temples are still the focus of modern life. Although it is the last Buddhist Himalayan state you won't find a nation of saintly, ascetic, other-worldly monks, but a vibrant, fun-loving and well-educated population.

Every aspect of life in the kingdom is guided by the ethics of its official religion, Drukpa Kagyu Buddhism. All Bhutanese art, dance, drama and music are steeped in Buddhism: paintings are not produced for tourists, but for religious purposes; festivals are not quaint revivals, but living manifestations of a national faith; and almost all art, music and dance represent the struggle between good and evil. These traditions can be seen in all their glory at Bhutan's spectacular religious festivals called tsechus.

Traditional Bhutanese food always features chillies and the most popular dish is ema datse made with large, green hot chillies in a cheese sauce. Though there is plenty of white rice, Bhutanese prefer a local, slightly nutty, red variety. At high altitudes, wheat is the staple. Several Tibetan-style dishes are common, including momos (dumplings), and thukpa (noodles). Pork fat is popular in the wilds because of its high energy content. There are no slaughter-houses in Bhutan, and only a few cold storage facilities.

The national dress of Bhutan is called the gho for men and kira for women. It was introduced during the 17th century by Shabdrung Ngawang Namgyel to give the Bhutanese a unique identity. In an effort to preserve and promote its cultural heritage, all Bhutanese are required to wear the national dress in government offices, schools and on formal occasions. The gho is a long robe hoisted to the knee and held in place with a kera, a woven cloth belt, wound tightly around the waist.

This forms a large pouch above that may be used to contain particular items, traditionally a bowl and betel nut. The kira is a floor-length rectangular piece of cloth wrapped around the body over a blouse called wonju. The kira is held from the shoulders by broach-like hooks called koma and is fastened at the waist with a kera. The dress is complete with a short, open jacket-like garment called toego.

Bhutan’s artistic tradition has its roots in Buddhism with almost all representation in the arts running along the prevailing theme of struggle between good and evil. A rare blend of Tibetan, Indian and Chinese styles in characteristic Bhutanese setting, Bhutanese art is mostly symbolic. It is highly decorative and ornamental. The Buddhist nature of Bhutan’s artistic heritage may be traced to Pema Lingpa, the great 15 Century terton (treasure discoverer) who was an accomplished painter, sculptor, xylographer and architect.

In 1680, Desi Tenzin Rabgye opened the school of Zorig Chusum or 13 types of Bhutanese arts and crafts under the instruction of Shabdrung Nagwang Namgyel. Such promotion of traditional Bhutanese art has preserved through the centuries with continued patronage provided by Royal family, nobility and clergy. The common people, who depend on the artisans for a wide variety of metal and wooden objects, in dispensable to typical Bhutanese households, provide active support to the arts.

Traditional Bhutanese art is distinctive for its religious flavour and anonymity. The artist is often a religious man who creates the work commissioned by Jinda or patron. Paintings and sculpture are made by groups of artist working special workshops executed by monks or laymen. The basic preliminary work is done by the disciples after which the master carries out the finishing touch of fine details.

Bhutia houses are built of timber and stone and have thick, pounded mud walls to keep out the cold. Most such houses have two stories: livestock are kept on the ground floor, while the family lives above.

Inside the house a family will usually have a shrine consisting of a small Buddhist image in a corner. While the Bhutia family system is basically patriarchal, family estates are divided equally between sons and daughters. Both men and women are free to choose whom to marry, and members of both sexes can initiate a divorce. Ordinary Bhutia villagers may not be able to afford meat in their daily meals and often must rely on a dish of rice, potatoes, and chilies. Besides meat, the yak also supplies milk, from which butter is made for use in lamps on the shrine altar.

Trade and other services, including tourism, employ 5 percent of the workforce. While tourism is Bhutan’s largest source of foreign exchange, the country has restricted the number of visitors to minimize the negative impact on Bhutan’s traditions, culture, and natural environment. Only 1 percent of the labor force is employed in manufacturing, construction, and mining. Processed food, cement, and wood products are the most important manufactures.

The Nepalese are predominantly Hindus and have caste and family ties to Nepal and India. Because they live in the warmer climate of southern Bhutan, their houses are made of bamboo and thatch. The Nepalese do not eat beef, and some of them abstain from meat altogether. Instead, they eat the rice and curry dishes common to the Hindus of Nepal and India. Their caste system separates different social levels and influences the choice of marriage partners and other social relationships. The Nepalese in Bhutan lack the same loyalty to the monarchy that is predominant among the Bhutia and Sharchops. In response, the government has tried to integrate the Nepalese into the national life. For example, a government order has made the Dzongkha language compulsory for all Nepali-speaking Bhutanese.

There is a rare coherence and sense of balance in current cultural conditions. Throughout the world pockets of indigenous culture perpetuate. However, it is unusual that an entire nation remains collectively so connected to its traditions, and significant dislocations have not yet occurred across time and space. Much of Bhutanese history retains direct contemporary relevance, rather than being a record of a remote and incongruent past. Furthermore, a complete division has not yet occurred between modern urban and traditional rural cultural systems. Individual identities remain firmly rooted within established structures and belief systems, reflected in a lack of self-consciousness, an underlying self-confidence and the high return rate of students studying overseas.

The foundations of contemporary Bhutanese culture lie with several closely interrelated traditional legacies: ethnicity, Buddhism, hierarchy, community and self-sufficiency. There are three main ethnic groups - the Sharchops of Indo-Mongoloid origin, the Ngalops of Tibetan origin and the Lhotsams of Nepali origin - and there remain a few distanced tribal communities. The most profound cultural influences arrived with the Tibetan migration. The Ngalops are the dominant group within the country, over the centuries bringing with them Tibetan Buddhism, artistic and more functional practices.

The earlier settled Sharchops were converted to Buddhism and subsequently integrated within a centralized Ngalop dominated nation. The Lhotsams' arrival is much more recent - over the course of the Twentieth Century - and, due to Hindu religious belief, the relative strength of an existing culture and their concentration in the south of the country, many have not become wholly assimilated within the prevailing Ngalop dominated national culture. Although the national language is Dzongkha - belonging to the Tibetan language family and historically spoken only in the west of the country - Nepali (and to a lesser extent Sharchop) remain widely spoken. The national newspaper, the Kuensel, represents the major language sets, being published in Dzongkha, Nepali and English, which has become a principal language of instruction.

Since its arrival in the Seventh Century and gradual diffusion, Tantric Buddhism has underpinned individual and collective outlooks. The relationship between religion and culture was and remains particularly intimate due to the both the holistic approach to life that Buddhism implies, and the enhanced significance attributed to religion within traditional societies. In the sense that Buddhism, especially in its tantric form, lays out a blueprint for correct thoughts and actions (and therefore correct values), it has strongly informed the development of political and social institutions. There remains an unusual consistency between respective elements of a supporting cultural system. Furthermore, since the natural environment, art forms, rituals and ceremonies are all connected to religion, Buddhism has been the fundamental influence on material as well and psychological aspects of culture.

Politics and religion remain deeply interrelated. Whereas Bhutanese society is predominantly egalitarian, the legitimacy to rule is divinely determined. This implies a very steep natural hierarchy, with a significant division between those to whom divine legitimacy has been attributed - high rinpoches, the King and blood relations - and everyone else. Those in authority possess an awareness of their responsibility and the reciprocal nature of implied relationships. Around these centers a system of court politics has developed, where power is given through the nature of the relationship with the source. This implies a very vertical and narrow central political hierarchy. Although the political system is being reformed - and new hierarchies are developing related to wealth and more broad-based notions of status - power remains concentrated. Other more aesthetic cultural forms are essentially passed from the top-down, for example fashion and architectural style.

The basic social structure remains highly devolved. Scattered self-reliant village communities were traditionally relatively distanced from each other and monastic-fortress power bases. This has led to highly localized and self-contained worldviews and life-worlds. A restricted perspective on the material world has served to accentuate a village's relationship with itself and the spiritual domain. Local stories and superstitions - many with fantastic themes and twists - thrive within a rich storytelling tradition. Religious aspects are deeply embodied within village systems, varying from a temple or priest to an auspicious location and interesting explanation. There remains an immense multiplicity and diversity of cultural practice, concentrated around respective communities. A number of local dialects are spoken and an integrated extended family system remains firmly in place.

The idea of community remains extremely strong, being a robust source of identity. Where everyone knows everyone else and their personal histories, one is more likely to suffer from claustrophobia than alienation. Even when transferred to an urban environment - particularly among the majority first and second-generation migrant - most people still associate with a particular region and village, and a similar sense of community has evolved within these new settlements. Traditional values possess a high respect for age, history, local deity, learning, face and family. The essential self-reliance of individual villages underlies traditional economic systems that were non-monetized, subsistence-based and internally self-sufficient. It is no coincidence that communities with a trading culture - for example the people of Laya and Chapcha - have proved more successful at taking advantage of emerging business opportunities.