More than three years after its first general election, Bhutan has made good progress in consolidating its position as a parliamentary democracy following centuries of rule by an absolute monarch. In the long term the country's democratic experiment is likely to be judged a success. At present, however, Bhutan is still awaiting the complete fulfilment of multiparty democracy, although the Economist Intelligence Unit does not believe that this should be regarded as an indictment of the country, given the momentous scale of the transition Bhutan voluntarily undertook. Tensions persist between the National Assembly (the lower house of parliament) and the National Council (the upper house), and also, more broadly, between the three branches of government (the executive, legislature and judiciary), but on the whole Bhutan is being governed well and effectively, and the risk of political instability is extremely low.

Having progressed beyond the inaugural March 2008 general election, Bhutan held its first mayoral elections in January 2011. Turnout averaged around 50%, according to exit polls, but there appear to have been irregularities in the voter registration process (for example, only around 7% of the population of the capital, Thimphu, had registered to vote).

Aside from the problems associated with the attempt to foster a culture of democracy among a population that has not shown itself to be particularly enthusiastic about it, the government faces other challenges. Foremost among these is the difficulty of defining the roles of the executive and legislative branches of government in a country without a democratic history. Divisions between the two houses of parliament have emerged, and these are unlikely to be resolved without a judicial review of the matters involved. Issues relating to the independence of the judiciary have also proven to be contentious, suggesting that the process of establishing the remit and scope of the authority of various government bodies is likely to be protracted and at times acrimonious. Nevertheless, recent parliamentary debate has demonstrated that the two chambers are capable of compromise. This will ensure that necessary legislative reforms are enacted, albeit perhaps more slowly than would be the case were the country's democratic institutions more mature.