History Before the introduction of a money economy in the 19th century and modernization programs in the mid-20th century, the economy of Bhutan was based entirely on payment in kind and in labour, including unfree labour. In the feudal land tenure system, in which all land was held by the sovereign and populated by tenants, serfdom and service to mesne lords was commonplace. Ordinary citizens, for their part, were bound by the driglam namzha to do work such as dzong construction as part of their tax obligation to the state. The gradual transition to a feudal money economy was prompted by Bhutanese military and territorial losses to the British , which resulted in annual cash subsidies to the Bhutanese government. These money revenues eventually replaced unfree labour as the backbone of the Bhutanese economy. By the 19th century, Bhutan had developed a slave trade with Sikkim and Tibet. During this time, the kidnapping of British subjects as slaves, as well as the repatriation of escaped Bhutanese slaves, became major points of contention amid rising hostilities between Bhutan and British India. The British position was to allow slaves to return of their own will, but not to repatriate them to Bhutan. (Cf. non-refoulement) During the 19th century, the British  also grappled with slavery in neighboring Sikkim and Cooch Behar. By 1877, slaves from Bhutan were regarded by the British  as Bhutanese refugees. Meanwhile, the slave trade remained a lucrative source of profit to local Bhutanese officials near the Indian border. Slave demography Slaves originated from multiple sources, both inside and outside Bhutan. Tribal areas of central, southern, and eastern Bhutan (e.g., Lhop, Lepcha, and Monpa) as well as prisons in Ngalop areas of western Bhutan were domestic sources of slaves. Outside Bhutan proper, various ethnic groups of the Assam Duars including the Mechi were subject to taxation and slaving such that entire villages were abandoned when the British examined the region in 1865. Slaves acquired from Indian Assam, where slaves constituted 5–9\% of the total population, were often born slaves or already enslaved as condemned criminals.
History Before the introduction of a money economy in the 19th century and modernization programs in the mid-20th century, the economy of Bhutan was based entirely on payment in kind and in labour, including unfree labour. In the feudal land tenure system, in which all land was held by the sovereign and populated by tenants, serfdom and service to mesne lords was commonplace. Ordinary citizens, for their part, were bound by the driglam namzha to do work such as dzong construction as part of their tax obligation to the state. The gradual transition to a feudal money economy was prompted by Bhutanese military and territorial losses to the East India Company , which resulted in annual cash subsidies to the Bhutanese government. These money revenues eventually replaced unfree labour as the backbone of the Bhutanese economy. By the 19th century, Bhutan had developed a slave trade with Sikkim and Tibet. During this time, the kidnapping of British subjects as slaves, as well as the repatriation of escaped Bhutanese slaves, became major points of contention amid rising hostilities between Bhutan and the British Empire. The position adopted by Britain was to allow enslaved British subjects to return of their own will, but refrain frm repatriating them to Bhutan. (Cf. non-refoulement) During the 19th century, the British government also grappled with slavery in neighboring Sikkim and Cooch Behar. By 1877, slaves from Bhutan were regarded by the British governemtn as Bhutanese refugees. Meanwhile, the slave trade remained a lucrative source of profit to local Bhutanese officials near the Indian border. Slave demography Slaves originated from multiple sources, both inside and outside Bhutan. Tribal areas of central, southern, and eastern Bhutan (e.g., Lhop, Lepcha, and Monpa) as well as prisons in Ngalop areas of western Bhutan were domestic sources of slaves. Outside Bhutan proper, various ethnic groups of the Assam Duars including the Mechi were subject to taxation and slaving such that entire villages were abandoned when the British government surveyed the region in 1865. Slaves acquired from Indian Assam, where slaves constituted 5–9\% of the total population, were often born slaves or already enslaved as condemned criminals.
R
British
East India Company
R
British India. The British position
the British Empire. The position adopted by Britain
R
slaves
enslaved British subjects
R
not to repatriate
refrain frm repatriating
A
government
A
governemtn
R
examined
government surveyed