Bhutan

King Jigme Singye Wangchuck is to abdicate in 2008, when his tiny Himalayan country is to hold its first democratic elections.

For more details: http://www.bbcnews.com

Such an interesting country. I wrote a project about it in High School a few centuries ago. Isolated from the world in location and politics, never really dominated by China or India, utterly neutral and dotted with impossible monastaries. Bhutan has undergone baby steps of modernization in the last fifteen or so years. Maybe they're trying to avoid the troubles Nepal has...