Nepal, Feb. 24 -- A wise old man of Bhutan, with a wealth of experience in Druk government and bureaucracy, was in his element as he supped up suja, the local butter tea that is the perfect antidote to cold Thimphu evenings.

"Nepal is a big country, you can afford to play off India and China. For us, close alignment with New Delhi is the only option. So, yes, we are relying on India for the success of the Gelephu Mindfulness City," he explained in his pitch-perfect English.

Whatever Thimpu's alignment, it is hard to see how the dream Bhutanese project will escape the diktat of regional geopolitics.

The city, says its official website, will be a Special Administrative Region, "an innovative urban development project that integrates econ...