His Majesty Jigme Wangchuck began a strategy of centralization of power that was targeted towards the creation of a uniform administrative mechanism that would benefit the people. He set up a direct line of authority where every official was directly accountable to him.

He instituted the Nangi Lhengye Zhi, the central cabinet that comprised four important officials. Many unnecessary posts were abolished and the powers of the Dzongpons curtailed. The number of people serving as Dzongpons was drastically reduced, easing the tax burden on the people.

The second King centralized and created an effective system of revenue collection that was used for developmental activities. Bhutan also cautiously began to forsake the policy of isolation. When the reign of the nation was passed down to the third king, Bhutan had been transformed from a feudal society to a modern state.