The Dzongs in Bhutan serve both as the administrative and religious centers of their district. The monks live and pray within the same fortress that also houses the Governor's office. This Tibetan style duality of power (ཆོས་སྲིད་གཉིས་ - Cho-sid-nyi) is something that doesn't immediately sound like it would work in the modern world to me, but in a country as peaceful and happy as Bhutan, the people seem to make it work.