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Gross national happiness

Gross National Happiness: A Holistic Measure of Well-being

Gross National Happiness (GNH) is a philosophy and an index used to measure the collective well-being and happiness of a population, extending beyond conventional economic indicators. Unlike traditional metrics that focus solely on material wealth, GNH integrates spiritual, environmental, social, and cultural aspects into its assessment of a nation's progress. It represents a broader approach within the field of socio-economic measurement, emphasizing that sustainable development must consider both economic advancement and non-economic dimensions of human flourishing. The concept of Gross National Happiness highlights the importance of balancing material and spiritual development for a truly beneficial society.

History and Origin

The concept of Gross National Happiness was first articulated in the early 1970s by Bhutan's Fourth King, Jigme Singye Wangchuck, who famously stated that GNH is "more important than Gross National Product."47, 48 This visionary declaration set Bhutan on a unique development path, challenging the prevailing global focus on purely economic growth as the sole measure of national success. Inspired by Bhutan's long-standing tradition of compassion and non-violence rooted in its Buddhist heritage, the philosophy implies that sustainable development requires a holistic approach that gives equal importance to non-economic aspects of well-being.46

Over the decades, GNH evolved from a noble aspiration into a more formalized and quantifiable framework. In 2008, the Gross National Happiness Index was enshrined as the guiding principle of the Bhutanese government in the country's constitution.45 Bhutan's pioneering efforts gained international recognition, leading the United Nations General Assembly to unanimously adopt a resolution in 2011, introduced by Bhutan, calling for a "holistic approach to development" aimed at promoting sustainable happiness and well-being.43, 44 This was followed by a UN High-Level Meeting on "Happiness and Wellbeing: Defining a New Economic Paradigm" in 2012, and subsequently, March 20th was declared the International Day of Happiness by the UN.41, 42

Key Takeaways

  • Gross National Happiness is a development philosophy that prioritizes collective well-being over purely economic growth.
  • It is rooted in four pillars: sustainable and equitable socio-economic development, environmental conservation, cultural preservation and promotion, and good governance.
  • GNH is measured across nine domains, including psychological well-being, health, and community vitality, assessed through a comprehensive set of indicators.
  • Bhutan uses GNH as a policy screening tool to guide national decision-making and ensure alignment with its holistic development goals.
  • The concept has inspired a global conversation about alternative measures of progress beyond traditional economic indicators.

Formula and Calculation

Unlike a straightforward financial metric, Gross National Happiness is not calculated using a single, simple formula. Instead, it is a composite index built upon a robust multidimensional methodology, most notably the Alkire-Foster method.39, 40 The GNH Index measures sufficiency in a range of conditions across nine distinct domains of well-being. These domains are:

  1. Psychological Well-being
  2. Health
  3. Time Use
  4. Education
  5. Cultural Diversity and Resilience
  6. Good Governance
  7. Community Vitality
  8. Ecological Diversity and Resilience
  9. Living Standards36, 37, 38

Each of these nine domains comprises specific indicators, totaling 33 in the current GNH Index.34, 35 Individuals are surveyed on these indicators, and their scores determine their classification into categories such as "deeply happy," "extensively happy," "narrowly happy," or "unhappy," based on the percentage of weighted indicators in which they achieve sufficiency. The overall GNH Index for the nation is then derived from these individual-level assessments.

Interpreting the Gross National Happiness

Interpreting the Gross National Happiness index involves understanding that it reflects a nation's progress not just in terms of wealth accumulation but across a spectrum of factors that contribute to genuine well-being. A higher GNH score indicates greater sufficiency across the various domains, suggesting a more balanced and fulfilling life for the population. For example, an increase in the psychological well-being domain might reflect improvements in mental health services or a reduction in stress levels, even if the national income remains constant.

The index provides context for evaluating how development strategies impact the quality of life, environmental health, and cultural preservation. It encourages policymakers to look beyond pure economic growth when allocating resources and designing public policy. By tracking progress in areas like community vitality and ecological diversity, GNH helps ensure that decisions support a holistic vision of societal advancement, fostering a more sustainable development path for future generations.

Hypothetical Example

Imagine a hypothetical nation, "Harmonyville," that adopts a Gross National Happiness framework to guide its development. Instead of prioritizing only industrial output, Harmonyville focuses on its citizens' overall well-being.

The government initiates a survey covering the nine GNH domains. For instance, in the "Time Use" domain, citizens report how much time they spend on work, leisure, and sleep. In the "Ecological Diversity and Resilience" domain, indicators might include access to green spaces and air quality.

If the survey reveals a decline in "Community Vitality" due to increasing commute times, the government might implement policies to encourage local businesses or create community hubs. If "Health" indicators show a rise in stress-related illnesses, it could lead to investments in public health programs focusing on stress reduction and work-life balance. This approach enables Harmonyville to make informed decisions that aim to enhance genuine human flourishing across its diverse population, rather than narrowly pursuing economic growth at all costs.

Practical Applications

The concept of Gross National Happiness has practical applications far beyond a mere philosophical ideal, influencing national policy-making and contributing to global discussions on alternative development paradigms. In Bhutan, the GNH Commission uses a GNH Policy Screening Tool and a GNH Project Screening Tool to evaluate proposed legislation and projects. This process ensures that new initiatives align with the four pillars of GNH: good governance, sustainable development, cultural preservation, and environmental conservation.32, 33

Internationally, GNH has spurred broader conversations among organizations like the United Nations, the International Monetary Fund (IMF), and the World Economic Forum about measuring progress "beyond GDP."28, 29, 30, 31 These discussions acknowledge that Gross Domestic Product, while a reliable indicator of economic output, does not fully capture societal well-being, environmental sustainability, or social inequality. For example, the World Bank's engagement with Bhutan supports the country's unique GNH vision.26, 27 This shift reflects a growing consensus that comprehensive indicators are needed to guide investments and public spending toward truly sustainable and inclusive outcomes, moving beyond a sole focus on financial markets.

Limitations and Criticisms

Despite its holistic aims, Gross National Happiness faces several limitations and criticisms. One primary concern revolves around the inherent subjectivity of "happiness" itself. Critics argue that happiness is a fleeting state, heavily influenced by individual mood swings and personal circumstances, making it difficult to measure consistently and objectively across a diverse population.24, 25 There are also concerns about the potential for individuals to misrepresent their feelings, either intentionally or unintentionally, which could skew the data used to inform state policy.23

Furthermore, some critics question the universal applicability of a GNH framework, particularly for large, diverse nations with varied cultures and economic realities. They suggest that the GNH approach, deeply rooted in Bhutan's unique Buddhist philosophy and long-insulated history, might not translate effectively to other countries with different socio-cultural-economic contexts.21, 22 The challenge of translating subjective well-being data into concrete, universally accepted policy recommendations remains a complex task. The "beyond GDP" movement, while gaining traction, still grapples with how to establish broadly accepted and comparable alternative indicators for global economic growth.

Gross National Happiness vs. Gross Domestic Product

Gross National Happiness (GNH) and Gross Domestic Product (GDP) represent fundamentally different approaches to measuring national progress. GDP is a conventional economic indicator that quantifies the monetary value of all final goods and services produced within a country's borders over a specific period.19, 20 It is primarily focused on economic output and growth, and is widely used to assess the health and size of an economy.17, 18

In contrast, GNH is a broader, multidimensional framework that seeks to measure the collective well-being and happiness of a population by considering a range of non-economic factors alongside material prosperity. While GDP focuses on the flow of money and economic activity, GNH incorporates aspects like environmental conservation, cultural preservation, governance, and mental health.15, 16 A key distinction is that GDP does not differentiate between positive and negative outcomes of production (e.g., it measures the production of cars but not the pollution they generate), nor does it account for issues like income distribution or unpaid work.12, 13, 14 GNH, conversely, aims to capture a more holistic picture, recognizing that a high GDP does not automatically equate to a high quality of life or societal satisfaction.10, 11 The former measures market activity; the latter attempts to measure the state of a population's well-being.

FAQs

What are the four pillars of Gross National Happiness?
The four pillars of Gross National Happiness are good governance, sustainable socio-economic development, preservation and promotion of culture, and environmental conservation. These pillars form the foundation for policy-making in Bhutan.9

How is Gross National Happiness measured?
GNH is measured through an index that assesses sufficiency across nine domains: psychological well-being, health, time use, education, cultural diversity and resilience, good governance, community vitality, ecological diversity and resilience, and living standards. These domains are evaluated using a comprehensive set of indicators derived from surveys.7, 8

Which country formally adopted Gross National Happiness?
The Kingdom of Bhutan formally adopted Gross National Happiness as its guiding development philosophy. Its principles are enshrined in the country's constitution and guide its national policies and five-year plans.6

Is Gross National Happiness an alternative to Gross Domestic Product?
Yes, GNH is often presented as an alternative or complementary measure to Gross Domestic Product (GDP). While GDP focuses solely on economic output, GNH aims to provide a more holistic assessment of national progress by including non-economic factors related to well-being and quality of life.4, 5

What is the International Day of Happiness?
The International Day of Happiness is observed annually on March 20th, proclaimed by the United Nations. This day highlights the importance of happiness and well-being as universal goals and emphasizes the need for a more inclusive and balanced approach to economic growth that promotes sustainable development and the well-being of all peoples. The resolution for this day was initiated by Bhutan.1, 2, 3