The Economics of Happiness
How do you define the happiness of a country? How do you measure the welfare of a country?
GDP (Gross domestic Product) has been used to determine the economic welfare of a country for a long time now. As reliable as it is, GDP only measures one thing – MONEY.
But, is money the only thing which determines the progress of the country? What about the quality of life? Doesn’t that play a vital role in determining the progress of a country?
The model of development in Bhutan gives us an insight into the alternatives to GDP.
The term “gross national happiness” or GNH was coined in 1972 by Bhutan’s King, Jigme Singye Wang chuck. He realized that the existing development paradigm -GDP- did not consider the goal of every human being – HAPPINESS.
For the past three decades, this belief that well being should take preference over material growth has remained a global oddity. Now, in a world beset by collapsing financial systems, gross inequity and wide-scale environmental destruction, this tiny Buddhist state’s approach is attracting a lot of interest.
From the start it is vital to clarify that GNH in Bhutan is distinct from the western literature on ‘happiness’ in two ways. First it is multidimensional, not focused only on subjective well-being but also excludes other dimensions, and second, it internalizes responsibility and other motivations explicitly. As the first elected Prime Minister of Bhutan, under the new Constitution of Bhutan adopted in 2008 put it,
“We have now clearly distinguished the ‘happiness’, in GNH from the fleeting, pleasurable ‘feel good’ moods so often associated with that term. We know that true abiding happiness cannot exist while others suffer, and comes only from serving others, living in harmony with nature, and realizing our innate wisdom and the true and brilliant nature of our own minds.”
There are nine domains that articulate the elements of GNH and form the basis of the GNH index. These 9 are given equal weightage and are -:
• Psychological wellbeing
• Health
• Education
• Culture
• Time use
• Good Governance
• Community Vitality
• Ecological diversity & Resilience
• Living Standards
When asked about which is a better index for measuring growth, GDP or GNH, here is what people had to say –
“I think GNH is a good indicator and a good initiative for a small population, like that of Bhutan. But, for a country like India, where even the measurement of population is not accurate, how can you expect to measure gross national happiness? ” says Nitish Rampal, sub-editor at a local media organization.
“Both of them need to be taken into account for a holistic measurement of the growth of a country. The GDP measures the quantitative aspect while the GNH measures the qualitative aspect of the economy. “Said Anurag Vats, a student.
Is gross national happiness more important than gross domestic product?
Well, that’s a tough question to answer.
But the usefulness of GNH has a leg up for two reasons. Money has a dichotomous nature; it can bring happiness and sadness, security and insecurity, usually depending on how much or how little you have.
Happiness has a more singular nature – It brings only, well, happiness. In addition, studies consistently show that happy workers are more productive than depressed or stressed one.
But for an entire society to agree to shun the global trend and collectively pursue happiness over money, it is all the more remarkable.
