What is Gross National Happiness ?

1240 reads · Last updated: December 5, 2024

Gross national happiness (GNH) is a measure of economic and moral progress that the king of the Himalayan country of Bhutan introduced in the 1970s as an alternative to gross domestic product. Rather than focusing strictly on quantitative economic measures, gross national happiness takes into account an evolving mix of quality-of-life factors.The kingdom of Bhutan's first legal code, written at the time of unification in 1729, stated that “if the government cannot create happiness for its people, there is no purpose for the government."

Definition

The Gross National Happiness Index (GNH) is a measure of economic and moral progress introduced by the King of Bhutan in the 1970s. It serves as an alternative to Gross Domestic Product (GDP), aiming to assess the overall happiness of a nation by considering a range of evolving quality of life factors.

Origin

The concept of the Gross National Happiness Index originated in Bhutan, first proposed by the King of Bhutan in the 1970s. Its formation was influenced by Bhutanese traditional culture and philosophy, particularly the idea stated in the first law written during the unification of the Kingdom of Bhutan in 1729, which declared, "If the government cannot create happiness for its people, then there is no purpose for the government to exist."

Categories and Features

The Gross National Happiness Index is primarily based on four pillars: sustainable and equitable socio-economic development, environmental conservation, cultural preservation, and promotion of good governance. These pillars are further divided into nine domains, including psychological well-being, education, time use, cultural diversity and resilience, good governance, community vitality, ecological diversity and resilience, living standards, and health. Each domain is assessed through specific indicators to comprehensively reflect the happiness of the nation.

Case Studies

Bhutan is the birthplace of the Gross National Happiness Index and exemplifies its application. The Bhutanese government actively promotes the implementation of GNH through policies and projects, such as investments in education and health, and a strong emphasis on environmental protection. Another example is New Zealand, which has introduced a "Wellbeing Budget" to better reflect national happiness and well-being, rather than focusing solely on economic growth.

Common Issues

Investors may encounter issues when applying the Gross National Happiness Index, such as how to quantify happiness and how to balance happiness with traditional economic indicators in economic decision-making. A common misconception is that GNH completely rejects economic growth, whereas it actually emphasizes the importance of considering social and environmental sustainability alongside economic growth.

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