The concept of gross national happiness (GNH) was developed in an attempt to define an indicator that measures quality of life or social progress in more holistic and psychological terms than gross national product or GDP. As a chief economic indicator, GDP has numerous flaws long known to economists. GDP measures the amount of commerce in a country, but counts remedial and defensive expenditures (such as the costs of security, police, pollution clean up, etc.) as positive contributions to commerce.[1] A better measure of economic well-being would deduct such costs, and add in other non-market benefits (such as volunteer work, unpaid domestic work, and unpriced ecosystem services) in arriving at an indicator of well-being. As economic development on the planet approaches or surpasses the limits of ecosystems to provide resources and absorb human effluents, calling into question the ability of the planet to continue to support civilization (per the arguments of Jared Diamond, among others), many people have called for getting "Beyond GDP" (the title of a recent EU conference) in order to measure progress not as the mere increase in commercial transations, nor as an increase in specifically economic well-being, but as an increase in general well-being as people themselves subjectively report it. GNH is a strong contributor to this movement to discard measurements of commercial transactions as a key indicator and to instead directly assess changes in the social and psychological well-being of populations.
The term was coined in 1972 by Bhutan's former King Jigme Singye Wangchuck, who has opened up Bhutan to the age of modernization, soon after the demise of his father, King Jigme Dorji Wangchuk. He used the phrase to signal his commitment to building an economy that would serve Bhutan's unique culture based on Buddhist spiritual values. At first offered as a casual, offhand remark, the concept was taken seriously, as the Centre for Bhutan Studies, under the leadership of Kaarma Uru, developed a sophisticated survey instrument to measure the population's general level of well-being. The Canadian health epidemiologist Michael Pennock had a major role in the design of the instrument, and uses (what he calls) a "de-Bhutanized" version of the survey in his work in Victoria, British Columbia.
Like many psychological and social indicators, GNH is somewhat easier to state than to define with mathematical precision. Nonetheless, it serves as a unifying vision for Bhutan's five-year planning process and all the derived planning documents that guide the economic and development plans of the country. Proposed policies in Bhutan must pass a GNH review based on a GNH impact statement that is similar in nature to the Environmental Impact Statement required for development in the U.S.
While conventional development models stress economic growth as the ultimate objective, the concept of GNH is based on the premise that some forms of economic development are "uneconomic", a concept that is advanced by the nascent field of ecological economics. Such development costs more in loss of ecosystem services, and in the imposition of "urban disamenities," than it produces as a positive contribution to well-being. (The difficulty, of course, is that for many forms of development, the gains are taken privately, while the costs the development imposes are born generally and publicly.)
The Bhutanese grounding in Buddhist ideals suggests that beneficial development of human society takes place when material and spiritual development occur side by side to complement and reinforce each other. The four pillars of GNH are the promotion of sustainable development, preservation and promotion of cultural values, conservation of the natural environment, and establishment of good governance. At this level of generality, the concept of GNH is transcultural--a nation need not be Buddhist in order to value sustainable development, cultural integrity, ecosystem conservation, and good governance.
Interesting link:The Centre for Bhutan Studies
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