literature review on Gross National Happiness as a development paradigm with GDP & SDGoal



 "happiness is when i suddenly think of my daughter and found the warmth on my heart and feel like giving everything to her in any forms"


According to Oxford Poverty & Human Development  Initiative (2020) states that  The phrase ‘gross national happiness’ was first coined by the 4th King of Bhutan, King Jigme Singye Wangchuck, in 1972 when he declared, “Gross National Happiness is more important than Gross Domestic Product.” The concept implies that sustainable development should take a hostile approach towards balancing spiritual and material advancement. Generally, many used to argue that GNH can be regarded as the Buddhist equivalent to Gross Domestic Product (Tideman, 2009).

Moreover, GNH is even compare with sustainable development (SD) like Mensah (2019) states that SD provide a mechanism through which society can interact with the environment while not risking damaging the resource for the future. Taylor (2016), the three main issues of sustainable development is economic growth, environmental protection and social equality. Likewise, four pillars of GNH are Sustainable and Equitable Socio-Economic Development, Preservation and Promotion of Culture, Environmental Conservation & Good Governance (Curdy, 2021). Furthermore, Nilyazieva & Zhechev (2020) find that Happiness was accepted as one of the important goals of Sustainable Development with some United Nations resolutions.

However, researcher Daga (2014) concluded methodological critiques of the feasibility of GNH surveying in large, highly populated countries like India, china, Indonesia, and United States where factors like populations, geography, topography, resources constraints   kick in. Even, Thinley & Hartz-Karp (2019) pointed that measurement of GNH is strongly dependent on subjective data and often understood to be less scientifically rigorous than quantitative data.

So, the concept of GNH has both advantages and disadvantages and counting its advantages one can say that its version of progress and development is holistic in approach. It helps the policy makers to provide certain indicators that can guide development by monitoring activities in a particular domain and convey a message to the government whether a particular policy can be implemented or not (Jaiswal, 2020).

 Gross National Happiness and Gross Domestic Product

 Braun (2009) defines Gross Domestic Product (GDP) developed by U.S. to manage the Great Depression and then the war time economy and simply measure how much money is exchanging hands, a measure of a country’s output in a given year. Economist Simon Kuznets improved GDP dramatically to measure the total value goods and services produced in a nation during a particular period of time. Since then, GDP has become a important tool to evaluate economic growth and to show how well or poorly an economy's doing during a particular period (Clark, 2021).It was never developed as a measure of social wellbeing or progress rather GDP measures only one thing that is “Money”. Next, GDP fails to capture the environmental and social externalities of economic growth. Though according to Picardo (2020) written in Investopedia that GDP growth rate is single best indicator of economic growth and GDP per capita has a close correlation with the trend in living standards over time. We should keep in mind that, GDP measures production, consumption must continually increase in order to raise production rates and while increasing production, a nation may rapidly deplete its natural resources and down natural capital, the stock of resources available for the future. In this regards, GDP have an inverse relationship to GNH: as circumstances get worse, the economic standing of a nation rises.

In contrast, GNH is inherently predisposed toward sustainability because it recognizes that material development is not the only valid measure of human progress, and it understands that declining natural resources are a drain rather than a boon to GDP (Berkshire, 2012). Additionally Other services are inadequately measured, such as financial activities, where measurement is circuitous; and housing that people own and live in, where measurement is imputed and inaccurate. For Example, in today’s technological world, increasing numbers of services that were previously paid for are now given away for free and hence are no longer included in the GDP (Thinley & Hartz-Karp, 2019). Thus, Stieglitz (2009) states that Gross Domestic Product has not provide detailed study of social progress and its co-relation of people and household’s well-being. In this regard, the researchers in the scientific papers from last 12 years, alternative concept of measuring the quality of life and social progress in a society is becoming increasingly popular, which defines GDP as an insufficiently objective indicator (Copley, 2011).

 

Gross national Happiness and Sustainable Development

 

Bhutan’s Voluntary National Review Report (2014) reported that the SDGs find a natural and spontaneous place within the framework of GNH sharing a common vision of prosperity, peace, and harmony where no one is left behind. Both GNH and SD is an ideal practical that inspire and guide sustainable action. Precisely, the report stated that “The 11th FYP (2013-2018) assessed 14 out of the 17 SDGs as being aligned and integrated with the achievement of the 16 National Key Result Areas. A rapid integrated assessment conducted by UNDP between the 11th FYP and the 169 targets of the SDGs also reveals a very high level of integration”. Happiness became an up-to-date topic in the Sustainable Development agenda as a way for holistic measure of success on the national and international levels (Nilyazieva & Zhechev, 2020).

 More than that, researches in the tourism industry have witnessed increased recognition of the intersection points between happiness and SD (Croes et al., 2017). Therefore, both SD and GNH’s goals include of social, cultural, environmental, economic and governance aspects of life are understood to be interrelated and integrated into the holistic concept of ‘happiness’. Moreover, in an international level GDP that depends on money spent, regardless of what it is spent on, Gross National Happiness (GNH) attempts to quantify development in terms of the economy, the environment, and the culture of Bhutan. As a conceptual ideal, GNH seems to satisfy the requirements of sustainability (Luechauer,2013).

 

Critiques of GNH and responses

 

The nine domains of GNH of wellbeing are: living standard, health, education, time use, good governance, ecological diversity and resilience, inner wellbeing, community social vitality and cultural diversity & resilience Schrage (2021). The nine domains of GNH are equally weighted to reflect equal importance of each domain for happiness (Ura ,2015) and each domain is considered to be equal in terms of its intrinsic importance as a component of GNH(Oxford Poverty & Human Development  Initiative,2020). However, among the 33 indicators some are self-report indicators are subjective and thus have lighter weights attached to it (Daga, 2014). Moreover, Thinley & Hartz-karp (2019) agreed with Daga’s feasibility critique that for cities in developing countries with large numbers of informal residents, housing and employment, and lack of ready data to enable random sampling. Carrying out a rigorous survey methodology under such conditions is highly problematic. On top of that, Luechauer (2013) almost every indicator we saw and experienced in Bhutan suggested that it was heading in the direction of decay and decline rather than sustainable growth and development. Given the size of its population, Bhutan is actually in much worse shape than most of the GDP measuring nations that GNH advocates like to condemn.

Love it or hate it, one things is clear, the pursuit of GNH does not appear to be helping the people of Bhutan rise to a higher standard of living. In my opinion, while the intent of GNH is laudable and the rhetoric is compelling, Bhutan is simply not the nation by which to measure either its efficacy or utility.  Implementing and assessing new methods of economic development and models of sustainable growth will require political will, time, and a host of resources that Bhutan does not possess.  ” 

On the other hand, GNH that measure quality of life should not be confused with the concept of standard of living, which is based primarily on income. Whereas, standard indicators of the quality of life include not only wealth and employment, but also the sound environment, physical health and mental health, education, recreation and leisure time, and wellbeing.

Also, Individuals will have chances to report false information to manipulate pertaining to happiness. Responses may be different to same questions on happiness if phrasing and placement of questions vary (Planning Tank, 2013). Added, that translation of happiness surveys into policy recommendations at times yields abnormal results. For example, at times of higher unemployment rates, the unemployed are happier than before because of reduced dishonor of being unemployed.

However, the GNH paradigm assumes that variability of happiness among people is critical in evaluating various aspects of governance and failing to achieve the targets of goal is problem of the respective country and not the GNH. As, where deep unhappiness exists, surely something is wrong with government of the rules of the nation but not the problem with the model or paradigm.

 

Gaining Gross National Happiness in this World

Today, GNH is embedded in Bhutan’s Constitution and preamble contains a pledge to enhance the unity, happiness and wellbeing of the people of Bhutan for all time and Article 9.2 states: “The State shall strive to promote those conditions that will enable the pursuit of Gross National Happiness” (Ministry of Foreign Affiars, 2017). GNH represents a paradigm shift in what's most valued by Bhutanese society compared to the rest of the world. In short, happiness matters, not money (Clerk, 2021). Boyreau (2016) explained that GNH is also a foreign policy instrument and a brand to attack the outsider and for tourism to build more curiosity and interest for it. Implicitly, the GNH has been used as an instrument of soft power to put Bhutan, a small country enclosed between two political and economic giants, on the map for the UN.

According to Mccarthy (2018) states that Bhutan's prime minister introduced GNH to a United Nations forum as a paradigm for alternative development in 1998, turning point of its importance spawned a global industry in happiness. Think tanks dissected it, and governments grappling with improving social policies took a serious look declaring a World Happiness Day by UN and experts and dignitaries attend World Happiness Summits. Western European countries have led the international movement toward adopting GNH (Berkshire, 2012). In 2009, French president Nicolas Sarkozy announced a plan to make happiness a key indicator of growth, and requested that Nobel Prize–winning economists Joseph Stiglitz and Amartya Sen develop measures to incorporate wellbeing into national assessments. Following France’s lead, British Prime Minister David Cameron called on economists and policy makers to focus on “GWB,” or “general well-being,” by polling 200,000 people about the state of their happiness. The results of this poll are scheduled for release in mid-2012. Since 1997, Americas are identifying new measures of sustainability, well-being, and quality of life—called “genuine progress indicators”—that go beyond measures of GDP. Founder and executive director Ronald Colman attended the first two GNH conferences to advise the Bhutanese on developing GNH indicators. Growing interest in GNH prompted Brazil to host the fifth GNH conference and establish diplomatic relations with Bhutan in 2009.

 In Bhutan, the policy of Gross National Happiness has created new norms of official decision making and new institutions, and has helped the country strike a balance between modernity and tradition. Country has done an amazing job of finding this balance. On top of that, the country has continually been ranked as the happiest country in all of Asia, and the eighth Happiest Country in the world according to Business Week. In 2007, Bhutan had the second fastest growing GDP in the world, at the same time as maintaining their environment and cultural identity (Canan,2010) .

lastly,  to the Economist (2018) magazine ranked Bhutan as the fifth fastest growing economy in the world in 2013 and as the third best performing economy for 2018 with an estimated GDP growth of 7.6%, far outpacing the average global rate of 4.4% The 2017 Sustainable Development Goals progress report shows that Bhutan is doing reasonably well on these indicators and is listed among the top performers on poverty eradication (Sachs et.all, 2019)

 Credit: I didn't intend to jot down but as i got a nice friend Ms.Gangu who gave me the ideas to write such a qualitative things on my blog

 

 

 References

 

1.Boyreau.G. (2016). Bhutan's Gross National Happiness (GNH) and the World Bank.

https://blogs.worldbank.org/endpovertyinsouthasia/bhutans-gross-national-happiness-gnh-and-world-bank

 

2.Braun.A.A.(2009).Gross National Happiness in Bhutan: A Living Example of an Alternative

Approach to Progress. https://www.mowhs.gov.bt/wp-content/uploads/2011/05/GNH-OF-BHUTAN2.pdf

3.Bhutan’s Voluntary National Review Report .(2014). Sustainable Development and

Happiness:Bhutan’s Voluntary National Review Report on the Implementation of the 2030 Agenda for Sustainable Development. https://sustainabledevelopment.un.org/content/documents/19369Bhutan_NSDGR_Bhutan_2018.pdf

4.Berkshire Publishing Group (2012). Gross national Happiness.

            https://www.ciis.edu/PCC/PCC%20Documents/PCC%20PDFs/Gross-National-    Happiness-Allison-1.pdf

5. Canan.L.(2010). Bhutan: The World’s Happiest Country. oneworldeducation.org/our

students-writing/bhutan-the-worlds-happiest-country/

 

6.Clark.J.(2021). Is Gross National Happiness more important than the GDP?.

https://money.howstuffworks.com/gross-national-happiness.htm

 7.Croes, R., Rivera, M. A., & Semrad, K. J. (2017). Happiness Survey: Aruba Happiness &

Tourism". Retrieved October 13, 2020, from Dick Pope Sr. Institute Publications. website:https://stars.library.ucf.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1040&context=dickpope-pubs

 

8.Copley, P. (2011). David Cameron’s Wellbeing Index could mean happiness is the next big

thing. EG: Estates Gazette, 1136, 60–61.

 

9.Curdy.A.(2021). Ctrl Culture Relations: Four Pillars of GNH.

https://www.culture-relations.net/gross-national-happiness/four-pillars-gnh/

 

10.Daga.G.(2014).Towards A New Paradigm: Critical Analysis of Gross National Happiness.

https://www.researchgate.net/publication/262419781_Towards_a_New_Development_Paradigm_Critical_Analysis_of_Gross_National_Happiness

 

11.Luechauer.L.D.(2013). Gross National Happiness of Bhutan and its False Promises

http://gsdmagazine.org/2013/07/21/the_ false_ promises_of_bhutan_gross_national_happiness/

12.Mccarthy.J. (2018). The Birthplace Of 'Gross National Happiness' Is Growing A Bit Cynical.

https://www.npr.org/sections/parallels/2018/02/12/584481047/the-birthplace-of-gross-national-happiness-is-growing-a-bit-cynical

 

13.Ministry of Foreign Affiars.(2017).The Permanent Mission of the Kingdom of Bhutan to the

United Nations in New York. https://www.mfa.gov.bt/pmbny/

 

14.Mensah.J.(2019). Sustainable development: Meaning, history, principles, pillars, and

implications for human action: Literature review. https://www.tandfonline.com/doi/full/10.1080/23311886.2019.1653531?scroll=top&needAccess=true

 

15.Nilyazieva. S.&. Zhechev.V.(2020).Could Happiness Be An Assessment Tools In Sustainable

Tourism Management. Webpage: http://www.ahtrjournal.org/

Jaiswal.N.(2020).Bhutan an Advocate of Gross National Happiness. Indian J. Soc. & Pol. 07 (01):41-44:2020 

16.Oxford Poverty & Human Development  Initiative.(2020). Gross National Happiness.

https://ophi.org.uk/policy/gross-national-

happinessindex/#:~:text=The%20phrase%20'gross%20national%20happiness,approach%

20towards%20notions%20of%20progress 

17.Planning Tank.(2013). Gross National Happiness (GNH) Index.

https://planningtank.com/development-planning/gross-national-happiness-gnh-index

 

18.Picardo. E.(2020).Investopedia: The Importance of GDP.

https://www.investopedia.com/articles/investing/121213/gdp-and-its-importance.asp

 

19.Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G. (2018). SDG Index and

Dashboards Report 2018. New York: Bertelsmann Stiftung and Sustainable Development Solutions Network (SDSN).

 

20.Stiglitz, J. (2019). It’s time to retire metrics like GDP. They don’t measure everything that

matters.https://www.theguardian.com/commentisfree/2019/nov/24/metrics-gdp-economic-performance-social-progress

 

21.The Economist.(2018).The fastest-growing and shrinking economies in 2018.

https://www.economist.com/blogs/graphicdetail/2018/01/daily-chart-3. Accessed 4 Sept 2018.

 

 

22.Thinley.Y.J.& Hartz-Karp.J.(2019). National progress, sustainability and higher goals: the

Case of Bhutan’s Gross National Happiness. https://sustainableearth.biomedcentral.com/articles/10.1186/s42055-019-0022-9

 

23.Taylor, S. J. (2016). A review of sustainable development principles: Centre for

environmental studies. South AfricaUniversity of Pretoria.

 

24.Tideman.G.S.(2009). Gross National Happiness: Towards a New Paradigm in Economics.

Thimphu: ISBN 99936-14-22-X

 

 

25.Ura.K.(2015). ADB South Asia Working Paper Series: The Experience of Gross National

Happiness as Development Framework. https://www.adb.org/sites/default/files/publication/177790/gnh-development-framework.pdf

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