Gross National Happiness (GNH): Definition, Index, and Four Pillars

August 24, 2024 4 min read Economics Social Sciences Gross National Happiness Bhutan Economic Development Moral Development Index

An in-depth look at Gross National Happiness (GNH), a unique measure of economic and moral development pioneered by Bhutan. Explore its definition, the index components, and the four foundational pillars.

Gross National Happiness (GNH) is an innovative development philosophy introduced by the Himalayan kingdom of Bhutan. Unlike traditional measures such as Gross Domestic Product (GDP), which focus solely on economic growth, GNH emphasizes a holistic approach to progress by considering the overall well-being and happiness of citizens.

Defining Gross National Happiness

Gross National Happiness is not merely a theoretical concept but a practical framework to guide the development of governance and policies in Bhutan. It aims to balance sustainable development with cultural values, environmental conservation, and mental well-being.

Core Tenets

Sustainability: Prioritizing long-term environmental and economic health.
Cultural Preservation: Upholding and promoting unique cultural traditions.
Well-being: Ensuring physical, mental, and emotional health of the populace.

The GNH Index

Measurement Components

Bhutan’s GNH Index consists of nine domains that collectively provide a comprehensive assessment of national happiness and well-being. These domains are:

Psychological Well-being
Health
Education
Time Use
Cultural Diversity and Resilience
Good Governance
Community Vitality
Ecological Diversity and Resilience
Living Standards

Calculation Method

Bhutan uses survey data and statistical analysis to measure performance in each of the nine domains. The results are aggregated to produce an overall GNH Index score, which serves as a barometer for national happiness.

The Four Pillars of GNH

Good Governance

Good governance is vital for GNH because it provides the framework within which the other three pillars can flourish. It emphasizes transparent, accountable, and inclusive governance structures.

Sustainable Socio-Economic Development

This pillar focuses on balanced economic growth that does not compromise the environment or future generations’ ability to thrive. It incorporates principles of equitable distribution and access to resources.

Cultural Preservation and Promotion

Recognizing that cultural integrity is key to citizen’s identity and happiness, this pillar supports the maintenance and promotion of Bhutan’s rich cultural heritage.

Environmental Conservation

Environmental conservation is integral to GNH, stressing the interdependence between the natural environment and human welfare. Policies under this pillar aim to maintain biodiversity, reduce pollution, and promote sustainable resource use.

Historical Context and Global Applicability

Origin and Evolution

The concept of GNH was first articulated in the 1970s by Bhutan’s fourth King, Jigme Singye Wangchuck. Over the decades, it has evolved from a guiding principle into a measurable index that has garnered global attention.

Global Relevance

While intrinsically linked to Bhutan’s unique cultural and political context, the principles of GNH have inspired similar initiatives worldwide. Countries and organizations are increasingly recognizing the limitations of GDP as a sole measure of progress and are exploring broader indicators of well-being.

Comparisons with Other Indices

GDP vs. GNH

While GDP measures economic output, GNH offers a multidimensional view that includes social, environmental, and cultural factors. This approach aims to provide a more holistic picture of national progress and individual well-being.

Human Development Index (HDI)

The Human Development Index (HDI) and GNH share similarities in their multi-faceted approach to measuring development but differ in focus. HDI concentrates on basic human capabilities like education, health, and income, whereas GNH encompasses a broader spectrum of well-being.

Well-being Economics: An economic approach focusing on the well-being and quality of life of the population rather than just economic growth.
Sustainable Development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Quality of Life: A broader concept encompassing both material well-being and subjective happiness and satisfaction.

FAQs

How is GNH different from GDP?

GNH measures overall happiness and well-being, including social, cultural, and environmental factors, whereas GDP focuses solely on economic output.

Can other countries adopt GNH principles?

Yes, many countries and organizations are increasingly incorporating broader well-being indicators into their development policies.

What are the main criticisms of GNH?

Critics argue that GNH can be subjective and difficult to measure consistently. Others point out challenges in balancing economic growth with other dimensions of well-being.

Does GNH ignore economic growth?

No, GNH includes sustainable socio-economic development as one of its four pillars, highlighting the importance of balanced growth.

References

Ura, Karma, et al. “A Short Guide to Gross National Happiness Index.” The Centre for Bhutan Studies, 2012.
Brooks, Arthur C. “Gross National Happiness: Why Happiness Matters for America—and How We Can Get More of It.” Basic Books, 2008.
“Gross National Happiness.” Government of Bhutan, www.grossnationalhappiness.com.

Summary

Gross National Happiness (GNH) is a revolutionary development philosophy introduced by Bhutan that measures the holistic well-being of its citizens. Balancing economic growth with cultural preservation, environmental sustainability, and good governance, the GNH Index provides a multidimensional view of national progress and has inspired global interest in more comprehensive measures of development.