How to measure our wellbeing. The case for GNH

One of the central questions of economics is to do with meeting seemingly unlimited human needs. And mankind’s entire history is written in blood, conquest and creativity to this end.

Advanced economies and developing ones, have however settled well in to we argue, a rather narrow view of human progress. Human development indexes are well and good but in talking performance, the GDP is still the reigning metric. And talk of alternatives are most of the time sneered at and sidelined as idealistic and naïve.

We argue that a richer approach is possible. In fact, the notion of measuring gross national happiness is not at all a new one for the average economist.

It is perhaps Bhutan’s greatest gift to the world. The whole idea took speed when Bhutan’s King Wangchuk introduced the idea of gross national happiness in an interview with a reporter at an airport on his way back home to his dragon kingdom. Since then a measurable and effective framework has come into place to measure national happiness.

Four pillars make up Gross National Happiness. They are good governance, sustainable socio-economic development, preservation and promotion of culture, and environmental conservation. It is hard to argue that these are not fundamental aspects that will contribute to the wellbeing of any nation.

Granted, there will be challenges in measuring the likes of governance, culture and conservation. But the approach that puts the human being at the center of our efforts to seek a better future should not be ignored. GDP growth is most welcome and much needed. But there is no good reason why GNH as a key metric shouldn’t be on the pantheon of growth metrics and paid attention by voters and politicians. An unexamined life is not worth living, said Socrates. And we think it is time to reexamine what will truly meet our needs as a country.