about one of the new measures of economic prosperity of a nation.

1. GROSS NATIONAL HAPPINESS IN BHUTAN
The Concept
Some countries in Asia and the Pacific have recognized the importance of an approach of
development accounting for the progress in achieving the welfare of society. For the last three
decades, the Kingdom of Bhutan has followed the guiding principle enunciated by His Majesty
King Jigme Siongye Wangchuck, who stated, “Gross National Happiness is more important than
Gross National Product.” The principle describes development as a continuous process towards a
balance between material and non-material needs of individuals and society. The country’s
philosophy of development, while recognizing the importance of economic growth as essential, to
support and nurture the spiritual and social needs of the community, is not an end in itself, but
one among many means of achieving holistic development.
The theory of Gross National Happiness (GNH) established by His Majesty the King of Bhutan in
1972, is the foundation for development in Bhutan. GNH is based on the ideology that the
pursuit of happiness is found in all people and is the strongest force of desires. Included in GNH
is a “middle path” approach in which spiritual and material pursuits are balanced.
GNH is a program for social and economic revisions toward implementation and
institutionalization of the belief that development should promote happiness as its primary value.
Equal importance must be placed on socio-economic development, spiritual, cultural and
emotional needs of the people. Economic growth is just one aspect that improves the social
requirements of society and is not seen as the dominating force in development. GNH has
become the philosophical foundation for the policy making process and implementation in
Bhutan. This is apparent in the 9th and 10th Five Year Plans of Bhutan, in which GNH is the
overarching structure.
The Four Pillars of Gross National Happiness
Gross National Happiness contains four main pillars:
• Sustainable and equitable socio-economic development
• Conservation of environment
• Preservation and promotion of culture
• Promotion of good governance
Sustainable and equitable socio-economic development does not prohibit economic growth and
development, but is implemented by placing a priority on health and education sectors. It is
estimated that over 30% of the national budget of Bhutan is placed on the social sector. This
financial dedication is tangible evidence of the government’s commitment to provide a secure
livelihood for its citizens and one in which its population is healthy and educated. Along these
same terms, capacity building in the development of professional skills to manage development
has been a common program implemented. Other important social development facilities are
widely available throughout the country such as schools, hospitals and agricultural centers.
Additionally, policymakers have introduced a personal income tax in order to redistribute wealth
more evenly.
The Impact of Gross National Happiness

2. Largely because of GNH, Bhutan has seen improvement in many key development indicators,
which include:
• Per capita income
• Life expectancy
• Infant and maternal mortality rates
• Health coverage
• School enrollment
• Literacy rates
Environmental conservation is also valued widely throughout Bhutanese society as many
citizens’ sources of livelihood are dependent on their natural environment, especially those
working agriculturally. It is commonly believed that irresponsible activities in nature will lead to
negative and therefore unhappy outcomes. Most Bhutanese accept the fact that the environment
should be preserved for others and the future generation, limiting severe environmental
degradation. Environmental benefits observed by GNH policies include:
• Characterization of the country as a biodiversity hotspot
• Increased preservation policies
• 72% forest cover, 26% protected areas
• Written policy that the country will keep a minimum of 60% forest cover
Bhutanese Preservation of Culture and Good Governance
The preservation and promotion of Bhutanese culture is another factor in development and GNH
strategy, as Buddhist cultural pureness ideology is widespread. It is widely believed that a
decline in traditional heritage and culture will lead to a general dissatisfaction of society and has
therefore preservation of culture is a high government priority. This is observed in the school
system as all children are taught Bhutanese cultural values.
Good governance is apparent through the government’s dedication of promoting happiness and
well-being of its citizens foremost. His Majesty the King withdrew from the executive function
of government in 1998 and universal voting rights were introduced in 2002. Civil society has had
the opportunity to provide input in legislative matters and a goal is in place to have a multi-party
system by 2008.
Sources:
Prepared on the basis of Chapter 2: Development Philosophy of the National Development
Program of Bhutan
http://www.undp.org.bt/Governance/GNH/the%20philosophy%20of%20GNH.pdf
http://www.unescap.org/esd/environment/mced/tggap/documents/2RPD/presentation/5_Session
%205/pdf/26_Kunzang%20C.%20Karma.pdf#search=%22gross%20national%20happiness
%20bhutan%20background%20%22