Case study, Economics, Bhutan's Gross National Happiness:An Economic Reality or Wishful Thinking ?

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Bhutan's Gross National Happiness:An Economic Reality or Wishful Thinking ?


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Call for a New Measure Cont..

Three international conferences have been organised on the concept and operationalisation of GNH. The first one was held in Thimpu, Bhutan in February 2004; the second in Nova Scotia, Canada in June 2005; and the third in Bangkok, Thailand in November 2007. Jigme Y. Thinley, the then Home and Cultural Affairs Minister, has articulated that GNH stands for holistic needs of individuals - both their physical and mental well-being. While acknowledging that the things measured by GDP do contribute to enhancing physical well-being, Thinley argued that “the state of mind, which is more important than body, is not conditioned by material circumstances alone”.19

This articulation is akin to Albert Einstein's observation on well-being. According to him, “The satisfaction of physical needs is indeed the indispensable precondition of a satisfactory existence, but in itself it is not enough. In order to be content, men must also have the possibility of developing their intellectual and artistic powers to whatever extent [these] accord with their personal characteristics and abilities.”20 It is also connected to Abraham Maslow's Hierarchy of Needs, starting with physiological needs and culminating with self-actualisation needs (Exhibit IV) and also to John K. Stutz's Well-Being Mandalas (Exhibit V) reflecting three types of well-being: physical, subjective and reflective. Physical well-being is roughly synonymous with health; subjective well-being, with contentment in life; and reflective well-being with degree of comfort with choices made. These three aspects of individual well-being are, to some extent, overlapping since they are interdependent. John K. Stutz has shown them in three overlapping smaller circles rested at the centre of three concentric larger circles representing economy, society and environment (Exhibit V). The well-being circles also highlight the dependence of personal well-being not only on promotion of economy, but also on promotion of society and environment at large.

The first pillar has guided Bhutan to provide education and health free of cost. A quarter of its annual budget is being set aside for schools and hospital services. Rotation of teachers from urban to rural regions is being done to ensure equal access of students to best teachers. More than 90% of the children of Bhutan have reached grade five schooling. Health service is being provided through a four-tiered network consisting of National-cum-Referral Hospitals, Regional-cum-Referral Hospitals, District Hospitals and Basic Health Units. Around 90% of Bhutan's population has access to health service, access being defined to be within 2 hours' walk. Nearly 17 hospital beds are available per 10,000 people. About 95% of the Bhutanese have their own homes. Being rooted to subsistent agrarian activities, they are largely self-sufficient. Hunger is not an issue in Bhutan. To stimulate agrarian development, rural accessibility is given a high priority. Farm and feeder roads are being constructed under Rural Access Project to cut down on transportation costs and travel time.

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19] “What Does Gross National Happiness (GNH) Mean?”, op.cit.
20] Dwivedi O.P., “The Well-Being of Nations: Integrating the Human and Eco-System Well-Being”, Prosperity Index: An Introduction, (Ed.) 1st Edition (ISBN:81-314-1382-9), The Icfai University Press, Hyderabad, 2008, page 44


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