Bhutan’s Happiness Index: Is All As It Seems?

Credit: BBC Travel

The vast majority of geopolitical and economic sources - SimpleNation included - drawn upon the same metrics to measure a country’s conditions. Population, GDP per capita, birth rates, and the Gini Coefficient are but a few examples of measurements that an analyst can make to learn more about a country, region, or society at large. Using these approaches, we can make rational decisions on almost any approach we take to a country, such as investments, foreign policy, trade deals, and more. There’s even an index for peace that gives an additional layer of insight to how safe a country is for travel and investment.

Bhutan, however, has an overwhelmingly unique index measuring public happiness that it has placed at the centre of its political agenda.

The phrase “Gross National Happiness” (GNH) was termed in 1972 by the King of Bhutan, King Jigme Singye Wangchuck, who claimed that it was more important than than Gross Domestic Product. It consists of four critical pillars to attain its measurements: good governance, sustainable socio-economic development, cultural preservation, and environmental conservation. The results of the GNH are mostly clear: since the early 1980s, Bhutan has reported an average GDP growth of 7.5%, and a poverty decline from 36% to 10% in 2019. Life expectancy has also risen by a staggering 31 years on average from 1972 to 2020. This level of improvement in Bhutan’s quality of life is especially impressive considering the outlining of the Index in a government document states that “…a balance between economic development and happiness must be created. Where tensions exist, we have deliberately chosen to give preference to happiness and peace, even at the expense of economic growth.”.

There’s no question that Bhutan’s economy has grown. But are people really happier?

The short answer is no. A UN report on the rankings of countries by level of happiness put Bhutan in 97th place. Namgay Zam, a 32-year-old radio host specialising in Bhutanese mental wellbeing, identifies that the branding of GNH is rarely reflected within Bhutan. Her points include an overall lack of psychiatrists nationwide, and Needrup Zangpo, the executive director of the Journalists’ Association of Bhutan, points to a slowly (but steadily) rising youth unemployment rate, a growing income gap, and environmental degradation as further sources of public concern.

Challenges to more practical and tangible aspects of society remain as well. The export market is overwhelmingly concentrated on sending 80% of goods to India, import and fuel costs are rising, and inflation is expected to remain moderately high for much of the foreseeable future. If the aforementioned government document about preferential treatment towards happiness over economic growth is true, then these issues may prove especially problematic.

Ultimately, it seems that Bhutan’s GNH approach neither helps nor hinders the country. The economy is growing, and people are living longer, wealthier lives, though this is not entirely due to GNH. Simultaneously, ecological concerns and social woes remain pervasive, keeping Bhutan outside of the top 90 happiest countries, but this is not entirely due to the GNH either. Its true purpose, therefore, seems entirely unclear - as does its (and Bhutan’s) future.

TAI Score: Degree 0. Although Bhutan’s GNH system is, at best, unusual and, at worst, dishonest, it is highly unlikely to hold a negative impact outside of its own borders. At most, threat analysts should simply be wary of taking Bhutanese statistics at face value, and ensure that due diligence is employed when observing the kingdom.

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