Bhutan Defies Global Conventions, Prioritizing Happiness Over GDP

Shares fell in the global economy as the small Himalayan kingdom of Bhutan continued to defy conventional wisdom by prioritizing gross national happiness over gross domestic product. Despite ranking near the bottom of countries globally in per capita GDP, a metric that captures the dollar value, per person, of the goods and services that a country produces, Bhutan's life expectancy has increased by 22 years since 1972, reaching a world average of 73 years. According to a recent report by the International Center for Law Economics, Bhutan's Gross National Happiness surveys show a rising trend in happiness among its citizens. However, the country is facing unprecedented levels of people leaving the country, mostly for economic opportunities elsewhere. "It's a paradox," said Brian Albrecht, chief economist of the International Center for Law Economics. "Bhutan has made significant progress in terms of happiness, but its economic growth has not kept pace with the rest of the world." Bhutan's decision to prioritize happiness over GDP was made in 1972 by the King of Bhutan, who announced that gross national happiness was more important than gross domestic product. At the time, Bhutan was one of the poorest countries in the world, with a life expectancy of just 51 years. Today, while Bhutan still ranks near the bottom of countries globally in per capita GDP, it has made significant progress in terms of life expectancy and happiness. The contrast between Bhutan's approach and that of other countries is striking. In many parts of the world, economic growth is seen as the key to happiness and well-being. However, Bhutan's experience suggests that this may not always be the case. "GDP is a flawed metric," said Albrecht. "It only measures economic activity, not happiness or well-being." Bhutan's approach has been influential in other parts of the world. In 2011, the United Nations General Assembly passed a resolution recognizing the importance of happiness and well-being in development. However, the country's experience also highlights the challenges of implementing such an approach in practice. "It's not easy to measure happiness," said Albrecht. "And it's not easy to make economic growth and happiness compatible." As Bhutan continues to navigate the challenges of balancing economic growth and happiness, its experience serves as a reminder that there is no one-size-fits-all solution to the complex issues of development. The country's decision to prioritize happiness over GDP has been a bold experiment, and one that has yielded some surprising results.