The document discusses Bhutan's Gross National Happiness (GNH) index, which was established in 1972 as a holistic measure of development alternative to Gross Domestic Product. The GNH index measures subjective well-being across 9 domains and uses surveys of over 7,000 Bhutanese citizens to calculate the percentage of the population that is extensively happy. It found that in 2010, 32.6% of citizens were extensively happy, resulting in a GNH index score of 0.743. Bhutan is now working to develop additional GNH accounts of natural capital, human capital, social capital, and cultural wealth to provide a more comprehensive measure of well-being and guide more balanced development policies.

1. 28 October 2014
Beyond GDP in Africa: Innovative Ideas for a Regional Dashboard
Gross National Happiness (GNH) in Bhutan
Lise Pretorius

2. Background to GNH
• Fourth King His Majesty Jigme Singye
Wangchuck 1972 - Gross National Happiness is
more important than Gross National Product
• GNH as a vision of human development: a
balance between material and spiritual
development. Holistic, balanced approach to
development
• Aspiration for happiness unites all people and
cultures
• 2006: 5th King comes into power
• 2008: Constitutional monarchy – Constitution of
Bhutan (2008, Article 9) directs the State “to
promote those conditions that will enable the
pursuit of Gross National Happiness.”

3. What is GNH?
• An Index
• A set of screening tools
• A development philosophy

4. What is GNH?
• An Index
• A set of screening tools
• A development philosophy

5. The GNH Index
• National surveys: 2006 pilot questionnaire, 2008 survey, 2010 survey
• Over 700 questions about personal satisfaction across…
4 Pillars
Good governance, sustainable socio-economic development, cultural
preservation, and environmental conservation
9 domains
Psychological wellbeing, time use, community vitality, cultural diversity,
ecological resilience, living standard, health, education, good governance
33 grouped indicators
124 variables
• Weights attached to variables differ, with lighter weights attached to highly
subjective variables.. Domains weighted equally
• 2010 sample representative at district and regional levels, and across urban
and rural
• 7142 respondents; 6476 (90.7%) with sufficient data for inclusion in the
index

7. The GNH Index
• National surveys: 2006 pilot questionnaire, 2008 survey, 2010 survey
• Over 700 questions about personal satisfaction across…
4 Pillars
Good governance, sustainable socio-economic development, cultural
preservation, and environmental conservation
9 domains
Psychological wellbeing, time use, community vitality, cultural diversity,
ecological resilience, living standard, health, education, good governance
33 grouped indicators
124 variables
• Weights attached to variables differ, with lighter weights attached to highly
subjective variables.. Domains weighted equally
• 2010 sample representative at district and regional levels, and across urban
and rural
• 7142 respondents; 6476 (90.7%) with sufficient data for inclusion in the
index

8. The GNH Index
Not everyone has to be sufficient in all 124 variables to be happy - many different ways to
have a fulfilled life!
Three cutoffs: 50%, 66%, 77%
% sufficiency in indicators Status % population in 2010
< 50% Unhappy 10.4
50-65% Narrowly happy 48.7
66-76% Extensively happy 32.6
77% Deeply Happy 8.3
The Index:
• Based on middle cutoff of 66%
• GNH index for 2010 was 0.743
• GNH = %Happy people + (%not-yet-happy x %sufficiency in indicators)
= 40,9% + (59,1%*56,6%) = 0.744
• Based on Alkire-Foster method of aggregation

9. The GNH Index
Not everyone has to be sufficient in all 124 variables to be happy - many different ways to
have a fulfilled life!
Three cutoffs: 50%, 66%, 77%
% sufficiency in indicators Status % population in 2010
< 50% Unhappy 10.4
50-65% Narrowly happy 48.7
66-76% Extensively happy 32.6
77% Deeply Happy 8.3
The Index:
• Based on middle cutoff of 66%
• GNH index for 2010 was 0.743
• GNH = %Happy people + (%not-yet-happy x %sufficiency in indicators)
= 40,9% + (59,1%*56,6%) = 0.744
• Based on Alkire-Foster method of aggregation

10. Sufficiency
What defines sufficiency?
• Depends on how the variable is measured. For example:
Life Satisfaction Variable:
• Sum of contentment levels with respect to health, occupation, family, living
standards, and work life
• Each answered on a scale of 1-5 (5 being best).
• Therefore can have Life Satisfaction score of 5-25. 19 is sufficient.
Healthy Days Variable:
• At least 26 healthy days per month is sufficient
Education:
• Six years of schooling (formal or monastic) is sufficient

12. Selecting the indicators
Some criteria….
• Reflect normative values of GNH
• Statistical Robustness
• Can accurately reflect evolution over time
• Relevant for public action
• Understandable for ordinary citizens

13. The GNH Index: Uses
1. Setting an alternative framework of development
2. Providing indicators to sectors to guide development
(e.g electricity)
3. Allocating resources in accordance with targets and
GNH screening tools
4. Measuring people’s happiness and well being
5. Measuring progress over time
6. Comparing progress across the country

14. GNH Accounts
Following the recommendation by
the Stiglitz Commission, Bhutan
plans to be the first country to
develop a wider set of accounts
Bhutan has started accounting for
• Natural capital
• Human Capital
• Social Capital
• Cultural Wealth

15. GNH Globally
• 19 July 2011 – UN General Assembly unanimously adopted Happiness as
an independent goal for all countries
• 2 April 2012 – follow up with a High Level Meeting on “Happiness and
Wellbeing: Defining a New Economic Paradigm” at UN Headquarters in
New York
• GNH Centre where “Bhutanese as well as foreign visitors will be taught
how to practice the values of GNH in their daily life, work, community,
country and the wider world”

16. Personal observations
• Volunteer work, presence of unpaid work
• Youth and global media
• Political support important