The theory of Gross National Happiness (GNH) established in 1972 by  Bhutan's then King Jigme Singye Wangchuck,He used the phrase to signal his commitment to building an economy that would serve Bhutan's unique culture based on Buddhist spiritual values. GNH is the foundation for development in Bhutan and it 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.

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 andsocial needs of the community, is not an end in itself, but one among many means of achieving holistic development.

GNH is a program for social and economic revisions toward implementation and institutionalization of the belief thatdevelopmentshould promote happiness as its primary value. Equal importance must be placed on socio-economic development, spiritual, cultural and emotional needsof 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 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

Largely because of GNH, Bhutan has seen improvement in many key development indicators,which include:

Environmentalconservationis also valued widely throughout Bhutanese society as manycitizens’sourcesof 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:

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.

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