28 October 2014

Beyond GDP in Africa: Innovative Ideas for a Regional Dashboard

Gross National Happiness (GNH) in Bhutan

Lise Pretorius

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.”

What is GNH?

• An Index

• A set of screening tools

• A development philosophy

What is GNH?

• An Index

• A set of screening tools

• A development philosophy

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

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

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%

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

% 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 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%

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

% 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

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

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

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

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

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”

Personal observations

• Volunteer work, presence of unpaid work

• Youth and global media

• Political support important