The term 'Gross National Happiness' (GNH) was coined by Bhutan's 4th King, Jigme Singye Wangchuck, in the late 1970s, who asserted, that ‘Gross National Happiness is more important than Gross Domestic Product.’ The GNH is intended to provides a comprehensive approach toward measuring progress, prioritizsing overall well-being and happiness over purely economic pursuits. Since its inception, the idea of GNH has not only shaped Bhutan's development policy but has also resonated globally. By introducing the Gross National Happiness Index, Bhutan created a practical measurement tool for policymaking. The GNH index serves as an incentive for the government, NGOs, and businesses in Bhutan to enhance societal wellbeing and happiness. It provides a holistic reflection of the overall wellbeing of the Bhutanese population, moving beyond a mere subjective psychological ranking of 'happiness.'
Developed through an extensive participatory approach, the GNH Index framework comprises nine integral domains, encompassing psychological wellbeing, health, balanced time use, education, cultural diversity and resilience, good governance, community vitality, ecological diversity and resilience, and living standards. These domains are measured using 33 GNH conditions represented as indicators. These indicators and domains reflect core causes and conditions of wellbeing and human flourishing.
The GNH Index goes beyond a dashboard or composite measure to reflect equity and pluralism and to shape policy. In terms of equity it gauges whether each person has achieved sufficiency in each of the 33 GNH conditions. Using the robust Alkire-Foster method of multidimensional measurement to construct the GNH Index, an individual is deemed happy if they possess sufficiency in at least 66% of the 33 weighted indicators or domains. This coheres with pluralism (which neither a dashboard nor a composite measure do), because a person can opt out of indicators he or she does not value.
Each of the nine domains is accorded equal weight, reflecting their intrinsic importance as components of GNH. Each domain is measured by two to four indicators which are sensitive to policy action, have high response rates, and each contribute distinct information. Objective indicators within each domain carry higher weights, while subjective and self-reported indicators are assigned lighter weights.
The final measure is useful for policy. It provides a headline – the percentage of people who are happy, and the GNH Index value. It is disaggregated by all 20 districts, as well as by gender, age category, occupation, rural or urban areas, and similar variables. And the indicator composition of GNH, which is available nationally and for each disaggregated group, shapes policy. The GNH index increases if a not-yet-happy person comes to attain sufficiency in any indicator in which they previously lacked sufficiency.
