ROYAL UNIVERSITY OF BHUTAN

(NORBULING RIGTER COLLEGE)

DOTENG, PARO, BHUTAN

Title of the Assignment : Gross National Happiness (GNH) Impact on Bhutan

Development

Module code and Name : PBT 102 Government and Politics in Bhutan

Module Tutor : Ms. Geeta Devi Adhikari

Date of Submission : 25th May, 2024

Submitted by (Name and Std.No) : Dechen Tshering (14221146)

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my academic work will be cancelled, and no mark will be awarded besides the legal
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 Gross National Happiness (GNH) Impact on Bhutan Development

Introduction
Development is an important process that helps a country to progress and deal with changes
that occurs in their social, economic, and environment. Over the years, the concept of
development had change mainly focusing on country economic indicator to determine nation
progress and human-wellbeing. Gross Domestic Products (GDP) is a country economic
indicator and measure the value of final good and services produced by a country in period of
time. However, Bhutan emphasized on sustainable development had led to adoption of Gross
National Happiness (GNH). A socio-economic development philosophy introduced by His
Majesty Jigme Singye Wangchuk that focused on balance development between economic and
environment conservation. Over the years, GNH has helped in balancing country economic
development and protecting its environment leading to balanced development and well-being of
people. However, question continue to arise about its efficacy to help Bhutan in smooth
development and competition with other nations in economic growth. This study will examine
the role of GNH in Bhutan development, GNH influence on Bhutan economic growth, and
balancing GNH with global economic competitiveness.

GNH Role in Bhutan sustainable Development

Gross National Happiness (GNH), is Bhutan developmental philosophy adopted to initiate
holistic approach for sustainable development and balance economic growth along with people
well-being. GNH has four important components that act as the guiding principle for sustainable
development. It include sustainable and equitable socio-economic development, preservation
and promotion of culture, environmental conservation, and good governance. This four
components help Bhutan to take holistic approach for balance development and enhance well-
being of people. According to Karp & Thinley (2019) GNH serves to inform policy-maker to
adopt methods that promote sustainable development in Bhutan. Most of the Bhutan policy are
framed based on the principle of GNH that aims to achieve and promote people overall well-
being. For example, Bhutan constitution states that 60 percent of its land to be under forest
cover. This policy cover one of the pillar of GNH that is environmental conservation as Bhutan
consider forest to be important aspect in the society. According to Priesner (2018), GNH has
evolved into accepted label for the Bhutan unique development concept. Bhutan development
not only emphasis on economic growth but also consider people well-being, preservation of
culture and environment to be part of country development progress. This assist the country in
sustainable development to ensure utilization of resources for future generation and promote
overall happiness of people alongside economic growth. For example, Bhutan adoption of
Driglam Namzha preserve Bhutanese culture and promote tourism due its unique culture and
heritage.
According to Ura (2015) he stated GNH use holistic approach to development leading to
more sustainable and fulfilling people aspiration in Bhutan. Due to GNH emphasized on multi
inter-related factor made it possible for Bhutan to approach to sustainable development and
balance economic growth with other important aspect of people life. This simultaneously ensure
economic growth along with other important aspects of society such as education, health, and
people well-being, and protect its unique culture. For example, free health services are
provided to Bhutanese citizens by the government. Moreover, Bhutan developed GNH index as
a tool for measuring overall happiness and well-being of Bhutanese people. It include nine
domains of GNH and thirty-three indicators to analyze and guide the policy-maker to frame
policy that promote people happiness and proceed to improve conditions based on survey
results ensuring sustainable development in the country. Thus, GNH assist Bhutan to adopt
holistic approach to development and consider people overall well-being as country
development progress impacting economic growth of the country.

GNH Influence on Bhutan Economic

While Gross National Happiness (GNH) does not directly contribute to Gross Domestic
Product (GDP) growth in the same way as traditional economic policies, it has major indirect
impact on Bhutan economy. Due to GNH holistic approach to development and it’s focused on
preservation of culture and environment, it benefitted Bhutan in economic sector as there were
increasing number of tourist visit in Bhutan due to its unique cultural and landscape. Most of the
tourist visit Bhutan as it hold the most forest coverage in a country and to appreciate the unique
beautiful culture of the Bhutanese people. According to Phuntsho (2013), Bhutan experienced
increasing numbers of tourists due to its pristine environment and unique cultural heritage. As
GNH is the guiding principle of Bhutan development, it emphasis on environment and cultural
heritage made it possible for Bhutan to preserve and promote its traditional and its unique way
to holistic development gained attention all over the world. For example, after two decade of
introducing GNH in Bhutan, in 1992 Bhutan enjoy tourist revenue of US$ 3.3 million. Moreover,
due to its focused on socio-economic development and to minimize tourists damage on its
pristine environment, Bhutan introduced High Value, Low volume policy which help in gaining
more revenue every year.
Furthermore, GNH encouraged Youth of Bhutan to promote their culture and traditions by
supporting the practice of traditional arts and crafts that created opportunity for Bhutanese
people to promote economic growth in the country. Traditional Bhutanese arts and crafts
assisted Bhutan in selling their products within and outside country generating revenue that aid
Bhutan economic growth. Furthermore, tourist visiting in Bhutan has enable selling of traditional
arts and crafts in mass distribution. Traditional arts and crafts such as hand-woven fabrics,
wood paintings, and sculptures are the most sold items. Thus, Gross National Happiness
indirectly support Bhutan economic growth through its principles. However, question continue to
arise about its capability to compete with global economics.
GNH and Global Economic Competitiveness
Bhutan is one of the country that covers its land with seventy percent forest coverage and
hold abundance of natural resources which can help in achieving drastic economic growth
within the country. However, as a country that introduced and follow GNH had made Bhutan to
frame policies that adhered to the principle of GNH. However, even though GNH assisted
Bhutan to achieve sustainable development, it had constraints or reduced the economic growth
of the country. This led to rise of question on Bhutan capability to compete with global
economics that rely on GNH as the guiding philosophy development. For example, due to policy
regarding forest coverage in Bhutan, it had made it impossible for Bhutan to use most of the
natural resources to compete on international market. According to Ukai (2016), GNH
constraints economic growth in Bhutan and government should focus on private sector due to
its homogenous economic. Bhutan can achieve high economic growth by incorporating GNH
principles to developed private sectors and balancing GNH principles to global economic
competition.
Bhutan can focus on improving more infrastructure of country such as transportation, Health,
and Energy that focus on human well-being. Even though, Bhutan hydroelectricity generate half
of the country revenue it still lack the growth that can compete on global level and still required
need more energy to generate high revenue by incorporating the principle of GNH to protect its
environment. Furthermore, with recent situation surrounding Bhutan regarding increase in youth
unemployment. It is crucial for Bhutan to invest more on human capital by considering GNH
principle on Hyman well-being. This include, improve in education, health facilities, and creating
opportunities by government for youth employment.

Conclusion
In conclusion, GNH is a holistic approach developed for sustainable development in Bhutan.
It focus on balancing socio-economic to enhance human well-being with economic growth. GNH
serves as a reminder for Bhutan policy-maker to frame policies based on GNH principle that can
enhance people happiness. It also indirectly support Bhutan in growth of economic through its
principle that focused on protecting its environment and heritage.
 References
Thinley,J.Y. & Karp,J.H. (2019). National progress: Sustainability and Higher Goals:
The Case of Bhutan’s Gross National Happiness. Retrieved from
httpps://sustainableearththreviews.biomedcentral.com/articles/10.1186/s42055-019-0022-9

Priesner,S.(2018). Gross National Happiness – Bhutan’s Vision of Developments and It’s

Challenges. United Nations Development Programme. Retrieved from
https://mms.thlib.org/typescripts/0000/0010/1549.pdf

Ura, K. (2015). The experience of gross national happiness as development framework.

ADB South Asia Working Paper Series. Retrieved from http://www.bhutanstudies.org.bt

Ukai,A.K. (2016). Gross National Happiness-Based Economic Growth. Retrieved from

https://ash.harvard.edu/wp-content/uploads/2024/02/gross_national_happiness-
based_economic_growth_-allen_koji_ukai_-final.pdf