GDP plus GNH- A true indicator of a country’s wellbeing    

A country is not strong because it has weapons but because it has individuals with good character and are happy to contribute to the development, said Vivekananda. “Wellbeing’ of a country not only means that it is prosperous in economic terms but also deals with socio-political development of a nation”

A prosperous nation is one where its citizens have opportunities to choose, liberty to express their views & ideas, and social cohesion between communities. ‘Wellbeing’ of a nation also deals with the state of health & education and how youth participates.

This essay will delve into the 2 prominent indicators generally used to indicate the extent of development and compare them i.e. Gross Domestic Product (GDP) and Gross National Happiness (GNH). We will then analyze as to how each reinforces one another’s indicators. Also, some steps which can be taken will be thought upon.

GDP refers to the sum total of the value of all the production and activities that are undertaken within the country’s boundaries. The factors of production involve land, labor, and capital. GDP is generally taken as an indicator of the economic clout of a nation which determines its ‘conventional strength’. This is but natural as an economically prosperous nation can spend more on welfare measures, defense expenditure, and hence is revered world over by nations.

But in spite of having this as an indicator, what actually matters is the ‘happiness’ of its citizens. This led to the development of Gross National Happiness as a new indicator. It measures the level of content of citizens by various parameters from the likes of satisfaction with govt. efforts, health, education to feeling of brotherhood and warmth among societies.

The GNH as an indicator emerged because of various drawbacks with GDP. It didn’t include home labor, negative externalities, and the underground economy in its calculation. Moreover, what is the use of the money which can’t provide happiness because ‘happiness’ is an ‘end’ in itself according to Confucius.

Using ‘wrong’ means to justify an ‘end’ i.e. more economic development does not lead to happiness among the masses necessarily. Be it the factory emitting smoke directly into the air or discharging waste directly into the river untreated, it might provide employment to a few but in the long term it is going to cause ‘pain’. Humanity experiencing climate catastrophe is only a manifestation of how GDP alone can’t be an indicator of a country’s wellbeing.

Thus, developed the concept of Happiness Index. Today, India which has the 3rd largest GDP, in PPP terms, is ranked 144 out of 156 countries in happiness Index. Even our smaller neighbors are much ahead with Pakistan ranking 66 and China 82.

This poor state of development is only an indicator of rising inequality. Thomas Piketty in his book ‘Capital in 21st century’ talks about it. Increasing materialism, greed, anger, commoditization has led to overexploitation of resources and ‘robotization of humanity’ leading to restless and unhappy humans. People taking extreme steps even while sitting on chests of money is a manifestation of how only economic development can’t lead to happiness of not only a person but also a nation.

Nordic countries are champions of welfare state and incidentally even rank at the top of GNH (Finland is ranked 1st). Bhutan even though not being economically or militarily has a very high GNH. What is it that these nations are doing differently that nations like India and USA are missing.

The answer lies in spiritual and value education. Also, each of these nations have used their natural advantage, be it tourism for Bhutan or medical healthcare by Cuba. Need and solution lies in finding the ‘natural advantage’. Infect both GDP and GNH reinforce each other. let us see how.

If there is greater economic activity, it’ll lead to greater supply side employment leading to happiness to workers and factory owners. At the same time, more demand to and hence choices mean greater happiness to customers. Thus, GDP leads to higher GNH indicating true wellbeing of nation.

Similarly in areas of agricultural technology, greater use of seed harvesters, HYV seeds led to green revolution leading to remunerative prices for farmers and thus happiness.

In fact the above mechanism even works the other way around. Consider the fact that every company wants its employees to be happy and content. They provide free lunches, a 5-star hotel stay during induction and other facilities. It is only because a happy employee will have higher productivity and thus contribute positively to company’s development. Thus, GNH reinforcing GDP as a true indicator.

Same if the logic behind having a ‘happy family’. All work in tandem thus realizing the phrase ‘2+2=5’.

But GNH itself comes with its fair share of problems. It is not easy to measure ‘happiness’. In fact ‘happiness’ alone can’t be the only measure. GDP is needed for long term sustainability. A country cannot ask hungry citizens and unemployed youth to be happy! Although utilitarianism is the greatest happiness for greatest policies are based on it, but it has its fair share of negatives of neglecting minority & others. Thus, GDP along with GNH when combined and seen in tandem can alone wellbeing.

Various initiatives have been taken in its line including the happiness curriculum of Delhi and Madhya Pradesh.

Atmanirbhar Bharat Abhiyan is not only a measure of economic independence but will also increase wellbeing as more people get employment within the nation. Similar initiative in other fields like Ayushman Bharat, New Education policy also aim at overall wellbeing.

The need is to inculcate capability approach as postulated by Amartya Sen. It’ll not only increase our ‘GDD’ but also ‘GNH’ with due recognition to demographic dividend.

The focus of policy has to be realigned from being GDP-centric. Giving due recognition to GNH, by proposing a new national index by NITI Aayog can be the first step forward. Nations need to understand – A bird (nation) cannot fly with one wing (GDP) (Vivekananda)