GDP plus GNH : A True Indicator of country’s wellbeing

Touted as one of the fastest-growing economies, India is increasingly gaining global fame, aspiring to be a $5 trillion economy by 2022. We stand apart among the developing countries in terms of one of the highest gross domestic production (GDP). But wait! Is there any other side to this picture? Unfortunately, Yes! We are one of the worst-affected countries by epidemics as grave as Malaria, HIV. We also rank one of the lowest (100/119) when it comes to measuring hunger prevailing in the country. India contributes 27% of child labour prevailing globally. This makes us think if GDP measurement is actually a true parameter to paint a picture of any country’s well-being.

The answer is no. GDP fails to give a comprehensive view of a country’s progress, happiness, and internal stability. This raises us to a new question of what can be a good parameter candidate to support and supplement GDP in understanding the well-being of a Nation. Gross National Happiness (GNH) has been suggested by many economists as a probable alternative.

In this essay, we would first try to look at the meaning of GDP and GNH. We will then try to understand why there is an inevitable need to incorporate GNH in a country’s calculation of well-being. Further, what policy measures need to be taken to implement the same.

GDP and GNH: THE TWO GOVERNING PARAMETERS

Gross domestic product (GDP) is defined as the measure of total output or production done within the territory of a country. Across countries, this is utilized as a primary parameter for measuring a country’s economic progress and comparing national economies on a global scale. Gross National Happiness (GNH) is a measure of total happiness of people residing in the country. This is a parameter reflecting the other perspectives of an individual’s life apart from monetary ones, those being meaningful living, access to resources, equitability and freedom of choice, among many others.

GDP Without GNH – Growth without Happiness: WHAT ARE WE MISSING?

Measuring only GDP and not GNH, is equivalent to being unilaterally focused on growth, ignoring grassroots development. The debate of GDP and GNH is similar to the debate of growth and development, wealth and inequalities, income, health and education. This is for the same reason that Amartya Sen describes capabilities to have basic necessities of life as meaningful human development. UNDP’S Human Development Index (HDI), which captures not only income but health and education parameters also, strives to give attention to the importance of measuring GNH.

India’s service industry is booming, contributing an impressive percentage of 57% to the GDP of the country. But does GDP capture the agony and suffering of millions of farmers who fail to make both ends meet each day? Does GDP capture the effects of an absent or poor manufacturing base which renders millions of youth either jobless or employed in informal sectors devoid of any social security, at the mercy of employers? GDP fails to capture the inner nuances of the economy. This calls for the inclusion of GNH to ascertain a country’s well-being.

India has earned a respectable status for being one of the largest producers of food grains. We have achieved self-sufficiency in food production. But we still linger in tackling the challenges of child undernourishment, stunting, currently at 35%, and wasting, currently at 21%. A unidimensional focus on GDP as a parameter of progress is responsible, to some extent. This again calls for the inclusion of GNH for measuring the true progress of a country.

The skewed availability of resources, regional, sectoral disparities that GDP fails to capture, necessitate the incorporation of GNH. The top 1% of Indians own 70% of the wealth, the top 10% earn 56% of the income, but this is rarely reflected in GDP. The plight of manual scavengers who struggle to make a dignified place in society, beggars, tribals facing social exploitation and ostracization is overlooked when we capture only GDP and not GNH.

A comparative analysis with Nordic countries further facilitates the argument in favour of GNH. Denmark, Sweden, Finland perpetually appear at the top of diverse rankings, be it freedom of the press, Global Peace Index, quality of air. It is the result of giving equal importance to increasing the happiness level of the people of their countries, that keeps them at the top. The learning is that happiness can’t be ignored for growth.

One also should emphasize the positive relationship between GDP and GNH. Measuring GNH aims to target the happiness of people in terms of making accessibility to resources, freedom of various kinds, facilitating social mobility and a dignified living. This will further amplify in initiating a virtuous cycle where overall productivity of the community will go up, further pushing up GDP. But this time, it will be inclusive, embodying the ideal of “Sabka Sath, Sabka Vikas.”

Initiating A Change: Happiness As a PARAMOUNT FACTOR

Thus, the inclusion of GNH along with GDP is inevitable. The government should make efforts at materializing the idea into reality.

We can learn from the neighbouring country, Bhutan. Bhutan has garnered global attention by having the highest happiness index. A close look at the parameters used for calculating happiness, the method of survey and data collection can help get a push start in measuring GNH along with GDP.

Targeted approach for GNH should be taken in a way similar to the way taken for GDP on a year-by-year basis. This will not only instill enthusiasm in people but in the bureaucrats, governance machinery and politicians at large.

CONCLUSION

While framing our constitution, the constitution makers not only kept the idea of economic growth at the centre of their hearts, but it was the ideas of social justice and political liberation also that were equally cherished by them. This is reflected in the preamble, the Directive Principles of State Policy and the very “fundamental” rights of people. These being the right to equality (Art 14), right against exploitation (Art 15), right to freedom of speech (Art 19), right to a dignified living (Art 21). Moving from GDP to GNH is a step to achieving these ideals. As somebody said, first you measure, then only you act!