Stewart Willis, the Former Executive Director of New Economics Foundation, a UK based think-tank which is propagating a new model of wealth creation based on equality, diversity and economic stability, wrote an article for World Economic Forum (WEF), highlighting five measures of growth namely; good jobs, well being, environment, fairness and health which are better than Gross Domestic Product (GDP). In his article (https://www.weforum.org/agenda/2016/04/five-measures-of-growth-that-are-better-than-gdp/), Stewart likens GDP to a speedometer in an automobile, which only reflects the speed at which the vehicle is moving, but will not give you an indication of anything else. He says that New Economics Foundation likens these five parameters to a dashboard of a car which you can glance at for an overall picture, and can even deep dive into individual parameters if the need arises.
While reading this article, the only country that came to my mind was the beautiful Kingdom of Bhutan, a pioneer of the Gross Happiness Index (GHI). The term was coined by Jigme Singye Wangchuk, the Fourth King of Bhutan in the early 1970s and in an interview in the same decade, he said that "we do believe in GDP but Gross National Happiness is more important". And coincidentally, it was in 2008, when the world was witnessing a complete economic turmoil, Article 9 of the Constitution of Bhutan stated that "the state shall strive to promote those conditions that shall enable the pursuit of Gross National Happiness". Not only that, but to make sure that happiness is at the centre of all policies/decisions undertaken by the government, the country has created a screening tool to assess/review such policies for their impact on happiness before they are presented to the cabinet. A classic case in point is the accession of Bhutan to the World Trade Organisation. Initially, 19 of the 24 Gross National Happiness Commission Secretariat (GNHCS) voted in favour of joining the WTO. But after putting the decision through the GNH screening tool, 19 officers voted against joining as it was found to be unfavourable for GNH. To date, Bhutan is not a member of WTO.
Let us evaluate how Bhutan fares on the parameters laid out by the New Economics Foundation.
1. Good Jobs: Being a small landlocked country with rugged mountainous terrain, where building roads and infrastructure is a challenge, rapid industrialisation cannot take place. Also, the country's zest to preserve its environment and culture discourages major industrial activity. Nearly 55-60 per cent of the population is directly dependent on agriculture and animal husbandry for a living. As of 2016, the unemployment rate was 2.38 per cent, falling for the fourth year in a row. While acknowledging the challenge of unemployment and underemployment, earlier this month, the finance minister of Bhutan, Lyonpo Namgay Dorji in the annual budget for financial year 2018 earmarked little over one billion Bhutanese Ngultrum (Nu) towards Technical, Vocational, Education Training (TVET) to address unemployment and underemployment.
2. Well Being: Having a very strong affinity to its culture, the people of the Kingdom give utmost importance to being happy and contempt with their life rather than merely chasing the financial dream. The trickle down impact of GNH over the years can be seen in the daily lives of the people. A colleague of mine who went to Bhutan a couple of years back narrated that people, irrespective of the nature of their work, would always smile and be happy and generally satisfied with their life.
3. Environment: Climate change is a widely accepted phenomenon and all countries are affected by it Bhutan is no exception. But Bhutan takes pride in being not only carbon neutral but rather its carbon negative. The Kingdom has passed a constitution that at no point in time, the forest cover of the country should fall below 62 per cent of its total land area. The Kingdom has a total forest cover of over 72 per cent. Recently, the country has put on hold its plan to join the Bangladesh-Bhutan-India-Nepal (BBIN) connectivity project for a seamless movement of vehicles across the four countries. One of the concerns Bhutan had was the rise in pollution and the subsequent damage to its environment owing to a rising number of trucks entering the Kingdom. This shows the emphasis which the country lays on preserving its environment and ecology.
4. Fairness: Globally, the income/wealth inequality is on the rise but Bhutan has managed to buck the trend. According to World Bank data, the Gini Index (the parameter used to measure inequality) which stood at 46.78 in 2003, fell to 38.09 per cent in 2007 and has since then remained under 39. The sharp fall indicates a more equal distribution of income. In the recent budget too, the government has earmarked huge sums for the farm sector along with creating infrastructure to support the development of farm income and has also doubled rural insurance coverage and created an Endowment Fund for Crop and Livestock Conservation to compensate farmers for their loss. These initiatives shall definitely lead to at least sustaining if not increasing the inequality.
5. Health: One of the best measures of a country's health indicators is the life expectancy of its population at birth. From little over 32 years in 1960 to almost 70 years as of 2015, Bhutan has managed to double the life expectancy of its citizens. During the same period the death rate per 1000 people has nosedived from 30 in 1960 to 6.2 in 2015, indicating a steady progress in healthcare. Healthcare in Bhutan is free. Not only for its citizens but also for the tourists. Yes for the tourists and that too without even travel insurance. Considering the size of the economy, this is a huge achievement. In the recent budget too, the government has earmarked over eight per cent for health. Realising the importance of health, the government passed Tobacco Control Act in 2010. The act regulates tobacco and tobacco products, banning the cultivation, harvesting, production and sale of tobacco and tobacco products. A colleague of mine who visited Bhutan in 2015, did mention that he didn't even once saw cigarette buds or tobacco packs anywhere in the Kingdom which highlights the fact that the implementation of the 2010 Act is stringent, thus ensuring the overall health of its citizens.
Looking at the all round development of the Kingdom, one can definitely say that small size of the economy is no deterrent and excuse to lead a good quality of life. Kudos to the people of the country and a "HIGH FIVE" to the government machinery which is not only weaving a beautiful dream but making it possible too.
Have always been fascinated by the beauty and charm of this pristine landscape and the warmth of its people (watch the Ted talk of PM Tshering Tobgay to know what I am talking about). Now the urge to visit the country is even stronger to not only get mesmerised by its glacial towering mountains but also to learn the humility and love.
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