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All societies seek to create wellbeing for individuals. The question is not whether societies desire welfare or not. The fundamental questions are: What does wellbeing mean? How do we measure it? And how do we use indicators to organize society and its institutions to maximize wellbeing? Answering these complex questions is a challenging endeavor, especially given the diversity of values and worldviews around the globe. However, at the center of the essential questions of development and progress lie the indicators we use as a society to measure wellbeing and develop policies. As Hazel Henderson, futurist and evolutionary economist, said, “Statistical indicators are the structural DNA codes of nations. They reflect a society’s values and goals and become the key drivers of economic and technological choices” (Salvaris 2007).

Indicators reveal particular information about society and should embody values that people care about, or at least should care about. Therefore, if indicators are to drive the policies that push society in a genuine direction of progress, they should adequately measure wellbeing and progress.

What Does GDP Measure?

Gross Domestic Product (GDP) was developed in the United States to manage the Great Depression (1929 – early 1940s) and the wartime economy.

Gross Domestic Product (GDP): the total market value of the goods and services produced by a nation’s economy during a specific period of time.

It is simply a measure of how much money is exchanging hands, a measure of a country’s output in a given year. It was never developed as a measure of social wellbeing or progress. “Somehow, over the last 30-40 years, GDP has been seen as a measure of progress although it was never developed for that purpose… If GDP was going up, then everything was fine in our society. GDP has been guiding institutions and politics. We need to say, ‘No, GDP is not a measure of progress.’ It is one measure of progress perhaps, but there are many other things to think about,” (Hall 2009) says Jon Hall of the Global Project on Measuring the Progress of Societies. Expert and professor of political science Surat Horachaikul adds, “How can we summarize something as complex as the progress and wellbeing of society in one single number like GDP? GDP fails to capture many of the components of a true wellbeing society.” (Horachaikul 2009).

Over the years, the world has developed what Joseph Stiglitz, Professor of Economics, Columbia University, calls “GDP fetishism,” a dogmatic fixation on GDP as a measure of progress. As a result, institutions and policies have revolved around maximizing GDP with little regard for what that means for individuals’ standard of living and for social and environmental wellbeing.

Alternatives to GDP

If GDP is not an appropriate measure of wellbeing and progress, then what is? Questioning GDP means asking the questions: What do we care about as a society? What does wellbeing mean for us? “We need to open a national dialogue that sheds light on what values are important to society, and then create metrics that reflect this and are used by decision-makers” (Stiglitz 2009). This dialogue is not an easy one to have, but it is definitely a fruitful one. If more holistic, comprehensive, and sustainable indicators are to emerge, what variables should be used? Who decides what these variables are? How is the information that the indicator reveals used by decision-makers?

welfare (noun): A state of being where a person or a group of people enjoy health and a feeling of happiness.; synonym: wellbeing; prompts: unknown word

fundamental (adjective): Describes something that is the most important part of an object or idea.; synonyms: basic, essential; prompts: unknown word

indicators (plural noun): Signals that point out the condition of something.; synonyms: gauges, metrics; prompts: unknown word

maximize (verb): To increase something to its greatest potential.; synonyms: enlarge, make the most out of; prompts: unknown word

endeavor (noun): A project, effort, or work that is new or difficult.; synonym: undertaking; prompts: unknown word

diversity (noun): A quality of having varied forms.; synonym: variety; prompts: unknown word

essential (adjective): Describes elements that are of most importance to something.; synonyms: critical, crucial; prompts: unknown word

evolutionary (adjective): Describes something that has to do with theories of evolution, which is the process by which things change slowly over time.; synonyms: N/A; prompts: unknown word

economist (noun): A professional person who studies, analyzes, and interprets economies, which are the financial systems of a country or organization.; synonym: financial expert; prompts: unknown word

statistical (adjective): Describes something that has to do with statistics, which are numbers that measure specific information.; synonym: data; prompts: unknown word

embody (verb): To stand for something in way that is clear and obvious.; synonyms: represent, exemplify; prompts: unknown word

adequately (adverb): Enough for what is needed.; synonym: sufficiently; prompts: unknown word

Great Depression (proper noun): A period — beginning with the stock market crash of 1929 through the early 1940s — when the world's economies fell into drastic decline including falling prices, high unemployment, and decreasing business activity.; synonyms: N/A; prompts: unknown proper noun

fails to capture (phrase): Does not fully measure or consider.; synonyms: N/A; prompts: unknown phrase

components (plural noun): Elements that make up a larger thing or idea.; synonym: part; prompts: unknown word

fetishism (noun): Having a strange need or craving for something.; synonym: obsession; prompts: unknown word

dogmatic (adjective): Describes a belief that a person holds to be completely true, with no room for doubt.; synonym: piously rigid; prompts: unknown word

standard of living (noun): The level of comfort, prosperity, and possessions a person or group of people have.; synonym: comfort level; prompts: unknown term

dialogue (noun): A conversation or a series of conversations about a topic in order to come to a mutual understanding.; synonyms: debate, discussion; prompts: unknown word

sheds light on (colloquialism): To bring about knowledge of the truth of a subject; to make a subject clear.; synonym: illuminate; prompts: unknown colloquialism

metrics (plural noun): Measurable criteria to assess specific information.; synonyms: benchmark, gold standard; prompts: unknown word

fruitful (adjective): Describes something that produces good results.; synonym: productive; prompts: unknown word

holistic (adjective): Describes something that deals with integrated, entire systems instead of its separate components.; synonym: considers the whole; prompts: unknown word

comprehensive (adjective): Describes something that covers all the relevant information.; synonyms: complete, all-inclusive; prompts: unknown word

sustainable (adjective): Describes something that is able to be continued for a long time.; synonym: continuous; prompts: unknown word

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The Sociological Perspective in Action

Gross National Happiness in Bhutan

Bhutan is a country about the size of Switzerland located on the eastern ridges of the Himalayas. Located between the Assam-Bengal Plain of India and the Plateau of Tibet of southwestern China, the country has a population of approximately 682,000. In 2008, it shifted from being an absolute monarchy to a multiparty parliamentary democracy. Seventy percent of people live in rural areas and mostly farm for a living, although like in many other countries, rural to urban migration is a growing trend in Bhutan.

The concept of Gross National Happiness (GNH) was first introduced in 1972 by the fourth King of Bhutan, H.M. Jigme Singye Wangchuck. For years following the introduction of the concept, GNH served as a guiding philosophy for the absolute monarchy based on four pillars:

• Equitable Economic Development

• Environmental Preservation

• Cultural Resilience

• Good Governance

Having absolute power, the King used the four pillars of GNH to guide the construction and implementation of policies in Bhutan. In recent years, however, with more Bhutanese students pursuing education in India, the United States, and elsewhere, and with Bhutan slowly opening up to the world, the concept of GNH has been scrutinized and sometimes criticized for not being measureable or statistically sound. GNH first came to public global attention in 1986 when King Jigme Singye Wangchuck, told the Financial Times, “Gross National Happiness is more important than Gross National Product” in an interview in London (Brahm 2009).

As a way of integrating the scientific methods of industrialized nations, the Center for Bhutan Studies (CBS) has developed a GNH index from the research of a team that culminated in the first GNH questionnaire in 2005 (Zangmo 2009). The most recent GNH questionnaire focused on nine areas:

• Psychological Wellbeing

• Time Use

• Community Vitality

• Cultural Diversity and Resilience

• Health

• Education

• Ecological Diversity and Resilience

• Living Standard

• Good Governance

Himalayas (proper noun): A mountain range in Asia. Some of the planet's highest peaks, including Mount Everest, are in the Himalayas.; synonyms: N/A; prompts: unknown proper noun

absolute monarchy (noun): A form of government where a single monarch, or ruler, has complete and unrestricted power.; synonym: autocracy; prompts: unknown term

multiparty parliamentary democracy (noun): A form of government where more than one political party govern and are represented in legislature (parliament).; synonyms: N/A; prompts: unknown term

rural (adjective): Describes a person or place that is in the country as opposed to the city.; synonym: countryside; prompts: unknown word

urban (adjective): Describes a person or place that is in the city as opposed to the country.; synonym: metropolitan; prompts: unknown word

migration (noun): A movement from one place to another in order to live or work there.; synonym: relocation; prompts: unknown word

pillars (plural noun): Essential parts or principles of something.; synonym: fundamentals; prompts: unknown word

equitable economic development (phrase): Actions of policymakers that increase the standard of living for communities in a way that is just and fair to all people.; synonyms: N/A; prompts: unknown term

environmental preservation (phrase): Actions of policymakers and individuals that seek to protect and enhance the health of the natural environment.; synonym: environmentalism; prompts: unknown term

cultural resilience (phrase): A society's ability to survive and preserve its beliefs, customs, and ways of life, especially when facing change or adversity.; synonym: societal sustainability; prompts: unknown term

good governance (phrase): Describes a government that implements its decisions well, conducts affairs without corruption, and manages its resources wisely.; synonyms: N/A; prompts: unknown term

implementation (noun): The process of putting a plan, policy, or system into effect.; synonym: execution; prompts: unknown word

scrutinized (verb): To look very closely at or into something, considering every detail.; synonyms: inspected, examined; prompts: unknown word

statistically sound (phrase): Describes a way of gathering data that is both thorough and free from mistakes.; synonym: reliable; prompts: unknown phrase

Financial Times (proper noun): A well-known international newspaper based in London, England, that focuses its coverage on business and economic news.; synonyms: N/A; prompts: unknown proper noun

integrating (verb): To combine two or more elements into a whole.; synonyms: incorporating, joining; prompts: unknown word

industrialized (adjective): Describes an area, such as a region or country, that operates industries, such as factories or large-scale businesses.; synonyms: developed, commercialized; prompts: unknown word

index (noun): A system of values that measures the changing levels of something, such as prices.; synonym: indicator; prompts: unknown word

culminated (verb): Having reached the end or final result.; synonym: concluded; prompts: unknown word

vitality (noun): A quality of being full of life and energy.; synonym: vigor; prompts: unknown word

ecological (adjective): Describes something that relates to the environment.; synonym: natural; prompts: unknown word

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1. PSYCHOLOGICAL WELLBEING

“As collective happiness is the main goal of a GNH society, psychological wellbeing is of primary importance in gauging the success of the state in providing appropriate policies and services” (Ura 2008). The psychological wellbeing domain of the GNH questionnaire covers three areas: general psychological distress indicators, emotional balance indicators, and spirituality indicators. Elements like the prevalence rates of negative emotions (jealousy, frustration, selfishness) and positive emotions (generosity, compassion, calmness), the practice of spiritual activities like meditation and prayers, and overall life enjoyment are part of this domain.

2. TIME USE

“The domain of time use is one of the most effective windows on quality of life as it analyzes the nature of time spent within a 24-hour period, as well as activities that occupy longer periods of time” (Ura 2008). The time use domain highlights the value of non-work time for happiness and overall quality of life. The domain was constructed under the assumption that non-work activities such as “sleeping, personal care, community participation, education and learning, religious activities, social and cultural activities, sports, leisure, and travel add to a rich life and contribute to levels of happiness” (Ura 2008). Even though the “measurement of time devoted to unpaid work activities like care of children and sick members of a household, maintenance of household, and others can provide a proxy measure of the contribution made by unpaid activities to welfare,” the value of such activities are underestimated in most national accounts (Ura 2008).

3. COMMUNITY VITALITY

“The domain of community vitality focuses on the strengths and weaknesses of relationships and interactions within communities. It examines the nature of trust, belongingness, vitality of caring relationships, safety in home and community, and giving and volunteering” (Ura 2008). The domain consists of seven areas: family vitality, safety, reciprocity, trust, social support, socialization, and kinship density.

4. CULTURAL DIVERSITY AND RESILIENCE

“Maintenance of cultural traditions has been one of Bhutan’s primary policy goals, as traditions and cultural diversity contributes to identity, values, and creativity” (Ura 2008). This domain considers the diversity and strength of cultural traditions through six areas: dialect use, traditional sports, community festivals, artisan skill, value transmission, and basic precept.

5. HEALTH

“The health indicators assess the health status of the population, the determinants of health, and the health system. Health status indicators show information on self-rated health, disabilities, body-mass index, number of healthy days per month, knowledge about HIV transmission, and breast feeding practices” (Ura 2008). Barriers to health are also assessed according to the walking distance to the nearest health facility and access to health services. The three areas in the health domain are health status, health knowledge, and barriers to health.

collective (adjective): Describes something that includes and gathers many parts together.; synonyms: combined, shared; prompts: unknown word

gauging (verb): To measure something.; synonym: calculating; prompts: unknown word

general psychological distress indicators (plural noun): Signs that measure if a person is experiencing mental or emotional pain. Some examples are anxiety attacks, depression, or chronic nightmares.; synonyms: N/A; prompts: unknown term

emotional balance indicators (plural noun): Signs that measure the balance of a person's emotional wellbeing. Having good emotional balance means that a person experiences more positive feelings (such as love, happiness, and empathy) and fewer negative feelings (such as anger, pride, and resentment).; synonyms: N/A; prompts: unknown term

spirituality indicators (plural noun): Signs that measure a person's level of affiliation with a particular religion, frequency of personal prayer and/or meditation, and other spiritual activities.; synonyms: N/A; prompts: unknown term

prevalence (adjective): Describes the rate at which something occurs over a period of time.; synonyms: commonness, frequency; prompts: unknown word

maintenance (noun): The act of keeping items in good condition through routine cleaning and repairs.; synonyms: upkeep; prompts: unknown word

proxy (adjective): Describes something that stands in for or is an alternate for another thing.; synonym: substitute; prompts: unknown word

underestimated (verb): To place too low a value (size, quality, quantity, or price) on something.; synonyms: taken too lightly, undervalued; prompts: unknown word

domain (noun): A specific area of thought or activity.; synonyms: discipline, field; prompts: unknown word

reciprocity (noun): A relationship where people or groups exchange goods and services for mutual benefit.; synonyms: exchange, cooperation; prompts: unknown word

socialization (noun): The activity of interacting with other people in a friendly way.; synonym: fraternization; prompts: unknown word

kinship density (noun): The number of family members who live near a person.; synonyms: N/A; prompts: unknown term

dialect (noun): A form of language that is used in a particular area or within a specific group. Dialect may include different words, grammar, pronunciations, or colloquialisms than other groups who speak the same language.; synonym: accent; prompts: unknown word

artisan (adjective): Describes a type of work where items are made by hand in a very skilled and artful manner.; synonym: hand-crafted; prompts: unknown word

value transmission (noun): The act of passing on a person's or group's strongly held beliefs to the next generation.; synonyms: N/A; prompts: unknown phrase

precept (noun): A rule of societal or moral conduct.; synonym: tenet; prompts: unknown word

determinants of health (plural noun):Factors that affect the health of a person or group of people including the social and economic environment, physical environment, and individual behaviors.; synonyms: N/A; prompts: unknown term

disabilities (plural noun): A physical, mental, or emotional condition that limits a person's abilities.; synonym: impairments; prompts: unknown word

body-mass index (noun): A ratio that compares the height and weight proportions of individuals to indicate obesity or underweight conditions.; synonyms: N/A; prompts: unknown term

barriers (plural noun): Rules, laws, problems, or societal issues that make attaining something difficult.; synonym: obstructions; prompts: unknown word

facility (noun): A building that is intended for a specific purpose. In this case, a health facility describes a doctor's office, health clinic, or hospital.; synonyms: building, office; prompts: unknown word

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6. EDUCATION

“Education contributes to the knowledge, values, creativity, skills, and civic sensibility of citizens” (Ura 2008). The emphasis of the education domain is on the effectiveness of contributing to collective wellbeing. The education domain consists of the following areas: educational attainment, Dzongkha language, and folk and historical literacy.

7. ECOLOGICAL DIVERSITY AND RESILIENCE

“By examining the state of Bhutan’s natural resources, the pressures on ecosystems, and different management responses, the domain of ecological diversity and resilience is intended to describe the impact of domestic supply and demand on Bhutan’s ecosystems” (Ura 2008). The ecology domain mainly focuses on perceptual data on ecology, since most of the objective measurements of ecological diversity and resilience are conducted by other environmental agencies. It uses three areas: ecological degradation, ecological knowledge, and afforestation.

8. LIVING STANDARD

“The domain of living standard covers the basic economic status of the people. The indicators assess the levels of income at the individual and household level, sense of financial security, room ration, and house ownership” (Ura 2008). The indicators also reflect economic hardships, like inability to repair households and the purchase of second-hand clothing. The living standard domain consists of four areas: income, housing, food security, and hardship.

9. GOOD GOVERNANCE

“The domain of good governance evaluates how people perceive various government functions in terms of their efficacy, honesty, and quality. The themes… include human rights, leadership at various levels of government, performance of government in delivering services and controlling inequality and corruption, and peoples’ trust in the media, the judiciary, and the police” (Ura 2008). The three areas of the good governance domain are: government performance, freedom, and institutional trust.

Policy Making Based on GNH

The Gross National Happiness Commission (GNHC) is the planning branch of the government, and they use the information that the GNH index reveals to construct policies that promote GNH. The GNHC develops most of the policies and programs in Bhutan, and they are increasingly using the information from the GNH index to channel resources to the areas and issues where they are most needed.

GNH and its Challenges

Bhutan is indeed a living example of a society where the distinct culture has a strong influence on not only how the country is governed, but also how the country moves forward in their efforts to join the community of industrialized nations. They have actively opened a dialogue that addresses questions such as, “What is progress? What matters to us as a society? How do we measure it? How do we use statistics to shape institutions and policies?” As does any other country in the South Asian region and other developing regions of the world, Bhutan faces many social, economic, and political challenges. But what differentiates Bhutan from other nations is that it uses an alternative approach to development by using Gross National Happiness as its metric of progress and as the driver for policies in the country. This allows its cultural heritage to remain intact as it embraces the globalization of the 21^st century.

Comprehension Check-in

1. What fundamental questions should societies concerned about the wellbeing of their citizens ask?

2. Why was the Gross Domestic Product (GDP) created?

3. How effective is the GDP at measuring progress?

4. Upon what principles did the King of Bhutan base the idea of Gross National Happiness (GNH)?

5. How did the Center for Bhutan Studies (CBS) develop the Gross National Happiness index?

6. What are the nine areas of focus in the GNH index?

7. What is the impact of GNH in Bhutan and globally?

civic sensibility (noun): The degree to which citizens are informed about and understand laws, events, and happenings within their communities.; synonyms: N/A; prompts: unknown phrase

Dzongkha (proper noun): The official language of the country of Bhutan.; synonyms: N/A; prompts: unknown word

ecosystems (plural noun): All the animals, plants, soil, rocks, bacteria, water, and any other thing that make up a specific environment.; synonym: bionetworks; prompts: unknown word

domestic (adjective): Describes something that has to do with matters inside a country as opposed to those in foreign countries.; synonyms: native, national; prompts: unknown word

supply and demand (noun): In economics, prices reflect the related nature of supply (the availability of goods and services) and demand (the amount of goods and services that people want to buy.) In this case, the author is referring to Bhutan's ecosystems and the demand that people have for the resources (like water or wood) within those environments.; synonyms: N/A; prompts: unknown term

ecology (noun): Something that relates to the environment and the living things that inhabit the environment.; synonyms: environment; prompts: unknown word

perceptual (adjective): Describes something that can be observed through the senses, such as sight, sound, touch, taste, and smell.; synonyms: observation; prompts: unknown word

objective (adjective): Describes information that is based on facts as opposed to personal feelings or opinions.; synonym: unbiased; prompts: unknown word

ecological degradation (noun): The decline and ruin of an environment due to diminishing natural resources, especially water, air, and soil. Damaged ecosystems and endangered and extinct animal species are also a part of ecological degradation.; synonyms: N/A; prompts: unknown term

ecological knowledge (noun): The degree to which citizens are informed about and understand how to preserve and protect the natural environments around them.; synonyms: N/A; prompts: unknown term

afforestation (noun): The process of establishing a new forest by planting indigenous (native) trees in an area where no forest existed before. (Reforestation occurs when an existing damaged forest is rebuilt.); synonym: forestation; prompts: unknown word

room ration (phrase): The number of people per room in the household; commonly used socio-economic assessment indicator.; synonyms: N/A; prompts: unknown term

hardships (plural noun): Burdens; pain and suffering.; synonyms: difficulties, adversities; prompts: unknown word

second-hand (adjective): Describes something that was previously owned or used by someone else.; synonyms: pre-owned, used; prompts: unknown word

efficacy (noun): How well something produces its desired effect.; synonym: effectiveness; prompts: unknown word

inequality (noun): Unfair treatment or situation, especially when the rights of some people are not the same as those of other people.; synonyms: disparity, bias; prompts: unknown word

corruption (noun): Dishonest dealings, such as bribery or extortion, within a government, business, or organization.; synonyms: fraud, deception; prompts: unknown word

judiciary (noun): The judges, courts, and legal system of a country.; synonym: justice system; prompts: unknown word

channel (verb): To guide something (such as money or supplies) from one place into another.; synonyms: direct, move; prompts: unknown word

distinct (adjective): Describes something that is different from other like things in a way that is easy to perceive.; synonyms: unique, different; prompts: unknown word

differentiates (verb): To express a difference that makes one thing different from another similar thing.; synonym: distinguishes; prompts: unknown word

alternative (noun): Something that can substitute for another thing.; synonym: another; prompts: unknown word

driver (noun): Something that propels an idea, initiative, policy, event, or action into being.; synonyms: force, catalyst; prompts: unknown word

heritage (noun): The beliefs, traditions, values, and skills of a culture that are handed down from one generation to another.; synonyms: customs, traditions; prompts: unknown word