What About Gross National Happiness - Coursework Example

?Gross Domestic Product or GDP as it is called is the measure of the value of goods and services produced in an economy. It is a standard measure used by most of the countries in the world and a very important indicator of economic progress. In the past, it was understood and stated that the GDP could also be used as a measure for happiness. This was based on the assumption that happiness of a society is very much directly related to the national income or Gross Domestic Product. In the recent past, however, there have been voices raised regarding the assumption of relationship between GDP and happiness, with several prominent personalities suggesting that the GDP is a contributing factor to happiness and not the only, nor the most important factor. These assumptions and suggestions from both sides will be analyzed as to which side is actually more capable to justify their stance. David Cameron, the British prime minister, stated at near the end of 2010 that happiness cannot be measured by money and that it was time when the humans gained some maturity and realize that money is not the most important thing in life and there are other factors such as family, culture and relationships which influence the happiness of a person (Stratton, 2010). What Mr. David Cameron and his advisors suggest here that rather than GDP, the Gross National Happiness (GNP) is a more accurate measure of the people’s happiness. The concept of GNH or Gross National Happiness was first introduced in 1972 by the Bhutanese King, Jigme Singye Wangchuck, who coined this term in an effort to ensure that the society was truly happy from inside and not just motivated by money. Research then started on this topic and there were several suggestions which combined to form the satisfaction and happiness in a person’s life. The measures which were supposed to form the GNH were the economic wellness, environmental wellness, physical wellness, mental wellness, workplace social wellness and political wellness. This total average per capita was supposed to form the Gross National Happiness which was considered as the true indicator of human progress where it took into consideration all the factors including monetary, physical and psychological wellness. (Mustafa, 2005) On several forums, it has been argued that money is not the only contributing factor to wellness and happiness, but they admit that it is one of the most important factors. The argument, that there are more important things in life that contributes to the true development of humans, is based upon the simple observation that the richest countries in the world are not necessarily the happiest. Philippines is not a very rich country and their gross domestic product per capita is considered at around $3500 which makes it clear that there are economies and nations who have much higher GDP per capita than that of Philippines. If GDP would really have been the only contributor in the wellness and happiness of a person, then there would have been much happier nations around than Philippines. However, this is not true because the Filipinos are considered to be one of the happiest nations in the world and they are always smiling around very much satisfied with their life. The main reason of the happiness and satisfaction of their life despite their low GDP is the culture and the presence of their families. Philippines have a very collectivist lifestyle and they like to live with their families and prefer their own culture rather than adopting it from outside their community. When they get this culture, it is only fitting that they are happy in what they have. (Cassandra, 2010) Figure 1: United Kingdom GDP Growth Rate (Trading Economics, n.d.) The figure above, Figure 1, shows the changes in the gross domestic product in United Kingdom in the year 2011. The graph shows that the there were fluctuations in the GDP growth rate throughout the different quarters of financial year 2011-12. However, this does not necessarily means that the happiness and well being of the UK population was also fluctuating along with it. In fact a lot of people in the United Kingdom had a torrid time in the last year due to the fact that the unemployment was on a rise throughout the year. Similarly, GDP growth rates do not also truly represent the happiness in the society because the people in England were very much excited and happy about the Olympics coming to London in 2012. Despite the arguments that money and gross domestic product are not the true indicators of well being and happiness in a society, there have been a number of research conducted in order to find the relationship between the gross domestic product and the happiness and welfare of the society. The research found out that money is actually a contributor to the happiness and welfare in the society. The research highlighted that the society is happy as long as they have shelter; they have food available for consumption, and they have the basic facilities available such as recreational activities. These activities are very much linked to the gross domestic product of an economy because the GDP will influence the availability of these basic necessities. However after a point, money and GDP will matter less as more features become part of the basic necessities for humans and these are not influenced by GDP but other factors. At an earlier point when the living standards start to rise, money becomes the influential factor in the welfare of the society. However after some development, priorities change and people try to find more sources of enjoyment and happiness. For example, a society is happy when they perceive themselves to be safe from any risk or danger, and factors such as money and gross domestic product, or economic growth, takes a backseat. This was demonstrated in the early 2000’s when although the United States economy was progressing at a fast rate and it was facing a high positive GDP growth rate, they people in the United States were still not happy because they faced the constant threat of terrorism. The people did not considered themselves to be safe and they were living under fear which clearly shows that there was a lack of welfare and relief in the society even though the US economy was going through a boom. There are also some factors which are not taken into consideration much but play a vital role in the well being of a society. Even if the GDP of a country is on a rise, it is not necessary that the people will be happy. If the country is governed by a dictator who does not allow the freedom to express oneself and where institutions such as the media is not free, then the true development of the society will be absent and the people will not be happy. Although they will be getting all the facilities they need, but freedom is a feeling which every human being craves for and is the right of everyone. Thus, such a situation is not in favor of the well being and welfare of the society. (McDermott, 2012) Similarly, even if the GDP of a country is on a rise, there may be corrupt leaders ruling over the nation and if this is the situation, then it is unlikely that the people will be happy because although the money is entering the economy and hence the positive GDP growth rates, the money is only going into the bank balances of the corrupt rulers and people are not getting it. Likewise, if the money and wealth is not equally distributed among the population, then no one can expect to be happy in a society where the rich people have ample resources to buy even a fleet of airplanes while the poor people are even unable to feed their families properly. Even though the total GDP of that particular economy is on a rise, the money is not equally distributed and this creates displeasure and eventual unrest in the society. This is exactly what has been happening in Spain where the wealth is unequally distributed and after a period of time, the Spanish people came onto the roads for protest. Looking at all the arguments above, it can be clearly seen that several factors other than merely gross domestic product determine the true welfare and happiness of the society, and that after a particular point of time and financial status, money starts to lose its importance in contribution to the well being of the society. Works Cited Cassandra, 2010. Money can't buy happiness - or can it?. [Online] Available at: http://www.economist.com/blogs/theworldin2011/2010/11/happiness_and_gdp McDermott, M., 2012. There's More to Happiness Than GDP & There's a New Report to Prove It. [Online] Available at: http://www.treehugger.com/economics/more-to-happiness-than-gdp-un-global-happiness-report.html Mustafa, N., 2005. What About Gross National Happiness?. [Online] Available at: http://www.time.com/time/health/article/0,8599,1016266,00.html Stratton, A., 2010. David Cameron aims to make happiness the new GDP. [Online] Available at: http://www.guardian.co.uk/politics/2010/nov/14/david-cameron-wellbeing-inquiry Trading Economics, n.d. United Kingdom GDP Growth Rate. [Online] Available at: http://www.tradingeconomics.com/united-kingdom/gdp-growth Read More