Bhutan Boasts Of A Unique Version Of Gross Domestic Product

Gross domestic product (GDP) is very important for economic growth. This helps measure economic production in the financial capital plan over a certain period of time. What’s interesting is that, Bhutan, as small country is not worried about the lack of gross domestic product (GDP) in its country, but rather focuses on what it calls gross national happiness (GNP). This is a new introduction to the country as a return on GDP.

It is interesting how the South Asian country consider GDP less important. Bhutan think that the use of this product will not bring any happiness and prosperity to them as people, so it is not necessary. In the 1970s, Bhutan’s fourth king, Jigme Singye Wangchuk, introduced the gross national happiness (GNH) to facilitate the welfare of his people. He said, “We don’t believe in gross national product. Gross national happiness is more important.”

However, the GNH was officially registered in October 2012 by the Bhutan Civil Society Bureau. Obviously, denizens feel that GNH has a holistic effect and a strong emphasis on harmony with nature, and they accept it wholeheartedly. This national happiness is based on four philosophies: socio-economic development, environmental protection, cultural preservation and good governance.

This is amazing but how easy is it to measure Bhutan’s Gross national happiness?.


BNH was developed by Bhutan as an alternative indicator of GDP and as a tool to measure progress or development. The BNH level for an individual and for Bhutan as a country is determined by actions in nine fields. It measures how living standards are measured against household income, wealth and housing indicators.

The People Of Bhutan

Bhutan, a country located in a remote part of the Himalayas between China and India and is known for its innovative gross happiness index. The country has been able to use GNH tools to promote measures that has improve people’s welfare.

Bhutan is a Himalayan kingdom whose borders have never been attacked. As a matter of fact, they don’t even have troops. The branches of the Bhutanese armed forces are the Royal Bhutan Army (RBA), Royal Guards and Royal Bhutan Police. They don’t have a fleet as a population-free country and neither do they have an air force. India is fully responsible for the military training, defense supply and air defense in Bhutan.

Bhutan was officially established and became a state on December 17, 1907. The South Asian nation ranks first in economic freedom, ease of doing business and very peaceful. The advantage is that it is the most less-corrupt country as of 2017. Unfortunately, the country, however, remains the least developed country. You might think that Bhutan, one of the smallest countries in the world, would join India to form one country, considering how close they are to each other and who share many things in common but NO! They’re on their own. Bilateral relations between the Himalayan kingdom of Bhutan and the Republic of India are traditionally tight and the two countries have “special relations”, which makes Bhutan a protected country, but not an Indian protectorate. India remains influential in Bhutan’s foreign, defense and trade policy. Bhutan is a Hindu country inhabited by around 200,000 Hindus, most of whom are descendants of Nepal. They make up 23% of the country’s population with Hinduism being the second largest religion in the country. They speak Dzongha.

The country’s main source of income is agriculture and forestry, which is home to more than 60% of the population. Agriculture consists mainly of subsistence farming and animal husbandry.

If we look at Bhutan’s natural resources, people will assume that they must be among the richest in the world, but that is not the case. The country has a number of minerals, but the mining sector remains part of slow economic growth.

In addition, calcium carbide – the main export of minerals in the country – limestone, dolomite, gypsum, coal, marble, quartzite, and powder are the main products of the country’s mining activities. There is always a warm welcome for visitors to this remote kingdom, a site of ancient monasteries, flying prayer flags and amazing natural beauty.

The United Nations has accepted Bhutan’s request for a holistic development approach supported by 68 countries. The UN Panel is currently looking for ways to replicate the Bhutanese GNH model worldwide. They believe that a great idea from such a small country can change the world.

Bhutan is also an example of a developing country that places environment and sustainability at the center of its political agenda. Over the past 20 years, Bhutan has doubled its life expectancy, enrolled nearly 100% of its children in primary school, and improved infrastructure.

At the same time, it has led to an environmental constitution, placing nature at the center of public order. The country has promised to remain carbon neutral and to ensure that at least 60% of the drought remains forever under forest cover. This prohibits export deforestation and even imposes a monthly tag where all private vehicles are prohibited from their roads.

Actually, students in the country now have emotional wellbeing, including children in their elementary school age, because the principles of GNH were integrated into the education system four years ago. Apart from its focus on national welfare, Bhutan faces enormous challenges. It remains one of the poorest countries on the planet. A quarter of the 800,000 people live on less than $ 1.25 a day and 70% live without electricity. It combats increasing crime with violence, growing gang culture and pressure to increase population and global food prices.

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