Fitter, healthier, happier, more productive

Governments have for some time been paying more than lip service to the idea that GDP may not be the most effective indicator of social progress. We can compare the UK (GDP $2.17 trillion) to the Democratic Republic of Congo (GDP $9.58 billion), or France to Burkina Faso, or the USA to Cuba — and see that in each case, the higher-GDP country is arguably more politically stable and economically secure. Those advocating Gross National Happiness (GNH) as an additional indicator are therefore not suggesting GDP is useless, but that another measure is needed to aid policy decision-making and effective governance.

Norway tops the 2010 UN Development Programme Human Development Index (HDI), which provides a composite score based on life expectancy, access to knowledge, and Gross National Income per capita. The HDI represents a shift from GDP to a more citizen-centred measure — one that extends national income to encompass how well it is shared and how effectively it is invested in public services and welfare.

Interestingly, the highest-GDP nation does not rank highest on the HDI. The likely reasons are not hard to identify: the United States spends a large proportion of its wealth on pre-emptive military operations; its standard of education is poor relative to its economic size; an unwieldy political system hampers efficient redistribution of wealth; and medical care is profoundly unequal. Norway's gold-standard welfare state offers something of a model.

The King of Bhutan coined GNH around forty years ago as an indicator for a 'progressive economy based on Buddhist values'. Western nations are now taking slow but measurable steps in a similar direction.