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Happiness Gained

Bhutan is satisfied that its vision has been realized, since the country enjoys blessings sought so arduously by others - peace, prosperity and happiness.

By S.G Jilanee | April 2020


Perched on the Himalayas, 8,000 feet above sea level, the tiny kingdom of Bhutan single-mindedly pursues its quest for peace, prosperity and, above all, happiness. In June, 1999 it released a document, titled “Bhutan 2020, A Vision for Peace, Prosperity and Happiness,” during the silver jubilee celebrations of The Fourth King’s coronation. The 1,010-page document gives an outline of all sectors in the developmental stages that Bhutan proposed to go through over the next 20 years. It is a vision statement that seeks to review the current situation. It looks back at the path Bhutan has traveled as a nation in the past three decades and notes the progress the nation has recorded in a number of fields. It also examines the reasons that help to explain the achievements and draws conclusions on the distinctive Bhutanese path of development.

Since 2020 has already arrived, it would be pertinent to take stock of how far Bhutan has achieved its ambitious vision. Bhutan's economy is one of the world's smallest. But, it has grown rapidly in recent years, “by eight percent in 2005 and 14 percent in 2006. In 2007, Bhutan had the second-fastest-growing economy in the world, with an annual economic growth rate of 22.4 percent.” The industrial sector is in a nascent stage. However, even though most production comes from cottage industries, larger industries are being encouraged and some industries such as cement and steel have been set up.

The country has seen recent growth in the technology sector, in areas such as green tech and consumer internet/e-commerce. In May 2012, Thimphu TechPark was launched in the capital and incubates start-ups via the Bhutan Innovation and Technology Centre (BITC). While the country has attracted international attention for its novel concept of “Gross National Happiness (GNH),” its economic measures in recent years have also yielded good results. In the decade between 2005 and 2014, Bhutan’s annual average growth rate reached 7.6 per cent, the 16th highest among 135 countries. The proportion of the population in poverty (earning less than US$1.90 a day) fell from 25 per cent in 2003 to 2 per cent in 2012. The reduction of poverty was accompanied by an improvement in equality, as measured by the Gini index. During the same period, the index improved from 69 to 39 (0 represents perfect equality).

So the question arises; what are the driving factors in Bhutan behind this impressive trilogy of sustained high growth, poverty reduction and equality? That question may be answered in the following terms:

First, Bhutan has instituted a solid development management system to realise its GNH principles. The formulation of GNH goes back to the early 1970s when King Druk Gyalpo declared that GNH rather than GNP should be the nation’s principal yardstick for measuring progress. GNH is a multi-dimensional development approach that seeks to achieve a harmonious balance between material well-being and the spiritual, emotional and cultural needs of the society.

During his state of the nation speech in July 2016, Bhutan Prime Minister Tshering Tobgay described GNH as ‘development with values’. In order to further realize GNH, the latest medium-term development strategy —the 11th Five-year Plan (2013–2018) - elaborates on how to make GNH a reality.

Bhutan’s development builds on a strong governance foundation. According to the 2015 Corruption Perception Index by Transparency International, Bhutan ranked 27th among 168 countries and far ahead of other South Asian countries. The World Bank’s Worldwide Governance Indicators in 2015 showed that Bhutan exceeded the average in four out of six dimensions of governance, including governance effectiveness, political stability and absence of violence. The latter dimension demonstrates how a peaceful transition to a democratic constitutional monarchy has contributed to the country’s achievements.

Bhutan has also made the best out of its resources for development, especially its hydropower resources, whose exports accounted for about a third of its total goods exports. Moreover, the country’s generation capacity is forecast to double in a few years.

In fact, Bhutan's development assets have been built up over centuries. The approach to development is inextricably entwined with the Buddhist worldview. The main challenge facing the nation as a whole is the maintenance of its identity, sovereignty and security as a nation state. The existence of Bhutan as a sovereign country is the result of conscious actions taken over several centuries that have sometimes compelled the nation to seek isolation and, at others, seek alliances without compromising the sovereignty. The stability built over several centuries stands in sharp contrast to the situation prevailing in some other parts of the sub-region.

The low population density and the conserved natural resource base distinguishes Bhutan from the neighbouring countries. However, Bhutan’s future sovereignty as a nation-state will continue to depend on the articulation of a cultural imperative that asserts the distinctive Bhutanese identity.

The people of Bhutan may, therefore, look back with satisfaction that their vision has been realized, since the country enjoys all the three blessings: peace, prosperity and happiness.

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