Extensive analysis of GNH Index
Date
2012-05
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Publisher
The Centre for Bhutan Studies, Thimphu, BT
Abstract
Multidimensional measures of the quality of life and wellbeing are
increasingly discussed. Many wonder whether a multidimensional measure
of wellbeing might provide a policy-relevant and relatively accurate
overview of such a complex phenomenon, without losing important
details. This paper presents and analyses the 2010 Gross National
Happiness (GNH) Index was developed at the Centre for Bhutan Studies
for the Royal Government of Bhutan. The new GNH Index provides a
summary statistic of the wellbeing of individuals in nine domains, which
are instrumented by 33 indicators and draw on 124 variables. It is
constructed using an adaptation of the Alkire-Foster methodology for
poverty measurement, in which a first set of indicator cutoffs reflect
sufficiency – how much is ‘enough’ – rather than poverty. The second
(cross-indicator) cutoffs categorise the population into four levels of
GNH, creating a ‘happiness gradient’. The data come from a nationally
representative multi-topic survey that is representative by district and
region, and the GNH Index and associated statistics can be used to show
the joint distribution of achievements each respondent enjoys, as well as
any insufficiencies she experiences. Our assessment based on a series of
robustness tests included here is that this index’s methodology and results
are rigorous and that they can be used to generate policy-relevant insights
and analyses. As the field of multidimensional measurement of well-being
is entering a period of intensive innovation, this academic study addresses
some of the common issues which arise when designing multidimensional
measures of wellbeing in detail. By documenting the GNH Index
methodology and findings we hope to share a tool which can be adapted
by others engaged in the development of measurement tools that will
advance GNH...
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Keywords
WELL-BEING, MEASUREMENT, INDICATORS, QUALITY OF LIFE, POVERTY, ECONOMIC INDICATORS, POLITICAL PARTICIPATION, GOVERNANCE, HOUSEHOLD INCOME, HUMAN DEVELOPMENT, BHUTAN