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

Citation

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