Thursday, 29 January 2009

'Read' Recommendation - 'A measure remodelled' from the the FT

The financial crisis and the subsequent economic downturn has required the western economies to do a bit of soul-searching.

This is an interesting analysis of GDP as an economic measure (Read here - A Measure Remodelled from FT). It illustrates how factors like quality of living and environmental costs are unaccounted. According to the article, there are some other models of measurement in development. Although GNH isn't mentioned, the new models seem to corroborate our approach.

Since GDP is flawed - Is it time for GNH or something similar to take centrestage?

UPDATE -

I did a short post recently (10 April) 'Getting your head around happiness' and has reference to two books.

10 Comments:

Opinionated Bhutanese said...

I think a balance of GNH and GDP will be better. China and Russia blame this global crisis on USA. They say this crisis is mainly due to American culture of buying on credit, in order words, buying without actually having the money. It is hard to imagine that such a simple reason comprehensible to a village-folk are missed by those so called money gurus (CEOs) who earn in millions for their expertise.

Bhutanese Blogger said...

True.

As the FT article notes and as you say, it looks like there will be a dashboard of indicators so that all factors are considered.

Destination Infinity said...

GNH is a wonderful concept, and worthy to be adopted even by the bigger countries. I think a detailed post on this would be great from you. If you have already done it, please share the link.

Destination Infinity

Anonymous said...

I am uncomfortble with GNH. My first discomfort is with the 'Gross'. Anything that's measured in gross terms is not so appealing to me. I find it misleading. I am not convinced that every single individual can be happy. It is possible that the nation will be happy, based on the pre-determined pillars and indicators. Whereas, I would prefer to see every single individual capable enough to firstly decide what'll make them happy and secondly, choose a path that'll make them happy. It would be unfair to assume that our farmers will remain happy with farming; that our youth will be happy with small and medium enterprises in the village; while they are aware that the people in towns are living comfortable or luxurious lives. How is GNH going to strike a balance between 'what we have' and 'what we desire to have'? I think happiness cannot be imposed. Happiness is a personal choice. Even as a parent, we cannot tell children to become a doctor because we think it is good. They might like to be an engineer or a teacher or an administrator or even a monk. We can only counsel them on the advantages and benefits of one over the other. At the end, they will become what they are capable of becoming. What is more important is whatever they become and are happy with, they should be able to contribute to the national economy and security as responsible citizens.

Anonymous said...

I am trying to know who owns this blog. Will you tell me?

Bhutanese Blogger said...

Thanks for all your comments:

Destination Infinity - I will do a short write up on GNH and let you know. You may like to visit www.bhutanstudies.org.bt. They have a good collection of research works and have seemed to have developed a 'single number' to represent the happiness within a commmunity.

As indicated by Anon 14:34, it is true that things measured in the aggregate doesn't always reflect the the situation of all the individuals. That is a trade-off between accuracy and simplicity when we require a single number to represent a population.

Happiness is indeed a personal choice and it is wrong to view that GNH is an imposition of what happiness is to an individual.

Being subjective, Happiness cannot be measured. Therefore, GNH or any similar index will measure other factors like spirituality, strength of community, education, health, etc. which provide for a good quality of life. (see http://www.grossnationalhappiness.com//gnhIndex/resultGNHIndex.aspx to see what was considered by CBS). GNH alone may not be a good measure and as mentioned in the FT article and by the first commentator, it is more likely that a set of indices would be used.

Anon 14:14

You can mail me. Please find my email within the blog title.

Cheers

Anonymous said...

Well, Anon 12:55, I'm trying to guess the blogger too. I feel I've met this person. At many instances, but not really been able to interact with him much. Couldn't get across to him somehow. However, I did manage to study him from a distance. He is extremely intelligent. Well versed, particularly in economics and finance. Takes great interest in Education. Participates in GNH works. Very practical. Sense talker. Smooth too. Good conversationalist. Good sense of humour. A pretty balanced character. I think he wears specs. He has only one child, if I'm not mistaken. He's in his 30's only. He's basically a sought after free lance consultant. He could actually make a very good university professor.

Anonymous said...

Thank you very much for your clarification, Bhutanese Blogger. I have probably misunderstood or misinterpreted the GNH philosophy.

However, I still do feel uncomfortable because ‘happiness is a personal choice'. What makes 'good quality life', of course, cannot be debated. Everybody needs to be 'healthy' and 'educated' in order to make it possible for ourselves to do something in life. Everybody needs to make a living in order to be able to sustain the good quality of life. Everybody needs to be emotionally stable to be able to cope with challenging situations in life. Everybody needs spiritual awareness to check ourselves from getting too materialistic. And, it is desirable to have a sense of belonging and responsibility to one's community for peace, harmony and development.

However, not every healthy and highly educated person is happy, even if they are making a living. Perhaps, not happy with how they are making the living. They may not have had access to other opportunities that they were hoping for. The range of opportunities were perhaps very limited out there.

Or, perhaps, they are not happy because they are not able to buy their own land due to limited choices. All the best and good plots are taken and we have the policy of 70% forest cover.

Or, perhaps, they are just living hand to mouth owing to poor salary or too small business but have the desire to accumulate some basic assets.

The bottom line - are we providing adequate opportunities for all educated individuals to choose a living that they believe will make them happy? Do all our policies support 'maximisation of the happiness of all Bhutanese and enabling them to achieve their full and innate potential as human beings' (Vision 2020, cited in the Tenth Plan)? Are we absolutely certain?

Bhutanese Blogger said...

Anon 23:36 -

Thank you very much for your note again.

True that it is not for a government to decide what should constitute happiness or well-being of a citizen.

GNH or any other index is not an end in itself unlike the GDP. GDP looked at measuring productivity and hence every nation wanted to increase it.

GNH or any other index are only means or tools to understand if the right systems and policies are in place, and adequate and equal opportunities are available to the people. The ultimate goal is to improve the quality of lives of the people. When we have GNH as our guiding principle, I can only hope that we have the right policies and programs in place.

I have added a link of an organisation called 'New Economics Foundations' on the sidebar under 'what we follow online'. The work CBS has done is something on their lines. I suggest you have a look at it.

And keep your comments coming.

Anon 22:45

Thanks you very much for your comments. I only wish I was that good...

Cheers

Anonymous said...

Thank you, Bhutanese Blogger. I particularly like the explanation below. It makes better sense.

"GNH or any other index are only means or tools to understand if the right systems and policies are in place, and adequate and equal opportunities are available to the people. The ultimate goal is to improve the quality of lives of the people. When we have GNH as our guiding principle, I can only hope that we have the right policies and programs in place."

I guess the GNH 'indicators' that the GNHC is working on in consultation with others are also meant as a 'guide' rather than a 'measuring tool'. I had actually thought these indicators would be helpful in the development of measurable Education standards.

More comments after I've read some more materials on GNH (national) and well being (international) thoroughly.

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