(GNH; Wylie: rgyal-yongs dga'a-skyid dpal-'dzoms) was designed in an attempt to define an indicator that measures quality of life or social progress in more holistic and psychological terms than only the economic indicator of gross domestic product (GDP).
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Origins and meaning
The term "gross national happiness" was coined in 1972 by Bhutan's fourth Dragon King, Jigme Singye Wangchuck, who has opened Bhutan to the age of modernization soon after the demise of his father, Jigme Dorji Wangchuk. He used this phrase to signal his commitment to building an economy that would serve Bhutan's unique culture based on Buddhist spiritual values. At first offered as a casual, offhand remark, the concept was taken seriously, as the Centre for Bhutan Studies, under the leadership of Karma Ura, developed a sophisticated survey instrument to measure the population's general level of well-being.
Like many psychological and social indicators, GNH is somewhat easier to state than to define with mathematical precision. Nonetheless, it serves as a unifying vision for Bhutan's five-year planning process and all the derived planning documents that guide the economic and development plans of the country. Proposed policies in Bhutan must pass a GNH review based on a GNH impact statement that is similar in nature to the Environmental Impact Statement required for development in the U.S.
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