Bhutan's Prime Minister Tshering Tobgay Introduces 'Gross National Happiness 2.0' Amid Economic Crisis

Bhutan's newly elected Prime Minister Tshering Tobgay is re-evaluating the country's guiding philosophy of 'Gross National Happiness' (GNH) amidst an economic crisis. The country faces significant challenges, including a youth unemployment rate of 30% and poverty affecting one in eight people.

In an interview with CNBC on May 10, Tobgay discussed the need to balance economic growth with citizen well-being. When asked if Bhutan's quest for national happiness must change, he replied, 'Yes and no. Yes, because we've got to grow our economy... Should we throw caution to the wind? No. We can grow, and we can grow in a manner that is balanced.'

Why this matters:

Bhutan's re-evaluation of its 'Gross National Happiness' philosophy has implications for the global economy and development strategies. If successful, it could serve as a model for other countries seeking to balance economic growth with citizen well-being.

The Prime Minister acknowledged that Bhutan has 'failed economically' and emphasized the importance of strengthening the economy in a sustainable, equitable, and balanced manner. This approach includes prioritizing social progress, environmental protection, cultural preservation, and good governance.

Bhutan's unique approach to development, Gross National Happiness, was introduced by former King Jigme Singye Wangchuck in the early 1970s. The philosophy prioritizes citizen well-being over traditional economic measures like GDP. However, the current economic crisis has sparked a debate on how to balance growth with the well-being of its citizens.

Tobgay also discussed Bhutan's cautious approach to tourism. The country reopened its borders with an increased 'Sustainable Development Fee' of $200 per person per day in September 2022, which was later lowered to $100 for adults and $50 for children in 2023 to entice travelers to stay longer. Tobgay hinted that the fees might increase again once Bhutan reaches its target of 300,000 tourist arrivals per year.

In his interview, Tobgay remarked, 'We're going to have a quota of 300,000 tourists... And if the demand to come into Bhutan to visit far outstrips our capacity to welcome them, we might even have to increase sustainable fees at that time.' He added, 'That will be a welcome development.'

The economic crisis in Bhutan has led to a reassessment of its development strategies. With the introduction of 'Gross National Happiness 2.0,' the country aims to find a new equilibrium that fosters economic growth while maintaining its commitment to sustainability and the well-being of its citizens.

Bhutan's journey towards balancing economic development with the well-being of its people is ongoing. As the country navigates its economic challenges, the principles of 'Gross National Happiness 2.0' will play a crucial role in shaping its future.

Key Takeaways

• Bhutan's PM re-evaluates "Gross National Happiness" amidst economic crisis.
• Country faces 30% youth unemployment and 1 in 8 people in poverty.
• New approach, "GNH 2.0", balances economic growth with citizen well-being.
• Tourism fees may increase to $200/day once 300,000 tourist target is met.
• Bhutan's model could inspire other countries to prioritize citizen well-being.