GNH instead of GDP?

Consumer mania has dominated the U.S. economy for the last decade or two ”“ 70 percent of the gross domestic product at last count. The GDP, a system beloved by economists, is now being questioned by people with more interest in the quality of life than the tracking of money changing hands, the basis for the GDP.

Now that the age of consumerism may be drifting down to a more manageable level as the result of the current recession, we may be ready for a new measure for economic well-being. The concept of an economic policy called “gross national happiness” was formally launched in Bhutan in 1972 as a reaction to outside pressure to encourage the tiny economy to expand, largely based on agriculture and forestry. The response of the then-King Jigme Singye Wangchuck was to shift focus from increased productivity to human well-being, hence the development of the GNH, based on Buddhist spiritual values. As Bhutan Prime Minister Jigme Thinley said, “The dogma of limitless productivity and growth in a finite world is unsustainable and unfair for future generations.”

For Western economists this is a truly challenging statement, if not profoundly disturbing. We should be concerned for our grandchildren if not our great-grandchildren? And the welfare of the planet?

If the reader has googled the pictures from space taken by astronaut Sunita Williams mentioned in the last column, the extraordinary beauty and the fragility of the Earth is vividly apparent. It is a finite piece of real estate, friends ”“ it cannot expand any more than an acre of land can expand beyond its limits.

Nor are its resources unlimited. It is astounding that this fact has to be mentioned, but expansion is so much a part of the American psyche that it will take quite a few severe jolts to bring this fact home. We are overdue for a more comprehensive metric of the U.S. economy, if not the world”™s.

The next level
The gross national happiness concept has evolved way past the simplistic structure of the gross domestic product. In 2006 Med Yones, president of International Institute of Management, moved the concept of the GNH to another level, treating it as a socioeconomic development metric.
According to Yones, there are seven development areas:

Economic wellness ”“ consumer debt, average income to the consumer price index and income distribution;
Environmental wellness ”“ pollution, noise and traffic;
Physical wellness ”“ physical health and severe illnesses;
Mental wellness ”“ usage of antidepressants and rise or decline in number of psychotherapy patients;
Workplace wellness ”“ jobless claims, job change, workplace complaints and lawsuits;
Social wellness ”“ discrimination, safety, divorce rates, complaints of domestic violence, family lawsuits, public lawsuits and crime rates; and
Political wellness ”“ quality of local democracy, individual freedom and foreign conflicts.

It”™s hard to imagine a healthy society that can ignore these seven areas but to this point they have not been factored into the U.S. economy. But the times, they are a-changing. Society is beginning to make changes on its own. To be sure, the economic downturn has encouraged a rethinking of priorities.

Consider these glimpses into the future. People have discovered they can grow food at home. The backyard vegetable garden has returned it seems, reminiscent of the “victory gardens” ofÂ WWII. If a backyard garden is not feasible, then supporting your local farmers”™ market is the next best thing. Or shopping at Mrs. Green”™s, Trader Joe”™s, Whole Foods ”“ all examples of a shift away from the corporatization of the food system, horrifically documented in the film “Food, Inc.”

But that”™s not all
While roof gardens were initially started as a way to cool a building in summer and warm it in the winter, the possibilities of vertical farming are now being considered.

Vertical farming would behave like a functional ecosystem where waste is recycled and the water is used hydroponically and thus available for reuse. This is a concept that is just beginning to show promise on a far larger scale. As the need to bring food production closer to those who need it grows exponentially the value of vertical farming grows, a concept doable in countless physical and environmental arenas.

Another dramatic change has been in reconsidering how we get around. Bicycles are back and cities are recognizing what a benefit they are to the urban environment. New York City is experimenting with closing Broadway in midtown during certain hours for bikers and pedestrians. Westchester County has a revived interest in biking not just for pleasure but as a means of getting to work. This is occurring at a time when overall vehicle miles traveled is slowly declining. Only a short time ago this would have been an inconceivable development and not everyone is convinced it is indeed happening.

Nonetheless fundamental changes are afoot and it doesn”™t take a lot of digging to find them. But what does biking and growing food have to do with the GNH concept? It”™s not completely clear but one thing it demonstrates is that people are happier if they have more control over their lives.

Are you ready for change?