Gross National Happiness - GNH

AAA

DEFINITION of 'Gross National Happiness - GNH'

An aggregate measure of a country's national production, in the vein of the gross national product or gross domestic product. Gross national happiness (GNH) attempts to measure the sum total not only of economic output, but also of net environmental impacts, the spiritual and cultural growth of citizens, mental and physical health and the strength of the corporate and political systems.

INVESTOPEDIA EXPLAINS 'Gross National Happiness - GNH'

Not surprisingly, any measure of GNH is going to be rife with estimates. Things like the depletion of environmental resources, for example, are impossible to determine with accuracy. Other aspects, such as spiritual or cultural growth can only be measured by subjective, rather than objective, means.

As future economists work with the core values of GNH, new measures should allow investors to more accurately view the long-term effects not only of economic growth, but also the depletion of natural resources and the overall well-being of citizens. Green economics shares the same ideology and many of the same values as GNH creators and proponents.

The term was first attributed to Jigme Singye Wangchuck, the King of Bhutan in the early 1970s. Bhutan sought a measure of growth that reflected the nation's deep commitment to maintaining cultural, spiritual and environmental-sustainability standards. Updated measures of GNH try to incorporate variables that can be objectively measured in the hopes of applying them to the advanced economies of the Western world.

RELATED TERMS
  1. Gross National Product - GNP

    An economic statistic that includes GDP, plus any income earned ...
  2. Utility

    1. An economic term referring to the total satisfaction received ...
  3. Green Economics

    A methodology of economics that supports the harmonious interaction ...
  4. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It ...
  5. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  6. Hedonic Treadmill

    The tendency of a person to remain at a relatively stable level ...
Related Articles
  1. Here we look at the major fund categories that exist for investors seeking international opportunities, as well as the advantages and disadvantages of these funds.
    Investing Basics

    Broadening Your Portfolio's Borders

  2. Economics

    The Importance Of Inflation And GDP

  3. Economics

    What Is An Emerging Market Economy?

  4. Active Trading

    The Advantage Of Intermarket Analysis

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center