What is the 'Gross National Happiness - GNH'

The Gross National Happiness (GNH) is 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.

BREAKING DOWN '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. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  2. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  3. National Income Accounting

    A term used in economics to refer to the bookkeeping system that ...
  4. Gross Income

    1. An individual's total personal income, before accounting for ...
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
  6. Macro Accounting

    Accounting for the total or aggregate economic activities of ...
Related Articles
  1. Investing

    Deadly Flaws In Major Market Indicators

    These indicators give investors and experts some data to work with, but they're far from perfect measures.
  2. Insights

    What's the GNP?

    Gross national product (GNP) is one of many metrics economists use to measure a country’s economic output. For any one year, GNP equals the market value of all the goods and services produced ...
  3. Taxes

    What is Gross Income?

    Gross income is an individual’s total income before taxes and other adjustments are considered.
  4. Investing

    How Does National Income Accounting Work?

    National income accounting is an economic term describing the system used by a country to gather data and determine aggregate economic activity.
  5. Investing

    Understanding Gross Sales

    Gross sales represents the overall revenue of a company through its sales activities.
  6. Investing

    The Gross Margin

    A business's "gross margin" is a rough gauge of how profitable its operations are. It measures how much sales revenue the company retains after all of the direct costs associated with making ...
  7. Small Business

    How Gross Margin Can Make or Break Your Startup

    Find out how your startup's gross margin can impact your business, including why a mediocre margin may spell disaster for a budding business.
  8. Insights

    How To Calculate The GDP Of A Country

    A nation’s gross domestic product measures the monetary value of all of the goods and services it produces.
  9. Insights

    The Functional Difference Between GDP and GNP

    Both gross domestic product and gross national product try to measure the market value of all goods and services an economy produces.
  10. Insights

    Economic Growth

    Economic growth happens when the market value of the goods and services in an economy increase in one time period as compared to a prior time period.
RELATED FAQS
  1. What is the difference between gross margin and gross profit?

    Understand the difference in definitions between gross margin and gross profit, and learn what each represents as a metric ... Read Answer >>
  2. What are the differences between gross profit and gross margin?

    Learn how gross profit and gross margin are calculated and how each is used in fundamental analysis. Generally, these numbers ... Read Answer >>
  3. Is gross national income (GNI) or gross domestic product (GDP) a better measure of ...

    Discover why gross national income may be a better metric of an economy than gross domestic product when an economy has substantial ... Read Answer >>
  4. Why would a country's gross domestic product (GDP) and gross national income (GNI) ...

    Understand the economic metrics, gross domestic product, or GDP, and gross national income, or GNI, and why the two evaluations ... Read Answer >>
  5. What are the best measurements of economic growth

    Learn how economists and statisticians track economic growth and why GDP might not be the best measurement of real economic ... Read Answer >>
  6. What are the differences between gross profit and net income?

    Find out how companies determine gross profits and net income, and how these figures provide quick snapshots of their financial ... Read Answer >>
Hot Definitions
  1. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  2. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  3. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  4. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  5. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  6. Four Percent Rule

    A rule of thumb used to determine the amount of funds to withdraw from a retirement account each year. The four percent rule ...
Trading Center