Global recognition has been accorded to Bhutan’s governing concept of “Gross National Happiness” for striking a balance between economic expansion and the welfare of its people.

However, recent talks by the nation’s recently elected prime minister, Tshering Tobgay, about “Gross National Happiness 2.0” indicate that some sort of shift is under way as the nation battles an economic crisis that has left it “teetering on the brink of collapse.”

Since Jigme Singye Wangchuck, the previous monarch, launched GNH in the early 1970s, it has been the guiding concept of Bhutan.

But has Bhutan come to a point where its pursuit of national happiness needs to alter, given that the country’s young unemployment rate is around 30% and one in eight citizens live in poverty?

In an interview with the media on May 10, Tobgay said, “Yes and no.” “Yes, since our economy needs to expand.”

However, he went on, the principles of GNH will not be abandoned.

Should we eschew prudence altogether? No. We are capable of growing, and we can do it in a balanced way.

According to him, Bhutan’s economy will keep growing in sustainable, fair, and methods that are “balanced with social progress, environmental protection, cultural protection, and good governance.”

“We have achieved success in these areas that no one could have predicted,” he declared.

However, he also hinted that the previous premise could have been overly biassed.

“We’ve been extremely cautious, very conservative, so we have lagged,” he said. “We have failed economically.”

According to Tobgay, Bhutan has likewise approached tourism with caution.  

Tobgay told CNBC, “We have been very cautious in how we have opened ourselves to the rest of the world as far as tourism is concerned.” “We have exercised extreme caution and conservatism.”

He went on to say that if Bhutan made a mistake, it was in favour of sustainability and conservation.

“Right now, we are paying for our caution.”

Bhutan’s tourist sector is rebounding more slowly than that of other Asian nations. The number of foreign visitors to the nation in 2023 accounted for one-third of that in 2019.

Since it reopened in September 2022, the nation has altered its contentious “Sustainable Development Fee” three times: originally, it was raised to $200 per adult per day, then it was lowered twice.

Tobgay claimed that the modifications caused “a lot of confusion.” “Tourism is starting to pick up even as we speak, but not to pre-pandemic levels.”

However, Tobgay stated that Bhutan is not abandoning its “high value, low volume” approach to tourism in spite of the potential economic benefits of mass tourism.

Tobgay stated, “To be honest, I think $200 per day as a sustainable development fee many tourists are willing to pay.” Currently, the price is $100 per adult per day.

According to him, Bhutan’s goal remains to boost tourism “while at the same time controlling the numbers.””

One way to “generate the type of jobs that our able, our very capable youth aspire for” is through the nation’s rapidly growing tourist sector, he stated.

Reuters reports that thousands of young people from Bhutan have fled the nation in pursuit of jobs overseas. According to the research, 1.5% of Bhutan’s population migrated to Australia in the 11 months before May 2023 specifically in search of employment and skill development.

“We anticipate that this will only be a short-term issue, giving us more time to boost our economy through tourism and other initiatives as well,” Tobgay stated. “After that, our children will stay here. Those who are working outside will go back home having gained valuable experience.”

(Adapted from CNBC.com)

Categories: Creativity, Strategy, Sustainability, Uncategorized