Inspired by Bhutan

Pleased to announce our new project 'Inspired by Bhutan'. You can follow us on www.inspiredbybhutan.com

Talking Matters

Ms. Namgay Zam invited me to talk about my relation with Bhutan, Corporate Responsibility and Gross National Happiness on BBS1, the national TV channel in Bhutan. She is a very professional anchor who puts her guests at ease. I'm grateful that I had this great opportunity to share my ideas with the public.

Can happiness be measured? - two different views

When considering new ways of measuring progress of a nation such as Gross National Happiness, Happy Planet Index, EU Beyond GDP, OECD Better Life Index, etc, there are experts who argue for and against. This short interview on the Guardian with Julian Baggini and Lord Richard Layard is a recent snapshot of this exciting debate.


A unique workshop with speakers from Bhutan, Hungary, US and Europe to be held in Brussels, Belgium in November also aims to contribute to this discussion through looking at the application of Buddhist Values in Business.


To learn more about this event and register, click HERE. 

Gross National Happiness explained for beginners

Growth in Buddhist Economy by Jeffrey Sachs

Recently my friends drew my attention to articles of Jeffrey Sachs, Professor of Economics at Columbia University, inspired by Bhutan. One of them titled 'Growth in a Buddhist Economy' can be read clicking HERE

I found the article very interesting and commented on it as follows:

"I'm happy that Mr. Sachs highlights Bhutan as a unique country with enlightened public policies and political leadership dedicated to put these policies in practice. Many other countries, including the US, many times lack both, but especially leadership.

I was a volunteer in Bhutan - which is about 6% of the size of France - working with young entrepreneurs funded by the country's first registered charity, the Loden Foundation. I saw many parts of the country and I spoke with various people from taxi drivers to elected officials, from drug abusers to monks and former monks, from journalists to tourist guides. I was impressed by the concept of Gross National Happiness and the way the government, religious leaders, and the King are implementing it.

However, I also became concerned about rapid urbanization and its side effects such as consumerism, pollution, crime, youth unemployment, drug abuse, social disintegration, imported bad quality food, new diseases, etc. Of course, these issues are still limited in scale, but dynamically increasing since cable television, foreign visitors and the Internet bring new dreams to people that in many ways challenge their traditional culture based on communal rural life, frugality and Buddhism. As new consumer goods, entertainment services and well marketed cultural habits such as Birthday parties, Valentine Day, wedding ceremonies, Halloween, even Santa Claus, are imported to the country, people's attitudes are gradually changing without realizing the long term negative consequences. They want more or different things rather than what they really need and what their natural environment can bear. I saw Coca-Cola drinks and potato chips piled on the altar offered to the temple which was located in the middle of the forest in high mountains! This means people bother to buy and then bring plastic garbage walking hours to their sacred places, because they attribute value to these unhealthy food items.

Such a transition Bhutan is currently going through, or any large scale economic and social change, requires good leadership as well as good experts and advisors independent from business interest to effectively influence and pressurize domestic and international leaders to make the right decisions that work for the majority of citizens and for the Planet. Meetings and discussions and articles and books are great and important, but I'm afraid we are all running out of time and we must act now to save Bhutan for a better world and create a better world for Bhutan."

More on Buddhist Economics in my blog HERE

Bhutan spreads happiness to the United Nations

Graffiti in Thimphu

Recently, Bhutan has put the politics of happiness on the UN's agenda with the support of 66 countries such as the UK. The UN General Assembly has adopted a non-binding resolution that aims to make happiness a "development indicator". Bhutan's ambassador Lhatu Wangchuk said the next step was to help UN members better understand the concept. He also said that UN diplomats should sleep more and spend more time with their families to be happier. Read the article HERE.


In Bhutan Gross National Happiness (GNH) is a national development framework with key progress indicators different to those related of Gross National Product (GNP). Based on Buddhist values, the GNH indicators include nine dimensions:


1. Psychological Well-being
2. Time Use
3. Community Vitality
4. Culture
5. Health
6. Education
7. Environmental Diversity
8. Living Standard
9. Governance


On paper, this is an excellent approach to development that aims to overcome the weaknesses of our global material-centered, or 'stuff-based', economic and social system. However, as I saw it in Bhutan, practicing GNH is not without challenges. Rapidly changing Bhutanese society is currently facing new issues such as stress, diabetes, crime, drug abuse, consumerism and pollution, just to mention a few. The BIG QUESTION for me is how GNH, political leadership, and lessons from abroad will help society cope with these issues. 


I believe simply copying what others have done in the past would not help and Bhutan needs to come up with new solutions that work at least for this small country, if not for all of us.  I think Bhutan needs a quick, small, but inevitable dose of globalization and consumerism now in order to develop longterm resistance to them for the future and then re-create its own culture, value system and happiness. 

Buddhist Economics. What is it and why now?

I aim to make this blog a platform for different ideas and views. One way of doing this is to invite different people to share their thoughts and hopefully generate healthy discussions about subjects of mutual interest.

My first guest is Laszlo Zsolnai from Hungary with whom I have already spent several pleasant evenings in Brussels tasting some Belgian beer and discussing alternative approaches to our current economic system. Laszlo Zsolnai is Professor and Director of Business Ethics Center, Corvinus University of Budapest and Co-founder of the Buddhist Economics Research Platform. I was asking him about Buddhist Economics wishing to follow the interview with a more detailed discussion about Gross National Happiness in theory and practise.

When did you get introduced to Buddhist Economics?

I studied economics in the late 1970s. I was not ready to accept the basic dogma of modern Western economics that self-interest behaviour serves the common good. I always felt that something is wrong with the “greed is good” position. Reading E.F. Schumacher’s essay on Buddhist economics was liberating for me. It demonstrated that an alternative economic worldview is possible where the main function of economic activities is not to maximize material growth but to create sustainable livelihood for people and communities.      

What does Buddhist Economics mean?

Buddhist economics can be seen as a radical alternative to the Western economic mindset. Western economics represents a maximizing framework. It wants to maximize profit, desires, market, instrumental use, and self-interest and tends to build a world where “bigger is better” and “more is more”. Buddhist economics represents a minimizing framework where suffering, desires, violence, instrumental use, and self-interest have to be minimized. This is why “small is beautiful” and “less is more” nicely express the essence of the Buddhist approach to economic questions.

Is it a Western concept or was it originated in Buddhist countries?

I think Buddhist economics is a universal concept. It might be relevant for Buddhist and non-Buddhist countries as well. By reducing desires it can serve as a vehicle for reducing the society’s material metabolism and consequently its ecological footprint. I agree with the Thai Buddhist monk and philosopher, P.A. Payutto that one should not be a Buddhist or an economist to be interested in Buddhist economics. Buddhist ethical principles and their applications in economic life offer a way of being and acting, which can help people to live a more ecological and happier life while contributing to the reduction of human and non-human suffering in the world.  

Is there any country in the world that, at least partly, follows the concept of Buddhist Economics?

Bhutan can be mentioned as an example where Buddhist economics is influencing economic policy. Another example is the Sarvodaya movement in Sri Lanka where thousands of people and hundreds of villages cooperate to develop a “Right livelihood”. In Thailand the Santi Asoke movement are experimenting with self-reliant economic models. Japan’s extremely successful eco-efficiency technologies are influenced by the Buddhist ethics of “not wasting”.      

What has to change in Europe to follow Buddhist Economics principles?

The self-centered way of life, the “greed culture” of Europe and North-America should be changed. The economic crisis of 2008-2010 produced financial losses of billions of USD in the form of poisoned debts, the decline of stock prices and the value depreciation of properties. The prospect of future economic growth supposed to be the guarantor of the indebtedness of households, companies and economies. Today we experience a considerable downscaling of our economies.

The global warming survival guide created by the American weekly magazine, Time,  suggest the following: "There is an older path to reducing our impact on the planet that will feel familiar to Evangelical Christians and Buddhists alike. Live simply. Meditate. Consume less. Think more. Get to know your neighbors. Borrow when you need to and lend when asked. E.F. Schumacher praised that philosophy this way in Small Is Beautiful: Amazingly small means leading to extraordinarily satisfying results." 

What is the link between Buddhist Economics and Gross National Happiness?

The Gross National Happiness (GNH) is a policy framework to realize the main principles of Buddhist economics. GNH can be regarded as the next stage in the evolution of indicators for sustainable development, going beyond merely measuring values that can be expressed in money.

Bhutan’s leaders define GNH in terms of four pillars: economic development, good governance, cultural preservation and nature conservation. The benefit of this model is that it includes both GDP - the ‘lowest’ level bottom line - while complementing it with ‘higher level’ components. Political decisions are made on the basis of trade-offs. For example, when faced with the choice between providing employment versus the preservation of environment, most governments would choose the former. The GNH model shows that this trade-offs should be made in the context of a hierarchy of values. Otherwise policymakers will sacrifice higher level values for lower level ones. 

How do you feel about the UK and French governments considering measuring well-being and happiness of their citizens?

Trying to measure well-being and happiness - instead of simply measuring economic growth - is a good step forward. The Stiglitz & Sen & Fitoussi Report presents an advanced view on sustainability and social well-being. We should not be interested in the well-being or happiness of people only but also in the sustainability of their living. Well-being at the expense of nature and future generations cannot be accepted. At present most of the Western countries exceed their right “earth share” by 250-600 %.  

Is it something you would suggest to the Hungarian government?
 Perhaps the most urgent task for the Hungarian government (and also for other Western governments) is to reduce the extremely high level of indebtedness of the country. The high level of debts presents enormous pressure on people and communities and would force government to follow irresponsible economic growth paths. Another important task is not to engage in nature-destroying technologies such as GMO (genetically modified organism) production and nuclear energy generation.      

What are the available resources about Buddhist Economics?

We developed the Buddhist Economics Research Platform which collects the most important contributions in Buddhist Economics. I am editing a new book on Buddhist economics for Springer which will be published in 2011. 

(February 2011)