Happiness Index --- Be happy! It's not all about economic growth

Straits Times, May 25, 2011

Be happy! It's not all about economic growth

OECD launches 'happiness index' to better measure quality of life
PARIS - PERHAPS a country's success is not just a matter of economic growth after all.

The tacit acknowledgement came from no less than the Organisation for Economic Cooperation and Development (OECD), which on Tuesday launched a so-called 'happiness index' to better measure the quality of life.

Deviating from its focus on hard economic figures - such as gross domestic product - for the first time in 50 years, it announced its 'better life initiative', which measures more qualitative factors such as general satisfaction, security and work-life balance.

The new index marks a significant change for the OECD, which for half a century has been known for its orthodox approach to economics and its promotion of structural reforms to boost GDP growth. Consisting of 34 member nations, the economic organisation was founded in 1961 with an aim to stimulate economic progress and world trade.

Yesterday, it said it was time to move beyond GDP when measuring the success of societies.

'This index encapsulates the OECD at 50, pushing the boundaries of knowledge and understanding in a pioneering and innovative manner,' said OECD secretary- general Angel Gurria. -- AFP, AP

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Taking the pulse

IT WAS Bhutan that started it all, with its famous Gross National Happiness which measured the country's progress and well-being in terms of happiness rather than in dollars and cents.
Coined in 1972, the index eschewed Gross Domestic Product and other economic numbers for more intangible indicators such as psychological well-being, culture and health.

Few people took it seriously until several countries in recent years started to embrace the wisdom of measuring success similarly. Fans note that 'happynomics' can help guide governments in policymaking.

Last year, Britain said it will introduce a 'happiness index' to gauge its populace's psychological and environmental well-being, and could thus become the first Western country to officially monitor general happiness.

France and Canada are reportedly considering similar initiatives, while China this year included a happiness index in its annual competitiveness study of the country's cities.

Bhutan's index has nine indicators to reflect the components of happiness: ecology, psychological well-being, health, education, culture, living standards, time use, community vitality and good governance.

The Organisation for Economic Cooperation and Development's 'better life initiative' - launched yesterday - has 11: housing, incomes, employment, social relationships, education, the environment, the administration of institutions, health, general satisfaction, security and the balance between work and family.