The last forty years of Bhutan’s development experience have been devoted to strengthening these pillars. Today, Bhutan is well on the way to becoming free from dependence on foreign aid while public policy and finance are dedicated to ensuring that there is equitable access to all basic services and opportunities and that the gap between the rich and poor does not widen. With 80% forest cover and close to 50% of the nation’s territory protected as parks, our natural environment is healthy and resilient. Having declared that

Bhutan will always remain carbon neutral, we are also engaged in promoting our country as an all-organic brand within a green and sustainable economy that capitalizes on our geo-economic advantages. Cultural heritage and traditions founded on timeless human values continue to guide our thinking and every-day life, and our unique identity grows more secure even as we have become an active member of a globalized world. And our commitment to good governance has given us a kind of democracy that has truly empowered the voter as opposed to merely delivering its external trappings.

We have thus far, managed to balance modernity with tradition, the material with spiritual and cautious growth with sustainability and equality. This is largely attributable to the internalized nature of GNH values in the people themselves. However, we can no longer take for granted that good intuitive traits will continue to guide national policy and decision-making. Globalization, propelled by communication and information technology and the unrelenting forces of consumerism will cause perceptions and values to change.

These concerns and the growing international interest in GNH have persuaded my country to appreciate that unless GNH renders itself quantifiable with a clear yardstick, it will fail to guide practical policies and programs in a world where anything that cannot be measured is not worth pursuing.

The Royal Government has thus, established and operationalized a GNH index. In so doing, we have had the benefit of support and contributions from many academics and practitioners around the world. Such collegiate effort was greatly enhanced by the international conferences on GNH that were held in Bhutan, Canada, Brazil and Thailand and many other national level conferences around the world.

In presenting the index, I would like to explain that it is an elaboration of the four pillars of GNH into nine domains which are measured against 33 indicators and 124 variables. These are:

1. Psychological Well-being: This domain encompasses life satisfaction, positive emotions, negative emotions and spirituality. As collective happiness is the main goal under a GNH society, psychological wellbeing is of primary importance to gauge the success of the state in providing appropriate policies and services.

2. Health Status: This domain comprises self-reported health status, healthy days, long-term disability and mental health.

3. Education: The four indicators under this domain are literacy, educational qualification, knowledge and values.

4. Culture: The distinctive culture of Bhutan facilitates sovereignty of the country and provides identity to the people. It is also seen as a resource for cushioning Bhutan from some of the negative impacts of modernization. The four indicators under this domain include language, artisan skills, socio-cultural participation and Driglam Namzha or the Way of Harmony.

5. Time Use: This analyzes the manner of time spent within a 24-hour period, as well as activities that fall under longer periods. There are only two indicators, namely working hours and sleeping hours under this domain.

6. Good Governance: Political participation, political freedom, service delivery and government performance are the four indicators are this domain.

7. Community vitality: The concept of GNH includes the social capital of the country, which is sustained through co-operative relationships and social networks within the community. The four indicators are social support, community relationships, family and victim of crime.

8. Ecological diversity and resilience: Bhutan has always recognized the central role environmental factors play in human development. So, the four indicators are pollution, environmental responsibility, wildlife and urban issues.

9. Living standards: The living standards domain refers to the material wellbeing of the Bhutanese people. It is measured through household income, assets and housing quality.

The above GNH Index has been developed and improved over the last 7 years or so based on the findings of three GNH surveys conducted between 2006 and 2010.