Nestled in the eastern Himalayas, Bhutan is celebrated as the “kingdom of happiness,” a moniker stemming from its unique focus on Gross National Happiness (GNH) as a measure of development. However, this small nation, bordered by India and China, is currently grappling with significant challenges that threaten the equilibrium of its happiness-centric approach. Rising youth unemployment and unprecedented emigration are casting doubts on the efficacy of Bhutan’s celebrated economic model.
The Concept of Gross National Happiness
First introduced in 2008, GNH aims to assess the well-being of Bhutan’s citizens through extensive surveys comprising 148 questions. The latest survey, conducted in 2022, revealed an average happiness score of 0.781 out of one, indicating a slight increase of 3.3% since 2015. However, while these figures may suggest contentment, they do not capture the underlying issues affecting the populace.
According to the ruling People’s Democratic Party’s 2023 manifesto, Bhutan is facing unprecedented levels of emigration. Last year, 1.5% of the population sought opportunities abroad, particularly in Australia. A striking contrast to the happiness narrative, the Oxford World Happiness Report—an independent measure inspired by Bhutan’s GNH—ranked the country 95th out of 156 nations in 2019, a decline from 84th in 2014.
Economic Strains and Unemployment
Bhutan, slightly larger than Belgium and home to fewer than 800,000 people, is experiencing troubling economic indicators. The nation’s youth unemployment rate, which has been rising since 2004, reached a staggering 28.6% in 2022. Additionally, the labor force participation rate for women has decreased to just over 50%, down from 61.2% in 2019. Alarmingly, one in eight Bhutanese citizens lives in poverty.
The COVID-19 pandemic severely impacted tourism—one of Bhutan’s primary income sources—leading to a dramatic decline in visitors. In 2023, the country saw only a third of the tourist traffic recorded in 2019. To mitigate losses, the government doubled the daily sustainable development fee to $200 in 2022, only to reduce it by half the following year.
Shifting Economic Priorities
In a bid to revitalize the economy, the government has invested millions in cryptocurrency mining, a move criticized for its incongruence with Bhutan’s sustainability goals. Prime Minister Tshering Tobgay has proposed a “Gross National Happiness 2.0,” suggesting a shift towards a more economically focused framework due to perceived failures in economic performance.
This transition has also been accompanied by concerns over civil liberties. Bhutan currently ranks 90th in the world for press freedom, down from 33rd, according to the 2023 World Press Freedom Index. Furthermore, nearly 20% of respondents in the 2022 GNH survey expressed a lack of confidence in their right to join a political party of their choice.
Voices of Concern
The situation has prompted Bhutanese citizens, particularly the youth, to express their apprehensions about government repression. One young citizen declined to speak on the record, fearing repercussions for criticizing the government. Om Dhungel, a Bhutanese refugee in Australia, argues that while the GNH concept is commendable, it does not reflect the government’s treatment of human rights.
“Why would people leave a land of gross national happiness?” Dhungel questions, recalling the idealism surrounding GNH during his tenure as a telecommunications engineer in Bhutan. He highlights the disconnect between government policies and the lived experiences of ordinary Bhutanese.
Addressing Migration and Investment
As Bhutan aims to stem emigration and bolster tourism, it has announced ambitious plans to develop Gelephu Mindfulness City. This project is controversial, as it seeks to occupy land where around 10,000 residents currently live, raising fears of displacement. Human rights activists warn that the government’s moratorium on land sales in the area could prelude unjust evictions.
Ram Karki, a Bhutanese refugee human rights advocate, emphasizes that the situation should alarm the international community. He asserts that dissent is stifled in Bhutan, and projects such as the Mindfulness City reflect broader governmental control.
Historical Context and Ongoing Challenges
The plight of the Bhutanese people is further complicated by historical injustices, particularly against those of Nepali descent. A census in the 1980s categorized individuals based on ethnicity, leading to mass expulsions. Today, approximately 108,000 Bhutanese refugees remain in camps in Nepal, with many fearing further persecution.
Human Rights Watch has long called for the release of political prisoners in Bhutan, who are often held on dubious charges after unfair trials. The government’s current approach to development and human rights raises critical questions about the sustainability of its happiness model.
A Different Perspective
Chimmi Dorji, president of the Association of Bhutanese in Perth, Australia, offers a contrasting view, suggesting that the current emigration trend is merely a reflection of modern global mobility. He believes many Bhutanese students and professionals abroad intend to return home, maintaining that Bhutan remains “paradise on earth.”
However, Dhungel points out that the mass exodus of skilled individuals in the 1980s and 90s has severely impacted Bhutan’s economic landscape. “A significant number of people with skills had to flee the country. That was a big brain drain,” he asserts.
