It was first proposed in 1972 by Jigme Singye Wangchuck, the country's former King.
King Wangchuk said that instead of relying on Gross Domestic Product as the best indicator of Bhutan's progress, it should instead consider its "Gross National Happiness."
That was to be measured by its peoples' sense of being well-governed, their relationship with the environment, satisfaction with the pace of economic development, a sense of cultural and national belonging.
Pavan K Verma, India's ambassador to Bhutan and a leading social commentator, said the spread of the idea from remote Bhutan reflects the inadequacy of economic activity as a measurement of success.
"There are limits to the satisfaction economic growth by itself provides," he said. "There's a search to look beyond material fulfilment. There are many aspects of social life in countries as diverse as China and the United Kingdom which are falling apart, like family relations and community life. It is becoming an atomised, individualistic world. The Gross National Happiness looks at the quality of life, how much leisure time you have, what's happening in your community, and how integrated you feel with your culture."
It would be a mistake however, he added, if the idea of the Gross National Happiness was regarded as an alternative rather than a supplementary measurement. "You can't shut out material aspiration, economic development must be a part of it."
The high return rates of Bhutanese graduates studying abroad suggests there is something to "Gross National Happiness": most return home, even though salaries are significantly lower than overseas, Mr Verma pointed out.
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