Incorporating Gross National Happiness(GNH) into economy

Green and sustainable economic activities to be backed with incentives

Economic Development Policy – Much has been done to beef up the country’s economy, just as much has been said about the need to protect its environment that is underpinned by the gross national happiness (GNH) philosophy.

Lyonchhoen Jigmi Y Thinley said the government would incorporate the GNH philosophy into the country’s economic policies to promote a ‘green and sustainable economy’.

“We’ll give incentives, tax relief and bonuses to economic activities, promoting a green and sustainable economy with value addition and minimum impact on environment and culture,” the prime minister said.

He said this was already incorporated in the government’s final economic development policy (EDP) document, which will be made public next week.

Anything leading to the depletion of resources with minimum benefit to the country, he said, would be discouraged. He explained that exploiting and exporting raw minerals, for instance, would not receive priority. He assured that, rather than terminating the existing industries, they would be encouraged to add value to their products.

“We’ll go for economic activities that ensure highest return, while also ensuring the intergeneration equity in the sharing of natural resources,” the Lyonchhoen said.

Sources said the FDI policy was delayed on the advice of the cabinet to incorporate the philosophy of GNH into the document.

Lyonchhoen said the government would encourage FDI in activities that made Bhutan a regional services hub in health and wellness, education centre, tourism, financial services, data centres and ICT.

He said Bhutan was promoting hydropower, both inside and outside the bilateral framework, and the pursuit of renewable energy sources.

An important component of GNH in economic development, he pointed out, was also the promotion of Bhutan as an organic farming country, which would immensely benefit farmers exporting their products abroad.

The prime minister admitted that, although some of his colleagues in the cabinet, like Lyonpo Khandu Wangchuk and Lyonpo Yeshey Zimba favoured accession to WTO, he delayed the process.

He said they were still unclear to questions like how WTO could reconcile with Bhutan’s pursuit of GNH, its impact on Bhutan’s economy and, unlike EDP based on GNH, accession to WTO would mean indiscriminately opening up all barriers to external services and goods.

Bhutan could join WTO any time it wanted, but to withdraw would be difficult and a traumatic process, he said.

On bridging the divide between the big economic policies, GNH and the everyday needs of the people, Lyonchhoen said GNH was also about equitable development and empowerment through not just the ballot but also economic and social empowerment.

He said to achieve that equity and empowerment, the government was focusing on providing essential services like roads, water, electricity, and telecommunications among others.

Lyonchhoen explained that to promote equitable development, the government would provide incentives to businesses that opened in remote areas or those other than established places like Thimphu and Phuentsholing.

He also said the country saw an influx of imported junk food, which most developed nations refused to accept because of their contents.

Products such as carbonated drinks and other juices, which were harmful to people’s health and lead to environmental pollution, he said, would be taxed heavily.

“Some of the main elements of the economic policy will be creating an environment where the population grows as healthy, intelligent and educated people, who will have the capacity to turn into meaningful instruments the power of the ballot,” the prime minister said.

Giving the international context, the prime minister said the present macro economic policies was leading to crises similar to the global financial crisis, pollution and great disparities in wealth. Therefore, he said, Bhutan would have to pursue a different path of GNH that could also be the world’s saviour.

With all the economic activities and growth the country was experiencing, Bhutan, the prime minister said, would be an economically self-reliant country by 2020, no longer dependent on foreign grants.

By Tenzing Lamsang

Incorporating Gross National Happiness(GNH) into economy

Retty Tours & Treks