Bhutan, known for its governing philosophy of “Gross National Happiness” (GNH), is currently facing a significant economic crisis. The newly elected Prime Minister Tshering Tobgay has described the country as “teetering on the brink of collapse.” With youth unemployment rates of nearly 30% and a significant portion of the population living in poverty, Bhutan is at a critical point where changes may need to be made to its pursuit of national happiness.
While GNH has been the cornerstone of Bhutan’s governance since the 1970s, Prime Minister Tshering Tobgay suggests that a new version of “Gross National Happiness 2.0” may be necessary. Tobgay acknowledges the need for economic growth to address the current crisis but emphasizes that the principles of GNH will not be abandoned. He advocates for a balanced approach that considers sustainable economic growth while maintaining social progress, environmental protection, cultural preservation, and good governance.
Challenges in Tourism
One area of concern highlighted by Tobgay is Bhutan’s tourism industry. The country has historically adopted a cautious and conservative approach to tourism, prioritizing sustainability and conservation. However, this approach has resulted in slower recovery rates compared to other countries in Asia. The fluctuating Sustainable Development Fee, initially set at $200 per adult per day and later reduced, has created confusion and hindered the industry’s growth.
Despite the economic challenges, Bhutan remains committed to its “high value, low volume” tourism strategy. Prime Minister Tobgay believes that a sustainable development fee of $200 per day may be acceptable to many tourists. By focusing on quality over quantity, Bhutan aims to increase tourism revenue while controlling visitor numbers. This approach aligns with the country’s broader goal of creating job opportunities for its youth and reducing the reliance on foreign employment.
Addressing Youth Migration
One pressing issue for Bhutan is the significant number of young workers leaving the country in search of better job prospects abroad. In the months leading up to May 2023, approximately 1.5% of Bhutan’s population moved to Australia alone for employment and skills training. Prime Minister Tobgay views this trend as a temporary setback and emphasizes the importance of strengthening the economy through tourism and other interventions to retain talented youth within the country.
Bhutan’s journey towards “Gross National Happiness 2.0” reflects the challenges and opportunities faced by the nation in balancing economic growth with the well-being of its citizens. While the traditional principles of GNH remain at the core of Bhutan’s governance, the evolving economic landscape necessitates a more nuanced and balanced approach. By addressing the challenges in sectors such as tourism and youth migration, Bhutan can pave the way for sustainable development and continued progress towards national happiness.
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