We live in a time of high anxiety. Despite the world’s
unprecedented total wealth, there is vast insecurity, unrest,
and dissatisfaction. In the United States, a large majority of
Americans believe that the country is “on the wrong track.”
Pessimism has soared. The same is true in many other places.
Against this backdrop, the time has come to reconsider the basic
sources of happiness in our economic life. The relentless
pursuit of higher income is leading to unprecedented inequality
and anxiety, rather than to greater happiness and life
satisfaction. Economic progress is important and can greatly
improve the quality of life, but only if it is pursued in line
with other goals. In this respect, the Himalayan Kingdom of
Bhutan has been leading the way. Forty years ago, Bhutan’s
fourth king, young and newly installed, made a remarkable
choice: Bhutan should pursue “gross national happiness” rather
than gross national product. Since then, the country has been
experimenting with an alternative, holistic approach to