What Bhutan got right about happiness - and what other countries can learn

Bhutan has achieved significant growth and carbon-negative status by prioritizing Gross National Happiness over GDP, utilizing niche markets, digital transformation, and impact investment. However, it faces challenges with high export concentration, particularly dependence on India, and limited foreign direct investment.

• Bhutan is the only carbon-negative country globally, a status achieved through low carbon emissions, high carbon sequestration, and the export of hydroelectricity. The government maintains this environmental standing by employing a strict sustainable tourism approach to mitigate the impacts of tourism growth.
• To overcome a small domestic market and production constraints, Bhutan implemented 'Brand Bhutan,' which focuses on high-value, low-volume niche exports in sectors including textiles, handicrafts, culture, tourism, and natural resources.
• Bhutan has utilized digital transformation and innovative finance to drive development. This includes the 2012 launch of Thimphu TechPark to promote ICT skills and enterprise, and the 2015 mobilization of $12 million in impact investment for Mountain Hazelnuts to support smallholder farmers and restore eroded landscapes.
• The country faces significant economic vulnerabilities, including a high concentration of exports in mining, tourism, and hydropower, with over 80% of exports going to India. Additionally, Bhutan has struggled to attract foreign direct investment compared to other graduating least developed countries like the Maldives and Cambodia.

APA

Adhikari, L. L. S. R. (2021). What Bhutan got right about happiness - and what other countries can learn. World Economic Forum. https://www.weforum.org/stories/sustainable-development/lessons-from-bhutan-economic-development/

Chicago

Adhikari, Lyonpo Loknath Sharma, Ratnakar. What Bhutan got right about happiness - and what other countries can learn. World Economic Forum, 2021. https://www.weforum.org/stories/sustainable-development/lessons-from-bhutan-economic-development/.

Wikipedia

{{cite report |last1=Adhikari |first1=Lyonpo Loknath Sharma, Ratnakar |title=What Bhutan got right about happiness - and what other countries can learn |publisher=World Economic Forum |date=25 October 2021 |url=https://www.weforum.org/stories/sustainable-development/lessons-from-bhutan-economic-development/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{adhikari2021what, author = {Adhikari, Lyonpo Loknath Sharma, Ratnakar}, title = {{What Bhutan got right about happiness - and what other countries can learn}}, institution = {World Economic Forum}, year = {2021}, month = oct, url = {https://www.weforum.org/stories/sustainable-development/lessons-from-bhutan-economic-development/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }