GROSS DOMESTIC PRODUCT OR GROSS NATIONAL HAPPINESS – WHICH IS THE BETTER ALTERNATIVE FOR ECONOMIC MEASUREMENT?

• Main Author: Marikina, Maria
• Format: Conference Proceeding
• Language: English
• Subjects: Accounting; Consumption; Economic activity; Economic analysis; Economic conditions; Economic development; Economic growth; Economic indicators; Economic policy; Economics; Economists; Environmental protection; Expenditures; GDP; GNP; Gross Domestic Product; Gross National Product; Happiness; Income inequality; Indicators; Macroeconomics; National accounts; Preservation; Psychological factors; Quality of life; Social progress; Society; Sustainable development
• ISSN: 1849-6903; 1849-6903

The object of the analysis will be the measurement of the economy, and the subject is the essence and dynamics of Gross Domestic Product (GDP) and Gross National Happiness (GNH). The thesis we will defend is that today GNH is the more appropriate indicator for measuring of the national economies. The main and most popular macroeconomic indicator of the national accounts system in the world is GDP. GDP is accepted standard for measuring and managing the size of an economy. It is based on simple accounting and can be calculated using output, expenditure, or income figures. By all three methods, the goal is to measure the final result of the economic activity of each economy. The idea of GDP today, however, can be criticized. This basic measure has a number of constraints, and the question is whether there is an alternative to it? It is sought in the balance between material well-being, spiritual, emotional and cultural needs of individuals and society. Such an alternative is GNH - an indicator that measures the collective happiness and well-being of a population. GNH is distinguishable from GDP by valuing collective happiness as the goal of governance, by emphasizing harmony with nature and traditional values as expressed in several areas of happiness such as psychological well-being, health, time use, education, cultural diversity and resilience, good governance and others and pillars of GNH as sustainable and equitable socio-economic development, environmental conservation, preservation and promotion of culture, good governance. The tasks of this research are related firstly to the presentation of GDP and GNH in their essence and secondly, to finding the advantages and disadvantages of using GDP and GNH as main measures in the economy.