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tend to be happier than poor people.The most efficient outcome for each country is to have higher growth in GDP when its neighbor has lower income.This statement is known as "Gross National Happiness" which was coined by the former King Jigme Singye Wangchuck in 1972. The concept of GNH declare to be established on principle that true development of human society occur when material and subjective development take place side by side to balance and support each other. As demonstrated by S. Priesner (1999, p.27) "The approach is not an intellectual construct detached from practical experience, but rather the translation of a cultural and social consciousness into development priorities".Aside from obvious development of material well being: increase GDP at national level and income at the household level, Bhutan's development included achievement of less quantifiable objectives such as ensuring subjective well being of the population, protection of Bhutan's rich natural resources and unique cultural tradition.

tend to be happier than poor people. But as demonstrated by Clark, Frijters and Sheild
due to the improvement of material wealth of the nation. Same change can be observed in
movement from to and here slope is flatter than previous two periods. In all three
period relationship between individual income and happiness is visibly steeper than
relationship between aggregate income and happiness. As country gets richer aggregate
benefit to higher income becomes less and less observable. This illustration sums up that
enjoyment of higher income leads to higher consumption and higher status at given time

but over the time as everyone’s income improves the status gained is fixed the adaptation
to surroundings fix our subjective welfare where we started. It is human nature that we
always compare our self with the one next to us. Therefore while one country’s GDP
increase relative to its neighbor, greater satisfaction will belong to the one with higher
growth. The most efficient outcome for each country is to have higher growth in GDP
when its neighbor has lower income. But the small Himalayan Kingdom of Bhutan has
been testing new idea. Aside from obvious development of material well being: increase
GDP at national level and income at the household level, Bhutan’s development included
achievement of less quantifiable objectives such as ensuring subjective well being of the
population, protection of Bhutan’s rich natural resources and unique cultural tradition.
This statement is known as “Gross National Happiness” which was coined by the former
King Jigme Singye Wangchuck in 1972. The concept of GNH declare to be established
on principle that true development of human society occur when material and subjective
development take place side by side to balance and support each other. As demonstrated
by S. Priesner (1999, p.27) “The approach is not an intellectual construct detached from
practical experience, but rather the translation of a cultural and social consciousness
into development priorities”. Empirical data from Bhutan obviously confirm that the
policy focused on GNH, which concentrate more on improving emotional well being than
material, succeeded. Despite being desperately poor ranking in 135th place GDP terms
and the same position in terms of Human Development Index, Bhutanese people are
happy ranking in 8th place by life satisfaction measure worldwide