In 1972, the King of Bhutan announced that “gross national happiness is more important than gross domestic product.” It was a charming sound bite that captured imaginations worldwide. Finally, someone was brave enough to say it: Happiness matters more than money.

At the time, Bhutan was poor. More than 50 years later, Bhutan still ranks near the bottom of countries globally in per capita gross domestic product (GDP), a metric that captures the dollar value, per person, of the goods and services that a country produces. 

In Bhutan today, life expectancy is 73 years — higher than the 51 years in 1972, but still only right at the world average. Meanwhile, politicians are concerned about “unprecedented” levels of people leaving the country, mostly for economic opportunities elsewhere. While Bhutan’s own Gross National Happiness surveys show rising happiness since data collection started in 2010, internationally comparable surveys show a fall in self-reported happiness in the country. 

South Korea took the opposite approach. In 1961, General Park Chung-hee seized power in a country with a GDP per capita of around $93, well below even Bhutan at the time. His goal was modernization: build industries, end dependence on US aid, and export goods to the global market competitively. To track progress, his government launched five-year economic development plans with specific targets measured by economic growth.

While we don’t have information on South Korea’s level of happiness at the time, other results suggest a rapidly improving quality of life. Life expectancy rose from 54 in 1960 to 66 by 1980 to 83 today, a decade higher than in Bhutan. Infant mortality fell by roughly 97 percent. A country devastated by war and dependent on foreign aid became the world’s 14th largest economy. GDP per capita went to over $30,000. The five-year plans used GDP to measure progress, and the GDP numbers tracked real transformation. 

This comparison reveals the importance of GDP. Bhutan explicitly prioritizes happiness over economic growth, but its happiness has increased only marginally, and the country has not experienced the broader improvements in living standards that matter to people. South Korea pursued concrete development goals, used GDP to measure progress, and succeeded at economic transformation. South Korea hasn’t prioritized happiness metrics, but, in surveys of self-reported happiness, remains consistently ahead of Bhutan.

Today, GDP faces fierce criticism from economists, journalists, and even Elon Musk, all of whom argue it doesn’t capture what really matters. Critics love proposing alternatives, such as happiness indices, well-being measures, and

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