International Development in Practice Definitions of Human Development: Exploring Happiness

1. International Development in PracticeDefinitions of Human Development: Exploring Happiness Steve Reifenberg University of Notre Dame April 2, 2013

2. Practical implications • Exploring definitions of human development and their practical implications • Examining the role of “happiness” • on the macro level • on the individual level

3. Measuring human development • Human development is often measured by economic development, especially by Gross Domestic Product (GDP) • What are the limitations?

4. GDP measures “economic activity” and is indifferent to whether activity is good or bad… • Does not represent quality of life • Incredible economic growth can mask great poverty and inequality… • Rise in crime rates may come across as an economic benefit… • Natural disasters can be seen as contributing to the economy if create a repair/reconstruction boom… • It all depends on what you choose to count.

5. Growing sophistication in measurement… GINI Map courtesy of Wikimedia Commons.

6. Distribution of economic activity matters…GINI coefficient A Gini coefficient of zero expresses perfect equality (for example, where everyone has an exactly equal income). A Gini coefficient of one (100 on the percentile scale) expresses maximal inequality among values (for example where only one person has all the income)

7. Human Development Index Annual Development Reports of the United Nations Development Program (UNDP). These were devised and launched by Pakistani economist MahbubulHaq in 1990 and had the explicit purpose "to shift the focus of development economics from national income accounting to people-centered policies". • A long and healthy life: Life expectancy at birth • Education index: Mean years of schooling and Expected years of schooling • Decent standard of living: GNI per capita

8. Human Development Index

9. What about happiness?

10. Happiness and Income • In the mid-1970s, Richard Easterlin revisits the relationship and discovers a paradox: • Once people achieved a certain minimum level of per capita income necessary to insure basic nutritional, housing, educational, and security needs. • Within a country over time, as income goes up, happiness does not rise the way one would expect. • This puzzle is known as the Easterlin paradox.

11. Bhutan’s Gross National Happiness King Jigme Photo by Douglas J. McLaughlin (edited by Vassil). Some rights reserved. Photo by Royal Family of Bhutan, courtesy of Wikimedia Commons. Some rights reserved.

12. Bhutan’s G.N.H. Photo by LAI Ryanne. Some rights reserved. • promotion of sustainable development • preservation promotion of cultural values • conservation of the natural environment, and • establishment of good governance.

13. The Happy Planet Index • uses global data on • life expectancy, • experienced well-being and • ecological footprint http://www.youtube.com/watch?v=sZPYI8BfnBs

14. If Human Development is Happiness… • Economists/psychologist/development specialists have begun to measure happiness more systematically • Happy people live longer than depressed people. • Happy people have close friends, commit suicide less often, and abuse drugs and alcohol less. • "Standard of living has increased dramatically and happiness has increased not at all, and in some cases has diminished slightly. There is a lot of evidence that being richer... isn't making us happier.“ • --Professor Daniel Kahneman of the University of Princeto

15. How do you measure individual happiness?-- World Values Survey “how happy are you with your life” from “not at all” to “very” -- Gallup World Poll “please imagine a ladder with steps from zero to ten, if the higher the step, the best possible life, on which step of the ladder do you feel you stand?”

16. United Nations A /RES/66/281 Sixty-sixth session Resolution adopted by the General Assembly International Day of Happiness – inaugurated March 20, 2013 Conscious that the pursuit of happiness is a fundamental human goal, Recognizing the relevance of happiness and well-being as universal goals and aspirations in the lives of human beings around the world and the importance of their recognition in public policy objectives, Recognizing also the need for a more inclusive, equitable and balanced approach to economic growth that promotes sustainable development, poverty eradication, happiness and the well-being of all peoples, 1. Decides to proclaim 20 March the International Day of Happiness; 2. Invites all Member States, organizations of the United Nations system and other international and regional organizations, as well as civil society, including non-governmental organizations and individuals, to observe the International Day of Happiness in an appropriate manner, including through education and public awareness-raising activities; 118th plenary meeting 28 June 2012

17. Happiness – a historical approach Aristotle’s theory of happiness: Happiness is the ultimate end and purpose of human existence Happiness depends on acquiring a moral character, where one displays the virtues of courage, generosity justice, friendship, and citizenship in one’s life. These virtues involve striking a balance or “mean” between an excess and a deficiency. Photo courtesy of Wikimedia Commons.

18. Happiness – a historical approach • Early economists and philosophers, such as Adam Smith and Jeremy Bentham, were serious about the study of happiness. • Yet with the rise of quantitative methods in economics calling for more “serious” definitions of welfare, happiness fell out of fashion • “Utility” became synonymous with “income”

19. What about happiness in your own life? Book: Happier, by Tal Ben-Shahar

20. Once the basic elements of happiness are addressed and you are given tools to being increasing your own happiness level the • Happiness is the ultimate currency for which all other assets/experiences are traded. • Happiness levels are not rigid, that is predetermined by genetics or life circumstances. • Our capacity to enjoy different activities is limited and unique. • The importance of gratitude cannot be understated. Research by Robert Emmons and Michael McCullough show that people who kept a daily gratitude journal employed higher levels of emotional and physical well-being.

21. You can learn to be happier just as you can learn a foreign language or to be proficient at tennis. • Positive psychologists believe the same methodology applies to happiness. • Get instruction and regularly practice • "Happier” by Ben Tal-Shahar presents a strong case about how most of us need to unlearn certain habits and practices that undermine our ability to maximize personal happiness. • Incorporate both pleasure and meaning into one's life • Advice might sound so obvious but studies have shown that people are remarkably poor at doing exactly this.

22. “It is one of the most beautiful compensations of this life that no man can sincerely try to help another without helping himself.” -- Ralph Waldo Emerson

23. Happiness links • http://www.brookings.edu/opinions/2010/0130_happiness_graham.aspx • http://blogcritics.org/scitech/article/scientists-discover-how-to-measure-happiness/#ixzz1D5r26zvq