Nobel laureate says happiness important for growth
By Harpreet Bhal
LONDON (Reuters) - Levels of happiness could help shape economic policy in the industrialized world in the same way such factors have gained prominence in developing countries, said economics Nobel laureate Amartya Sen.
Sen, 76, said citizens' quality of life and their general wellbeing should be considered as a measure when looking at overall economic success, particularly since developed countries face social issues such as unemployment despite economic growth.
Last week France said it planned to create new statistics, in addition to traditional Gross Domestic Product (GDP) figures, in response to a report by Sen, fellow Nobel laureate Joseph Stiglitz and the OECD, which recommended using happiness, quality of life and distribution of income to assess economic growth.
Sen, professor of economics and philosophy at Harvard University in the U.S., welcomed France's move. He said considering such indices rather than just the narrowly focused GDP -- a country's total value of goods and services produced -- could improve policymakers' responses to problems in the economy in the wake of the global financial crisis.
"If you have indicators that concentrate on human wellbeing and human freedom then you could get there much more quickly by thinking about policy decisions in that light," the Bangladeshi-born economist told Reuters.
"It is a question of seeing the need for a dialogue... and to adapt your policies connected with a more informed understanding of human predicament," he said in an interview.
In the 1990s Sen helped created the Human Development Index (HDI), a United Nations statistic ranking countries' level of development based on health, knowledge and standard of living.
The annual index often attracts attention from policymakers and non-governmental organizations and highlights disparities among countries which have similar levels of income per capita. Continued...