Asian Breeze

No.97
No.

Online Newsletter98

September
2023

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Kitakyushu Forum on Asian Women (KFAW) Web-based Newsletter

Economic Growth, Climate Crisis and People's Well-Being- MATSUSHITA Kazuo
Professor Emeritus, Kyoto University; Chairman, Japan
Society for GNH Studies; Senior Fellow, Institute for Global
Environmental Strategies

only be done through dramatic and immediateclimate action. Accelerating temperature rise
demands accelerated action. We can still stave

The "Era of Global Boiling" Has Arrived
On July 27, 2023, United Nations SecretaryGeneral Juan Manuel Guterres stated that "theera of global warming is over and the era ofglobal boiling has arrived”1. This was stated at apress conference following the release of official
data by the World Meteorological Organization(WMO) and the European Commission's
Copernicus Climate Change Service (C3S)
confirming that July will be the hottest month inhuman history.

off the worst. But to do so, we must turn a yearof extreme heat into a year of ambition andaccelerate climate action."
Economic Growth and Human Well-Being
Economic growth since the Industrial Revolution
has brought affluence to humanity, absolute
poverty has shrunk, human life expectancy hasincreased, and the population has grown.
Economic growth began in developed countries
such as Europe and the United States, and since
the latter half of the 20th century, economic
globalization has spread to developing andmiddle-developed countries as well. At the sametime, rapid population and economic growth
have increased CO2 emissions and resource
consumption, causing environmental destruction,

The Secretary-General further stated.
“All of this is in perfect agreement withscientists' predictions and repeated warnings.
The only surprise is the speed of change. Climatechange is here now. It is frightening. And it is
only the beginning." "It is still possible to limit
the global temperature increase to less than 1.5°C
and avoid the worst of climate change. But it can1

https://news.un.org/en/story/2023/07/1139162
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resource depletion, climate change, loss ofactivities within this range can improve humanbiodiversity, and other problems. Today, theEarth's natural environment is approaching thelimits of sustainability, and if left unchecked, thevery foundations of human existence may bethreatened in the future.

welfare while securing the social foundation
without exceeding the planetary boundaries.
Once this doughnut economy is established, it
will be possible to achieve the sustainable andinclusive economic growth and shared prosperity
demanded by the SDGs (SustainableDevelopment Goals) and to create the conditions
for rewarding and humane work, taking into

The purpose of economic growth is to increase
incomes and enrich people's lives. But does anincrease in income really make people happier?
The American economist Easterlin showed thatlife satisfaction has not improved despite anincrease in real per capita income, which is
known as the Easterlin Paradox 2 . Many
subsequent studies on happiness have revealed
that economic growth does not necessarily leadto greater happiness. It is the content of economic
growth that is being questioned.

account the different development stages andcapacities of each country.
What Bhutan's Gross National Happiness(GNH) implies
Bhutan's concept of GNH makes it clear that
economic growth is not an "end" but a "means"
to improve people's happiness.

Economic development must operate within the"planetary boundary" 3 (iig 1). This is what
British economist Kate Raworth calls the"doughnut economy"4(iig 2).

Bhutan has adopted GNH as an alternative
national goal to Gross National Product (GDP),and utilizes it as a guideline for policy integrationin actual administration.

The outer edge of the doughnut-shaped diagramin iigure 2 represents the "ecological ceiling"
line where human activities can take place
without disrupting the planetary boundaries. On
the other hand, the inner circle of the doughnut

iormer King Wangchuck, the fourth king of
Bhutan, who advocated GNH, had this to say:"What the people want is happiness. In addition
to a minimum level of material wealth, it is(the hole in the center) represents the "socialfoundation" such as food, shelter, education, andincome, which is the basis of all human life. The"safe and just space for humanity" is defined as
the area between the "ecological ceiling" on theouter edge of the doughnut and the "socialfoundation" on the inner circle, and economic

important to have family and community ties,
harmony between people and nature, history andculture that can be shared by the people.”
These are what King Wangchuk described as
GNH instead of GDP.

2https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3

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So how can the goal of achieving happiness be
https://doughnuteconomics.org/about-doughnuteconomics

7431473https://www.stockholmresilience.org/research/planetar
y-boundaries.html
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Online Newsletterreflected in actual political and administrative(7) work-life balance (use of time), (8)structures? In Bhutan, GNH is not only a slogan,but also an indicator for its realization, andefforts are being made to institutionalize aconcrete policy evaluation process within thegovernment.

community vitality, and (9) good governance.
Based on the GNH approach, policy priorities arebeing reevaluated and indicators are being
developed to quantitatively and qualitatively
assess improvements in people's mental, physical,and social well-being instead of GDP. GNH does
not reject indicators such as the Human
Development Index or GDP, but recognizes theirAccording to the GNH Commission, GNH isboth a philosophy, an economic theory, and apractical policy objective. GNH as a philosophy
that integrates traditional culture and modern
science leads to a shift in development priorities,
while GNH as an economic theory develops acritique of GDP and focuses on improving thespiritual, physical, and social well-being ofpeople, both quantitatively and qualitatively.
GNH as a policy objective articulates detailed
priorities and means to achieve sustainable
development.

characteristics and roles, and sees them ascomplementary.
However, there are many challenges to thesustainability of Bhutan's economy andenvironment. New threats such as climate change
are becoming a reality, and the consumerist
civilization of the modern world will flow into
Bhutan relentlessly as a result of globalizationand the advancement of information technology,
and the traditional values of the Bhutanesepeople might be changed. Bhutan's future, as it
seeks human and national development under
severe natural and geopolitical circumstances,with GNH as its guiding principle and focusing
on the welfare and happiness of its people, hasmuch to offer to other countries in terms ofconsidering how to achieve sustainable
development and well-being of the people.

Sustainable development in Bhutan's National
Environmental Strategy is defined as "the policy
will and national capacity to maintain today's
development and environment so that future
generations do not lose their unique cultural
integration, historical heritage, and quality of life.
In his speech, the fifth and current King
Wangchuk expressed his belief that "GNHbridges the pursuit of economic growth with thefundamental values of kindness, equality, andcompassion.”
GNH consists of four pillars: (1) sustainable andequitable socioeconomic development, (2)environmental conservation, (3) culturalpromotion, and (4) good governance. These arefurther divided into nine areas: (1) standard ofliving, (2) health, (3) education, (4) ecologicalhealth, (5) culture, (6) psychological well-being,3

Asian Breeze

No.98【Profile of Mr. MATSUSHITA】
Professor Emeritus of Kyoto University, Senioriellow of the Institute of Global Environmental
Strategies (IGES), Chairman of the Japan
Society for GNH Studies. Before holding thesepositions, worked at several institutions
including the Ministry of Environment ofJapan, the Environment Directorate of theOECD, United Nations Conference onEnvironment and Development (UNCED), andas Professor of Global Environmental Policy at
the Graduate School of Global Environmental
Studies of Kyoto University. Major researchareas are sustainability studies as well asclimate change policies
and global
environmental policies from the viewpoint ofenvironmental governance.
His major publications include "The 1.5°C
Climate Crisis" (2022), "The Climate Crisisand the Corona Disaster" (2021), "Journey to
Global Environmental Studies" (2011),"Recommendations for Environmental Policy
Studies" (2007), "Environmental Governance"(2002), "Introduction to Environmental
Politics" (2000), "Environment in the 21stCentury and New Development Patterns"(2000）.

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iig 1 (source: https://www.stockholmresilience.org/research/planetary-boundaries.html)

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