People Over Profit: The Happiness Index Outperforms GDP
In England, our MPs are absolutely obsessed (obsessed!) with economic growth. Which all modern environmental economists say is no longer feasible. You can’t ‘fix the economy’ by making trash to throw away, as our planet is running out of space.
But these two words don’t guarantee a better life. Growth comes from building more hospitals and prison (sickness and crime), cleaning up oil spills and chopping down forests to make toilet roll.
Many prefer The Happiness Index, an alternative to GDP that rips up the rule book and places emphasis on quality of life, the planet, animal welfare, public health, mental health, walkable communities, zero waste and world peace.
When you look at GDP charts, the UK and USA are near the top. But on The Happiness Index, both countries slide down the ladder, being replaced by many other countries (including New Zealand and most of Scandinavia). Top of the list is beautiful Costa Rica, one of South America’s smallest countries, and home to gorgeous rainforest and happy toucans!
The ‘happiest countries’ (Scandinavia, New Zealand) are not nearly always the richest. In fact, top of the list is Costa Rica (home to the beautiful happy birds above!) Although the UK and USA are near the top with GDP (gross domestic product), we spiral down the list?!
Canadian Economist Mark Anielski famously helped to bring about Alberta’s Happiness Index, which is based on quality of life and environmental stewardship, instead of just relying on monetary values. Instead of relying just on bank balances, happiness indexes take into consideration:
- Physical and mental health
- Life/balance (quality of life)
- Nature and environment
- Animal welfare
- Peace and wellbeing
What is the Happiness Index?
The World Happiness Report asks people to rate their lives on a variety of factors like income, health, social support, freedom, generosity, and trust in institutions. It is a picture of life as people experience it, not only as economies produce it.
This is different from GDP, which counts goods and services, but says nothing about loneliness, stress, or hope. A ‘growth country’ leaves people tired and anxious. In ‘happy countries’ Finland and Denmark, there is no celebrity culture (David Beckham could take the underground, with no fuss).
Key ingredients of happiness findings
- Income: Money helps up to a point. It covers rent, food, and safety. Beyond that point, extra income has a smaller effect on daily mood and life satisfaction.
- Health: A routine GP visit without long waits can change a person’s week. But walkable communities, good local organic food and mental health from nice parks, prevents a lot of GP visits in the first place.
- Social support: Someone to call in a crisis matters. In Nordic countries, strong family ties and public services create a reliable safety net.
- Freedom to make life choices: People feel happier when they can pick their job path, move house, or start a business without heavy barriers. ‘Happy countries’ also tend not to be dominated by religion.
- Generosity: Helping a neighbour, giving time, or donating improves well-being. Giving creates a sense of purpose that money alone can’t buy.
- Low corruption: Trust in fair rules reduces stress. When people believe the system works, they plan for the future with confidence.
Here’s a good example:
Vatican City is one of the world’s smallest countries, home to the Roman Catholic church. Yet Finland is not a very religious country at all. An experiment worldwide ‘left money-filled wallets’ around various places, to see who handed them in, and who took the money.
Finns turned out by far to be the most honest, each person handing in the wallet they found. And you guessed it! In Vatican City (full of religious peeps), the wallets full of money were never seen again!
Why happiness beats economic growth
Research has long shown a simple truth. After basic needs are met, more money doesn’t always bring more happiness. Economic growth comes with costs: shorter sleep, longer commutes, rising inequality. Environmental damage hits health, while housing prices push higher. Look at how obsessed Trump is with money, and what’s it doing to his country.
When you have a country like England obsessed with economic growth, it ends up seeping into everyday life. Most people these days are obsessed with money, status, celebrity and monarchy. Most people are in debt (from buying things they can’t afford), there is a huge gambling problem. Our TV is all money-focused quiz shows.
Steps to build a happier world
Change needs action at every level. Governments can update budgets, businesses can redesign work, and individuals can build small daily habits that lift mood and connection.
- Universal basic income trials: People can then live the lives they want, from part-time work to volunteering.
- Green spaces investment: Trees, local parks, and safe walking routes
- Life-work balance: Reasonable hours, flexible schedules, and real holidays
- Community ties: Support libraries, sports clubs, and local arts.
Inspirational lessons from Costa Rica!
So what does Costa Rica do differently to become world leader in the Happiness Index?
Costa Rica abolished its army (back in 1949!)
Costa Rica removed its army back in 1949 (after a violent 44-day civil war) and used the money to protect rainforests and fund healthcare, schools and pensions. And despite conflicts in neighbouring countries since, it’s remained at peace.
Costa Rica protets its endangered wildlife
Unlike countries like Brazil (that sells rainforest land to beef cattle farming and unsustainable soy production), Costa Rica is known for being one of the most stringent places for wildlife protection. This country has an incredible 500,000 species making it the most biodiverse nation on earth.
But still many of these species are rare and endangered, so the country is very focused on protecting what’s left. No trophy hunting here (all hunting is banned). It’s all about eco-tourism to bring in income from travellers.
Costa Rica looks after its sea turtles
Although England has sea turtles too (‘ocean lawnmowers’, seagrass habitats have been destroyed by anchors, turtles are confused with light pollution).
And killed by releasing balloons (which they eat, believing they are jellyfish). Costa Rica has implemented strict rules to stop over-tourism to protect its sea turtles (sometimes over 100,000 can take over beaches in a single day!) This way they are left alone to breed and lay their eggs.
Costa Rica does not cage animals
Unlike England where charities still have to campaign to educate that we can conserve endangered species without zoos, Costa Rica is one of the fist nations to make it illegal to keep animals in cages. There have been a few welfare issues but overall things have improved.
Kivu the lion who lived in a cage of cement and steel with poor diet was moved to a rescue centre, where the country roared with joy. As he spent his final days amid trees and grass, basking in the sunshine (when not tearing apart logs).
Home to 10% of the world’s butterflies
Yet in England it’s rare to see butterflies due to disappearing habitats. A study by Butterfly Conservation found 90% of semi-natural lowland meadows and pastures have been lost in the last 75 years, which has had major effects on populations.
Costa Rica looks after its farmers
Whereas there are welfare issues elsewhere with farmers who grow coffee beans, in Costa Rica ‘the golden grain’ (responsible for much of the country’s income) farmers are looked after, some even receive free land if they plan to grow and sell coffee.
Costa Rica also protects its indigenous peoples, all recognised by government who respect their rights, land, language and cultural heritage.
The capital city is a safe city
Costa Rica’s capital city of San José is considered to be one of the safest cities in the whole of Latin America (according to Global Peace Index).
Despite having around 2 million people, in daytime most crimes are petty (violent crime is rare in the country). Rates have increased in recent years, but this is mostly gang-related due to drug trafficking, not for residents or tourists.
Costa Rica has simple fair elections
In Costa Rica, the president is elected every four years, with people voting in their home town (postal votes are not the norm and it’s not usual for expatriates to vote either). Obviously disabled people can presumably vote by proxy, the ban on postal voting is mostly to avoid electoral fraud.
