Bhutan is reported to have developed a unique development philosophy focused on the concept of the Gross National Happiness (GNH). It is based on four pillars: economic development, good governance, preservation and development of environment and culture. The emphasis is not on the Gross Domestic Product (GDP) or on per capita income but wellbeing of citizens which arises in a society where sustainable and equitable development is balanced with environmental and cultural preservation and good governance. The GNH is a holistic approach to human needs with stress on both the material and spiritual needs of the people. It is one of the most disturbing concepts, as pointed out by a Canadian philosopher, John Ralston Saul — disturbing because it upsets completely what is in place every where else.
Besides conventional indicators of progress, utmost emphasis is laid on the basic tenets of the Buddhist ethics and conservation of environment resulting into clean air, water, energy and natural resources. Bhutan has distinguished itself internationally through the ban on the sale of tobacco providing serious penalties for its sale. The emphasis is on greater harmony between our internal and external landscapes. The concept of the GHN, fervently pursued, has made the people of Bhutan relaxed, friendly, warm and cooperative in their behaviour and dealings. There are no wide social chasms as seen in many other countries.
