March 20 marks the International Day of Happiness, a global celebration created by the United Nations to highlight the importance of happiness and well-being as universal goals. In the lead-up to this day, New Polis has decided to explore the challenges of studying and measuring happiness. Traditionally, policy discussions have focused on GDP and economic indicators. However, more and more experts argue that well-being should be the main metric for assessing societal progress. This shift has led to the development of international happiness index, which offer valuable insights into the well-being of populations around the world. But how reliable are this measure, and what can they reveal about sustainable cities and quality of life?
The evolution of the happiness index
The first significant attempt to measure national happiness came in the 1970s when Bhutan introduced the concept of Gross National Happiness (GNH) as an alternative to GDP. This approach took a holistic view, considering cultural, environmental, and psychological well-being in governance. Bhutan’s model is built on four pillars: sustainable development, the preservation of culture, environmental conservation, and good governance. Bhutan’s initiative positioned the country as a leader in measuring happiness and inspired other nations to follow suit.
Inspired by Bhutan’s GNH, global organizations began to create their own frameworks to measure happiness internationally. The most widely recognized of these is the World Happiness Report, first published in 2012 by the United Nations Sustainable Development Solutions Network. The report assesses happiness based on various factors that influence life satisfaction across different nations. It primarily relies on survey data from the Gallup World Poll, where respondents rate their life satisfaction on a scale from 0 to 10.
The survey covers 14 key areas, including economic conditions, civic engagement, technology access, social diversity, education, emotional well-being, environmental quality, basic needs (such as food and shelter), governance, law and safety, healthcare, ethics, transportation, and employment opportunities. These factors offer a comprehensive view of the conditions that shape people’s perceptions of happiness worldwide.
Global happiness index: the latest data and trends
According to the World Happiness Report 2024, Finland continues to be the world’s happiest country with an average life evaluation score of 7.741, followed closely by Denmark (7.583) and Iceland (7.525). The Nordic countries dominate the rankings due to strong social support systems, trust in government, and high levels of freedom and equality. In contrast, countries facing conflict and economic instability, such as Afghanistan (1.721) and Lebanon (2.707), rank the lowest.
One notable trend is the decline in happiness among young people in North America. Over the past decade, life satisfaction among those under 30 has dropped significantly. In the United States, the overall happiness ranking has fallen to 23rd place, with a substantial decrease in the happiness of younger generations. Meanwhile, in Central and Eastern Europe, happiness levels have improved across all age groups, with countries like Serbia and Bulgaria experiencing the highest increases in happiness scores—rising by 1.8 pointsand 1.6 points respectively over the past decade.
The challenges of measuring happiness
Despite its value, the Happiness index faces significant criticism. One major concern is the subjectivity of self-reported data. The Cantril Ladder, a widely used method, asks respondents to imagine a scale from 0 to 10, which may introduce cognitive biases. Research suggests that respondents often compare themselves to others, leading to status-based rather than well-being-based assessments.
Additionally, economic prosperity does not always correlate with happiness. The United States, despite having one of the highest GDPs per capita ($76,399 in 2023), ranks 23rd in the 2024 report due to increasing inequality, declining social cohesion, and rising mental health concerns . In contrast, Costa Rica, with a significantly lower GDP per capita ($12,043), ranks 12th, demonstrating the importance of environmental sustainability and social bonds.
Another challenge is the impact of global crises. Events such as pandemics, wars, and economic downturns can drastically affect happiness levels. For instance, the COVID-19 pandemic initially increased community solidarity but later led to heightened stress and economic hardship in many regions. The Middle East and North Africa saw the largest drop in happiness scores across all age groups between 2006 and 2023.
The role of sustainable cities in enhancing happiness
Sustainable urban development plays a crucial role in fostering happiness. Features such as walkable neighborhoods, green infrastructure, and community-driven governance enhance quality of life. Cities that prioritize mental health resources, social equity, and environmental sustainability are more likely to score well on happiness indices.
One example is the 15-minute city, where residents can access essential services within a short walk or bike ride. This model, being implemented in cities like Paris, aims to reduce commuting stress, increase access to nature, and foster social interactions—key factors in improving happiness. Research suggests that reducing commute times by 30 minutes per daycan increase life satisfaction scores by 0.5 points on a 10-point scale.
While the International Happiness Index provides valuable insights, it is not a definitive measure of well-being. Instead, it should serve as a tool for policymakers, urban planners, and businesses to identify areas for improvement. By integrating happiness research with sustainable development practices, societies can create cities that are not only smarter but also more fulfilling for their inhabitants. Ultimately, the pursuit of happiness must go beyond rankings—it must become a fundamental principle of governance and urban innovation.
