Tag Archives: Switzerland

Celebrating the International Day of Happiness

One of the comments Twitter had a lot yesterday: ‘who decided that the International Day of Happiness would be on Monday’?

While Monday isn’t the least happy day of the week (it’s Wednesday), it may be a surprise that the first day of the new working week is the International Day of Happiness. But that was just the case this year: the day simply falls on 20 March, every year, forever.

It seems that interest in the day has picked up compared to when I wrote about it in 2014 and 2015. Via Twitter, I was flooded with articles and infographics about ways to be happy and happiness at work. That’s a great development, I’d say!

The World Happiness Report 2017

The publication of the World Happiness Report has become another regular fixture on the calendar of happiness enthusiasts (see my take in 2015 here). This year, its release coincided with the International Day of Happiness.

Looking at the results, there were a couple of surprises:

  • Norway narrowly overtook Denmark (1st in 2016 and also in 2014) as the happiest country in the data from 2014-2016. A very important disclaimer: the differences between these two and Iceland (3rd) Switzerland (4th, ranked 1st in 2015) are statistically insignificant. In brief, we don’t really know if Norwegians are really happier than the Swiss.
  • It remains mind-blowing how important equal societies, high trust (measured via perceptions of corruptions), and small populations are. Like last year, the rest of the top-10 is completed by Finland, Netherlands, Canada, New Zealand, Australia and Sweden.
  • The section on the United States recognises its decline. This is not a failure in attempts to Make America Great Again – though polarisation is probably part of the problem. Declining social support and a reduced trust are the factors associated with this. Jeffrey Sachs observes that the US ranked 3rd in the OECD in 2007, compared to 19th in 2016. Given the fact that GDP is still growing but happiness is in decline, it is imperative that the US works on its social crisis.
  • Also in China, the data show surprising results. China’s GDP per capita has seen a five-fold increase in 25 years. If money were to buy happiness, the levels of happiness and well-being should increase, especially for the millions of people who escaped poverty and came to form China’s new middle class. Instead, multiple studies reveal that happiness fell a bit in the 2000-2005 period, before increasing again in 2010-2014. In the earlier period, unemployment and a weaker social safety net reduced happiness, and the recovery of happiness levels took a long time. China now ranks 79th, below South Korea and the Philippines, but ahead of Indonesia and Vietnam. It also outranks Greece, where happiness suffered during the long-standing economic crisis, and the cradle of Gross National Happiness (GNH), Bhutan.


Mapping happiness

With the exception of pockets of red (unhappy) and orange (less happy) in Africa and part of the Middle East and Asia, overall, the world looks quite green and happy. There is a lot green to see on this map, from North America to Latin America, in Europe, in most of Asia, and in Oceania. Overall, the world is quite a happy place – and mind you, it’s the only planet where the International Day of Happiness is celebrated!


Schermafbeelding 2017-03-21 om 09.30.02

Basic income: utopian dream or the road to happiness?

Few ideas are more exciting for a happiness economist than a basic income. It sound like utopia: free money for everybody. Could it actually work?

The Swiss basic income referendum

The Swiss electorate had the chance to have its say on Sunday. And the answer is a resounding ‘no’: 77% of the population opposed the idea of a basic income. In the design for the Swiss referendum, the basic income would be unconditional: nothing would be demanded from citizens in exchange for the transfer of money. The level of the basic income would have to be set by law, according to the initiators, but they argued that 2,500 CHF for adults (around 2300 Euro) and 625 CHF for children would be an appropriate figure. That sounds like a lot, but remember that Switzerland is rich: a salary for a supermarket worker is around 3,000 CHF.

Proponents of the basic income argued that it would “enable the population to live a dignified life and to participate in public life”, providing people the freedom to live their life as they want. They also argued that basic income would be needed in an age where robotisation and digitisation would mean that many current jobs won’t exist anymore in ten years. The basic income has also been portrayed as an easier way to provide social security in a modernised and more efficient welfare state.

Opponents argued – not surprisingly – that the math behind the idea doesn’t add up. According to estimates, the Swiss state would spend around 200 bn CHF, or 35% of GDP, to pay its citizens such a basic income. It would require around 25 bn CHF extra in taxation revenue (which may have pros, as we saw last week) or expenditure cuts to finance the scheme. Beyond that, the idea would risk to destabilise the entire economy, as people wouldn’t work as much as before. In addition, there were moral arguments on the national laziness that would ensue.

Switzerland won’t have a basic income. But don’t believe proponents are demotivated by the loss. Instead, they see the fact that over 20% supported such a radical income as a sign that the real public debate is only about to start.

Performance by the initiators of the referendum, who dumped 8 million coins at a square when they reached the necessary number of 125,000 signatures to call the referendum. Source: Wikipedia,

Performance by the initiators of the referendum, who dumped 8 million coins at a square when they reached the necessary number of 125,000 signatures to call the referendum. Source: Wikipedia,

A Finnish experiment in simplification

While I am sympathetic to the idea, I do have my doubts on the math. It might be worth studying the consequences of a basic income for a smaller group, before implementing it for everybody. That is exactly what will be done in Finland: in 2017, it will provide a basic income to 10,000 lucky sampled citizens. Participation is mandatory. Importantly, the Finnish experiment will also simplify the social security system as part of the exercise.

Some proponents support basic income as a way to rationalise the various categories of social expenditure. Finland has around 100 different categories of social security spending, and during the experiment 50 of these would be replace by one single basic income. Also in other countries, citizens are subsidised for several hundreds of euro per month, for instance via services accessed for free. Couldn’t all this be simplified into one basic income? Or would it still be impossible to fund it? The Finnish experiment will be closely watched.

Free money, a way to happiness

Even if we may be unable to introduce free money for all, there are a couple of lucky people who actually received a basic income. The German foundation Mein Grundeinkommen crowd-funds a basic income: every time when they’ve gathered 12,000 Euro, one winner gets a basic income for one year. And according to its director Michael Bohmeyer (who receives his own monthly 1000 Euro basic income via the proceeds of shares in the company he left), the results are amazing.

Speaking at a panel discussion in Brussels, Bohmeyer told how he feels a lot more free, secure and relaxed with his basic income. When receiving the income, he realised how much people are in running mode every day. Work and the need to have a salary to provide for our life results in a lot of stress.

In his experience, that doesn’t mean that nobody would work anymore if they receive a basic income. Of the around 40 people who won a basic income through the lottery, all but one continued to work. And maybe it’s an issue of low trust in others: when asked if others would still work when they have a basic income, around 80% said no. When the question was if they themselves would still work, around 90% said they’d continue to work, says Bohmeyer (video in German).

Basic income may not only about simplified social security, but also about a better work-life balance and higher happiness. Let’s hope that the Finnish experiences shows that it is actually possible to get the math right.

For another passionate case on basic income, see the talk of Rutger Bregman, a Dutch journalist and basic income enthousiast. He wrote a book on the basic income under the title ‘Utopia for Realists‘.

The World Happiness Report 2015: a wealth of data to make the world a happier place

The World Happiness Report 2015 is out and struck some headlines last week. Number one this year is Switzerland, and Togo comes last. But beyond praising winners and shaming losers, there is a lot more of interested figures to find. A quick selection of some of them.

The good news: how happy are we?

  • Let’s start with the good news. Of 130 countries where it was possible to compare data from 2012-2014 with 2005-2007, 53 saw significant improvements in happiness levels (41 decreased and 36 had no meaningful change). This suggests the world is a slightly happier place then it used to be.
  • The biggest improvements were made in Nicaragua, Zimbabwe, Ecuador, Moldova and Sierra Leone, who each added around one full point in their score.
  • It’s the well-expected developing countries that fill the top-1o: Iceland, Denmark, Norway, Canada, Finland, Netherlands, Sweden, New Zealand, and Australia, all a solid 7.3 or higher
  • … and what’s the score of the number one, Switzerland? With three decimals to be Swiss and precise, we get to 7.587.

Other good news (but not in stats)!

  • The most important sections maybe are not those listing the countries, but providing case studies of cities and regions who have changed their policies to make use of all the knowledge about happiness, from Dubai to Jalisco (Mexico), and from Santa Monica to Bristol.
  • At the same time, progress is also made in the neuroscience of happiness. A dedicated chapter 5 summarizes some of the findings. For instance, evidence about the link between positive emotions and happiness appears to be stronger and stronger.
  • There is more and more understanding about the various distribution patterns of happiness within age groups and genders. Overall, women are slightly happier than men. Over age groups, the patterns differ per region: in Central and Eastern Europe, Central Asia and South Asia, happiness goes down as age progresses. But in East Asia, but also in Western Europe, the best comes last: happiness levels go up as people enter their 70s.

The bad news: how unhappy are we?

  • There is still a lot, a lot of misery on our planet. More than fifty countries have happiness levels below 5.
  • And the worst-performing are truly miserable. Countries like Syria and Afghanistan, but also Rwanda, Benin and Burundi fall under 3.6 The lowest level is found in Togo at 2.839.
  • Two countries on different sides of the Mediterranean – Egypt and Greece – have lost more than one point. And some others (Jordan, Rwanda, Saudi Arabia, and Italy) lost around three quarters of a point.
  • For instance, the case of Italy (-.764, now at 5.948) is worrying. Usually, a high happiness level means a high level of resilience in phase of challenge. This fabric might be unraveled as result of the crisis Italy is going through.
  • To end with a positive note: he best ‘losers’, as far as one could be a loser with a score of 7.527, are the Danes. Denmark typically ranks one in most of the happiness report. I have been told that usually, it is no news when a happiness ranking is published, but this time it was: apparently, Danes are not used anymore to come second (or third, as now).

And now?

The 2015 World Happiness Report comes out with a large ambition: influencing the next development goals. As the UN prepares to adopt Sustainable Development Goals (SDGs) to succeed the Millennium Development Goals (MDGs) this year, the hope is that happiness outcomes are targeted within the SDGs. A worthwhile ambition: ultimately increasing human happiness and its fair distribution should be the goal of public policy.

One concern: the SDG process appears to be very complex, with over 150 different – and often, vague – ideas currently on the list of goals that could be adopted later this year. In such a process, they risk to lose their meaning. But either way, the wealth of statistics provides a lot of inspiration and background data to policy makers to make the world a happier place.

Geography of happiness