Lecture Notes: Happiness and Global Rankings

Introduction to Happiness as a Measure of Success

• Discussion on happiness in relation to global rankings.
• Common indicators: purchasing power, military resources, trade partnerships.
• Experts suggest happiness is a better indicator of development and public policy success.

World Happiness Report Overview

• Produced by the Sustainable Development Solutions Network (UN initiative).
• Now in its sixth year.
• Subjective and hard to quantify topic.

Top Countries in Happiness Rankings

• Nordic countries consistently rank in the top 10 since the report began:
  • Finland
  • Norway
  • Denmark
  • Iceland
• Switzerland ranks #5.

Key Factors Behind High Happiness Rankings

• Data Collection: Utilizes the World Gallup poll where people rate their lives (0-10 scale).
• Economists' Analysis: Six major factors influencing happiness:
  • Social Support
  • Freedom
  • Generosity
  • Trust in Institutions
• Wealth is not the sole factor; for example, the U.S. GDP increased, but happiness ranking dropped to 18th.

Social Policies in Nordic Countries

• Tuition-free college and various social safety nets:
  • Norway: Full-salary paid sick leave for up to a year.
  • Sweden: Nearly 16 months of paid parental leave per child.
  • Finland: "Baby boxes" for new parents, Universal Basic Income pilot in 2017.

Citizen Satisfaction with Taxation

• Nordic citizens generally accept high taxes in exchange for social services:
  • Free healthcare and efficient public transportation.
  • High-quality education available for all.

Role of Social Capital

• Social Support: Having someone to rely on is crucial.
• High social capital regions maintain happiness during crises (e.g., Iceland during bank collapse).
• Countries that collaborate during disasters tend to sustain their happiness levels.

Comparison with Other Nations

• Countries like Greece, Italy, Spain, and Portugal saw happiness decline during financial crises.
• Nordic countries focus on collective problem-solving rather than blame.

Challenges Facing Nordic Countries

• Rise of far-right political parties and anti-immigrant sentiments post-2015 European migrant crisis.
• Potential impacts on happiness levels for both citizens and immigrants.

Conclusion

• Happiness as a complex interplay of social support, trust, and policies rather than mere economic wealth.