Beyond GDP: Is a Happiness Economy Possible?”

Can globalization be a source of unhappiness? Helena Norberg-Hodge, a pioneer of the localization movement, spoke about the effects of globalization and the methods of a “happiness economy.” According to Hodge, people in Sweden suffer from loneliness, while many in Turkey feel unhappy because they see their economic situation as inadequate.

Approximately 251 million children and youth worldwide are out of school, according to a 2024 UNESCO report/ Photo: Pexels/ Harsha Vardhan

According to the World Food Programme, in a world of 8,3 billion people, up to 720 million are facing chronic hunger. —meaning one in every 11 people goes hungry.

Is hunger not, then, a risk for the remaining 7,5 billion? Does being “one click” away from every need, having easy access to technology, and shopping based on “trends” rather than necessity truly guarantee that we will never go hungry?

Or are the French farmers who brought their sheep into the Louvre Museum to protest agricultural unemployment, the tractors that flooded Brussels when milk prices dropped, and the tangerine growers in Türkiye who dumped tons of unsold produce into the sea signs that something is fundamentally wrong?

Swedish researcher Helena Norberg-Hodge answers “yes.” “Endless financial, environmental, and even psychological crises show that the system we are using is not working,” she says.

For more than 30 years, Norberg-Hodge has studied the impact of the global economy on local producers. Awarded Right Livelihood Award (also known as the 'Alternative Nobel Prize'), she proposes a solution she calls the “The Economy of Happiness” aimed at minimizing the distance between producer and consumer.

She spoke about the limits of globalization, the idea of a “happiness economy,” and why reconnecting producers and consumers could transform both economies and societies.

You argue that globalization has damaged local economies, yet you also call for global cooperation. How can the two coexist?

The globalization of the economy is very different from global communication and cooperation, though large institutions often try to blur that distinction.

After World War II, international trade agreements were designed to promote economic globalization by giving multinational corporations and banks greater freedom to move capital and production across borders. Countries were encouraged to believe that this would increase GDP and create jobs.

We met with Helena Norberg-Hodge at Bahçeşehir University in Istanbul/ Photo: Al Jazeera Turk

In reality, it often undermines small businesses and local production systems that require less technology and energy.

A good example is the seafood trade. Shrimp caught in the UK are sometimes shipped to Thailand to be shelled and then sent back to Britain. It may appear cheaper, but the environmental and social costs are enormous.

At the same time, global communication is essential. The internet can help people understand what is happening in the world. But genuine understanding still depends on face-to-face interaction within communities.

Is localization really possible in today’s globalized economy?

Yes, and in many cases it already exists in small forms.

In industrialized food systems, farmers often receive only about 10 percent of the final retail price of what they produce. When consumers buy directly from local farmers, the entire payment goes to the producer.

Another problem with industrial agriculture is the obsession with uniformity. Supermarkets reject vegetables that do not look “perfect,” which leads to enormous food waste. Yet consumers buying directly from farmers rarely care whether a potato is slightly smaller or has a blemish.

Helena Norberg-Hodge is a Swedish-born author, filmmaker, and pioneering activist for the "localization" movement. She is the founder of Local Futures and author of Ancient Futures which highlights her work in Ladakh, India/ Photo: Diane van der Marel

Localization also encourages diversified agriculture. International trade rules sometimes push countries toward monoculture—producing only a single crop. But monoculture is risky. If that crop fails due to drought or weather conditions, farmers lose everything. Diverse farms are much more resilient.

Türkiye is part of global economic agreements and its economy continues to grow, but unemployment remains high. How could localization help?

First, we need to rethink how we measure growth.

GDP essentially measures commercialization. If pollution increases and people start buying bottled water because their local water is contaminated, GDP goes up. But does that mean society is better off?

The same applies to healthcare spending. If more people fall ill and spend more money on treatment, GDP rises. That does not mean the economy is healthier.

Globalization also affects psychology. Western-driven ideals about beauty, fashion and lifestyle can make people—especially young people—feel inadequate.

Turkey actually has many advantages: rich culinary traditions, diverse agriculture and a multicultural heritage. By strengthening local economies, people can reconnect with their productive capacities and regain a sense of dignity.

Localization would also create jobs in smaller cities and rural areas, reducing migration to overcrowded urban centers where loneliness, pollution and intense competition are common.

This does not mean eliminating international trade. Trade is still important. But local production should be prioritized instead of being undermined by global rules.

Sweden often ranks among the world’s happiest countries in international surveys, while Turkey ranks much lower. How reliable are such comparisons?

These rankings should be treated cautiously.

In Scandinavia, including Sweden, suicide rates remain relatively high, and loneliness is a major issue. Loneliness is closely connected to unhappiness.

In Turkey, people may describe themselves as unhappy primarily because of economic insecurity. But stronger community ties and greater local self-reliance could help people rediscover their productivity and sense of belonging.

Is there a direct link between prosperity and happiness?

Not necessarily.

During the Great Depression in the United States in the 1930s, surveys suggested that many people reported feeling happier than in later periods of prosperity. One reason was the strong sense of community support during difficult times.

From my perspective, happiness is closely connected to strong communities—places where people interact face to face, children grow up in social environments and people maintain a close relationship with nature.

Extreme poverty or inequality clearly reduces happiness. But beyond a certain level, higher income does not necessarily lead to greater well-being.

Bhutan is an interesting example. Although it is often categorized as a developing country, it has relatively low levels of poverty, virtually no homelessness and very little hunger. It relies largely on its own production rather than being deeply integrated into the global economy.

Localization requires public awareness, but also government support. What should policymakers do?

Localization is not a revolution—it is a transformation.

Revolutions often involve violence. What we need instead is a peaceful process based on awareness and education.

Governments tend to focus narrowly on economic growth, assuming that higher growth will automatically reduce unemployment. This creates enormous pressure to keep expanding the economy.

But the further people rise in politics or business, the more disconnected they can become from realities on the ground.

If citizens want change, they must organize, share information and build broader public understanding. When enough people demand change, governments will eventually have to listen.

Who is Helena Norberg-Hodge?

Helena Norberg-Hodge is a linguist, author and one of the most prominent advocates of the global localization movement.

She is the founder and director of the international non-profit Local Futures, producer and co-director of the documentary The Economics of Happiness, and the initiator of World Localization Day.

Norberg-Hodge received the Right Livelihood Award in 1986 for her work in the Ladakh region of India.

Educated at the University of London and MIT, she has also collaborated with prominent thinkers including Noam Chomsky and the Dalai Lama.

(This article was first published in Al Jazeera Turk on December 6, 2014)