HNI as a key indicator for sustainable development

The past two years have given an unparallel impact on the aspirations, ambitions and the strategy to amplify the respective businessmodels in every industry. Where the organisations use to have reluctance in accepting flexibility of giving work from home and emotional wellbeing of employees was never given due diligence, the pandemic has enforced the vital importance of well-being and remote work is a new normal.

Reflecting the same at a macro level, The World Happiness Report has shown how people have fared across the globe. Finland, Iceland and Denmark have emerged the happiest countries in worldwide ranking in 2020. The World Happiness Index reflects India at the score of 139, with 3.82 as the score. According to WHR and Oxford University, sustainability and progress towards UN SDG Goals have a positive correlation with the wellbeing. The countries with better SDG Index tend to have better economic growth unless their per capita consumption is not reduced.

As a nation, we just observed a Good Governance Day on 25th December, by making people also accountable to follow their duties which is one of the key determinants to a nation's progress. Though the calculation of the growth of economy has been reflected positive, yet it depends which year have been taken as a base year for comparison. The economic growth and economic value added through informal sector/unorganised sector during crisis is less likely in the growth calculation and there is a constant decline in the Happiness Index in India. In spite of economic progress as has been reflected, the rate of consumption has declined in our country as growing economies, due to population, improper circulation of money and majorly the pandemic nulled the ecstasy of people. With all these imbalances, we are far behind in achieving sustainable to create balance in the development.

Among the BRICS Nations- India ranks at the lowest mark in Happiness Score.

Source: WHR 2021

Happiness is an elusive and inherently complex. The World Happiness Report utilised GDP, social support, healthy life expectancy, freedom to make life choices, generosity (donations) and perceptions of corruption to rank happiness across countries.

Robust regression analysis of happiness scores and its determinants

Introduction to Robust Estimation and Testing.

San Diego, CA: Acad Press; 2005.

The impact of decline in happiness is seen in the significant increase in the number of suicides. and increase in the sadness and fear of the people. With the increase in the number of suicides of farm workers, women and then students it is daunting to comprehend the Happiness Index.

As one of the fastest growing economies, and heading towards 2022, we as a nation have to frame our strategy to improve our score by creating focus on many intangible things.

Following are some optimum points to watch for to integrate in the strategy to improve ranking:

• Circulation of money in the economy

• Awareness of gender equality for social wellness and economic growth in remote areas

• Reformation in the education system to give due emphasis on values which will further increase the positivity and integrity and reduce the corruption.

• Following an ultimate aim of politics to be well-being

• Reducing unorganized sector of the economy and increasing their consumption, further enhancing GDP and HNI.

• Creating balance in the economy by encouraging cerebral equality will increase the HNI.

• Measuring emotional well-being of people at organizational level to improve facets of governance.

• Emotional well-being to be measured and reflected in CSR of the organisations.

Even as per the Economic Advisory Council, the GDP is moving at a higher growth trajectory and has been in a similar trend, still for the last 75 years of independence our country has been a developing country and not counted among the developed countries. The Constitution of Bhutan adopted Happiness Index as a tool for their economic governance. The creation of wealth is a major determinant for HNI (high networth individual), yet paradoxically and interestingly when we achieve the level of economic well-being, the wellness and happiness is seen diminishing. So, even when the fastest-growing economy is not making people happy, then the strategy needs a revision for sustainable growth and long-term impact. Having Social Progress Index as one of the major variables, we must emphasise on India Index of Well Being parallelly to reap and be closer to the SDG of UN.

Where the entire world is witnessing the change in its order and the way deflation is reflected in our country, we are stepping in a new calendar year of 2022. As a strategist, my recommendations and my vision go to understand the nuances of HNI and integrate it as one of major variable to make India No.1 Country of Choice to live in the world.

(The writer is an award-winning executive coach, and IIM- L Alumni- Strategic Management, Indian Achiever Award Winner 2020-2021)