Abstract
There are dramatic differences in average happiness across nations ranging from 3.24 in Togo to 8.00 in Denmark on a 0–10 points scale. These differences are an indication that collective conditions in nations are important for happiness. Can governments play a role in the creation of such conditions? This question is addressed in an analysis of average happiness in 131 nations in 2006. The following sub-questions are considered. (1) Is there a positive correlation between average happiness in nations and the quality or the size of governments? (2) Can we explain a positive correlation in terms of causality? (3) Can we specify causality by discerning direct and indirect effects? (4) What about governments and inequality in happiness? (5) What can governments do to increase happiness intentionally? The conclusion is that the technical quality of governments is an important cause for average happiness in nations, and this causality can be specified to some extent. Good governments also reduce inequality of happiness in nations eventually. The implication is that governments can increase average happiness, and in due time reduce inequality in happiness, and that they have some non-controversial options to do so on purpose.
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Notes
- 1.
One typical Dutch example: a civil servant is fired, even though everybody agrees he is an excellent worker. He wants to continue his work and there is a serious shortage of staff. He is fired because of his age. This is prohibited by law, but it was impossible nevertheless to redress this decision, made by the Dutch Ministry of Justice!
- 2.
In Bentham's view such pleasures and pains are more than just simple positive or negative emotions. In chapter three of 'The principles of Morals and Legislation', 'of the four Sanctions or Sources of Pain and Pleasure', he discerns four origins of pleasures and pain: the physical, the political, the moral, and the religious. This is an indication that such emotions can derive from complex cognitive states of mind.
- 3.
For a discussion see 'Governance Indicators: Where Are We, Where Should We Be Going?' by Daniel Kaufmann and Aart Kraay (Kaufmann et al. 2008).
- 4.
The World Bank transforms this information into scores for each of the six sub-indicators with a mean of 0 and a standard deviation of 1 in the original sample of 212 nations and regions (standardized z-scores, approximately between −2.5 and +2.5; indicating relative positions in a specific year, in my sample in 2006).
- 5.
A zero-order correlation is the correlation between two variables 'as such', without taking into account the effect of any other variable(s). A partial correlation measures the correlation between two variables with the effects of one (or more) variable(s), interaction effects included, controlled or removed.
- 6.
A linear function explains 56 % of the variance (R squared) in average happiness, a quadratic function 57 %.
- 7.
Data about the quality of governments are considered as 'external' and are not explained. We may speculate however that the principle of the separation of three independent powers for legislation, administration and jurisdiction; provide for an explanation. This principle of the 'Trias Politica' was introduced by Montesquieu in 1748 before the American and French revolution. Since then this principle has had a positive impact on nation building and institutionalization in western nations. It has contributed directly to regulatory quality and rule of law, and, more indirectly, to political stability and control of corruption. In most other nations in the world the struggle against repression by some social class, or a colonial power, has been an alternative driver for nation building and institutionalization. In many nations this has eventually led to the formation of one political party with a very dominant position. In such nations the separation of powers is obviously problematic. Many nations are still in such situations, or in their aftermath.
- 8.
As a consequence (of this multicollinearity) it is not fruitful to apply more sophisticated statistical tests like path-analysis.
- 9.
A linear function explains 3 % of the variance (R squared) in the inequality of happiness, a quadratic function 21 %.
- 10.
Three more specific but interesting 'down-to-earth' options to improve the technical quality are:
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a.
the registration of property rights, in particular for real estate, i.e. have a land registry. As has been demonstrated by De Soto (2000) this is an important condition for economic development
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b.
to register people, i.e. set up registrar's offices, as a necessary condition to organise adequate public education and health services.
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c.
to develop and implement general principles of good governance, to achieve decent and respectful relations between government institutions and citizens. This is really important because people can get very angry and upset by unfair government-decisions. Well-known examples of such principles are: carefulness and accuracy of decisions, respecting all interests, accounting for decisions, fair-play and equality (equal situations are treated equally), respect for reasonable expectations, no 'détournement de pouvoir' (powers have to be used in accordance with their legal background), proportionality (no disproportional consequences for citizens, relative to public interests).
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a.
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Appendix: Additional Information About Variables Related to Social-Economic Living Conditions
Appendix: Additional Information About Variables Related to Social-Economic Living Conditions
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1.
Wealth. Purchasing power parity per capita (in 2007-international dollars) (HDI 2006; UNDHP, HDR 2008).
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Gender Equality as measured by the Gender Development Index (GDI 2007; UNDHP, HDR 2009).
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The expected life-time at birth is used here as an indicator for objective safety and health, because there is no adequate alternative information available (HDI 2006; UNDHP, HDR 2008).
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Gross School-Enrolment Ratio: % of population in primary, secondary and tertiary education (HDI 2006; UNDHP, HDR 2008).
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Economic freedom. The freedom to make economic decisions; average score of five aspects of economic freedom as measured by the Fraser Institute: size of governments, legal structure and security of property rights, access to sound money, freedom to trade internationally, regulation of credit, labor and business (Economic Freedom of the World, Fraser Institute 2006).
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Unemployment (% unemployed of labor force (CIA, The World Fact Book 2009, most data collected in the years 2002–2009)).
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Income-equality. The Gini-index of the family-income distribution (CIA, The World Fact Book, 2009, most data collected in the years 2002–2009).
The measurement of the last two variables, unemployment and income-inequality, is complicated. In many nations there are extensive informal sectors, and it is difficult to collect economic-data for such sectors. On top of that there are substantial differences in the definitions of unemployment and income.
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Ott, J. (2013). Greater Happiness for a Greater Number: Some Non-controversial Options for Governments. In: Delle Fave, A. (eds) The Exploration of Happiness. Happiness Studies Book Series. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-5702-8_17
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