Global Development and Happiness: How Can Data on Subjective Well-Being Inform Development Theory and Practice?

While research on subjective well-being (SWB) has recently attracted much attention in richer nations, its potential in a development context remains underexploited. This paper, therefore, considers conventional development theory through an SWB lens. The Human Development approach with its three key elements of material conditions, health and education is re-assessed by examining to what extent these factors actually matter for people's life satisfaction in different nations. Using data from the World Values Survey for 100 000 people from 70 nations, considerable heterogeneity is identified and a new country ranking in the form of an SWB-adjusted Human Development Index, or 'Happy Development Index', is devised.