What makes a Nation Happy? Canada case-study

How do we become happy? It's a question that has been asked since the dawn of time and attempted to be answered by philosophers, gurus, psychologists, and scientists. Since the 1960s, happiness research has been conducted in a wide variety of scientific disciplines, including gerontology, social psychology and positive psychology, clinical and medical research, and happiness economics. More recently – by the United Nations through their World Happiness Report (WHR). Its a landmark survey of the state of global happiness that ranks 156 countries by how happy their citizens perceive themselves to be. The report looks at six key variables to come to a happiness score: income, freedom, trust in government, healthy life expectancy, social support from family and friends, and generosity.

In the World Happiness Report for the year 2020, Nordic countries – Finland, Denmark, Norway, Sweden, and Iceland, consistently are the top performers along with noticeable other performers including European countries - Switzerland, the Netherlands,  United Kingdom, Germany, North American countries - Canada, and the United States, and Isreal, New Zeeland, and Australia they all make it to the top 20 Happiest countries in the world. Participants imagined their current position on a ladder with steps numbered from 0 to 10, where the top represents the best possible and the bottom the worst possible life for themselves. 

Reading and trying to understand the World Happiness Report has been a nostalgic, introspective, and self-revealing experience for me, and will be for many of you who picked the path of striving hard, competing, learning and traversing from an under/developing country/society to a developed country/society in search of opportunities to explore self-actualization, 'better quality of life', and happiness. Before settling in Canada I lived and worked on three different continents starting with the most populous and fast developing economy, India. 

Canada's consistent top rank in World Happiness Report doesn't surprise me as Canada stands out for me because of its: adoption of multiculturalism, diversity and inclusiveness, stable democratic political system, trustworthy and reliable government services, reliable public health-care system, its world-class education system (OECD's PISA assessment), liberal labor policies, strong family values, polite and humble approach, 10th largest economy and employment opportunities in the rapidly growing tech sector, extremely safe country - Canada regularly ranks among the top 10 safest nations in the world with strict gun control laws, an extremely beautiful country blessed with an abundance of lakes, forests, wildlife, and natural resources leading to the excellent quality of life (check my blog: amazing facts about Canada) 

Like many other immigrants to Canada/US from other developing countries, I would consider myself lucky to be born amongst small privileged middle-class in India; where my parents, our extended family, and their generation paved the path for our success. Being educated themselves, they migrated to cities from rural villages for better opportunities, worked hard, and sacrificed their own needs to make ends meet, bring food to the table, giving family safe-healthy abode, and excellent education. Just like the other citizens of the developing countries, they were content with meeting the basic necessities of food, shelter, health care, education, child protection, and also giving back to the society they came from, and that was their definition of happiness. 

With this background, let me attempt to discuss and explore: What makes a society-nation happy? and how it can be measured? Economic growth and improvement in the standard of living is an essential factor for a nation to grow, however, does it bring happiness? How Canada consistently made it to the top-ranking countries in the World Happiness Report?

Evolving understanding and perception of Happiness

Our understanding or perception of happiness keeps on evolving over time starting with fulfilling our basic needs, to further needs of - safety, love, belongingness, esteem, and self-actualization(Abraham Maslow's well-known theory of "hierarchy of needs"), the pattern through which human motivations generally move). In his later years, Abraham Maslow explored a further dimension of motivation "Transcendence" by this later theory, one finds the fullest realization in giving oneself to something beyond oneself—for example, in altruism or spirituality.  

Gross national happiness (GNH) is a measure of economic and moral progress that the country of Bhutan introduced in the 1970s as an alternative to gross domestic product. The "four pillars" of GNH are good governance, sustainable development, preservation and promotion of culture, and  environmental conservation (Reference: https://www.investopedia.com/terms/g/gnh.asp)

Standard of Living vs. Quality of Life

Another interesting aspect that we need to understand is - Standard of Living vs. Quality of Life

As per Investopedia, the Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area. One measure of standard of living is the Human Development Index (HDI), developed by the United Nations in 1990

Quality of life, on the other hand, is a more subjective and intangible term, Quality of life can simply mean happiness. As per Wikipedia and science daily: The term quality of life (QOL) references the general well-being of individuals and societies. "Expectations of an individual or society for a good life, guided by the values, goals, and socio-cultural context in which an individual lives". 

Indicators of QOL: wealth, employment, built environment, physical and mental health, education, recreation and leisure time, and social belonging.

Quality of life indicators (excerpts from a blog on economicshelp.org)

GDP and Distribution of Income in society – GDP is a guide to national output and influences the level of consumption. Higher GDP enables a country to alleviate levels of absolute poverty. It's also important to understand how income is distributed. Some countries have high GDP per capita, but some people still live in poverty. (e.g.India's top 1% bag 73% of the country's wealth generated, says Oxfam report ). 

Employment / Unemployment. Unemployment is one of the main economic causes of poor life changes. Also, quality of employment, e.g. widespread part-time/temporary contracts, formal/informal may suggest underemployment in the economy.

Life Expectancy. Dependent on health care standards, environmental factors, and cultural factors

Education Standards. One simple measure is the rate of literacy in an economy. For example, Sri Lanka has a higher rate of literacy than Saudi Arabia, despite a lower GDP per capita.

Housing. The standard and quality of housing and related amenities. Also, include the rate of homelessness.

Air Pollution, Levels of Congestion and Transport, and Environmental Standards The quality of air can influence the quality of life and also health issues. Congestion can lead to time lost sitting in traffic jams as well as being frustrated. The quality and quantity of ‘green spaces’ where people can escape pressures of cities is a critical need, e.g. Massachusetts Institute of Technology launched their Treepedia project in collaboration with the World Economic Forum. They measured the percentage of land covered by trees in cities across the world. Three cities in Canada made it to the top: Toronto, Montreal, and Vancouver. And this fact contrasts Toronto being the 4th largest city in North America and is the largest contributor to the Canadian economy, at 20% of national GDP, and an important economic hub of the world, (commercial, distribution, a financial and industrial center)

Wildlife Diversity. The protection of wildlife and areas of natural beauty are important. 

Access to clean drinking water. Basic necessity is often taken for granted in the West, but, is a big issue in the developing world. Just 10 countries account for 60% of the world population without access to clean water: India 19.33%, Ethiopia 7.1%, Nigeria 7.05%, China 6.82%, DRC 5.55%, Indonesia 3.20%, Tanzania 3.16%, Uganda 2.82%, Pakistan 2.56%, and Kenya 2.27% (Source:  https://www.downtoearth.org.in/news/water/19-of-world-s-people-without-access-to-clean-water-live-in-india-60011)

Climate. With critical signs of Global Warming, this has become a very critical factor. Climate can make some areas inhospitable leading to defensive spending, e.g. spending on air-conditioning or heating. Global Warming could tip the ecological balance in countries with fragile eco-balance.

Social Investment vs Present Consumption. A country with high military spending may have lower living standards than a country that invests heavily in public transport, education, and healthcare.

Generosity Research has shown generosity is an important source of happiness. Giving money to others is more prevalent in richer countries, in part because there is more available to share. 

Another important indicator of Quality of Life that significantly appeals to most of the citizens of developing nations: having a politically stable, trustworthy, noncorrupt government and its administrative services. 

On top of this, how society is meritocratic and promotes creativity, innovation, and appreciates authenticity also brings happiness to its citizens.

How to measure Happiness?

World Happiness Report primarily uses data from the Gallup World Poll, and the rankings are based on answers to the main life evaluation question asked in the poll. This is called the Cantril ladder: it asks respondents to think of a ladder, with the best possible life for them being a 10, and the worst possible life being a 0. They are then asked to rate their own current lives on that 0 to 10 scale.

Image: illustration created by Ambar Adhav

The first World Happiness Report was released on April 1, 2012. From 2013 until today, every time the World Happiness Report (WHR) has published its annual ranking of countries, the five Nordic countries – Finland, Denmark, Norway, Sweden, and Iceland – have all been in the top ten. In its conclusive remarks, WHR states - "The Nordic countries are characterized by a virtuous cycle in which various key institutional and cultural indicators of good society feed into each other including well-functioning democracy, generous and effective social welfare benefits, low levels of crime and corruption, and satisfied citizens who feel free and trust each other and governmental institutions. A quick glance at the other countries regularly found at the top of international comparisons of life satisfaction – Switzerland, the Netherlands, New Zealand, Canada, Australia, and the United States – reveals that they also have most of the same elements in place. So there seems is rather a more general recipe for creating highly satisfied citizens: Ensure that state institutions are of high quality, non-corrupt, able to deliver what they promise, and generous in taking care of citizens in various adversities."

All the top countries in World Happiness Report tend to have high values for all six of the key variables that have been found to support well-being: income, healthy life expectancy, social support, freedom, trust, and generosity.  

Complementing the considerations covered in the World Happiness Report, here are some of the key reasons in my opinion for Canada's consistent top ranking in the World Happiness Report 

Multiculturalism in Canada

Ministry of Immigration, Refugees, and Citizenship (IRC) declared that: "In 1971, Canada was the first country in the world to adopt multiculturalism as an official policy." This statement likely refers to the 8 October 1971 announcement of Prime Minister Pierre Elliott Trudeau of the Liberal Party of Canada (father of Canada's current Prime Minister Justin Trudeau) in the House of Commons of Canada that, after much deliberation, the policies of bilingualism and multiculturalism would be implemented in Canada. In 1982, multiculturalism was recognized by section 27 of the Canadian Charter of Rights and Freedoms. The Canadian Multiculturalism Act was then enacted by Prime Minister Brian Mulroney, and ever since it’s been a key part of the Canadian identity. as per the 2018 StatsCan data, all together, 22.3% of the Canadian population identifies as a visible minority and 21.9% as foreign-born.

Canada is also known for its ‘mosaic’ approach to multiculturalism, where people from all cultures live in harmony, while also maintaining their cultural heritage and religious practices. This stands in contrast to ‘melting pot’ cultures where immigrants are expected to blend in and assimilate to the norms of their new home. Canada’s urban centers such as Toronto, Montreal, and Vancouver are particularly diverse, and home to many ethnic neighborhoods. In Toronto, which is regularly referred to as ‘the most multicultural city in the world,’ more than half of the population identifies as a visible minority.

Inclusion and respect for diversity in Canada 

As published on the Government of Canada's website: Canada actively promotes inclusion and respect for diversity at home and abroad. Diversity is a natural characteristic of every society. Canada recognizes diversity as a source of strength and works to champion inclusive attitudes and encourage the adoption of inclusive approaches that lead to the full and meaningful participation of all.

Inclusion is a path to peace and prosperity: Practical strategies to address complex global challenges require the consideration of social, economic, cultural, and civic inclusion. Excluding members of society from full participation due to prejudice, discrimination or other barriers causes everyone to suffer. Inclusive societies that take full advantage of their diversity are more innovative, creative, dynamic, resilient, and prosperous.

Canadian public health-care system

Healthcare in Canada is delivered through the provincial and territorial systems of publicly funded health care, informally called Medicare. It is guided by the provisions of the Canada Health Act of 1984 and is universal. To Canadians, the notion that access to health care should be based on need, not ability to pay, is a defining national value. Canadian Medicare provides coverage for approximately 70 percent of Canadians' healthcare needs, and the remaining 30 percent is paid for through the private sector. The 30 percent typically relates to services not covered or only partially covered by Medicare, such as prescription drugs, dentistry, and optometry. 

Thanks to the reliable healthcare programs available to everyone in the country, Canada has one of the world’s highest life expectancy rates at just below 82 years. That places Canada’s life expectancy at 18th in the world.

Canada’s world-class education system

Good education and skills are important requisites for finding a job. Canada is a top-performing country in terms of the quality of its educational system. In the world education ranking from Organization for Economic Co-operation and Development (OECD), a major study of 72 countries, Canada ranked sixth overall, in the latest results from the OECD's PISA assessment, a survey conducted every three years that measures how 15-year-old high school students fare in reading, science, and mathematics. 

Canada has an exceptional free public schooling system for all children in Canada up to the completion of high school. Canada spends more on education per capita than any other industrialized nation in the world and has been named the most educated country in the world. Canada’s K-12 public education system is regarded as one of the best in the world.  

Canada has a range of world-class universities and colleges, with a web of other post-secondary schools that give students professional as well as technical training. Canada is home to some of the world’s top universities, with McGill University, the University of Toronto, McMaster University, and the University of British Columbia ranking among the world’s top 100 institutions. In some provinces, the cost of University tuition is fully or partially covered for low-income students.

According to Statistics Canada, 54% of Canadians 25-64 have a post-secondary degree, and an additional 10.8% have completed an apprenticeship or a trades certificate. 

Canada's progressive labor policies

Canada is a progressive country with many policies in place to protect workers. It’s the only country in North America with mandated vacation leave, with 2 guaranteed weeks of paid vacation for all employees, in addition to 6 to 10 statutory holidays, depending on the province. Canadians are also guaranteed access to a variety of monetary protections including Employment Insurance (EI), old age security, the Canadian Pension Plan (CPP), and a federal childcare benefit.

The minimum wage in Canada is also one of the highest in the world, though it ranges from $11 to $14 depending on your province of residence. Canada’s maternity and parental leave policies are also progressive. Canadian workers are permitted to take up to 18 months of parental leave, with the mother and father able to share the leave however they choose.

Canada is extremely safe 

Canada regularly ranks among the top 10 safest nations in the world on various polls and indexes. According to the Global Peace Index, Canada was ranked the 6th most peaceful nation in the world. The index weighs a variety of factors including homicide rates, militarization, political stability, diplomatic relations, ongoing conflicts, incarceration rates, and terrorism impact, among others. Canada is well known for its strong gun control and relatively peaceful approach to foreign diplomacy. 

Canada's stable democratic political system

The politics of Canada function within a framework of parliamentary democracy and a federal system of parliamentary government with strong democratic traditions. Canada is a constitutional monarchy, in which the monarch is head of state. In practice, the executive powers are directed by the Cabinet, a committee of ministers of the Crown responsible to the elected House of Commons of Canada and chosen and headed by the Prime Minister of Canada.

Canada is described as a "full democracy"(Wikipedia defines: Full democracies are nations where civil liberties and fundamental political freedoms are not only respected but also reinforced by a political culture conducive to the thriving of democratic principles.), with a tradition of liberalism, and an egalitarian, moderate political ideology. Far-right and far-left politics have never been a prominent force in Canadian society. Peace, order, and good government, alongside an implied bill of rights, are founding principles of the Canadian government. An emphasis on social justice has been a distinguishing element of Canada's political culture. Canada has placed emphasis on equality and inclusiveness for all its people.

Canadians also have faith in and respect for the political system and government bodies. Though scandals break occasionally, they tend to be fairly mild and there’s little in the way of widespread corruption, fraud, or government distrust. Canada’s political campaigns are also short and inexpensive for taxpayers compared to other democratic nations. Even at a national level, political campaigns rarely last more than a few months.

Canada is a beautiful place to live

Canada has some epic scenery to enjoy. From BC’s mountains to PEI’s coastal views, to Montreal’s historic buildings there’s no shortage of places to visit and things to see in Canada. National parks were very close to the top of the list of things Canadians love about this country. The country boasts hundreds of nationally protected parks, reserves, historical sites, millions of lakes, and hiking trails. From world-renowned parks like Banff and Jasper in Alberta to Cape Breton in Nova Scotia, to Georgian Bay in Ontario, there’s no shortage of natural wonders to enjoy from coast to coast. Speaking of coasts, Canada also has more coastline than any other country in the world(check my blog: amazing facts about Canada) 

Canada has the 10th largest economy

Canada punches above its weight when it comes to the world economy. Canada has the 10th largest economy, with an output of Canada Nominal GDP: $1.73 trillion - Canada GDP (PPP): $1.84 trillion or $48,100 USD per capita. Though Canada is well-known for its wealth of natural resources, Canada’s economy is actually heavily service-oriented, with 78.9% of Canadians working in a service-related job, according to Statistics Canada. 

Canada's fastest-growing Technology sector: here are some excerpts from the Government of Canada's Canadian ICT Sector Profile 2019: There are over 43,200 companies in the Canadian Information and Communications Technologies (ICT) sector. The large majority (over 39,000) fall within the software and computer services industries. The ICT sector makes a substantial contribution to Canada’s GDP. In 2019, the sector’s GDP was $94.1 billion and accounted for 4.8% of the national GDP. For years Canada’s banks have been ranked the world’s most stable according to the World Economic Forum. Canada hasn’t had a bank failure since 1983. 

In spite of its stellar performance in the quality of life and the World Happiness Report, Income inequality in Canada has increased over the past 20 years. The concentration of income among the super-rich is happening in many countries, including Canada. Income inequality is the extent to which income is distributed unevenly in a country. It is an important indicator of equity in an economy and has implications for other social outcomes such as crime and life satisfaction.

Canada gets a “C” grade in income inequality and ranks 12th out of 17 peer countries among the wealthiest in the world. Many of Canada’s peers have also experienced rising income inequality, including not only the U.K., the U.S., and Germany, but even the Nordic countries of Denmark, Finland, Norway, and Sweden

Personal income taxes and government transfers (such as social assistance, unemployment insurance, old age security, and child benefits) play an important role in reducing income inequality. Relative to its peers, Canada’s tax and transfer system does reduce inequality but only by 27 percent—the Canadian Gini coefficient falls from 0.441 to 0.324.

References & Sources

https://worldhappiness.report 

https://worldhappiness.report/ed/2020/the-nordic-exceptionalism-what-explains-why-the-nordic-countries-are-constantly-among-the-happiest-in-the-world/ 

https://en.wikipedia.org/wiki/Happiness

https://news.gallup.com/poll/122453/understanding-gallup-uses-cantril-scale.aspx

https://www.investopedia.com/articles/financial-theory/08/standard-of-living-quality-of-life.asp

https://www.sciencedaily.com/terms/quality_of_life.htm

https://en.wikipedia.org/wiki/Quality_of_life

https://www.economicshelp.org/blog/2445/economics/quality-of-life-indicators/

https://www.downtoearth.org.in/news/water/19-of-world-s-people-without-access-to-clean-water-live-in-india-60011

https://www.smh.com.au/opinion/the-six-things-that-make-for-a-happy-nation-20170324-gv5t8j.html

https://www.randstad.ca/job-seeker/career-resources/working-in-canada/11-reasons-canadas-an-awesome-place-for-new-immigrants/

https://en.wikipedia.org/wiki/Multiculturalism_in_Canada

https://www.international.gc.ca/world-monde/issues_development-enjeux_developpement/human_rights-droits_homme/inclusion_respect.aspx?lang=eng

https://www.ic.gc.ca/eic/site/ict-tic.nsf/eng/h_it07229.html

https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(18)30181-8/fulltext

https://en.wikipedia.org/wiki/Healthcare_in_Canada

https://en.wikipedia.org/wiki/Politics_of_Canada#:~:text=Canada%20is%20considered%20by%20most,nation%20more%20populous%20than%20itself

https://worldpopulationreview.com/country-rankings/safest-countries-in-the-world

http://www.oecdbetterlifeindex.org/countries/canada/

https://www.conferenceboard.ca/hcp/Details/society/income-inequality.aspx