Seth Mydans from Thimphu, the capital of Bhutan, in the New York Times:

Tigers Nest (Taktsang) monastery in Bhutan
If the rest of the world cannot get it right in these unhappy times, this tiny Buddhist kingdom high in the Himalayan mountains says it is working on an answer.
“Greed, insatiable human greed,” said Prime Minister Jigme Thinley of Bhutan, describing what he sees as the cause of today’s economic catastrophe in the world beyond the snow-topped mountains. “What we need is change,” he said in the whitewashed fortress where he works. “We need to think gross national happiness.”
The notion of gross national happiness was the inspiration of the former king, Jigme Singye Wangchuck, in the 1970s as an alternative to the gross national product. Now, the Bhutanese are refining the country’s guiding philosophy into what they see as a new political science, and it has ripened into government policy just when the world may need it, said Kinley Dorji, secretary of information and communications. More:
From Associated Press (via IHT):

Thimphu, Bhutan: The command came from the king, as commands normally do in a nation where royalty has ruled for a century. But when the Precious Ruler of the Dragon People spoke that day, he stunned this deeply isolated corner of the Himalayas: The age of monarchs is ending, he said, and power should be yours.
That was a little over two years ago. Now, on the eve of national elections Monday that will upend a system rooted in feudal monarchism, much of the country remains unconvinced there should even be a vote.
Just ask the candidates. “If you had a referendum, even today, Bhutan would reject democracy. That’s the ground reality,” said Khandu Wangchuk, the burly, gravel-voiced former foreign minister who is running for a seat in the western town of Paro. “But there’s no use wishing democracy away.”
What most people want is what they’ve always had: a powerful king.
[Photo: Bhutan's King and the Crown Prince]
More:
Smile census: Bhutan counts its blessings
In The Wall Street Journal, Peter Wonacott reports from Thimphu:

GNH (Gross National Happiness) is about to face a series of big tests. On Monday, Bhutan will hold its first democratic election. That will install a parliament, pass a new constitution and dilute the powers of a popular monarch. Later this year, Bhutan plans to join the World Trade Organization, even though its industry comprises little more than high-end tourism and hydroelectric power.
As Bhutan enters these uncharted political and economic waters, its leaders want to prove that they can achieve economic growth while maintaining good governance, protecting the environment and preserving an ancient culture. To do that, they’ve decided to start calculating GNH. It means coming up with an actual happiness index that can be tracked over time.
[Photo: The Punakha dzong, one of Bhutan's most beautiful buildings]
More:
Happiness is a fine goal, but for one in four people who live below the poverty line, bread and butter issues might be more important writes Tashi P Wangdi in Kuensel
National Happiness (GNH) isn’t everyone’s cup of tea – especially those who have to think twice about where the sugar or milk is going to come from. And that is what distinguishes rhetoric from reality. Conceptually speaking, GNH is perhaps the highest goal that any nation can aspire for. Yet, when one person out of every four exists, or persists, below the poverty line, it remains a lofty goal. One that is delegated to the realm of literate thinkers and those who will finance anything that is out of the ordinary.
more