Why Do Indians Experience Less Happiness Than Pakistanis? (Article)

This study explores the enigma of happiness inequality between India and Pakistan, despite India’s economic prowess. Employing inequality regression models, the study pinpoints crucial factors contributing to happiness inequality between the two countries, including age, gender, education, and geopolitical considerations. The explained effect dominates, emphasising the impact of measurable factors, yet the unexplained effect hints at elusive influences. Findings emphasise the need for comprehensive policies addressing both tangible and intangible aspects to foster comprehensive well-being in both nations.

1.    INTRODUCTION

In recent decades, India has made remarkable progress in terms of its national income and economic growth, despite facing occasional interruptions, particularly due to the COVID-19 pandemic. These advancements have also extended to India’s impressive strides in overall socio-economic development. However, it is disheartening to observe that these improvements have not correspondingly elevated the overall happiness of its people. The latest reports on global happiness reveal a perplexing trend: India’s happiness ranking is notably lower than that of its neighbouring rival, Pakistan, even though India has outperformed Pakistan in various aspects. India’s journey towards economic prosperity and societal advancement has been exceptional. Yet, it is essential to recognise that the backdrop to this story of growth includes a long-standing rivalry between India and Pakistan, which has manifested in various confrontations. These nations treat each other as ‘traditional rivals’ and engage in political, sports, and military competitions. Notably, the ceasefire treaty over the region of ‘Kashmir’ is frequently violated by Pakistan, resulting in casualties on both sides. India has consistently emphasised that meaningful dialogue can only occur if cross-border terrorism by Pakistan is addressed. This intense rivalry also extends to cricket matches, creating an atmosphere of nail-biting anticipation among both players and viewers. Interestingly, India has consistently outperformed Pakistan in cricket. It’s a rivalry that captures the competitive spirit that exists between these two nations.

Economically, India has managed to surpass Pakistan in significant ways. India has become the world’s fifth-largest economy, outperforming the United Kingdom. The Indian government has maintained stability, while Pakistan has experienced political upheavals and uncertainties. India has remained free from any involvement in global terror strikes, while Pakistan’s alleged support for terror groups has drawn international scrutiny. The sheer difference in economic prowess is evident when considering GDP figures; India’s GDP is nearly ten times that of Pakistan. According to World Bank estimates, India’s GDP in 2019 stood at $2.875 trillion, while Pakistan’s was $278.22 billion. India has also excelled in the ‘Ease of Doing Business’ report, ranking 63rd, while Pakistan’s ranking plummeted to 108th. Various socio-economic indicators further illustrate the disparities between India and Pakistan. India has exhibited a higher literacy rate, superior road infrastructure, and a lower CPI inflation rate compared to Pakistan. In terms of the Global Terrorism Index 2020, Pakistan ranks 7th, while India is positioned at 8th place. However, in some other crucial social aspects directly affecting people, such as income inequality measured by the Gini coefficient, Pakistan fares better with a lower score of 33.5 compared to India’s 37.8. Additionally, in areas like income distribution, gender equality, and youth unemployment rates, Pakistan has achieved more favourable scores than India.

Despite India’s remarkable achievements in various domains, one intriguing question remains: why does India seem to fall behind Pakistan in terms of happiness levels? This puzzling issue forms the basis of our research, which aims to investigate the levels of happiness in both countries and analyse how various factors, such as demographic features, income, social disparities, and social support systems, influence happiness. The choice of India and Pakistan for this study is justified by several factors. Firstly, both nations share a common historical and cultural heritage, yet they have taken divergent development paths since gaining independence, offering a unique comparative perspective. Secondly, despite India’s economic progress and its superior performance in various socio-economic indicators, there exists a significant gap in happiness levels between the two countries, making them an intriguing case for study. Additionally, the longstanding rivalry between India and Pakistan, manifested in political, military, and sports competitions, is closely observed by governments, politicians, and ordinary people in India, as well as across the world. Therefore, the comparison between India and Pakistan provides a rich opportunity to explore how different socio-economic and geopolitical factors interact to influence happiness levels between India and Pakistan. This study contributes to the existing literature on happiness by examining the paradox of India’s rapid economic growth and lower happiness ranking compared to Pakistan, despite India’s superior socio-economic indicators. By using a comparative framework, it highlights how material and non-material factors impact well-being by examining new insights into happiness studies across different cultural and developmental contexts.

2.    REVIEW OF LITERATURE

The relationship between income and happiness has been a central question in economic research for several decades, yet a definitive answer remains elusive. Conventional wisdom suggests that an increase in income should directly correlate with higher levels of happiness and improved quality of life. However, the “Easterlin paradox” (Easterlin, 1974) challenges this straightforward assumption by showing that beyond a certain point, increases in income do not necessarily translate into increased happiness. According to this paradox, while income and material well-being are crucial components of happiness, their influence diminishes over time as individuals adapt to higher income levels. The relative income theory further complicates this relationship by positing that happiness is often determined not just by an individual’s own income but by how it compares to the income of those around them (Easterlin, 1995). More recent studies, however, such as those by Stevenson & Wolfers (2008) and Deaton (2008), have identified a modest positive link between income and happiness, thereby questioning the long-term persistence of the Easterlin paradox. This ongoing debate underlines the income-happiness relationship, suggesting that income is an important but not sufficient determinant of happiness.

In addition to income, a variety of socio-economic and demographic factors play significant roles in shaping happiness. Research highlights unemployment as a major detractor from life satisfaction, as job loss not only reduces income but also brings social and psychological repercussions, such as stigma and loss of identity (Clark & Oswald, 1994). The impact of unemployment is shown to vary by gender, with men typically experiencing a sharper decline in happiness during periods of unemployment compared to women (Hori & Kamo, 2018). Another critical factor is the level of trust individuals have in institutions and their fellow citizens. Trust fosters social stability and security, contributing positively to well-being (Helliwell, et al.  2014), while religious participation can also enhance happiness by providing individuals with a sense of purpose and community, particularly in more collectivist cultures (Zhang & Chen, 2019). Furthermore, personal freedom, particularly the ability to make life choices and participate in democratic processes, is strongly linked to happiness, as shown by Frey & Stutzer (2002). This evidence indicates that non-material factors, such as freedom, trust, and social integration, are as influential as income in determining overall happiness.

Another dimension of happiness research involves the role of social capital, education, and income inequality. Studies by Bjornskov (2008) and Becchetti, et al. (2012) emphasise the importance of strong social networks and community ties in moderating the effects of income insecurity on happiness, suggesting that people with robust social support systems often maintain higher levels of life satisfaction regardless of their income. Education also contributes positively to happiness, as it fosters personal development and cognitive skills (Nikolaev & Rusakov, 2016), though its effect is mediated by how well it translates into employment opportunities. Conversely, income inequality is consistently linked with lower happiness levels, as large income disparities tend to undermine social trust, heighten feelings of injustice, and generate societal tensions (Oshio & Kobayashi, 2010; Schneider, 2012). These findings suggest that while wealth accumulation can improve well-being, the distribution of income within a society is equally critical. High levels of inequality erode social cohesion, leading to widespread dissatisfaction even in prosperous nations. Thus, the literature demonstrates that income, while significant, must be considered alongside socio-economic factors like employment, education, and inequality to fully understand the determinants of happiness. Our paper adds to this body of literature by exploring the paradox of India’s rapid economic growth and lower happiness ranking compared to Pakistan, despite India’s superior socio-economic indicators. It provides a unique comparative perspective by examining how both material and non-material factors influence happiness across these two neighbouring nations