THE small Himalayan kingdom of Bhutan is known for assessing its progress not by conventional economic indexes but by a much more quirky philosophy: Gross National Happiness. As the country yesterday celebrated the coronation of its new king, the outpouring of goodwill towards him suggested the measure has surged in the past few days.

Tens of thousands of people in national dress crammed into the country's only stadium in the capital Thimphu to celebrate the ascension to the throne of Jigme Khesar Namgyel Wangchuck, Bhutan's 5th Druk Gyalpo, or Dragon King. Many more waited outside in the hope of seeing the dashing 28-year-old monarch, who was crowned in a Buddhist ceremony on Thursday.

Fifa Philbphang, a 29-year old accountant, lined up with her two children to join the public festivities. "We all like him so much, we just want to see him now," she said.

"He is a very good man and he understands the people."

The king's father, Jigme Singye Wangchuck, decreed that Gross National Happiness would be Bhutan's "development philosophy" more than 20 years ago and the Government has recently attempted to incorporate this concept more fully into its policy formation.

Earlier this year the country's Planning Commission was renamed the Gross National Happiness Commission to audit progress. The head of the new commission, Karma Tshiteem, completed an MBA in Australia.

A Government-backed think tank has been developing a GNH-index based on extensive public surveys. Bhutan's newly elected Prime Minister, Jigmi Thinley, said his Government was determined to integrate national happiness into all policymaking.

"Every time we are developing a program or a policy we ask ourselves whether our intentions will enhance the happiness of our people, and if so how," he said. "For those of us who are responsible for policymaking, the concept of gross national happiness is never far from our mind."