Microfinance in the Improvement of Living Standard and GNH

This paper mainly aims to extend the philosophy of capability development at the micro level for achieving individual happiness as a part of a community through social transformation and to achieve happiness at individual and community level. One of the main indicators for Gross National Happiness is living standard, and this paper will examine briefly the role of microfinance in India, Bhutan, Bangladesh, Nepal, and Pakistan in transforming the lives and social behaviour of the poor people of this part of the world. This paper will try to establish the strong linkage between microfinance and capability building through the process of social transformation by improvement of living standard for arriving at Gross National Happiness.