Buttressed by the philosophy of Gross National Happiness (GNH), Bhutan’s development policies are inherently grounded in balancing material and spiritual well-being, while Bhutan’s capital city, Thimphu, has over the past few decades experienced phenomenal growth and urban transformation. This article builds on the notion of socio-spatial dialectic to examine the new forms of social ordering in the urban space of Thimphu. Critiquing the idealisation of Thimphu as a dream city for all, it endorses instead the development of regional growth centres and small towns. This underlines the potential of stimulating regional economic development, as a better strategy for inclusive growth and actualisation of Bhutan’s philosophy of GNH.
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