In the 1960s, the Royal Government of Bhutan began developing its modern educational system. Over time, a strategic plan was formulated to meet Education for All and Millennium Development Goals. In 2003, the Royal University of Bhutan, the country's first university, opened its doors. This paper uses comparative analysis to describe and explore the impact on the development of The Royal University of Bhutan of the national consciousness termed "Gross National Happiness". It is proposed that the university is likely to become a catalyst for development, and an influential representative of and for a cultural identity. Will it become an elite institution? Will the institution offer formal degrees for all who qualify? It is suggested that the issues considered in Bhutan may be of significance for other new universities attempting to establish themselves in the developing world.