The Limitations of GDP and the Need for Change
For decades, the Gross Domestic Product (GDP) has been the universal metric to determine if a country is “doing well” or “doing poorly.” However, according to Federico Llamas, founder of the University of the Environment (UMA), this indicator has become insufficient to explain true societal progress. GDP only measures economic movement, without distinguishing whether this movement improves people’s lives or harms the environment.
Llamas, in an interview with El Economista, recalls that Simon Kuznets, the creator of GDP, warned Congress that it should not be used to measure well-being. Despite this, the world adopted GDP as an economic compass. Today, Llamas argues that environmental degradation, inequality, and global crises show that the economy cannot continue growing disconnected from ecological and social reality.
The Doughnut Economy: Prospering Without Exceeding Planetary Limits
In response to this exhaustion of the current model, the Doughnut Economy, proposed by British economist Kate Raworth, emerges. This approach asserts that development should ensure a minimum of social well-being (health, education, housing, equality) without surpassing the ecological limits that sustain life on Earth.
The inner circle of the “doughnut” represents basic human rights; the outer, planetary boundaries such as climate, water, biodiversity, soils, or nitrogen cycles. The safe and just zone for humanity lies between them.
Llamas values this model because it combines environmental science with social justice. It’s not merely about “growing greenly,” but designing regenerative economies capable of restoring ecosystems and ensuring dignified lives. “Our well-being depends on planetary health; it’s not about saving the planet, but saving ourselves,” he asserts.
The Role of Companies in This Transition
Although sustainability discourse often focuses on governments and citizens, Llamas insists that companies must also play a central role. Many already apply standards like ESG (environmental, social, and governance), ISO, or the Sustainable Development Goals. However, he considers this merely a first step.
The Doughnut Economy, he says, allows for more: it helps companies evaluate how their activities impact planetary limits and contribute to social well-being. Instead of focusing solely on CO2 emissions, this model enables analyzing natural resources used by each industry, water consumption, land alteration, community health effects, and job creation.
“It’s a more comprehensive and scientific framework that obligates decision-making with a long-term vision,” he explains. “Not to stifle innovation, but to redirect it.”
Mexico’s Path to 2030 and COP30: From Rhetoric to Policy Design
With COP30 just around the corner and five years until the closing of the UN’s 2030 Agenda, Llamas poses a question for Mexico: not if it should change but how. To meet climate and social commitments, Mexico needs more than political will; it requires metrics, science, and institutional capacity.
Among the urgent transformations he mentions are resuming the transition to renewable energy, strengthening environmental research institutions, ensuring ecological law compliance, and protecting territory defenders. He also proposes measuring social well-being not just in terms of economic transfers or GDP growth but considering factors like health, water access, biodiversity, community participation, and social cohesion.
Leadership Attempts at This New Economy
From UMA, projects have emerged to materialize this new economy. According to the institute, 92% of its graduates work in socioenvironmental topics, and more than half founded their own ventures.
Examples include developing internationally-recognized organic fertilizers, creating circular economy laws, or utilizing industrial waste for construction. Others work within large corporations like Bimbo, IKEA, or PepsiCo, driving change through corporate management.
These cases, Llamas says, demonstrate that sustainability isn’t just activism; it’s also innovation, business models, and public policy.
A New Economic Compass is Possible
Llamas doesn’t propose eliminating GDP but suggests moving beyond its exclusive reliance. He argues that the future requires multiple metrics: environmental, social, and economic, capable of reflecting human life’s complexity.
“Neither economic growth nor CO2 alone tell us if we’re better. We need to measure well-being and planetary health simultaneously,” he summarizes.
Rethinking development within planetary limits involves a narrative and priority shift. It’s no longer about growing at any cost but questioning what kind of growth is worth sustaining. As Llamas puts it, “We don’t need a bigger economy; we need a fairer and more alive one.”
UMAFest 2025
During the conversation, Llamas hinted that on November 8-9, the University of the Environment will open its doors for UMAFest, an annual gathering exploring ideas and solutions to rethink how we live, produce, and interact with nature.
It’s not just an academic event but a space for co-creating real alternatives: from well-being economies and regenerative agriculture to systemic investment, sponge cities, and circular economy models.
Participating organizations include BCorp, CoSystemic, SVX, New Ventures, ECOCE, ARARE, Tierra de Monte, Synergy, Wellbeing Alliance, and La Vaca Independiente, actively transforming the economic and corporate system through a regenerative logic.
Alongside panels and workshops, the event features forest walks, music, local food, and communal spaces for living the discussed theories in practice: communities cohabiting territories without breaking their limits.
