The “Limits to Growth” study (and book) from 1972 projected that business-as-usual would lead to declining production and consumption by the middle of the 21st century, when the global economy runs into limits caused by excessive resource use and pollution. Despite the massive backlash and critical responses from growth-obsessed economists, business tycoons, and politicians that sought to bury the study, Gaya Herrington (now Vice President of Sustainability Research at Schneider Electric) decided to see how the results of the Limits to Growth model were tracking with real data over the 50 years since its publication. Her analysis, conducted as a graduate research project, went viral when she demonstrated that real-world events and data are indeed aligning with the model’s predictions in the business-as-usual scenario.
In this video interview conducted by environmental journalist Rachel Donald, Gaya discusses how the global economy has reached an inflection point. We can either embrace deep systemic change and overhaul economic policy to accept limits and pursue wellbeing, or we can continue down the path of continuous economic growth which is leading to collapse. The idea is to achieve sustainable scale by design, instead of by disaster. Gaya also explores the role of businesses, including multinational corporations, in reaching a social tipping point that can encourage economic right-sizing.
Here is a preview of the interview:
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