Two economists from the study warn at CaixaForum that GDP growth does not improve the well-being of residents in the Balearics. They criticise the low-cost model and call for a change of direction.
The Fènix Report landed in Palma this Tuesday with a message that questions one of the main economic consensuses of recent decades: that growth is always synonymous with prosperity. Before a packed CaixaForum at an event organised by the Obra Cultural Balear (OCB), two of the economists involved in the preparation of the study, Guillem López Casasnovas and Miquel Puig, argued that the Balearics is one of the clearest examples of an economic model that increases its activity and population without this translating into an equivalent improvement in the well-being of its residents.
A diagnosis that comes from Catalunya
The event was opened by the moderator and doctor in Economics from UIB, Jaume Garau, who defined the Fènix Report as a study that confirms the deterioration of the Catalan economy, analyses the causes of this evolution, and calls for "urgent and forceful" actions from both economic agents and public administrations. Garau also highlighted the impact the document has had since its publication and emphasised that the time has come to bring this debate to the Balearics, alongside seven "reliable and serious" economists who signed the work.
The first to speak was Guillem López Casasnovas, who traced the origin of the report to a shared concern among a group of entrepreneurs who were beginning to perceive that economic growth was not enhancing the added value of the economy. "Growth does not equal prosperity", he summarised, before questioning whether economic success can continue to be measured solely through the increase in GDP. In his view, the true indicator is GDP per capita, as it reflects the wealth corresponding to each inhabitant and not simply the volume of activity.
Balearics loses ground in income per inhabitant
López Casasnovas argued that the data shows how the Balearics has lost relative positions in income per inhabitant over the last few decades, despite the strong increase in production and employment. In this sense, he criticised that GDP and employment growth are simultaneously presented as successes, considering that both variables, when advancing at the same pace, indicate a loss of productivity. "It is an anti-nonsense report", he stated, calling for a debate based on well-being indicators and not solely on aggregated growth figures.
The economist insisted that the document does not criticise tourism or immigration, but rather a model that favours the expansion of low-productivity sectors sustained, he argued, by various forms of public support. He also warned that offering salaries close to 1,700 euros per month creates false expectations among many immigrants, who then find enormous difficulties in accessing housing. For López Casasnovas, the future lies in abandoning the low-cost tourism model and moving towards an offer with greater added value.
Seven ideas to rethink the model
The second intervention was by Miquel Puig, who structured his presentation around seven ideas to transfer the main conclusions of the report, originally focused on Catalunya, to the Balearic case. The first was to distinguish between GDP growth and GDP per capita growth. "One thing is the size of the pie and another how much each person gets", he summarised, before recalling that the Balearics has celebrated a "sensational" economic growth over the last 25 years, although this increase has barely translated into greater wealth per inhabitant. "You can have phenomenal success in GDP growth and that leads to nothing", he stated, maintaining that the next step is to debate what type of growth is desired.
Puig noted that the Fènix Report proposes a change of focus: to stop measuring success by the volume of activity and start doing so by well-being indicators such as job quality, access to housing, or environmental sustainability. In this regard, the economist called for "a calm and data-driven debate" that allows Balearic society to decide whether it wants to continue on the same path or opt for a different model. The event concluded with a question-and-answer session in which attendees, mostly professionals from the tourism sector and academics, showed notable interest in the report's proposals.
For the average citizen, the economists' message is clear: the current tourism model generates employment and activity, but does not guarantee a real improvement in quality of life. The question that remains on the table is whether the Balearics is willing to halt growth to prioritise well-being. The debate, at least, has already begun.
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