Doughnut Economics
Doughnut Economics, coined by economist Kate Raworth, presents a novel and holistic framework for redefining the goals of economics to ensure sustainability and social justice. The central concept is depicted graphically as a doughnut, representing a safe and just space for humanity within planetary boundaries.
At the core of the doughnut lies the "social foundation," which outlines the essential needs that every person should have fulfilled, such as access to food, clean water, education, and healthcare. The outer crust of the doughnut represents the "ecological ceiling," signifying the planetary boundaries beyond which human activities risk causing irreversible environmental damage, such as climate change, biodiversity loss, and pollution.
The key insight of Doughnut Economics is to navigate the space between the social foundation and the ecological ceiling, striking a balance that ensures both social well-being and environmental sustainability. Traditional economic models often focus solely on GDP growth without considering the social and environmental consequences. In contrast, Doughnut Economics advocates for an economy that meets the needs of all within the means of the planet.
To achieve this balance, Doughnut Economics proposes seven essential principles:
Change the Goal: Shift the focus from endless GDP growth to meeting the needs of all within planetary boundaries.
See the Big Picture: Embrace a holistic perspective that integrates social, economic, and environmental factors.
Nurture Human Nature: Acknowledge and incorporate insights from psychology and behavioral economics to better understand human behavior and motivation.
Get Savvy with Systems: Recognize the interconnectedness of economic, social, and environmental systems, and design policies that address these complexities.
Design to Distribute: Prioritize fair distribution of wealth and resources to reduce inequality.
Create to Regenerate: Promote regenerative practices that restore and enhance the health of ecosystems.
Be Agnostic About Growth: Rethink the obsession with endless growth and explore alternative models that prioritize well-being and sustainability.
Doughnut Economics encourages a paradigm shift in how we measure progress and success. By incorporating social and environmental dimensions into economic decision-making, it offers a comprehensive approach to creating an economy that serves both people and the planet, fostering a more sustainable and just future.
