What is the Doughnut Economy?
The term "doughnut economy" was popularized by British economist Kate Raworth in her 2017 book "Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist." The doughnut model represents a new way of thinking about economics that seeks to balance the needs of people and the planet within the constraints of a finite world. It offers a visual framework for reimagining the goals and principles of economic development.
The doughnut model consists of two main rings:
1. The Inner Ring (The Social Foundation): This inner ring represents the minimum standards of well-being that every person should have access to. These social foundation elements include basic needs like food, clean water, sanitation, healthcare, education, gender equality, social equity, and more. The goal is to ensure that no one falls below this social foundation.
2. The Outer Ring (The Ecological Ceiling): The outer ring represents the ecological limits of the planet. It defines the boundaries within which humanity should operate to avoid irreversible damage to the environment. These boundaries encompass critical ecological factors such as climate change, biodiversity loss, air and water pollution, and land use.
The goal of the doughnut economy is to find the "sweet spot" between these two rings, where human well-being is balanced with environmental sustainability. This area between the inner and outer rings is often referred to as the "safe and just space for humanity."
Key principles of the doughnut economy include:
1. Thriving within Planetary Boundaries: Ensuring that economic activities do not exceed the ecological limits of the Earth, thereby preventing environmental degradation and climate change.
2. Meeting Social Foundations: Ensuring that everyone has access to the basic necessities of life, promoting social justice, and reducing inequality.
3. Regenerative and Distributive Economics: Promoting economic systems that are regenerative, meaning they restore and sustain the environment, and distributive, meaning they share wealth and resources more equitably.
4. Reimagining Growth: Questioning the traditional pursuit of endless economic growth and instead focusing on the quality of life, well-being, and sustainability.
5. Circular and Local Economies: Encouraging the transition to circular economies that minimize waste and promote recycling, as well as supporting local production and consumption to reduce resource-intensive global supply chains.
The doughnut model has gained traction among policymakers, economists, and activists as a framework for envisioning a more sustainable and equitable economic system. It encourages a shift away from a narrow focus on GDP growth and toward a holistic approach that considers the well-being of both people and the planet. This rethinking of economics aims to address pressing global challenges, including poverty, inequality, climate change, and biodiversity loss, while promoting a more balanced and sustainable future.
Implementing these strategies and actions will vary from country to country and depend on specific circumstances and challenges. Governments may need to adapt and customize their approaches to meet the unique needs of their populations and environments. Collaboration with civil society, businesses, and international organizations can also be essential in achieving the goals of the Doughnut Economy.
The term "doughnut economy" was popularized by British economist Kate Raworth in her 2017 book "Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist." The doughnut model represents a new way of thinking about economics that seeks to balance the needs of people and the planet within the constraints of a finite world. It offers a visual framework for reimagining the goals and principles of economic development.
The doughnut model has gained traction among policymakers, economists, and activists as a framework for envisioning a more sustainable and equitable economic system. It encourages a shift away from a narrow focus on GDP growth and toward a holistic approach that considers the well-being of both people and the planet. This rethinking of economics aims to address pressing global challenges, including poverty, inequality, climate change, and biodiversity loss, while promoting a more balanced and sustainable future.
Meeting the criteria of the Doughnut Economy requires governments to adopt a holistic and sustainable approach to economic policymaking. Here are several strategies and actions that governments can take to align their policies with the principles of the Doughnut Economy:
1. **Integrate the Doughnut Model into Policy Frameworks:**
- Governments can formally incorporate the doughnut model into their economic and development strategies, making it a guiding framework for policymaking.
2. **Set Clear Goals and Targets:**
- Establish specific and measurable targets for social foundation elements, such as access to clean water, education, healthcare, and gender equality, to ensure that basic needs are met for all citizens.
3. **Environmental Stewardship:**
- Implement policies to reduce carbon emissions and minimize environmental degradation to stay within the ecological boundaries defined by the outer ring of the doughnut. This may include transitioning to renewable energy, protecting biodiversity, and regulating pollution.
4. **Redistribute Wealth and Income:**
- Implement progressive taxation policies and social safety nets to reduce income inequality and ensure that wealth and resources are more equitably distributed.
5. **Localize Economies:**
- Encourage local production and consumption to reduce resource-intensive global supply chains and support local communities.
6. **Circular Economy Practices:**
- Promote circular economy practices that minimize waste and emphasize recycling, reuse, and responsible consumption.
7. **Invest in Education and Healthcare:**
- Prioritize investments in education and healthcare to improve human capital and well-being, which are essential components of the social foundation.
8. **Support Sustainable Agriculture:**
- Promote sustainable agricultural practices that conserve soil, reduce pesticide use, and protect ecosystems.
9. **Inclusive Decision-Making:**
- Foster inclusive and participatory decision-making processes that involve citizens and stakeholders in shaping economic policies.
10. **Green Infrastructure and Technology:**
- Invest in green infrastructure projects and support research and development of sustainable technologies to reduce environmental impacts.
11. **Reimagine Growth Metrics:**
- Shift away from relying solely on GDP as a measure of economic success and consider alternative indicators that account for well-being, environmental sustainability, and social equity.
12. **Regulate Business Practices:**
- Implement regulations and incentives that encourage businesses to adopt sustainable and responsible practices, including environmental and social impact assessments.
13. **International Collaboration:**
- Engage in international cooperation to address global challenges like climate change, biodiversity loss, and trade imbalances, recognizing that these issues transcend national borders.
14. **Transparency and Accountability:**
- Establish mechanisms for transparency, accountability, and monitoring progress toward doughnut goals to ensure that policies are effectively implemented.
15. **Education and Advocacy:**
- Educate the public about the principles of the Doughnut Economy and engage in advocacy efforts to build support for these policies and initiatives.
Implementing these strategies and actions will vary from country to country and depend on specific circumstances and challenges. Governments may need to adapt and customize their approaches to meet the unique needs of their populations and environments. Collaboration with civil society, businesses, and international organizations can also be essential in achieving the goals of the Doughnut Economy.