Doughnut Economics: Baking Solutions for Today's World [impactChronicles ?? #3]

In Review: Doughnut Economics

Author: Kate Raworth

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Kate Raworth's "Doughnut Economics" is not just a book; it's a radical rethinking of economic principles, goals, and measures of success. At its core, The Doughnut Model is an economic framework that aims to balance human well-being with planetary boundaries. It questions the idea that economies must always grow and instead looks for a balance where people and Earth can thrive together. It advocates for sustainable and equitable development that ensures all people have access to essential resources without exceeding the planet's ecological thresholds.

Before we go further, let's take a moment to watch a TED talk where Kate Raworth presents her compelling arguments for Doughnut Economics.

Exploring the Doughnut Model

The doughnut metaphor is compelling in its simplicity and depth. The outer ring represents Earth's ecological ceilings, safeguarding climate, oceans, air, and biodiversity. The inner ring stands for the social foundation, below which lies poverty and deprivation. The space in between—the sweet spot—symbolizes the safe and just space for humanity.

The model is depicted as a doughnut to symbolize the optimal zone between two critical boundaries: the ecological ceiling and the social foundation. The outer boundary, the ecological ceiling, comprises planetary boundaries that we must not exceed to avoid catastrophic environmental degradation. These include climate change, biodiversity loss, air pollution, and ocean acidification, among others. The inner boundary, the social foundation, represents the minimum standards of living that every human being should have access to, such as food, water, health, education, equality, and political voice.

The space between these two boundaries—the doughnut itself—represents a safe and just space for humanity, where everyone's basic needs are met without compromising the planet's health. This innovative model challenges traditional economic models focused on GDP growth at all costs, advocating for an economy that is regenerative and distributive by design.

Raworth argues that the current economic system, with its emphasis on endless growth, is inherently unsustainable and inequitable. It fails to address the finite nature of our planet's resources and the need for equitable distribution among all people. The Doughnut model, by contrast, suggests that economic activity should aim to replenish rather than deplete the earth's resources while ensuring that no one is left behind in poverty.

Raworth's Call to Action

"Doughnut Economics" is a call to action for policymakers, businesses, and individuals alike. Raworth outlines 7 ways to think like a 21st-century economist, from changing our perspective on what the economy is and what it is for, to creating economies that are regenerative and distributive by design.

Let's explore these 7 ways below (courtesy: Doughnut Economics Action Lab (DEAL) ):

1. Change the Goal (from GDP to the Doughnut): Move from GDP growth to holistic well-being.

2. Tell a New Story (from self-contained market to embedded economy): Understand economies as part of the global ecosystem.

3. Nurture Human Nature (from rational economic man to social adaptable humans): Recognize cooperative and caring aspects of humanity.

4. Get Savvy with Systems (from mechanical equilibrium to dynamic complexity): Embrace complexity and interconnections.

5. Design to Distribute (from ‘growth will even it up again’ to distributive by design): Ensure wealth and opportunities are fairly shared.

6. Create to Regenerate (from ‘growth will clean it up again’ to regenerative by design): Promote economies that restore and rejuvenate nature.

7. Be Agnostic about Growth (from growth addicted to growth agnostic): Focus on development without depending on economic growth.

The Practical Applications and Challenges

While Raworth's model is visionary, the book does not shy away from discussing its practical applications and the challenges in implementing such a transformative economic framework. Implementing the Doughnut model poses significant challenges, as it requires systemic changes across global, national, and local levels. It challenges deeply entrenched economic interests and calls for a cultural shift in how we value progress and success. However, the model also offers a hopeful and realistic vision for the future, providing a roadmap for achieving a sustainable and equitable world.

The Doughnut model is not just a theoretical concept but is being applied and tested in various contexts around the world. Cities like Amsterdam and regions like Catalonia have adopted the Doughnut as a framework for public policy and planning, experimenting with ways to operationalize its principles in real-world scenarios. These examples demonstrate the model's potential to inspire change and provide practical solutions to some of the most pressing challenges of our time.

Conclusion: Envisioning a Doughnut-Shaped Future

Exploring the Doughnut model is an exploration of possibility, a call to envision and create an economy that respects our planet's limits while fulfilling the needs of all its inhabitants. It's about recognizing the interconnectedness of our environmental and social systems and taking bold steps to safeguard the well-being of future generations. Through this lens, we can begin to reimagine and rebuild our world, ensuring that it is resilient, sustainable, and just for everyone.

The Role of ImpactChronicles and impactDash

For impactChronicles and impactDash, "Doughnut Economics" offers a blueprint for rethinking how we measure and manage social and climate impact. The book's principles align with the mission of creating impactful change by providing a holistic framework for assessing organizational and societal progress.

Incorporating the doughnut model into impact assessment tools can help organizations understand their environmental footprint and social impact in a nuanced way. It challenges businesses and governments to not only minimize harm but actively contribute to environmental regeneration and social well-being.

Resources

1. Doughnut Economics Action Lab (DEAL) : Explore a wealth of resources including communities, tools, stories, and more on the Doughnut Economics Action Lab's website.

2. Doughnut Economics Action Lab (DEAL) on YouTube

About impactChronicles ??

impactChronicles is an article series by impactDash, designed to ignite curiosity and deepen understanding about creating impactful change. This series dives into books and other literary content that have shaped the landscape of impact assessment and sustainable development. Each article will not only explore the key ideas of these influential works but also connect them to current trends and practices in the field. Perfect for professionals and enthusiasts, this series promises to be a thought-provoking exploration of literature that has driven the conversation around impactful change.